If you have debts that are overwhelming and you can't pay your bills, you're not alone. At any given time, almost everyone reaches the point where their pay cheque is not enough to cover their bills.
You may think that the only way out is bankruptcy, however, alternatives are available.
Since every person's situation is unique, your best option is to talk to a professional and get advice about what will work best for you. It's possible that your situation is not as bad as you think, and we may be able to offer practical advice that allows you to get back in control of your debt issues on your own.
You may feel so overwhelmed that you just try to carry on without paying your debts. However, this only makes matters worse. Not paying is not an option - you should address your debt situation immediately.
For example, here is what happens if you miss payments on your credit cards.
One payment missed: If you have a good borrowing history, your creditors may simply send you a polite reminder letter.
Two payments missed: You will get a strongly worded letter, and possibly also a phone call, demanding payment.
Three payments missed: Creditors will enlist a collection agency to press you for payment. Collection agencies will make your life unpleasant, using a variety of tactics to get the money, including threats.
If you still don't pay, it is likely that the creditor will pursue legal action against you.
In Alberta Money Mentors (formerly Credit Counselling Services of Alberta) offers a number of repayment programs to help you get your debts under control. The Orderly Payment of Debts (OPD) program is just one option.
OPD is a court ordered consumer debt repayment program where you repay your debts in full over a period of time. It provides some legal protection. Money Mentors is the only agency legislated to provide OPD in Alberta. Similar programs are available from organizations in other provinces.
The benefits of OPD are:
You are protected from certain legal actions.
Payment schedules are based on your ability to pay.
The interest rate is reduced to 5%.
You repay your debts in full at the reduced interest rate.
Money Mentors contacts creditors on your behalf.
You have the help of a counsellor.
You can attend budgeting and credit workshops free of charge.
A counsellor helps and guides you through the process. You'll start by identifying all your debts and living expenses, and then develop a monthly repayment schedule based on your ability to pay. You will make one monthly payment to Money Mentors who will divide up your payment and distribute it accordingly to all of your creditors. To find out more, please call Money Mentors at 1-888-294-0076 or try their online OPD Self Assessment
Our qualified Alberta trustess are familiar with all aspects of
Canadian bankruptcy law. We currently have offices in
Calgary, Wetaskiwin, and Edmonton, Alberta, Canada.
Call now for a free consultation: 310-8888
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