Facing a Mountain of Debt? Let Us Help You Figure Out Which Debts to Start Paying Off First
Our licensed insolvency trustees in Ottawa and the Eastern Ontario Region can help you figure out which debts to prioritize and pay off first.
Many Canadians are facing a mountain of debt that can certainly be overwhelming. But while it is certainly important to pay all of them down as soon as possible, there is reason to pay off some amounts before others based on a variance in interest rates and priorities. Speaking with a financial expert, such as a licensed insolvency trustee, can over significant debt help in Ottawa to guide you through this difficult time.
Evaluate your bills and credit cards
Rather than skipping payments altogether, paying at least the minimum amounts every time you receive a bill will put you in a better position in terms of your credit and debt. Missing payments will negatively impact your credit and also make it more difficult to obtain loans or additional credit cards in the future. A financial advisor, such as a licensed insolvency trustee like D. & A. MacLeod, can offer debt help in Ottawa to guide you through such important decisions.
High interest credit cards, quite naturally, are necessary to pay off as quickly as possible to avoid the amount of money you owe accumulating significantly over time. Every time you are late or miss payments altogether, you end up costing yourself money you essentially never even spent. It is important to be mindful of interest rates for this reason, as they can add up quickly.
Do you owe any institutions or the government?
The most important debt to pay off is what you owe to the federal or provincial government, although you can make minimum payments in this case, as well, up until the money owed is completely covered. Two more good notes are that interest costs on federal or provincial debt may be included as a tax credit to the Canadian Revenue Agency, and the amortization periods may extend as many as 15 years.
Student loans from the government are also tax deductible, and paying small amounts over time – at least the minimum payments – will make loans easier for you to afford. Although the interest will accumulate, individuals can write it off with their taxes and get some of it refunded. Consult with a licensed insolvency trustee like D. & A. MacLeod for debt help in Ottawa for an entirely thorough explanation of your options.
Individuals who earn only a small income are able to transfer what they have not used over the next five years maximum. You cannot receive the tax credit, however, if you have a debt consolidation loan from a credit union or bank that includes this government student loan. Student loans you receive through a bank or private lender are also not eligible for tax credits.
Juggling Various Payments and Creditors? Contact D. & A. MacLeod Ltd to Get Your Financial Future Back on Track
Naturally, the more debt you can pay off over the shortest amount of time will help you better manage the various payments you still owe to your various creditors. It is beneficial to speak with a licensed insolvency trustee from the team at D. & A. MacLeod about the possible debt solutions available. With over 65 years of experience, our professionals can offer free initial consultations for debt help and debt solutions, such as credit counselling and budgeting, to guide you through financial trouble.
Find a D. & A. MacLeod location nearest to you in Ontario. From Ottawa to Cornwall, we are here to help you find a new beginning ™.