Financial stress can be one of the most debilitating forms of stress. A recent study has shown that financial stress can lead to various health issues, including insomnia, depression, and anxiety. If you find yourself saying, “My finances are in serious trouble,” you’re not alone. Many people struggle with financial difficulties at some point in their lives. The key to navigating these challenging times is to understand your options and make informed decisions. This comprehensive guide will walk you through the steps you can take if you find yourself in serious financial trouble.
Understanding the Situation
Before you can start resolving your financial issues, you need to understand the depth of your problems. It’s essential not to ignore the signs of financial trouble, such as increasing debt, inability to pay bills, or reliance on credit cards for everyday expenses.
Take a Financial Inventory
Start by taking a financial inventory. List all your assets and all your liabilities. This will help you understand where your money is going and how much you owe.
Exploring Your Options
If you find yourself saying, “My finances are in serious trouble,” don’t despair. There are several options available to you.
A consumer proposal is a legal process that you initiate with your creditors to pay a percentage of what is owed to them or extend the time you have to pay off the debts, or both. It’s a viable option if your total debts do not exceed $250,000 (not including debts such as a mortgage secured by your principal residence). You can learn more about consumer proposals here.
Bankruptcy is another option that can give you a fresh start. When you declare bankruptcy, you sign over all of your non-exempt assets to a Licensed Insolvency Trustee (LIT). The LIT then sells these assets to repay your creditors.
Getting Help
Financial stress can be overwhelming. If you’re in crisis, don’t hesitate to reach out for help. Crisis Services Canada is available at 1-833-456-4566 or by text at 45645.
Meeting with a Licensed Insolvency Trustee (LIT)
If you’re considering a consumer proposal or bankruptcy, you should meet with a Licensed Insolvency Trustee (LIT). An LIT is a professional who can administer federally regulated debt relief options. They can evaluate your financial situation and discuss your options with you. You can find an LIT here.
Other Options
If you’re struggling financially but are still making your debt payments, there might be other options available to you. You can explore these options here.
Final Thoughts
Remember, if you’re saying, “My finances are in serious trouble,” you’re not alone. There are options available, and there are professionals who can help you navigate these challenging times. The important thing is to take action and not ignore the problem.
Take the first step today towards resolving your financial troubles.
