Bankruptcy Kitchener Blog

As New Year’s is upon us again, it is time to look into 2010 and make our resolutions. If one of those resolutions is to get your finances in order, then let’s discuss some of the steps you need to take. A couple of major hurdles we have to overcome are; one – our spending habits do not change overnight and two – we are generally limited to the amount of money we bring in.

The first step is to take inventory. To take inventory we have to figure out where you are. You need to make lists of your:
a) debts, and
b) major assets (house, vehicles, investments)

Second, make a realistic personal budget. Making a personal budget can be overwhelming, but is very important. Simplify the budget to calculating what income you receive and where you spend money. Review old bank statements to see where money was spent. For assistance on making a budget, here is additional information.

Third, set goals. Think about what is important to you and your family, and consider where you want to be in the future. It is sometimes easy to be wrapped up in our day-to-day lives and not think about the future. News Years is a good time to reassess and think about the future, by setting your goals.

In order to deal with you debts, you need to understand the inventory of your debt load and assets, the personal budget, and what your goals are. Then you can evaluate the pros and cons of each option in your situation.

Options to deal with debts include:
a) Use your assets – house equity and investments,
b) Consolidation loan with a bank,
c) Credit Counselling/Debt Management Plan through a not-for-profit agency,
d) Consumer Proposal, and
e) Personal Bankruptcy

For a debt option calculator see this link.

If you are in the Kitchener-Waterloo area and want to sit down for a free consultation to discuss your situation and options in greater detail, call me at 310-PLAN or send an e-mail.

No Comments »