You are at the point where you realize that debt is becoming a problem. Whether it’s missed monthly payments, using one credit card or line of credit to make a payment on another, or not having enough money at the end of every month, unmanageable debt can cause stress and uncertainty. Realizing that it’s time to deal with your debt is a big first step. The next step is to find solutions for resolving your debt. We can help you with that.
When it comes to dealing with debt, there are several debt relief options that could work for you. Some of these are solutions you can work on yourself, while others require you to speak with a debt help professional. You can always request a call from BDO and one of our licensed experts will sit down with you and take the time to explain every solution available to you to deal with your debt. You’ll then know the best option for your situation and gain some peace of mind from knowing what you need to do.
Tracking your spending and expenses takes time, and might seem like a lot of effort. But in order to manage your debt, you’ll need to get a good sense of your financial situation. A good place to start is by making a monthly budget, if you don’t already have one. By tracking all your monthly income, your mandatory expenses as well as any additional spending on items like restaurants and gifts, you’ll have a good idea of how much you spend each month. You’ll also be able to see where your money is going, which can help identify areas where you can cut back in order to save money and pay down debt.
Paying down debt can sometimes feel like you’re on a hamster wheel, spinning around in circles. By using a debt calculator, you’ll have a good idea of how long it will take to pay off your debt. You can enter the amount of debt you owe, the interest rate you pay and your current monthly payment, to find out the total amount you will owe, including interest, and how long it will take to pay off. Try using BDO’s debt calculator today to see how long it will take to pay off your debts after doing some budgeting.
Use the debt options calculator below to now see how the different debt relief options available to you will affect you in terms of the monthly cost and time to pay off your debts. In combination with the basic debt calculator above, you will be on your way to determining what debt solution is right for you.
Many unexpected events, like a job loss or health scare, can cause debt problems. Or perhaps your credit rating or current income prevent you from being able to deal with debt on your own. In some cases, budgeting won’t free up enough money to deal with debt and you might not qualify for debt consolidation. In these cases, speaking to a professional is a good idea. A not-for-profit credit counselor can be a good starting place.
Likewise, seeing a Licensed Insolvency Trustee (LIT) will allow you to have every possible debt solution explained to you. Dealing with your debt often means getting some help, and taking the first step in asking for advice can greatly reduce your stress and help you get back to financial stability.
Not all debts are created equal. Different types of debt require different solutions, and there are a variety of ways you can go about dealing with them. On the following pages, we take a closer look at some specific forms of debt, and explain the options that can help to reduce or eliminate the various forms of debt you owe.