9 Ways to Get back on Your Feet

9 Ways to Get back on Your Feet

Even if you are knee-deep in debt and experiencing financial hardship, there are ways to get back on your feet financially and start your life anew.
1. Plan and Budget
Make a list of all income sources, everyday purchases, outstanding balances, and other expenses to see where your money is going. This will help you to redo your budget if necessary and cut some expenses. Plan ahead and start saving for a rainy day. You may want to reconsider your spending habits as well. If you have compulsive spending habits and tend to splurge, make sure you stick to your revised budget.
2. Avoid Bankruptcy
While bankruptcy is one solution to your financial worries, there are other ways to deal with debt. One option is to contact different lenders and ask whether debt consolidation is an option: https://www.lifeoncredit.ca/getting-out-of-debt-get-a-chance-with-debt-consolidation-loans/
. Other alternatives to bankruptcy include debt restructuring, formal proposal, settlement, and individual voluntary arrangement. If self-money management looks like a challenging task, contact a financial advisor for advice.
3. Reestablish Credit
This is a very important step to ensure that you have access to cheap credit. One way to do this is to apply for a secured or department store credit card and try to pay the balance in full each month. Apply here: https://www.lifeoncredit.ca/top-6-secured-credit-cards-for-canadians/ Obviously, you want to avoid piling debt so make small purchases and timely payments.
4. Pay All Bills
Make sure you pay all bills, including gas, phone, water, and electricity bills on time. Bank fees, overdrafts and bounced checks will also appear on your credit file.
5. Pay Cash
If you use multiple high-interest cards, think of paying cash whenever possible. Maxed out credit cards show on your report and will ruin your credit. Use your debit card instead of your credit card or pay cash when shopping.
6. Look at Your Credit Report
You are entitled to a free report once a year, and it pays to check for omissions and errors that may affect your credit score: https://www.creditandloans.ca/secured-credit-cards-for-canadians/. If you find any errors, report them to have them corrected so that all payments show up as they are.
7. Set Goals
Once you have dealt with debt, it is time to set long- and short-term financial goals. Keep goals realistic, whether it is going on vacation, saving for a car down payment or home improvement, or anything else.
8. Stay away from Scams
There are predatory lenders out there that prey on innocent victims and charge excessive fees and interest. Loan sharks usually pray on the working poor, immigrants, the elderly, and borrowers who are strapped for cash and need money for emergencies. While there are many legitimate and reputable payday lenders avoid loan sharks that use unethical and illegal practices.
9. Your Income
One way to deal with debt and improve your financial situation is to pad your income. You may want to get a well paid job or take on additional work.

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