As of 2019, Canadians had racked up over $100 billion in credit card debt for the first time ever.
While that can feel like a shocking statistic, there are many different reasons people go into debt, whether it’s from credit card usage, mortgages, or student loans.
Now, more than ever, going into debt is “common”.
The effects of the COVID-19 pandemic have caused the Canadian unemployment rate to spike to over 13%.
As people struggle to find work, more will also struggle to pay bills.
So, while it’s not uncommon or abnormal to feel embarrassed by your debt, it’s important to understand that you’re not alone.
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Finding the Help You Need
The first step in getting out of financial trouble is to accept the fact that you’re in debt, rather than hiding away from it.
When you understand your troubles and recognize how you got into debt, in the first place, you can take active steps to find financial freedom.
Many people turn to friends or family when they’re struggling financially.
That might be a good place to start if you’re looking for some temporary relief or feel as though you need someone to talk to.
But, it’s often not a long-term solution, and owing people in your life money if they’ve helped you get out of debt can add to your levels of stress and anxiety.
When you work with a professional, like a Licensed Insolvency Trustee (LIT), you don’t have to worry about being judged or criticized by your financial situation.
LITs are there to help you discover the best possible option to get out of debt safely and effectively.
The most important thing is not to let your embarrassment keep you from getting the help you deserve.
How to Deal With Your Debt
There is a silver lining if you’re dealing with debt – there are multiple ways to get out of it!
There is no cookie-cutter process for getting out of debt.
Rather, it’s a situation that needs to be looked at by a professional so your individual situation can be figured out.
Again, this is where a LIT can help you.
Not only will they analyze your financial situation but they will offer you the best options for getting out of debt.
For some people, that might include debt consolidation.
Others might have to file for a Consumer Proposal.
Unfortunately, in some cases, bankruptcy is the best option, but that is often the last resort when you work with a LIT.
Instead, it’s about finding what works for you so you can pay off your debt without digging yourself into a deeper financial hole.
If you feel as though you have a mountain of debt, it’s easy to be overwhelmed and stressed.
By taking that first step and calling a professional, you can get rid of some of that stress and start taking positive steps forward with your finances.
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?
