Do you ever find yourself saying I am so worried about my debt, I am not sleeping?
If you do, you’re not alone.
Unfortunately, this is actually a common occurrence and there are a lot of people out there that are kept up at night by their money worries.
When you find yourself in this situation, it’s important that you seek help because losing sleep is damaging your physical and mental health.
Seeking the advice of a trustee is the best way to get on top of your debt issues, but people are often reluctant to ask for help.
In fact, one of the reasons that people are up all night is that they are worried about the embarrassment of admitting that you have a debt problem.
But there is nothing to be embarrassed about and even though taking that first step is hard, you will feel so much better after your first appointment with a trustee.
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If you don’t take that step and you carry on as you are, the pressure from creditors will increase and your debts will continue to build.
Inaction is the worst thing that you can do but people often avoid asking for help because they worry about being judged.
Although you may think that insolvency is quite rare and other people will judge you, that is not the case at all.
Insolvency is far more common than most people realize and in 2019, over 100,000 people filed for insolvency in Canada.
So the number of people saying, I am so worried about debt, I am not sleeping, is far higher than you might think and you have nothing to be embarrassed or ashamed about.
But how did we end up in this situation in the first place?
What Are The Common Causes Of Insolvency?
There are many reasons that people get into debt, but contrary to popular belief, it is rarely caused by irresponsible behavior alone, so there is no need to worry about being judged by a trustee when you seek their help.
Credit card debt is one of the most common causes of insolvency because it is so easy to build up debts quickly.
Many people use credit cards on a regular basis when they are in a good financial position, but then their situation changes and they experience a decrease in income, meaning that they can no longer afford to make their payments.
Interest payments and charges for missed payments quickly add up and people find themselves in a difficult financial position.
Unexpected life events are another common cause of debt, and even the most financially responsible people can find themselves in a tough position due to events outside of their control.
For example, if you are injured or fall ill and you have to take a long time off work, you will lose a lot of income.
Damage to your home or car can lead to unexpected bills that you are unable to pay, and this can lead to expensive borrowing if you have no other option.
These are just some of the many reasons why a person may find themselves in a lot of debt, and the important thing to remember is that debt problems are not usually caused by poor financial decisions on your part.
In some cases, people have debt issues because they spend too much money on credit cards buying things that they don’t need, but in most cases, debt is caused by unfortunate circumstances outside of your control, and a trustee will recognize this when you seek their help.
The bankruptcy laws also recognize that people are not usually to blame for their debt issues and they often refer to insolvent people as the ‘honest but unfortunate debtor.’
How Can A Trustee Help You?
Once you realize that debt issues are more common than you think and, in most cases, the debtor is not to blame, you should feel more comfortable about asking for help from a trustee.
But how exactly can a trustee help you?
The first thing you should know is that there is no risk involved because a trustee will offer a free consultation where they look at your situation and discuss your potential options.
It is not like seeing a credit counsellor who will charge you for their advice, and you have no obligation to move forward if you don’t want to.
When you meet with a trustee and they have assessed your situation, they will then discuss your options with you.
There are many different debt relief options and you do not always need to consider bankruptcy.
If your debts are not too high, you could consider debt consolidation in order to pay back the full amount.
However, if you are not in a position to pay back everything that you owe, then you need to start thinking about bankruptcy or consumer proposals.
A trustee will take you through all of the different options and advise you on which is best for your situation.
As soon as you have that first meeting with a trustee, you will find that your stress levels decrease a lot and it’s much easier to get to sleep at night.
Even though you are only at the beginning of the debt relief process, knowing that there is light at the end of the tunnel and you can find financial freedom again will take the pressure off a lot.
Once you and your trustee have decided on the best debt relief solution, they will support you through the process and ensure that you are meeting all of your obligations, so you can eventually be debt free.
If you are losing sleep because you are so worried about your debt, you don’t need to suffer in silence.
We are here to help you find the right debt relief solutions and answer any questions that you may have about insolvency.
We understand that you are not to blame for your debt and we will never judge our clients, we will just help you to find financial freedom again, so get in touch today.
You can reach us by phone or fill out an evaluation form and we will get back to 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?
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?