{"id":177,"date":"2021-05-20T09:07:00","date_gmt":"2021-05-20T09:07:00","guid":{"rendered":"https:\/\/www.cashwaves.ca\/blog\/?p=177"},"modified":"2026-09-16T09:14:05","modified_gmt":"2026-09-16T09:14:05","slug":"instructions-on-how-to-find-financial-difficulties-in-your-life","status":"publish","type":"post","link":"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/","title":{"rendered":"Instructions On How To Find Financial Difficulties In Your Life"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#What_Does_%E2%80%9CFinancial_Difficulty%E2%80%9D_Actually_Mean\" >What Does \u201cFinancial Difficulty\u201d Actually Mean?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#1_Your_Monthly_Expenses_Are_Regularly_Higher_Than_Your_Income\" >1. Your Monthly Expenses Are Regularly Higher Than Your Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#2_Youre_Using_Credit_for_Normal_Living_Expenses\" >2. You&#8217;re Using Credit for Normal Living Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#3_Your_Credit-Card_Balance_Keeps_Increasing\" >3. Your Credit-Card Balance Keeps Increasing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#4_Youre_Regularly_Close_to_Your_Credit_Limit\" >4. You&#8217;re Regularly Close to Your Credit Limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#5_You_Can_Only_Afford_Minimum_Credit-Card_Payments\" >5. You Can Only Afford Minimum Credit-Card Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#6_Youre_Borrowing_From_One_Source_to_Pay_Another\" >6. You&#8217;re Borrowing From One Source to Pay Another<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#7_Payday-to-Payday_Borrowing_Has_Become_Normal\" >7. Payday-to-Payday Borrowing Has Become Normal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#8_Youre_Paying_Bills_Late_or_Missing_Payments\" >8. You&#8217;re Paying Bills Late or Missing Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#9_You_No_Longer_Have_Any_Emergency_Cushion\" >9. You No Longer Have Any Emergency Cushion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#10_You_Avoid_Looking_at_Bills_Balances_or_Statements\" >10. You Avoid Looking at Bills, Balances or Statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#11_Your_Credit_Report_Contains_Problems_You_Werent_Tracking\" >11. Your Credit Report Contains Problems You Weren&#8217;t Tracking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#12_Debt_Is_No_Longer_Going_Down_Despite_Regular_Payments\" >12. Debt Is No Longer Going Down Despite Regular Payments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#A_Quick_Financial_Difficulty_Self-Check\" >A Quick Financial Difficulty Self-Check<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#What_to_Do_When_You_Recognize_Financial_Difficulties\" >What to Do When You Recognize Financial Difficulties<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_1_Calculate_Your_Real_Monthly_Cash_Flow\" >Step 1: Calculate Your Real Monthly Cash Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_2_List_Every_Debt\" >Step 2: List Every Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_3_Separate_Essential_From_Non-Essential_Spending\" >Step 3: Separate Essential From Non-Essential Spending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_4_Stop_Adding_Avoidable_Debt\" >Step 4: Stop Adding Avoidable Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_5_Contact_Creditors_Early\" >Step 5: Contact Creditors Early<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_6_Choose_a_Debt_Repayment_Strategy\" >Step 6: Choose a Debt Repayment Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Highest-interest-first_approach\" >Highest-interest-first approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Smallest-balance-first_approach\" >Smallest-balance-first approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Step_7_Check_Your_Credit_Report\" >Step 7: Check Your Credit Report<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#When_Should_You_Consider_Credit_Counselling\" >When Should You Consider Credit Counselling?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#When_Financial_Difficulties_Become_More_Serious\" >When Financial Difficulties Become More Serious<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Be_Careful_With_%E2%80%9CEasy_Debt_Relief%E2%80%9D_Promises\" >Be Careful With \u201cEasy Debt Relief\u201d Promises<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Should_You_Take_Another_Loan_When_Youre_Already_Struggling\" >Should You Take Another Loan When You&#8217;re Already Struggling?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Temporary_problem\" >Temporary problem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Ongoing_problem\" >Ongoing problem<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Financial_Difficulties_Are_Easier_to_Address_When_You_Measure_Them\" >Financial Difficulties Are Easier to Address When You Measure Them<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.cashwaves.ca\/blog\/instructions-on-how-to-find-financial-difficulties-in-your-life\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">Financial difficulties don&#8217;t always begin with a missed rent payment or a collection notice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Often, the first signs are much quieter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may notice that your credit-card balance is a little higher every month. Perhaps you need your next paycheque to cover bills from the previous one, or an unexpected car repair suddenly feels impossible to manage without borrowing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One difficult month does not automatically mean you have a serious debt problem. But when the same financial pressures repeat month after month, it is worth looking closely at what is happening.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The earlier you recognize the warning signs, the more options you may have.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you don&#8217;t currently have a clear picture of your income and spending, CashWaves&#8217; guide to <a href=\"https:\/\/www.cashwaves.ca\/blog\/how-to-make-a-budget-tailored-to-the-canadian-lifestyle\/\">making a budget for the Canadian lifestyle<\/a> is a useful place to begin.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Does_%E2%80%9CFinancial_Difficulty%E2%80%9D_Actually_Mean\"><\/span>What Does \u201cFinancial Difficulty\u201d Actually Mean?