Getting Debt Relief? It’s Not As Scary As You Might Think

Debt is a common concern for many individuals, and the fear associated with it can often feel overwhelming. However, facing your debt can be an empowering step towards a healthier financial future. Let’s explore why Debt Relief is not as scary as you might think.

Facing Your Fears

October is a time of year when we often confront our fears. This year, why not make a plan to tackle your debt? By reducing your debt, you could save more of your hard-earned money and reach exciting financial goals like purchasing a home, travelling, or paying for education.

Why Debt Isn’t as Frightening as It Seems

Debt can seem intimidating at first, but when you delve deeper, you might find it’s not as scary as it appears. Here are three reasons why.

1. Debt is Common

Many factors can lead to debt, such as job loss or divorce, which can happen to anyone.

2. Debt Can Be Managed

Anyone can manage their debt. It doesn’t require a large income or exceptional mathematical skills. What it does require, however, is dedication and hard work. A good strategy might involve earning more, spending less, or seeking professional help. Start by creating a budget to understand where your money goes each month and proceed from there.

3. Starting is Simpler Than You Think

Regardless of your debt amount or life situation, you can work towards becoming debt-free by taking one step at a time.

  • Understand the overall picture.
  • Learn from smaller success stories.
  • Focus on easy tasks first.
  • Identify major obstacles.
  • Develop a phased plan.
  • Set realistic expectations.
  • Begin (the most crucial step!)

Alongside these steps, various tools can simplify the process and help you meet your goals. It’s essential to familiarize yourself with these tools, which we’ll discuss below.

Tools to Tackle Debt

There are numerous tools to handle debt. Here’s a snapshot of the most common ones.

Do It Yourself (DIY)

If you prefer to manage things yourself, you might consider these solutions. They don’t require a professional or product investment but do need substantial motivation and commitment.

  • Debt Snowball: This method involves paying off your smallest debts first, then using the money you were paying towards those debts to pay off larger ones.
  • Debt Avalanche: This method helps save money on interest. You focus on your high-interest debts first and then move on to those with lower interest rates.

Debt Consolidation Loans

A debt consolidation loan lets you combine several debts into one. This way, you don’t have to keep track of multiple payments and worry about whether you’ve made all of them on time. Debt consolidation loans can also come with lower interest rates, potentially saving you money.

Balance Transfer Cards

A balance transfer card could allow you to consolidate your credit card debt into a single credit card with a promotional rate as low as 0%. If you can pay off your debt before the promotional rate ends (usually after about 12-16 months), this could be a good option.

Credit Counseling

A credit counseling agency can create a debt management plan (DMP) for you. A DMP involves a credit counselor negotiating a lower interest rate and setting up a payment plan designed to free you from debt in 3 to 6 years.

Debt Relief

Also known as debt settlement or debt negotiation, debt relief is a program where you work with a company to negotiate with your creditors to settle unsecured debts for less than you owe. Working with a professional debt relief company may yield better results.

Consider Bankruptcy Canada for Debt Relief

If debt is causing you stress or affecting your ability to pay for necessities, a debt relief program could be a good option for you. Talk to a Bankruptcy Canada Certified Debt Consultant to find out if you qualify or get information on other options to resolve debt and build a stronger financial future. Get started now.

Yes, Debt Relief is not as scary as you might think. With the right tools and support, you can tackle your debt and move towards a healthier financial future. Start today and take the first step towards achieving your financial goals

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.