You May Not Qualify for a Mortgage if You Have a Bad Credit Report
What If You Need a Good Credit Score to Be Hired for Your Dream Job?
Some employers do credit checks. What if your desired workplace reviews your credit report and decides not to hire you because of it? If you made a significant financial investment to go to school in order to land a lucrative career then you need to plan ahead. This could mean picking up part-time jobs and building a personal budget to pay off student loan debt.
Avoid the Pressure of Student Loan Repayment
Plan Ahead and Make Your Payments on Time
A student loan may also pressure people into taking on additional debt just to get by. This could be in the form of credit cards, payday loans or unsecured loans. You may also reach out to employer(s), friends, or family. This can cause much strain on relationships and make you feel even worse. The best way to handle this comes from prevention. A budget for school can help. There are many warning signs of debt that you will want to pay attention to. Personal debt can become unmanageable very fast.
Consumer Proposals and Bankruptcies
Talk to a Credit Counsellor First
If you let things slide far enough it could eventually lead to a consumer proposal or the need to file for bankruptcy in Canada. Bankruptcy is, of course, always a last resort. If you are already considering this then contact us or call us at 1-888-527-8999 right away. If you have already reached out to an insolvency trustee for information it might be possible to pause the process. We can help.
Circumvent a Consumer Proposal or Bankruptcy
You Have Other Options You Can Explore First
We can assign you a credit counsellor who will go over all of your options with you. It is always in your best interest if you can circumvent a consumer proposal or bankruptcy. Both of these choices are recorded publicly. Anyone can look online to see if your name comes up. This usually has more of a negative impact on your life than a poor credit score. Consumer proposals and bankruptcies stay on your credit file for 7 years. Once you have completed your consumer proposal or are fully discharged from bankruptcy you can begin to rebuild your credit. It is a lengthy process.
What Debts Are Included in Bankruptcy?
Unsecured vs Secured Debt
Here is a vital piece of information. If it’s been less than 7 years since you have finished school, your student loan can not be included in bankruptcy automatically. There are many things that are included in bankruptcy. Student loans are treated separately. If you declare bankruptcy you may experience a seizure of assets and funds. These go towards paying down unsecured debts. There is a big difference between unsecured vs. secured debt.