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Financial difficulty generally means that your available income and resources are no longer comfortably covering your expenses, debts and financial obligations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It can develop because of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>loss or reduction of income<\/li>\n\n\n\n<li>rising household expenses<\/li>\n\n\n\n<li>unexpected repairs or emergencies<\/li>\n\n\n\n<li>illness or family changes<\/li>\n\n\n\n<li>increasing debt payments<\/li>\n\n\n\n<li>higher borrowing costs<\/li>\n\n\n\n<li>overspending<\/li>\n\n\n\n<li>a lack of emergency savings<\/li>\n\n\n\n<li>several financial pressures occurring at once<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/covid-19-managing-financial-health.html\" target=\"_blank\" rel=\"noopener\">Financial Consumer Agency of Canada<\/a> specifically identifies reduced income, unexpected expenses, higher costs of living and increasing interest rates as situations that may contribute to financial difficulties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cause matters, but your <strong>cash flow<\/strong> often reveals the problem first.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Your_Monthly_Expenses_Are_Regularly_Higher_Than_Your_Income\"><\/span>1. Your Monthly Expenses Are Regularly Higher Than Your Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is one of the clearest warning signs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start with a simple calculation:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Monthly take-home income \u2212 monthly expenses = monthly cash flow<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Income: $4,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Expenses: $4,250<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Monthly shortfall: \u2212$250<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A single negative month may result from an unusual expense.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A $250 deficit every month is different.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over six months:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$250 \u00d7 6 = $1,500 shortfall<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unless income increases or spending falls, that money must eventually come from somewhere\u2014often savings or borrowed money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC recommends comparing your monthly income with your expenses and taking action when expenses exceed income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/make-budget.html\" target=\"_blank\" rel=\"noopener\">budgeting guidance<\/a> to build an accurate picture rather than estimating from memory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Youre_Using_Credit_for_Normal_Living_Expenses\"><\/span>2. You&#8217;re Using Credit for Normal Living Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Using a credit card to buy groceries is not automatically a financial problem if you regularly pay the balance as planned.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The warning sign is needing borrowed money because your income can no longer cover ordinary necessities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples might include repeatedly borrowing to pay for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>groceries<\/li>\n\n\n\n<li>utility bills<\/li>\n\n\n\n<li>transportation<\/li>\n\n\n\n<li>phone service<\/li>\n\n\n\n<li>household essentials<\/li>\n\n\n\n<li>routine rent-related expenses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If these costs occur every month but require new borrowing every month, the problem is no longer an isolated emergency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your regular expenses and regular income may simply be out of balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before considering additional borrowing, CashWaves recommends reviewing your affordability and alternatives in its <a href=\"https:\/\/www.cashwaves.ca\/responsible-lending.html\">Responsible Lending guide<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Your_Credit-Card_Balance_Keeps_Increasing\"><\/span>3. Your Credit-Card Balance Keeps Increasing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Look at your last several statements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Month<\/th><th class=\"has-text-align-right\" data-align=\"right\">Credit-Card Balance<\/th><\/tr><tr><td>January<\/td><td class=\"has-text-align-right\" data-align=\"right\">$1,700<\/td><\/tr><tr><td>February<\/td><td class=\"has-text-align-right\" data-align=\"right\">$1,950<\/td><\/tr><tr><td>March<\/td><td class=\"has-text-align-right\" data-align=\"right\">$2,225<\/td><\/tr><tr><td>April<\/td><td class=\"has-text-align-right\" data-align=\"right\">$2,600<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">If your balance rises despite regular payments, you&#8217;re adding debt faster than you&#8217;re eliminating it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC lists a continuously growing credit-card balance as a warning sign that a person may be living beyond their means.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A balance that keeps moving upward deserves attention even if you&#8217;ve never missed a payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Youre_Regularly_Close_to_Your_Credit_Limit\"><\/span>4. You&#8217;re Regularly Close to Your Credit Limit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Another warning sign is spending most of your available credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose you have:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Credit limit: $5,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Balance: $4,700<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That leaves only:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$300 available credit<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Being repeatedly close to the limit leaves very little room for an unexpected expense and may indicate dependence on credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC includes reaching your credit-card limit among its warning signs of overspending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do not apply for another card simply because the existing one has reached its limit without first understanding why the original balance grew.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_You_Can_Only_Afford_Minimum_Credit-Card_Payments\"><\/span>5. You Can Only Afford Minimum Credit-Card Payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Minimum payments help keep an account current, but making only the minimum over a long period can be a warning sign.