TORONTO, Jan. 9, 2013 /CNW/ - For Reporters interested in covering stories around personal finance -including tax planning, credit counselling and debt management - Grant Bazian, President of MNP's Insolvency division and his team have just released their strategies that could help your readers fix their bottom line. For more information or to arrange an interview, MNP has trustees in over 70 offices across the country who can provide commentary on today's hottest issue: How to help Canadians get out of debt and remain that way.
Tips for Dealing with Debt
1. Recognize the signs of financial distress.
The first step in dealing with debt is to recognize the warning signs that you are struggling financially:
- continually going over your spending limit, spending more than your earned wages;
- using credit cards as a necessity;
- living from one payday to the next;
- borrowing money from friends or relatives to make ends meet;
- garnishment of wages for outstanding debts;
- only paying the interest or service charges on monthly bills;
- pressure from creditors or collection agencies;
- utilities and services have been cut off due to unpaid or late payment of bills.
2. Goal setting
The second step is to set goals that help you pay down debt:
- have a large debt-free goal in mind, but break it into smaller goals that are easier and faster to achieve;
- use tracking tools to help you eliminate unnecessary spending, stay motivated and keep on track;
- encourage yourself with a journal or pictures of what you want to do once you're debt-free.
3. Do your homework
There are many resources to assist you with managing your debt. Look into the options first to see what's right for your unique situation:
- credit counselling companies are available and may assist you if you're having troubles making a budget and sticking to it. Note: services may differ from province to province;
- a government licensed Trustee can provide you with personalized advice on debt management and help you determine which strategy is right for you including filing a consumer proposal or declaring bankruptcy;
- beware of services offering quick credit fixes or instant debt removal as some of these are "too good to be true" and may end up costing you more in the long run.
4. Start taking action
- set a budget and stay within it;
- begin paying bills on time - paying bills late incurs additional interest charges and can affect your credit rating;
- eliminate impulse spending and evaluate "want to buy vs. need to buy" items.
Tackling your debt can be tough! Once you've started to manage your debt, build in mini-rewards so you don't feel like all you do is pay bills and never have any fun. Work mini-rewards in to your monthly budget such as going to a coffee shop once per week, or a dinner out once a month to give yourself a bit of a break from feeling debt fatigued.
Find out More
For more information on frequently asked questions about debt and bankruptcy, or to test drive our online Debt Calculator or Budget tracker workbook, visit MNPDebt.ca.
About MNP Ltd.
For more than 50 years, MNP Limited has helped individuals resolve their financial problems by offering life-changing debt solutions tailored to each person's unique situation. With government licensed Trustees located in over 70 offices in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Ontario, MNP Limited offers an unparalleled depth of Canadian consumer and corporate insolvency expertise to those experiencing financial difficulty.
MNP is one of the largest chartered accountancy and business consulting firms in Canada, providing client-focused accounting, taxation and consulting advice. National in scope and local in focus, MNP has proudly served individuals and public and private companies for more than 65 years. Through the development of strong relationships, MNP provides organizations with personalized strategies and a local perspective to help them succeed. For more information, visit www.MNP.ca.
SOURCE: MNP LLP
For further information:
Julie Bannerjea, Director, Media and External Communications
MNP LLP - 416-263-6988 or [email protected] or cell 416-579-3670