Canada has a high per-capita income which makes it one of the world’s wealthiest nations. It is however not immune to bankruptcy. Every year, there are people filing for bankruptcy in this country just like anywhere else. The information from these filings is being compiled in the federal Office of the Superintendent of Bankruptcy (OSB). The OSB then sends a bankruptcy list monthly to different credit bureaus.
Because of the many companies that provide bad credit loans in Canada, there are many people with bad credit that take advantage of bad credit loans. Sadly, credit cannot be resolved by more credit and people tend to mismanage their money.
There is still hope for everyone of course and it all starts with determination and education. Yes, there are people that rise through bankruptcy and are able to rebuild their lives. Bankruptcy can give debtors a fresh start. People can take advantage of financial counseling to help them get through tough times and give them a jumpstart in rebuilding their lives.
We need to understand first the purpose of money and how we should use it. Think of money as a tool to help you achieve your intended purposes. We should have a clear definition of the difference between our wants and needs. Know that needs should always be prioritized over our wants.
As we rise up from the pits of bankruptcy, we need to set our goals. It would help a lot if our goals are specific and measurable. Write down your goals and set time frames on when you intend to achieve them. It is also good to have demanding goals from time to time so we can push ourselves. There may be possible barriers but with proper education and the right attitude, we can overcome them.
People get bankrupted because of carelessness, not realizing they are spending beyond their means. To avoid this, be aware of how much your monthly net income is and how much you spend regularly. Writing your expenditures on paper helps you keep track. You’ll be amazed just how much you spend on unnecessary things. Also, forcing yourself to do this can have that psychological impact of not spending at all. As you balance your earnings and expenses, learn to include your goals. Your situation may constantly change so you can also adjust your monthly plan as you review them.
Bankruptcy can last an entire decade on your credit report and that’s something you certainly wouldn’t want. As much as you can, limit or eliminate getting credit altogether.
As you rise from the ashes and learn that you need to do things right this time. Never again use credit if you can pay in cash or maybe you can delay buying until you have the money to purchase it. Be an informed consumer and try to compare prices first to get the best deal for your money. To slowly but steadily build your credit score again, these little things can be done regularly.
Lastly, beware of lenders that prey on bankruptcy filers. They will feed on desperate people and top their loans with high interest rates. Don’t be a victim and negotiate the price.