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The problem is especially important when you <strong>want<\/strong> to pay more but cannot find room in your budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Am I making only minimum payments on several cards?<\/li>\n\n\n\n<li>Is my balance falling meaningfully?<\/li>\n\n\n\n<li>Am I continuing to make new purchases on the same card?<\/li>\n\n\n\n<li>Would one unexpected bill cause me to miss the payment entirely?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC identifies making only minimum payments as a potential warning sign of overspending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If balances aren&#8217;t declining, use the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/debt\/paying-debt.html\" target=\"_blank\" rel=\"noopener\">debt repayment guidance<\/a> to list your debts and build a repayment strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Youre_Borrowing_From_One_Source_to_Pay_Another\"><\/span>6. You&#8217;re Borrowing From One Source to Pay Another<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Moving debt is not always the same as reducing debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>using one credit card to cover expenses because another is full<\/li>\n\n\n\n<li>taking a cash advance to make another payment<\/li>\n\n\n\n<li>using a new loan to cover existing monthly bills without reducing spending<\/li>\n\n\n\n<li>repeatedly moving balances while total debt continues rising<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Debt consolidation can sometimes be useful if it genuinely reduces costs and comes with a realistic repayment strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But simply adding another loan without correcting the underlying cash-flow deficit may leave you with more debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before borrowing, FCAC recommends reviewing your budget and determining whether you can afford the repayment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read the Government of Canada&#8217;s guidance on <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/loans\/consider-borrow.html\" target=\"_blank\" rel=\"noopener\">what to consider before borrowing money<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Payday-to-Payday_Borrowing_Has_Become_Normal\"><\/span>7. Payday-to-Payday Borrowing Has Become Normal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An occasional emergency can happen to almost anyone.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Repeated borrowing between paydays is more concerning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Office of the Superintendent of Bankruptcy identifies continually borrowing money to make it from one payday to the next as a danger signal for debt problems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If short-term borrowing has become part of your normal monthly budget, ask:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What expense is the loan really covering?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer is rent, groceries, transportation or another recurring obligation, another short-term loan may postpone the problem rather than fix it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/financial-tips.html\">financial tips for Canadians<\/a> include budgeting and responsible-borrowing guidance that can help identify alternatives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Youre_Paying_Bills_Late_or_Missing_Payments\"><\/span>8. You&#8217;re Paying Bills Late or Missing Payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A late bill does not automatically mean you are in serious financial trouble.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Repeatedly paying late because there isn&#8217;t enough money available is different.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Warning signs include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>choosing which bill to pay this month<\/li>\n\n\n\n<li>waiting for a paycheque before paying an overdue account<\/li>\n\n\n\n<li>missing credit-card or loan due dates<\/li>\n\n\n\n<li>receiving repeated overdue notices<\/li>\n\n\n\n<li>paying one bill late so another can be paid on time<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Late or missed payments may result in additional costs and may be reported to credit bureaus depending on the account and circumstances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The important step is to act before several accounts become overdue simultaneously.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contact the creditor or financial institution rather than ignoring the problem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC advises consumers experiencing financial difficulty to contact their financial institution as early as possible because more options may be available when the problem is addressed sooner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_You_No_Longer_Have_Any_Emergency_Cushion\"><\/span>9. You No Longer Have Any Emergency Cushion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Emergency savings are designed for unexpected expenses such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>urgent car repairs<\/li>\n\n\n\n<li>home repairs<\/li>\n\n\n\n<li>temporary income loss<\/li>\n\n\n\n<li>unexpected essential costs<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Using an emergency fund during an actual emergency isn&#8217;t failure. That is what it is for.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The warning sign is when savings are repeatedly being used to cover <strong>normal monthly expenses<\/strong> because income no longer covers the household budget.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Savings in January: $4,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Savings in April: $2,800<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>No major emergency occurred<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That deserves investigation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask where the $1,200 went.