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Debt Consolidation Ontario
Debt consolidation, debt settlement, debt arbitration, credit repair and all other aspects of a true financial re-structuring strategy require active participation from the consumer.
It is not enough to simply close one's eyes and have blind faith that the initial process with correct all aspects of one's financial shortcomings.
Some credit card debt, high interest loans and merchant accounts can achieve high balances due to unforeseen circumstances such as job loss, economic strife, family emergencies, etc. However, most debt issues are due to lack of financial planning and poor spending habits, whether we wish to admit it to ourselves or not.
Some consumers are fortunate enough to have residential equity and a relatively quick fix is available to re-constitute financial comfort consisting of a mortgage re-financing, debt consolidation and interest rate reduction with our affiliate national team of mortgage brokers. Others may not qualify for such products due to limited equity, lack of home ownership or damaged credit.
Debt Consolidation Ontario has comprehensive solutions for these consumers as well so all hope is not lost and bankruptcy is not inevitable.
In all situations, future budgeting is integral to the success of one's progressive financial standing.
Debt Consolidation Ontario works with our clients to help ensure ongoing success and financial rewards. This process is interactive and will require honest budgeting preparation.
Creating a Budget
This process takes time and honesty with one's self. The more you can accurately determine what you are spending and where it is going, the better you can commit to progressive changes.
The first step is to determine how much money you spent the previous month and where that money went. Do your best to gather a detailed list of all expenses from your bank statements, credit card bills, household bills, mortgage/rent expenses, etc.
Budgeting; Basic Expenses
You need to now separate your basic expenditures which are neccessities such as your mortgage/rent, groceries, utilities, insurance, etc. Be honest with yourself in determining what is "required" and what is "desired". We will look into this list further later in time to help with this determination and suggest further trimming or advice on how to reduce payments/interest rates, etc.
Budgeting; Extra Expenses
You now need to look at all of the other expenses that you are left with after eliminating Basic Expenses. Many consumers are surprised to find out that this can be as high as 30% or more of total expenses. This is the first list that needs to be addressed once the Debt Consolidation Ontario plan is utilized.
Budgeting; Listing Credit Card/Consumer Debts
Prepare a list of all of your current credit card, high interest loans and merchant accounts. List your current balances, monthly payments, available limits and your interest rates in descending order. Debt ConsolidationOntario will address these debts according to interest rate, payment and balance, in that order, and so should the client.
A progressive financial debt solution should not only be focused on debt. Saving money should be a primary concern and you should pay yourself first(it is easier to do once you have reduced your out of pocket monthly expenses to debt repayment). A realistic debt management plan should see 10% of one's after tax earnings being dedicated to a combination of short and long term savings. This will provide for unexpected expenses as well as long term security. This is best accomplished with a fixed amount being withdrawn from your account monthly to a savings vehicle.