Credit Card & Medical Debt
Budgeting for Emergencies
Rochelle is in her mid 40’s and her husband, Dan, is in his mid 30’s. They live with their two children near Victoria on Vancouver Island.
Rochelle underwent surgery and has since been unable to work. Even with some additional overtime income from Dan, his income alone was not enough to make ends meet.
Rochelle and Dan relied on credit to pay for living expenses, which resulted in a large amount of debt. Due to their financial situation, they contacted a bankruptcy trustee for assistance. The trustee referred them to the Credit Counselling Society and they decided to attend a budgeting workshop.
Monthly & Seasonal Expenses
Build a Budget & Avoid Bankruptcy
Rochelle recently returned to work part-time, but this still wasn’t enough to help them manage their monthly obligations. After speaking with a counsellor at the Credit Counselling Society, Rochelle and Dan took a close look at their monthly and seasonal expenses. They were spending more than they earned each month and were going further into debt each week. They needed to take immediate action to reduce their debt and avoid bankruptcy.
Financial Planning & Money Management
Pay Down Debt With a Debt Management Program
Rochelle and Dan discussed several options with their counsellor. They could sell their home, rent the basement, sell the second car, cash in their retirement savings or Rochelle could go back to work full-time. They decided to increase their income, keep their home, and start a budget that allowed them to meet their obligations, pay down debt, and save for emergencies.
With a lot of guidance and support from their counsellor, Rochelle and Dan are on their way to becoming debt free with a debt management program that fits their budget. In learning how to manage their money better, they reviewed their bills, made some changes to their spending habits, and prioritized their needs and wants. Now they have a plan to pay off their debt and build savings for the future.