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If it covered routine living costs, there may be an ongoing monthly deficit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/blog\/money-saving-tips-to-save-money-fast\/\">money-saving tips<\/a> may help identify areas where spending can be reduced while you rebuild your financial buffer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_You_Avoid_Looking_at_Bills_Balances_or_Statements\"><\/span>10. You Avoid Looking at Bills, Balances or Statements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sometimes the numbers aren&#8217;t hidden from us\u2014we avoid looking at them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may notice yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>leaving statements unopened<\/li>\n\n\n\n<li>avoiding your banking app<\/li>\n\n\n\n<li>ignoring collection emails or calls<\/li>\n\n\n\n<li>not knowing approximately how much you owe<\/li>\n\n\n\n<li>feeling afraid to total all your balances<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Avoidance doesn&#8217;t reduce the debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A useful first step is simply to create one list.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For every debt, write down:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>What to Record<\/th><th>Example<\/th><\/tr><tr><td>Creditor<\/td><td>Credit Card A<\/td><\/tr><tr><td>Balance<\/td><td>$3,400<\/td><\/tr><tr><td>Minimum payment<\/td><td>$105<\/td><\/tr><tr><td>Interest rate<\/td><td>20.99%<\/td><\/tr><tr><td>Due date<\/td><td>18th of month<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Do this for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>credit cards<\/li>\n\n\n\n<li>personal loans<\/li>\n\n\n\n<li>lines of credit<\/li>\n\n\n\n<li>vehicle loans<\/li>\n\n\n\n<li>payday loans<\/li>\n\n\n\n<li>buy-now-pay-later balances<\/li>\n\n\n\n<li>overdue utility accounts<\/li>\n\n\n\n<li>other debts<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC specifically recommends identifying each debt, total amount owed, minimum payment and interest rate when creating a debt repayment plan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"11_Your_Credit_Report_Contains_Problems_You_Werent_Tracking\"><\/span>11. Your Credit Report Contains Problems You Weren&#8217;t Tracking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your credit report can provide another view of your financial situation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It may show:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>credit accounts<\/li>\n\n\n\n<li>balances<\/li>\n\n\n\n<li>late or missed payments<\/li>\n\n\n\n<li>accounts sent to collection<\/li>\n\n\n\n<li>credit inquiries<\/li>\n\n\n\n<li>other credit-history information<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Canadians can obtain their credit reports online for free from Canada&#8217;s two main credit bureaus, <strong>Equifax and TransUnion<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Checking your own credit report does not hurt your credit rating.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See the Government of Canada&#8217;s instructions for <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-reports-score\/order-credit-report.html\" target=\"_blank\" rel=\"noopener\">getting your credit report and credit score<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Review your report for both:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>financial problems you need to address, and<\/li>\n\n\n\n<li>information that appears incorrect.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"12_Debt_Is_No_Longer_Going_Down_Despite_Regular_Payments\"><\/span>12. Debt Is No Longer Going Down Despite Regular Payments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You may be making payments every month and still feel as though nothing changes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Look at your <strong>total debt<\/strong>, not simply whether each payment was made.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>January total debt: $24,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>June total debt: $24,700<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;ve made payments for six months but owe more than before, something is working against you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Possible causes may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>continuing new purchases<\/li>\n\n\n\n<li>high interest costs<\/li>\n\n\n\n<li>additional borrowing<\/li>\n\n\n\n<li>cash-flow shortages<\/li>\n\n\n\n<li>unexpected expenses<\/li>\n\n\n\n<li>a repayment strategy that isn&#8217;t keeping up with new debt<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is the point where a detailed debt inventory becomes especially useful.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Quick_Financial_Difficulty_Self-Check\"><\/span>A Quick Financial Difficulty Self-Check<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ask yourself the following questions:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Question<\/th><th>Yes \/ No<\/th><\/tr><tr><td>Are my monthly expenses regularly higher than my income?<\/td><td><\/td><\/tr><tr><td>Is my total debt increasing?<\/td><td><\/td><\/tr><tr><td>Am I carrying credit-card balances every month?<\/td><td><\/td><\/tr><tr><td>Am I close to one or more credit limits?<\/td><td><\/td><\/tr><tr><td>Can I afford only minimum payments?<\/td><td><\/td><\/tr><tr><td>Do I borrow for ordinary living expenses?<\/td><td><\/td><\/tr><tr><td>Am I borrowing between paydays regularly?<\/td><td><\/td><\/tr><tr><td>Have I missed or delayed bills because I lacked money?<\/td><td><\/td><\/tr><tr><td>Am I using savings for ordinary monthly expenses?<\/td><td><\/td><\/tr><tr><td>Am I avoiding looking at my financial accounts?<\/td><td><\/td><\/tr><tr><td>Have any accounts gone to collections?<\/td><td><\/td><\/tr><tr><td>Do I feel unable to create a realistic repayment plan?<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This is not a legal or financial diagnostic test.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, several recurring \u201cyes\u201d answers are a strong reason to review your finances rather than waiting for the situation to become more difficult.