Understanding Electricity Load Limiter and Clearing Utility Bill Debts
In the present age, it is a common scenario for individuals to struggle with utility bill payments due to the rising cost of living. A survey by the Angus Reid Institute reveals that about 53% of Canadians find it difficult to keep up with the cost of living source. For those who are delinquent on their electricity bills, the installation of an electricity load limiter can be a harsh reality. This article discusses the concept of an electricity load limiter and how to manage and clear utility bill debts.
Electricity Load Limiter Explained
An electricity load limiter, often termed as electricity limiter, is a device that curtails the flow of electricity. When installed, this device ensures that a minimal amount of power flows through for essential services, thereby preventing a complete blackout.
How Does it Work?
The electricity load limiter allows a small amount of power to provide essential services such as heating, powering a few lights, and operating a crucial appliance like a fridge. As long as the power consumption remains within the limit set by the limiter, the power flow remains uninterrupted. However, if the power usage exceeds the set limit, the limiter trips, causing a power cut.
The Impact of Unpaid Electricity Bills
The inability to pay your electricity bill can be daunting. The fear of immediate electricity disconnection, though common, is not entirely correct. Initially, a late fee is added to the following month’s bill, as well as the unpaid amount from the previous month.
The Consequences
If the bill remains unpaid after the due date, the provider will send a written notice or call to notify about the non-payment and request for bill payment within a specific time. Failure to respond to these notices may result in disconnection of utilities without further notice. Unpaid bills can also negatively impact your credit score, and in some severe cases, the provider can pursue legal action for non-payment.
Clearing Utility Bill Debts: Bankruptcy and Consumer Proposal
Debt repayments can feel unmanageable, especially when struggling with unpaid utility bills. One may consider filing for personal Bankruptcy or a Consumer Proposal to clear such debts.
Bankruptcy
In the case of bankruptcy, a Licensed Insolvency Trustee (LIT) guides you through the process. They help prepare and file the necessary paperwork and deal with your creditors on your behalf, relieving you from the pressure.
Consumer Proposal
Similar to bankruptcy, a consumer proposal also involves an LIT who guides you through the process. A consumer proposal is an agreement that’s legally binding between you and your creditors to repay a portion of your debts. The proposal is structured according to your ability to pay, making it a more flexible option.
Seeking Help from a Licensed Insolvency Trustee (LIT)
If you’re struggling with debt payments like electricity bills, working with an LIT can help you regain control. A free consultation can provide advice ranging from credit counselling to bankruptcy, helping you settle your debts.
How Can an LIT Help?
A Licensed Insolvency Trustee can help you manage your finances and create a viable budget. They can offer advice on clearing utility bill debts and guide you through the process if you choose to file for bankruptcy or a consumer proposal.
Final Thoughts: Electricity Load Limiter & How To Clear Utility Bill Debts
Struggling with utility bill payments can be stressful. However, understanding how an electricity load limiter works can help you manage your electricity consumption better. Furthermore, seeking help from a Licensed Insolvency Trustee can guide you through the process of clearing your debts and help you regain control of your financial situation. Remember, debt is a solvable problem, and there are resources available to help you understand your options.
If you’re looking for help to clear your utility bill debts, you can contact us today and begin your journey to a debt-free life.
