Debt isn’t always bad news, and that might come as a shock to some people. But it is worth pointing out that debt can just be a necessary part of life. There are some purchases that are far too expensive to handle directly, and an example of this would be a home or property. At some point in your life, you might have enough money to buy a home outright. But it won’t be the case at the point when you’re looking to buy your first home. So, borrowing and taking on a certain level of debt is going to be the only possibility available to you.
This is just one example of how there can be different types of debt. So, let’s look at a few of the different debts you might be dealing with and figure out how to handle them effectively.
Looking for the best example of unavoidable debt? That would be a student loan. If you want to go to college, you’re going to have to take out a student loan. Now the good news is that most people have one of these loans hanging over their heads and they aren’t at all dangerous. First, interest on these loans is typically incredibly low, and you won’t even be expected to start paying it off until you reach a certain level of income. That’s probably not going to come from the first job you get once you finish school. So don’t worry too much about this loan. There have even been cases where the government has just written them off. If you’re interested in that possibility, definitely look into becoming a teacher.
Let’s say that you take out a few thousand spend money for a holiday. Now, that might seem like a lot of debt, but it’s not if you used a zero interest credit card. Cards like this won’t cost you money until around two years. At that point, and only at that point will it start costing you more than what you borrowed. So, as long as you weren’t spending too much on the card, you should be able to pay it off no problem.
You might have borrowed money from a loan shark, and yes, they do still exist. Not to worry though because of the laws in your favor here. If they are charging you too much interest on a loan, then they are breaking the law. As such, the entire debt could be canceled, and all you need to do is speak to a legal adviser. Legal reps will always help you go down this route before taking more drastic steps like filing for bankruptcy. That said, this does lead us to the final type of debt.
If you have unmanageable debt, you’re going to need to seek out some form of assistance. You won’t be able to handle it yourself. We’ve already briefly mentioned filing for bankruptcy, and this is one of the possibilities available for you. However, do remember that when you take this route, you can lose everything when clearing your debt and end up back at square one.
When you consider filing for bankruptcy, it is worth also asking deeper questions including “what is a consumer proposal?” as a way of accessing information that might save you from the nuclear option. More than anything though, don’t bury your head in the sand if your debt has gone beyond what you can handle. It may be attractive to just try and tune it out for the moment, and you may even tell yourself that you’ll deal with it “soon”. Resist this desire.
If you think you are dealing with debt that is completely unmanageable, don’t wait. Get help before the situation gets any worse.