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_Do_When_You_Recognize_Financial_Difficulties\"><\/span>What to Do When You Recognize Financial Difficulties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Recognizing the problem is only useful if you act on it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Start with the numbers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Calculate_Your_Real_Monthly_Cash_Flow\"><\/span>Step 1: Calculate Your Real Monthly Cash Flow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Write down your monthly take-home income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then list essential and discretionary expenses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your calculation is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Income \u2212 expenses = available cash flow<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the number is negative, determine the size of the deficit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Income: $4,500<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Expenses: $4,850<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Deficit: $350 per month<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your immediate goal is to close that $350 gap through some combination of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reducing expenses<\/li>\n\n\n\n<li>increasing income<\/li>\n\n\n\n<li>changing payment arrangements<\/li>\n\n\n\n<li>restructuring manageable debts where appropriate<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_List_Every_Debt\"><\/span>Step 2: List Every Debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Don&#8217;t work from memory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For each debt, record:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>current balance<\/li>\n\n\n\n<li>interest rate<\/li>\n\n\n\n<li>minimum payment<\/li>\n\n\n\n<li>due date<\/li>\n\n\n\n<li>whether the account is current or overdue<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Then total everything.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Knowing you owe approximately \u201csomewhere around $15,000\u201d is much less useful than knowing exactly which balances are costing the most.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Separate_Essential_From_Non-Essential_Spending\"><\/span>Step 3: Separate Essential From Non-Essential Spending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Protect necessities first.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Typical essentials may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>housing<\/li>\n\n\n\n<li>food<\/li>\n\n\n\n<li>utilities<\/li>\n\n\n\n<li>necessary transportation<\/li>\n\n\n\n<li>insurance<\/li>\n\n\n\n<li>required medication or healthcare expenses<\/li>\n\n\n\n<li>required debt payments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Then review discretionary spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The purpose isn&#8217;t to remove every enjoyable expense permanently. It is to create enough room to stabilize your finances.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_4_Stop_Adding_Avoidable_Debt\"><\/span>Step 4: Stop Adding Avoidable Debt<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If possible, pause unnecessary credit-card purchases while you work on your plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Continuing to add new debt while repaying old debt makes progress much harder.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC recommends avoiding additional debt during difficult financial periods where possible and understanding the full cost before borrowing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_5_Contact_Creditors_Early\"><\/span>Step 5: Contact Creditors Early<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you know you may miss a payment, don&#8217;t automatically wait until after the due date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Contact the lender, card issuer or service provider.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the institution and circumstances, options may exist, but they vary by provider and aren&#8217;t guaranteed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Explain the problem and ask what arrangements are available.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_6_Choose_a_Debt_Repayment_Strategy\"><\/span>Step 6: Choose a Debt Repayment Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Two common approaches are:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Highest-interest-first_approach\"><\/span>Highest-interest-first approach<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Make required payments on all debts, then put extra money toward the highest-interest balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This can reduce interest costs more efficiently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smallest-balance-first_approach\"><\/span>Smallest-balance-first approach<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Make required payments on all debts, then focus extra money on the smallest balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some people prefer the visible progress of clearing individual accounts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The right approach depends on your circumstances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/debt\/paying-debt.html\" target=\"_blank\" rel=\"noopener\">paying-back-debt guide<\/a> provides more information about repayment strategies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_7_Check_Your_Credit_Report\"><\/span>Step 7: Check Your Credit Report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Download your reports and verify:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>account balances<\/li>\n\n\n\n<li>late-payment information<\/li>\n\n\n\n<li>collection accounts<\/li>\n\n\n\n<li>unknown accounts<\/li>\n\n\n\n<li>errors<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If something is inaccurate, follow the credit bureau&#8217;s dispute procedure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Checking your report also helps prevent an overlooked debt from undermining your repayment plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Should_You_Consider_Credit_Counselling\"><\/span>When Should You Consider Credit Counselling?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re having trouble organizing your debts or keeping up with payments, professional help may be useful.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A reputable credit counsellor may provide:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>one-on-one counselling<\/li>\n\n\n\n<li>budgeting assistance<\/li>\n\n\n\n<li>credit education<\/li>\n\n\n\n<li>help evaluating debt-management options<\/li>\n\n\n\n<li>a debt management plan in appropriate cases<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC explains how to evaluate agencies in its guide to <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/debt\/debt-help.html\" target=\"_blank\" rel=\"noopener\">getting help from a credit counsellor<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A debt management plan is not appropriate for every debt or every person.