What are Money Problems? Facing monetary problems is something that is familiar to all of us. Who, amongst us, has not felt the pinch of money problems sometime or other? It is not an insurmountable problem. With careful budgeting and exercising self-control in sticking to the budget, they can be faced and solved. There are many of number of agencies available to help people address their monetary problems and find a solution.

One can approach a money manager or a debt consolidation agency or a credit counselling agency, etc. One of the best ways to solve your money problems would be to cut up all credit cards, stop accumulating more debts, and plan a budget to pay off all outstanding debts and just stick to it. One has to strictly follow the budget to get out of the debt trap and the resultant money problems.

The best way of preparing a budget on your own is to set out on paper, your consolidated monthly income and all your expenses, inclusive of eating out, entertainment, etc. Then you will have a clear picture of where and how you are spending more than your budget allows. In really bad cases of debts piled up, one can make a consumer proposal to get rid of money problems. It is a better option that filing for bankruptcy. Under Canadian law, unlike a bankruptcy where your monthly payment changes with your income, once a consumer proposal is made and accepted by the creditors, the terms cannot be changed.

So you will know how much you have to pay every month and once the debt is cleared it will not reflect in your credit history after 3 years, while a bankruptcy will stay on your credit record for several more years, affecting your credit score. Or alternately one can go for a debt consolidation loan where instead of paying individual creditors and missing some of the payments, you can go for a loan, consolidating all debts under one umbrella.

Your debt counselor will bargain with all the creditors and talk them into accepting a lower monthly payment, with reduced interest. This way you will be addressing your money problems and paying only one payment every month. One of the greatest advantages of the consumer proposal and the debt consolidation loan is the fixed monthly repayments.

Even if your income improves, the creditors cannot force you to pay out more every month as they have already agreed to a fixed amount. Then your debts are cleared, slow but steady. But one has to remember that debt consolidation or consumer proposal stays on your credit history for at least 3 years from the date of the last transaction, affecting your credit score. So it is always better to try and keep your debts from reaching the stage where debt management people have to become involved. We should at least try and educate our children to learn from our example and to start saving smartly from the time they start earning. This would be one life lesson that will keep them from having to face money problems. What are Money Problems?

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