If you choose to sell off everything to pay your debt, you will soon find yourself creating more debt to reclaim what you sold. Weigh your options carefully then reweigh them a couple more times. If you wouldn’t put it in a yard sale, you should sell to pay debt.
In the overwhelming majority of situations, excessive debt stems from the mindset of the individual. It doesn’t matter how much you can pay off….you will end up in the same spot in the future. Change your mindset around money and debt….and suddenly the answer becomes a lot clearer. Could you have a credit card with a $0 balance and a $50k limit and treat it like it’s your own cash? (ie. only spend what you’re truly able to pay off in full at the end of the month). If the answer isn’t a resounding yes….you need to fix your mindset first before anything else. Otherwise, anything you do is likely to result in you ending right back in the same position in the future.
Fixing the behaviour first is key as you mentioned. Maybe there should be a mandatory financial education course if you're going through with a consumer proposal or a bankruptcy.
any excuse to self promote...gone
Im learning so much from you guys about canadian markets/banking
If you choose to sell off everything to pay your debt, you will soon find yourself creating more debt to reclaim what you sold. Weigh your options carefully then reweigh them a couple more times. If you wouldn’t put it in a yard sale, you should sell to pay debt.
how about I sold everything after I was debt free.
In the overwhelming majority of situations, excessive debt stems from the mindset of the individual. It doesn’t matter how much you can pay off….you will end up in the same spot in the future.
Change your mindset around money and debt….and suddenly the answer becomes a lot clearer. Could you have a credit card with a $0 balance and a $50k limit and treat it like it’s your own cash? (ie. only spend what you’re truly able to pay off in full at the end of the month). If the answer isn’t a resounding yes….you need to fix your mindset first before anything else. Otherwise, anything you do is likely to result in you ending right back in the same position in the future.
Fixing the behaviour first is key as you mentioned. Maybe there should be a mandatory financial education course if you're going through with a consumer proposal or a bankruptcy.