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask clearly about:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>fees<\/li>\n\n\n\n<li>which debts are included<\/li>\n\n\n\n<li>how much you must repay<\/li>\n\n\n\n<li>how long the plan lasts<\/li>\n\n\n\n<li>what happens if you miss a payment<\/li>\n\n\n\n<li>how the plan affects your credit report<\/li>\n\n\n\n<li>whether all creditors agree to participate<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Financial_Difficulties_Become_More_Serious\"><\/span>When Financial Difficulties Become More Serious<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some financial situations go beyond what ordinary budgeting can realistically solve.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>debt continuing to grow despite major spending cuts<\/li>\n\n\n\n<li>inability to make required payments<\/li>\n\n\n\n<li>collection activity<\/li>\n\n\n\n<li>threats of legal action<\/li>\n\n\n\n<li>several accounts already overdue<\/li>\n\n\n\n<li>no realistic way to repay debts under current terms<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Canada has formal debt-relief processes, including consumer proposals and bankruptcy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These should not be confused with private companies simply advertising \u201cdebt relief.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>Licensed Insolvency Trustee (LIT)<\/strong> is a federally regulated professional authorized to administer consumer proposals and bankruptcies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Office of the Superintendent of Bankruptcy provides a <a href=\"https:\/\/ised-isde.canada.ca\/site\/office-superintendent-bankruptcy\/en\/options-you-can-trust-help-you-your-debt\" target=\"_blank\" rel=\"noopener\">Debt Solutions Portal<\/a> where Canadians can learn about available options.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can also read about <a href=\"https:\/\/ised-isde.canada.ca\/site\/office-superintendent-bankruptcy\/en\/you-owe-money\/what-licensed-insolvency-trustee\" target=\"_blank\" rel=\"noopener\">Licensed Insolvency Trustees<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Getting information does not mean you must file a proposal or bankruptcy. The purpose is to understand your options.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Be_Careful_With_%E2%80%9CEasy_Debt_Relief%E2%80%9D_Promises\"><\/span>Be Careful With \u201cEasy Debt Relief\u201d Promises<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Financial difficulties can make quick solutions extremely attractive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be cautious of businesses promising to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>erase your debt immediately<\/li>\n\n\n\n<li>guarantee a dramatic debt reduction<\/li>\n\n\n\n<li>quickly repair your credit score<\/li>\n\n\n\n<li>remove accurate negative credit information<\/li>\n\n\n\n<li>solve all your debt problems for an upfront fee<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC warns that companies can&#8217;t guarantee they&#8217;ll solve a person&#8217;s debt problems, and accurate information on a credit history cannot simply be erased because someone pays a company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/debt\/debt-help\/alert-debt-credit-repair.html\" target=\"_blank\" rel=\"noopener\">consumer alert about debt and credit-repair services<\/a> before paying for debt-help services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Should_You_Take_Another_Loan_When_Youre_Already_Struggling\"><\/span>Should You Take Another Loan When You&#8217;re Already Struggling?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It depends on the situation, cost and repayment ability, but a new loan does not automatically solve financial hardship.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider two different situations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Temporary_problem\"><\/span>Temporary problem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your car needs an urgent repair, your income is otherwise stable and you have a clear repayment plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is a temporary cash-flow problem.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ongoing_problem\"><\/span>Ongoing problem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your income is $4,000 per month but your normal expenses are $4,400 before any new loan payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adding another debt payment doesn&#8217;t fix the $400 monthly deficit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It may increase it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves states in its <a href=\"https:\/\/www.cashwaves.ca\/responsible-lending.html\">Responsible Lending policy<\/a> that short-term loans are intended for temporary needs rather than long-term financial problems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If borrowing is being considered, first calculate:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Existing expenses + existing debt payments + new loan payment<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">and compare that number with reliable income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Financial_Difficulties_Are_Easier_to_Address_When_You_Measure_Them\"><\/span>Financial Difficulties Are Easier to Address When You Measure Them<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The phrase \u201cI&#8217;m struggling financially\u201d can feel overwhelming because it describes a large problem without showing where to start.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Turn it into numbers:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Monthly income:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Essential monthly expenses:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Other spending:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Total minimum debt payments:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Total debt:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Emergency savings:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Monthly surplus or deficit:<\/strong> ___<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once these numbers are visible, the next decision becomes clearer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may discover that a few spending changes close the gap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may need to restructure a repayment strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Or you may realize that the debt is too large to manage without professional help.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All three are more useful discoveries than continuing without knowing where your money is going.