Living with Overwhelming Debt – What are Your Options?
Canada is a nation of debtors.
Over 130,000 citizens will file for insolvency while over one million consider themselves close to bankruptcy.
In reality, though, the number of people faced with financial difficulties caused by overwhelming debt is even greater.
If you are currently living in serious debt, now is the time to take action.
Hesitation will only allow the situation to become even worse.
The first step on the road to financial recovery is to understand your options.
What is ‘Overwhelming’ Debt and Why Does it Affect So Many People?
Most people owe money to creditors in one form or another.
From your mortgage to a car loan, many of the financial agreements are for your best interests.
However, debts can become overwhelming when the following issues surface:
- You have borrowed more money than you can afford to pay back.
- You have fallen into the trap of minimum payments.
- You are in a cycle of opening new lines of credit to clear existing debts.
While overwhelming debts can surface as a result of irresponsible spending, it’s often caused by unpredictable life situations.
Redundancy, a divorce, or an unexpected medical bill are all good examples.
Likewise, business owners may suffer personal difficulties as a result of an economic downturn.
Despite the common nature of the overwhelming debt, many people continue to suffer in silence.
The reluctance to take control can be attributed to feelings of guilt, shame, and embarrassment, as well as the fact that debtors often don’t want to admit to the severity of the situation.
The delay in seeking support, combined with the financial struggles facing the global economy, means the overwhelming debt is something millions of people experience.
A conscious effort and comprehensive plan is the only route to recovery.
How to Overcome Overwhelming Debt
No two people are in identical financial situations, and the best path to financial security will be determined by a wide range of factors.
However, some of the most likely solutions are as follows:
- Financial management that focuses on analyzing all income and outgoings to implement lifestyle changes followed by increased financial organization, which could include setting up payments to be synced with your payday.
- Debt settlement strategies that allow you to pay back a negotiated lump sum to your creditors in return for gaining a discharge from the remaining costs and interest rates, thus allowing you to start a new and responsible financial chapter.
- Submitting a consumer proposal, which is a legal process that revolves around reducing your principal and interest payments while also stretching the repayment plan to five years in a bid to make the debt recovery process more affordable.
- Consolidation loans and settlements that focus on creating a more organized approach to repayments while simultaneously reducing your interest payments by clearing high-interest and compounding interest accounts.
- Filing for bankruptcy to gain a discharge from all unsecured debts, which should be followed by an effective credit rebuilding strategy as well as a financial education that will enable you to avoid repeating the same mistakes.
The best way to discover which method is right for you is to call BankruptcyCanada today.
With our help, the weight of overwhelming debt will be lifted from your shoulders in no time.