Are You Facing a Financial Crisis?
Are you Facing a Financial Crisis? If you are asking yourself this question, you may want to stop and carefully evaluate how to handle the situation.
Making withdrawals from retirement savings, obtaining payday loans, applying for a consolidation loan, or getting a 2nd mortgage may be some of the first strategies that come to mind to get your hands on some quick cash but these choices can have serious long term consequences and only provide a short term solution. You get a reprieve for a month or two, but the underlying issue remains – you are carrying too much debt.
A small financial crisis can usually be managed with a strict budget, but a larger crisis may require the assistance of a professional. Be wary of companies or agencies that claim they can reduce or eliminate your debt. Remind yourself that if it sounds too good to be true, it probably is.
The following qualities should be closely examined before proceeding with any type of program to manage a financial crisis:
Reputation Talk with friends, family, co-workers or anyone that you trust. Chances are someone you know has had faced a similar crisis or knows someone who has. Ask the people you trust for a referral. Search the internet for testimonials - positive and negative.
Licence and Regulation Check whether or not the company or agency is licenced or regulated and then check with the licencing and/or regulatory body for reports or sanctions. Search the Better Business Bureau for overall rating, for the length of time the business has been operating, where its’ head office is and review the complaint volume and content.
Accreditation Do the people you are talking to have an accreditation? If they do, search the accrediting organization for specifics about what is required to attain accreditation and ensure you are speaking with a qualified and accredited individual or agency.
Costs Ensure that you are informed about all of the costs of the program, not just your monthly payment amount. Make sure you investigate what fees are payable and when. Is a free consultation available?
Creditor Protection Know what protection you have from legal action by your creditors during any repayment term. When it comes to making a decision about how to manage a financial crisis, take your time and evaluate the options with a reputable, licensed and accredited professional.
Start your journey to financial freedom. Book your free, no obligation consultation today to connect with one of our experienced BC/Yukon Licensed Insolvency Trustees.