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves provides additional educational resources in its <a href=\"https:\/\/www.cashwaves.ca\/financial-tips.html\">Financial Tips section<\/a> for Canadians working on budgeting, debt management and responsible borrowing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-37e7b535 uagb-faq-icon-row-reverse uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height     \" data-faqtoggle=\"true\" role=\"tablist\"><script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\\\/\\\/www.cashwaves.ca\\\/blog\\\/instructions-on-how-to-find-financial-difficulties-in-your-life\\\/\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What are the first signs of financial difficulty?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Early warning signs can include expenses regularly exceeding income, growing credit-card balances, relying on credit for ordinary expenses, making only minimum payments and having little or no money available for unexpected expenses.<br><br>One sign alone does not necessarily mean you have a serious debt problem. Repeated patterns matter more.\"}},{\"@type\":\"Question\",\"name\":\"How do I know if my debt is becoming unmanageable?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Compare your total balances over several months.<br><br>If you're making regular payments but your overall debt continues to increase, or required payments are no longer affordable within your income, the problem may be becoming more serious.\"}},{\"@type\":\"Question\",\"name\":\"Is living paycheque to paycheque a financial difficulty?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It can be a warning sign, particularly when there is no room for savings or unexpected costs.<br><br>The risk becomes greater if an ordinary unexpected expense requires new debt.\"}},{\"@type\":\"Question\",\"name\":\"Is making only minimum credit-card payments bad?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Making the minimum keeps you from missing the required payment, but regularly being unable to pay more can mean it will take much longer to eliminate the balance and may result in significant interest costs.<br><br>FCAC includes minimum-only payments among warning signs that a consumer may be overspending.\"}},{\"@type\":\"Question\",\"name\":\"Should I use savings to pay off debt?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"That depends on your debt costs, savings needs and personal circumstances.<br><br>Using all your emergency savings to repay debt may leave you without money for a genuine emergency, while holding substantial savings alongside very expensive debt may also have costs.<br><br>Consider the whole financial picture rather than making the decision from one number.\"}},{\"@type\":\"Question\",\"name\":\"Does checking my credit report hurt my credit score?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Requesting your own credit report does not hurt your credit rating.<br><br>You can obtain free online reports from Equifax and TransUnion using the Government of Canada's <a href=\\\"https:\\\/\\\/www.canada.ca\\\/en\\\/financial-consumer-agency\\\/services\\\/credit-reports-score\\\/order-credit-report.html\\\">credit-report guidance<\\\/a>.\"}},{\"@type\":\"Question\",\"name\":\"When should I talk to a credit counsellor?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Consider getting help if you are struggling to make payments, don't know how to organize your debts or need help understanding repayment options.<br><br>Research the agency's reputation and fees before committing to a service.\"}},{\"@type\":\"Question\",\"name\":\"What is a Licensed Insolvency Trustee?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A Licensed Insolvency Trustee is a federally regulated professional who provides information about debt options and is authorized to administer formal insolvency proceedings such as consumer proposals and bankruptcies.\"}},{\"@type\":\"Question\",\"name\":\"Can a company guarantee that it will fix my credit?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Be cautious of guarantees.<br>Accurate negative information on a credit report cannot simply be removed because you pay a credit-repair company. Improving credit generally requires time and responsible credit behaviour.\"}},{\"@type\":\"Question\",\"name\":\"Should I get a payday loan if I'm already having ongoing financial problems?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A payday loan is a high-cost, short-term form of borrowing and generally does not fix an ongoing gap between monthly income and expenses.<br><br>If financial difficulty is recurring, review your budget and consider lower-cost alternatives or professional debt guidance before adding another repayment obligation.\"}}]}<\/script><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c09cd37b \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What are the first signs of financial difficulty?<\/span><\/div><div class=\"uagb-faq-content\"><p>Early warning signs can include expenses regularly exceeding income, growing credit-card balances, relying on credit for ordinary expenses, making only minimum payments and having little or no money available for unexpected expenses.<br><br>One sign alone does not necessarily mean you have a serious debt problem. Repeated patterns matter more.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-0dabded2 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">How do I know if my debt is becoming unmanageable?<\/span><\/div><div class=\"uagb-faq-content\"><p>Compare your total balances over several months.<br><br>If you&#8217;re making regular payments but your overall debt continues to increase, or required payments are no longer affordable within your income, the problem may be becoming more serious.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d8942cf7 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Is living paycheque to paycheque a financial difficulty?<\/span><\/div><div class=\"uagb-faq-content\"><p>It can be a warning sign, particularly when there is no room for savings or unexpected costs.<br><br>The risk becomes greater if an ordinary unexpected expense requires new debt.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-af3d1355 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Is making only minimum credit-card payments bad?<\/span><\/div><div class=\"uagb-faq-content\"><p>Making the minimum keeps you from missing the required payment, but regularly being unable to pay more can mean it will take much longer to eliminate the balance and may result in significant interest costs.<br><br>FCAC includes minimum-only payments among warning signs that a consumer may be overspending.