Whether you’re in the midst of bankruptcy or trying to find another way, a licensed insolvency trustee can help you develop a plan that works for you and your household. Bankruptcy may be a recommended option, but a knowledgeable trustee guides you in other ways.

Debt Management

If you run out of money before the end of the month on a consistent basis, a skilled insolvency trustee can help you get an honest picture of the entire situation. For many people, housing is their biggest expense. If you’re looking to downsize to a smaller home or move to a cheaper location, your insolvency trustee can help.

Your insolvency trustee can help you rank your debts. If you are planning a bankruptcy, you will know which debts are dischargeable, which can be restructured, and which may be consolidated to reduce overall interest. You’ll get a payment plan set up and help with managing those payments.

Debt Consolidation

There are many debt consolidation programs offered for people struggling with high-interest debt. Unfortunately, these programs don’t offer much more; a pile of consolidated debts, even with a lower interest rate, isn’t much help if you haven’t gained any new money management skills.

That being said, your insolvency trustee can help you organize your debts before consolidation and get a realistic view of the pay-off plan. If you have a large overall student loan payment each month, it may make more sense to consolidate that debt and extend the term of the loan to lower your monthly bill.

If you have high credit card debt, a consolidation to a lower interest rate can save you in many ways. You can pay off your cards, keep accounts open but leave cards alone, and boost your credit score. You will also save a great deal of interest and even pay off the consolidation loan early.

Those paying on mortgages and car loans may be pleasantly surprised when they do an initial check of their home valuation. If your home is worth much more than what you owe, a new mortgage can help you provide your own debt consolidation loan. Until you learn to stick to a budget, such debt consolidation can be dangerous!

Budgeting Insights

Budgeting advice is a key component of the services offered by an insolvency trustee. You need to be able to manage your household with a fixed amount of money. You’ll need sinking funds for debts that occur yearly or every six months. You’ll also need emergency savings.

Your budget can be a wonderful tool to help you create space for savings and fun. Create a category for what you love; if you love to shop for antiques, make room for a monthly visit to your favorite shop. Your decision to budget doesn’t have to mean you have no funds for pleasure. Your budget simply defines those dollars.

If you’re financially floundering and feeling hopeless, help is available! Book an appointment with a knowledgeable insolvency trustee and get all the advice you need in one location.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published by: Khy Talara