How to Avoid Bankruptcy and Be on Top of Your Finances

Bankruptcy is a common reality in many people’s lives in today’s world. This has come as a result of high cost of living in all parts of the world. In this case, Canada has not been spared by the financial crises which are manifesting its self through reduced job opportunities and salaries that hardly make ends meet for daily personal and family expenses. This leads to unpaid bills especially through credit card purchases. You can know whether you are on your way to bankruptcy by monitoring the amount of money you owe to others. The moment you notice that the debts are increasing with time instead of reducing and slowly becoming unmanageable you need to take an action in controlling them. This is a warning sign to bankruptcy. Here are strategies you can put in place to avoid bankruptcy.

The first step is to control the expenditures you make through your credit card in Canada. When using a credit card there is a great likely hood of over spending on it as you can buy goods and pay latter. In this way you increase your debts making the situation more complicated. The best way is to change from a credit card to a prepaid card. You can decide to be feeding your prepaid card with a certain amount of money that you would like to spend within a given period of time. This limits your expenditures and gradually debts as you pay for the purchases as you make them. This also helps you to stick to your budget all the time because when the money in your prepaid card is over you can no longer spend on it. This helps to start taking control of the situation.

When you have the above debt management strategy in place, it is time to consult a debt counseling experts. In Canada, there are several agencies that offer the debt counseling services with the aim of assisting you to handle your debts effectively. You can research online to get the best agency that can offer to you the best guidance and support till when your debts are cleared. Debt counselors are good companions in ensuring that you avoid sliding into bankruptcy. The agency you engage takes the details of the unmanageable debts and consolidating them into one they make it possible for you to get a debt consolidation loan to clear them all under one loan. In addition, they negotiate with your lenders to adjust the rates for your debts. This helps you to pay easily and save money in the process.

The moment the agency takes over the process of debt elimination, it is the best opportunity for you to start a saving scheme. This is possible in Canada as the banks allow you to open a saving account as well as a fixed deposit account. This is a golden opportunity that you can take to save regularly an amount of money each time. This helps to invest in projects through which you can make more money hence becoming financially stable. In this way you avoid future debts that can easily lead to bankruptcy in Canada.