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-8328361a \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Should I use savings to pay off debt?<\/span><\/div><div class=\"uagb-faq-content\"><p>That depends on your debt costs, savings needs and personal circumstances.<br><br>Using all your emergency savings to repay debt may leave you without money for a genuine emergency, while holding substantial savings alongside very expensive debt may also have costs.<br><br>Consider the whole financial picture rather than making the decision from one number.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-cc084d5c \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Does checking my credit report hurt my credit score?<\/span><\/div><div class=\"uagb-faq-content\"><p>No. Requesting your own credit report does not hurt your credit rating.<br><br>You can obtain free online reports from Equifax and TransUnion using the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-reports-score\/order-credit-report.html\" target=\"_blank\" rel=\"noopener\">credit-report guidance<\/a>.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-59c52148 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">When should I talk to a credit counsellor?<\/span><\/div><div class=\"uagb-faq-content\"><p>Consider getting help if you are struggling to make payments, don&#8217;t know how to organize your debts or need help understanding repayment options.<br><br>Research the agency&#8217;s reputation and fees before committing to a service.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-a6f42378 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What is a Licensed Insolvency Trustee?<\/span><\/div><div class=\"uagb-faq-content\"><p>A Licensed Insolvency Trustee is a federally regulated professional who provides information about debt options and is authorized to administer formal insolvency proceedings such as consumer proposals and bankruptcies.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-0a76fcb4 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Can a company guarantee that it will fix my credit?<\/span><\/div><div class=\"uagb-faq-content\"><p>Be cautious of guarantees.<br>Accurate negative information on a credit report cannot simply be removed because you pay a credit-repair company. Improving credit generally requires time and responsible credit behaviour.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-85d12d5a \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Should I get a payday loan if I&#8217;m already having ongoing financial problems?<\/span><\/div><div class=\"uagb-faq-content\"><p>A payday loan is a high-cost, short-term form of borrowing and generally does not fix an ongoing gap between monthly income and expenses.<br><br>If financial difficulty is recurring, review your budget and consider lower-cost alternatives or professional debt guidance before adding another repayment obligation.<\/p><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Financial difficulties don&#8217;t always begin with a missed rent payment or a collection notice. Often, the first signs are much quieter. You may notice that your credit-card balance is a little higher every month. Perhaps you need your next paycheque to cover bills from the previous one, or an unexpected car repair suddenly feels impossible [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":"","_yoast_wpseo_title":"FIND FINANCIAL DIFFICULTIES IN YOUR LIFE: CashWaves","_yoast_wpseo_metadesc":"How to overcome financial problems, here Solve and Prevent how to get out of financial difficulties. Read Carefully.","_yoast_wpseo_focuskw":"FINANCIAL DIFFICULTIES","rank_math_title":"12 Find Financial Difficulties In Your Life: Cashwaves","rank_math_description":"How to overcome financial problems, here Solve and Prevent how to get out of financial difficulties. Read Carefully.","rank_math_focus_keyword":"Financial Difficulties","_dpc-meta-title":"","_dpc-meta-description":"","_dpc-keyword":""},"categories":[31],"tags":[43,42,45,44,41],"class_list":["post-177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-tips","tag-common-financial-problems","tag-financial-difficulties","tag-financial-problem-solution-essay","tag-how-to-overcome-financial-problems-in-family","tag-serious-financial-problems"],"uagb_featured_image_src":{"full":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties.webp",1920,1080,false],"thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-150x150.webp",150,150,true],"medium":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-300x169.webp",300,169,true],"medium_large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-768x432.webp",640,360,true],"large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-1024x576.webp",640,360,true],"1536x1536":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-1536x864.webp",1536,864,true],"2048x2048":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties.webp",1920,1080,false],"post-thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-768x432.webp",768,432,true],"color-blog-full-width":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-1160x653.webp",1160,653,true],"color-blog-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-600x400.webp",600,400,true],"color-blog-post-auto":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-600x338.webp",600,338,true],"color-blog-slider-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Financial-Difficulties-1200x700.webp",1200,700,true]},"uagb_author_info":{"display_name":false,"author_link":"https:\/\/www.cashwaves.ca\/blog\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Financial difficulties don&#8217;t always begin with a missed rent payment or a collection notice. Often, the first signs are much quieter. You may notice that your credit-card balance is a little higher every month. Perhaps you need your next paycheque to cover bills from the previous one, or an unexpected car repair suddenly feels impossible&hellip;","_links":{"self":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/comments?post=177"}],"version-history":[{"count":4,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/177\/revisions"}],"predecessor-version":[{"id":493,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/177\/revisions\/493"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media\/343"}],"wp:attachment":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media?parent=177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/categories?post=177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/tags?post=177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}