What is the key to budgeting?
This question is pondered by many individuals.
The key to budgeting is very simple; you need to be organized.
- You need to know who you owe money to,
- when the payments are due,
- how long the payments need to be made and
- where the payments should be sent.
It is very important to be able to produce the actual loan documents, credit card statements, cancelled cheques, any documentation used to borrow money or purchase items on credit.
Receipts need to be kept for every payment that is made as proof that the payments were sent:
- In the event that something happens and mistakes are made in the recording of payments by the creditor you want to be able to prove that you made the payments.
- The only way you can do this is by having receipts.
- Receipts should be kept until debts are repaid in full and you receive a statement saying the debt was paid in full.
Otherwise, a creditor could make a claim at a later date for a debt that you have paid. If you do not have proof of payment you may have to pay the debt again.
A couple of days ago, I was speaking to someone on the phone and they were asking for assistance with their student loans. The individual had previously claimed bankruptcy and was not able to include the student loans in their bankruptcy. They were wondering what they needed to do about their student loans.
After asking a few questions about where the student loans were, I realized that this individual didn't know where the student loans were being held. I was not able to ascertain from them where they had received the money for their loans. Therefore, I was not able to offer any assistance other than suggesting that they send for their credit report. In the hopes, that the debt was listed on the report.
You can't deal with a debt if you don't know where it is being held. The first thing you need to do is find out where it is.
If you have debts and you don't know where they are try contacting Equifax for your credit report.
Equifax Canada: 1.800.465.7166
