How Do I Get Out of Debt? A Guide for Albertans

Alberta’s boom and bust cycle can see many of our Edmonton and Calgary clients follow similar cycles in their personal debt. Here are a few ideas to get out of debt without having to wait for the next boom. We get it, getting out of debt can feel like an impossible task. It feels like there are no options and too many options at the same time, and deciding what’s best for your situation can be overwhelming. Getting out of debt can be as simple as choosing the right option for your situation and sticking with it.

Here are some tips to help you choose the right option for your needs and get started on your way to financial freedom!

The first thing you need to do is take some time and assess your situation. You’ll want to find out how much money you owe, how long it will take for you to pay off your debt based on your current income and obligations, and what kind of interest rate you’re paying on your credit cards and loans. Once you have this information, you’ll be able to make a more informed decision about what kind of debt relief option is right for you.
Figure out what’s causing your debt. Why do you have so much debt? Is it because of a bad habit? A poor decision? Or often, debt is a result of uncontrollable circumstances such as loss of employment, death of a spouse or illness. Take some time to examine the root cause of your debt— this will help you take steps to avoid making those same mistakes again and set yourself up for future success.
The next step is figuring out what debts you need help with. You may choose to retain certain debt, such as a vehicle loan if you are retaining the vehicle or a mortgage if you are retaining the property. Are there certain debts that are more pressing than others? Are you being sued or being threatened with legal action over a debt? Are collection agencies calling you? Are you at risk of repossession of your property? Having a clear understanding of all of your debt is essential to structuring your options.
Once you have determined what debt you have, it is important that you consult with a Licensed Insolvency Trustee who can help you determine what options may work best for your situation. Talking with a professional may introduce other options other than bankruptcy, that you may not have known existed. Licensed Insolvency Trustees help you determine what option will be right for you, and help you develop an action plan.
When choosing which type of debt solution is right for you, consider whether your income will allow you to repay your debts within a reasonable time frame. You’ll also want to think about how much money each option will cost and how much time it will take before the debts are dealt with.

Debt relief can be achieved through a variety of methods. JW Weber & Associates Inc., has the expertise to help you take control of your financial situation and put you back on the road to a fruitful future. To schedule your free consultation, visit www.correctthedebts.com or call 403-836-6690 to speak with our Trustee.