New Year's Resolution

	New Year's Resolution - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on December 31, 2005.

Show Topic:

At the start of a new year we all think about New Year's Resolutions. This is the time of year when we go on diets, and start an exercise or fitness program, and make other changes in our lives. But what about our money? What if you are having money problems? Are there things we can do at this time of year to get our finances back on track? How you can make a good financial New Year's Resolution is the theme of today's show.

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

New Year's Resolutions are not a waste of time; everyone needs a plan. If you don't have a plan, you can't achieve anything.

We are big believers in a three step plan to get you back on track:

1.	Make a list of what you own and what you owe
2.	Make a budget
3.	Make a plan to pay off your debt: Sell assets to raise cash (an old car) Increase your income (part time job, new job) Cut your expenses (basic cable, eat out less, quit smoking) Get a consolidation loan Pay the minimums to everyone – pay more to the high interest rate debts Look at your plan every month to make sure you are on track

The number one New Year's Resolution is simple: spend less than you make.

Question of the Week:

Q. New Year's Resolutions are great, but what if you make a budget and find out you don't have enough money to pay all of your bills; what can you do?

A. If you can't pay all of your bills, here are your options:

	Work out a plan on your own to repay them by cutting your expenses and increasing your income.
	Get a debt consolidation loan. For example, if you own a home, you may be able to get a second mortgage and use that money, at a lower interest rate, to repay your higher interest rate credit cards and other debts.
	File a Debt Management Plan. These plans are filed by non-profit credit counsellors; you pay your debts in full over a two to five year period, and the creditors agree to waive any further interest owing.
	File a consumer proposal; this is a great way to negotiate a settlement with your creditors, and in most cases you end up paying less than the full amount owing.
	If no other option works, personal bankruptcy is the final option.

Don't let your Money Problems overwhelm you; contact a bankruptcy expert today for more information.