Taking action sooner rather than later prevents a bad situation from getting worse advises US Tax Professionals in Vancouver
North Vancouver, BC -- (ReleaseWire) -- 01/17/2020 -- The post-holiday season is one of the worst for debt. For those experiencing difficulty in paying what's owed, the team at US Tax Professionals in Vancouver has recently published a new article to help manage debt and avoid financial ruin. For more, go to: https://us-taxprofessionals.com/newsletter.php#4
If debt is a problem, it's important to realize that inaction will always lead to larger, more serious problems. It's best to take action before the bill collectors start calling. Here's what to keep in mind to bring ungainly debts under control:
Review each debt. Make sure that the debt creditor's claim is actually what's owed and that the amount is correct. To dispute a debt, first contact the creditor directly to resolve any questions. If questions persist, contact the state or local consumer protection office. In cases of serious creditor abuse, it may be necessary to call the state Attorney General.
Contact creditors. Don't suffer in shame and secrecy. Let creditors know that making payments are a problem and explain why. For example, a job loss or expected medical bills. Try to work out an acceptable payment schedule with creditors. Most are willing to work with you and appreciate people who are honest and forthright.
As a tip, most automobile financing agreements permit a creditor to repossess a car any time payment defaults, without advance notice. If a car is repossessed, it may be necessary to pay the full balance due on the loan, as well as towing and storage costs, to reclaim the vehicle. Waiting until a default occurs is the worst possible approach, so tackle problems proactively. For example, it may be better to sell the car and pay off the debt rather than to incur repossession costs.
Remember to create and adhere to a budget. Create a spending plan that factors in debt reduction. Itemize necessary expenses (such as housing and healthcare) and optional expenses (such as entertainment and vacation travel). Stick to the plan.
Actively work to reduce expenses. Cut out any unnecessary spending, such as eating out and purchasing expensive entertainment. Consider taking public transportation or using a car-sharing service rather than owning a car. Clip coupons, purchase generic products at the supermarket and avoid impulse purchases. Above all, stop incurring new debt. Leave the credit cards at home. Pay for all purchases in cash or use a debit card instead of a credit card.
Finally, pay down and consolidate debts. Withdrawing savings from low-interest accounts to settle high-rate loans or credit card debt usually makes sense. In addition, there are several ways to pay off high-interest loans, such as credit cards, by getting a refinancing or consolidation loan, such as a second mortgage. Keep in mind, however, that second mortgages greatly increase the risk of home and property loss.
Be wary of any loan consolidations or other refinancings that actually increases interest owed, or require payments of points or large fees.
It's possible to regain financial health by acting responsibly. Don't wait until bankruptcy court is your only option. For those who experience financial troubles, US Tax Professionals in Vancouver can provide guidance, insight, and support. Call (604) 281-3318 to get started.
About US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver " href="http://cts.releasewire.com/c/?l=eyJpIjoxMjcxMzI5LCJzIjoieSIsInUiOiJodHRwczpcL1wvdXMtdGF4cHJvZmVzc2lvbmFscy5jb21cL2luZGV4LnBocCIsImEiOiJVUyBUYXggUHJvZmVzc2lvbmFscyA8YWhyZWY9XCJodHRwczpcL1wvdXMtdGF4cHJvZmVzc2lvbmFscy5jb21cL2luZGV4LnBocFwiPlVTLi4uIn0">US Tax Professionals
For more information, visit https://www.us-taxprofessionals.com/ or call (604) 281-3318.
US Tax Professionals
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