Debt Problems Because Of Old Phone Bills

It’s just about impossible to live in the modern world without a cell phone.

These devices are beginning to replace computers in many households, providing you with everything you need to keep yourself informed, be social, and entertain yourself.

Of course, though, Canadians have to pay a premium to access all of the features they want out of their phone, and this can quickly lead to money trouble.

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What Are You Paying For?

Before diving into what it is that causes phone bill debt to build, it’s worth exploring the bills themselves to figure out what it is that you’re paying for.

Canada has some of the most expensive cell phone packages in the world, making it very difficult for a lot of people to afford their phones, but why does it have to cost so much?


Canada is a staggeringly large country, with a significantly larger landmass than the USA.

Alongside this, though, it also has a far smaller population that is spread across the nation, and this presents a challenge when it comes to infrastructure.

Building masts and enabling more communities to connect is something that providers pay for and make back on the plans they sell.

This means that places with large areas and low populations force them to charge higher prices.

Minutes, SMS, and Data

When you buy a phone package, you’ll be signing up for a set amount of minutes and texts, and will be restricted to strict data quota.

The more of each of these resources you want, the more your contract will cost, and it’s becoming increasingly common for companies to raise the prices on their budget options.


You don’t always have to get a new device when you sign up for a contract, but many people will choose to.

This is effectively a retail loan, as you will pay for the device alongside your contract, with each month taking a little bit off of what you owe.

This is where people tend to have debt problems when they are using contract phones.

How Does Phone Bill Debt Build?

It’s all too easy to let phone bill debt grow, with a lot of people finding themselves unable to manage the deal they’ve signed up for.

Avoiding this can be as simple as performing a proper assessment before you sign up for the contract.

If it looks like you’ll struggle to pay for it in the future, you should take this very seriously, and it could be worth avoiding it altogether.

Let’s take a look at what can make phone bill debt build.


  • Large Repayments: Phone plans tend to be quite costly, and can take a considerable chunk out of your monthly income if you don’t choose the right one for you.This can leave people struggling to cover their repayments.


  • Broken/Lost Devices: If your device gets broken, lost, or stolen, you’ll probably have to buy a new one.This could make it hard to afford the costs of your old contract, as you won’t be released from it simply because you can’t use the phone anymore.Insurance can be a good tool to help you to avoid this.


  • Extra Fees: Cell phone providers won’t stop you from using more than your plan allows, and will often charge much higher rates for the resources you use that go over your limits.This can quickly make an affordable plan into something unwieldy.


  • Fines: Many cell providers are relaxed about late payments, but they will still charge fines that can quickly mount up, making the situation worse for those who are struggling to make their payments.


Escaping Phone Bill Debt Problems

Here at Bankruptcy Canada, we’ve had the chance to work with countless clients on their financial problems over the last 20 years.

This has given us a unique insight into issues like phone bill debt, and we’re sure that our team will be able to provide support and advice to get you through this rough patch.

There is a range of options available to those who want to wipe away their phone debt.


  • Budget & Save: Budgeting can be harder than a lot of people expect, but it can often be one of the best ways to solve a financial problem.We can help you to build a budget that will enable you to pay off your phone bill debt, while also maintaining many of the lifestyle perks you used to enjoy.


  • Debt Consolidation: Moving your debt into a loan that will give you longer to pay it back will make the whole thing cost more, but can often give you the freedom to move at your own pace.We can help you to choose a loan that will be suitable for this.


  • Consumer Proposals: Consumer proposals can be used to enable you to negotiate with your creditors, working out a deal that works for everyone.Going through this process will enable you to stop any lawsuits and harassment being levelled at you by your creditors, while also making it easier to pay back what you owe.Bankruptcy Canada can act as your trustee if you choose to file a consumer proposal.


  • Filing For Bankruptcy: While it may seem extreme, it can be easy to find yourself in a position where bankruptcy is the only option.This process isn’t as bad as you might think and can be an excellent way to give yourself a financial fresh start.It will last at least three years, but Bankruptcy Canada will be there to help you at every step along the way.


Phone bills can easily turn into mounting debt, and a lot of people never see this coming.

Bankruptcy Canada is here to help, and we encourage anyone who is looking for support with their debt to get in touch with our friendly team.

Dealing with debt doesn’t have to be a pain when you have the right company behind you.

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?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
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?

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