Several seniors carry their debt into their retirement. Besides thinking that it is all about spending more than earning, there are a plethora of reasons that can cause it. Here are some warning signs that indicate a debt problem.
- The debt balance keeps on growing as you use it to carry on with your life needs.
- You are thinking about using your RRSP to pay for the debt you own.
- You are relying on some line of credit to pay for things like rent, bills, and mortgages.
All these are the warning signs that indicate that you are going through a debt problem. There are several steps that creditors can take to collect the debt from you. The first thing is collection calls which can be quite stressful. Seniors commonly suffer from medical conditions, and these calls can easily add stress and aggravate the condition. Moreover, the missed payment will lead to a bad credit score which can further make it difficult to apply for a new credit application and you have to pay higher interest rates in the future.
Mostly, the creditors cannot garnish the pension of seniors, but once the pension is credited to the user’s account and the user owes a debt to the bank, then the bank can lock seize the payment credited in the account to pay the remaining loan or debt.
Here are some things that you can do when you are struggling with a debt problem.
Points to Ponder
The vital part is to join forces with a regulated debt professional who can give you the available options that will include the following ones.
Well, if you have no assets under your hold and the only source of income, then you can opt to do nothing. Your income cannot be garnished by the creditors besides few exceptions. So, if you don’t have any problem with the collection calls, then this option is a good choice.
Plot a payment plan
Take help from your credit counselors with debt settlement Surrey services. The counselors can devise a plan where you can pay everything back that you over a period of time. They might be able to stop the interest charges and remove the added stress.
Look for government debt relief programs
The last resort is to apply for government relief or debt negotiations Surrey programs. You can choose a consumer proposal or file for bankruptcy according to your status. Your trustee will advise you through the options. However, not all seniors should go bankruptcy.
If you have some funds aside for your retirement in RIF, RRSP, or any other pension plan, then do not drain it to make debt payments recklessly. Plan with your trustee before using it for your debt settlement.
If you are looking for debt consolidation Surrey services, then you can go with Debtconsolidationbc. The in-house team will plan and plot a strategy that will suit your status and provide professional consulting services to help you get over your debt problem.