The debt situation in Canada can easily feel dire and scary when you’re looking at the numbers.
Roughly two in five Canadians who are in debt feel as though they will never escape it.
Additionally, the average amount of debt in the country is over $72,000 per person.
Debt was already on the rise in Canada, but the impact of the COVID-19 pandemic will likely affect it even more.
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So many people have found themselves without jobs, but that doesn’t mean the bills stop coming.
Needless to say, the idea of being in thousands of dollars of debt is terrifying.
If you’re constantly thinking about your debt or feel like you’ll never escape it, it can cause a lot of extra stress and anxiety in your life, which may make it harder to face reality and actually do something about your financial situation.
Facing Your Fear of Debt
One of the best things you can do to become debt free is to face your debt directly.
Ignoring it won’t make it disappear, and will often make it worse.
Look through your bills and financial statements, and determine exactly how much you owe.
It can be overwhelming at first, but it’s the best way to get started on tackling that debt, building a budget, and creating a strategy.
Your strategy should include more than just paying the minimum amount on each of your bills.
In fact, if you take the time to figure that out, you might be even more worried!
Doing that will likely put you into even more debt, and it can feel like an impossible task to pay everything off.
The strategy you put together needs to include active ways to pay off the debts with the highest interest rates as soon as possible.
Or, you might want to consider debt consolidation to manage all your debts with one new rate.
Getting Professional Financial Help
The good news about facing your debts?
You don’t have to do it alone.
Of course, no one likes to think about being in debt, but because so many people don’t talk about it, many people also don’t know the options for becoming debt-free.
In fact, bankruptcy should be a last resort.
It usually is the final option for a Licensed Insolvency Trustee.
That’s why it’s so important to work with a professional if you truly want to get out of debt in a safe and effective way.
A Licensed Insolvency Trustee at Bankruptcy Canada can help you to fully understand your financial situation and the options you have for getting out of debt.
Many times, that won’t involve bankruptcy.
Instead, you might be a candidate for a Consumer Proposal.
Filing a Consumer Proposal will allow you to keep your assets and pay off a portion of your total debt with a fixed rate you can afford.
As you might expect, that can take a lot of the fear away!
So, don’t hesitate to take that first step today.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?