In the London Free Press this past weekend, there was an article about students obtaining and using “student lines of credit”. It was through the Canadian Press so it probably hit quite a few newspapers across the country. It had some very good points.

After spending a large part of the article talking about how the line of credit works, it suggested that before obtaining “easy” credit, the student draw up a budget and talk to their parents about how much credit they could afford. It reminded people that interest costs money and repayment in the future could be difficult.

In our blogs we often talk about how to deal with your financial difficulties. Sometimes doing that involves obtaining more debt.

If someone is offering you more credit, look at your current budget and review what payments are now being made. If you have room (if your expenses including household and debt repayment are less than your income) you may have the ability to do a debt consolidation or some type of debt management plan with a credit counselling agency. If you don’t have enough “room”, obtaining more debt will not help your situation.

If you are having difficulties in determining whether you have “room”, please contact us to review your monthly finances. We can review your payments to see if an option other than bankruptcy or proposal would be better. And if it won’t we can review those options to discuss how they would affect your situation.

Our firm is interested in helping you determine the best option for you. Call us in London at 310-PLAN and let’s start getting you on track right away.

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