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Some Major Reasons for Debt and Financial Hardship

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No one should have to face major debt alone. It can be both intimidating and humiliating for those who find themselves trying to get their finances under control after experiencing a serious setback. Debt can come in a lot of different forms and understanding these can help you to better prepare yourself for the possibility of dealing with these later on.

Getting the Assistance You Need to Avoid Debt Overload in Edmonton and Central/Northern Alberta

Knowledge is power, and financial knowledge can give you the power to protect yourself against continued indebtedness. Consult with our financial professionals to review with you all available debt resolutions.

Common Reasons for Major Debt & Financial Hardships

Your financial health is something that requires constant vigilance in both your spending habits and your earning potential. These are some of the most common forms of debt in Canada:

  • Losing Your Job/Changing Financial Situation: Whether you or your partner have lost your job or you are experiencing a separation that will change your income, this can be a major financial blow. Savings can only go so far, and this can quickly lead to an excessive build up of debt.
  • University/Student Loan Payments: Graduating from college doesn’t mean that you automatically have a great job. This can leave you in a huge amount of debt with little recourse if you don’t know how to navigate the deferment process.
  • Unexpected Expenses: An accident, illness, or unexpected ‘guests’ returning to live with you can set you back by thousands of dollars.
  • Poor Financial Skills: Some people refuse to save, did not learn the importance of money or simply aren’t taught how to build credit or to responsibly use money. They can end up with a large amount of debt.
  • Living Above Your Means: You cannot afford ‘it’ if you have to use a credit card on which you are already in arrears. Except for a mortgage, pay cash for everything and you will soon learn better budgeting skills.
  • Ignoring Your Savings: It’s recommended that you keep at least 3 months-worth of pay in a separate account specifically marked for emergencies as in the event of job loss. Not doing this can lead to debt very quickly.
  • Counting Your Chickens Before they Hatch: Don’t spend money, take out loans, or lines of credit based on “future money.” This could refer to an inheritance, tax refund, or sale that you intend to make. It’s easy for things to go wrong, and you will be left with the bill you owe without the means to pay for it.
  • Borrowing More than You Need: If you must borrow money, say, for a mortgage, borrow the smallest possible amount. Remember, you’ll be paying it back with interest—and more borrowed money means higher payments.

Contact A.C. Waring & Associates Inc. – Don’t Face Debt Alone

Avoiding indebtedness and debt overload by dealing with your debt is as easy as calling us at A.C. Waring & Associates Inc.
We understand the stress that comes with financial issues, and our team of professionals is here to help. Contact us toll free at 1-800-463-3328 or at 780-424-9944 today and find new hope for your financial problems.
A.C. Waring & Associates Inc.
The Debt Solutions People®

Written by Arthur Waring

Arthur earned his Bachelor of Arts from the University of Western Ontario before earning a Bachelor of Commerce from the University of Windsor. During university, he also participated in a French immersion program in Trois Pistol, Quebec, and has been employed for several national firms over the years.

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