Using Scissors to Avoid Bankruptcy in Toronto

The Toronto Star ran an interesting article today (you can see it on their web site) where they described the most obvious way to deal with credit card debt:cut up your credit cards.

The article quotes Jean-Guy St-Amore, a spokesperson for the Financial Consumer Agency of Canada, who says that: "The average person has three credit cards, we question that."

The article goes on to state that if you are carrying a balance on more than one credit card, the best solution is to cut up all but one of your credit cards, then call the credit card company and cancel them so you don't incur any more debt. Then, make a budget and start working to repay your credit cards.

If your credit is still in good shape, consider getting a debt consolidation loan to reduce the interest you are paying.

The article doesn't go on to discuss what to do if you have bad credit and can't get a debt consolidation loan, but the obvious next steps would be to consider filing a consumer proposal, or a bankruptcy.

Feel free to contact us at 310-PLAN or e-mail us for more on your options to avoid bankruptcy in Toronto.