Self-Employment And Illness Create Challenging Debt Problems
Self-employment can provide a number of great benefits.
For instance, it can offer more freedom and allow you to work when you want, how you want.
But it doesn’t come without disadvantages.
One of the issues with self-employment is the lack of support from an employer.
Remember, even if you are working long term for a client, as a freelancer, they won’t be obligated to pay you sick leave if you do fall ill.
Long term illnesses are also far more common than most people realize.
Indeed, according to one report 1 in 7 debtors in Canada list an illness as the main cause of their insolvency.
This is true, even when taking into account that there is a public health care system operation in Canada.
A loss of income will ultimately cause any existing debt to increase and become far more difficult to handle.
Can It Happen To Anyone?
It’s easy and somewhat understandable to assume that only those who are earning a low income are at risk here.
But that’s that not the case.
You could be earning a substantial amount annually.
You might even be over the $100,000 mark and still run into trouble.
For instance, you might develop an issue like a Repetetive Stress Injury.
When RSI becomes severe it can stop you from working due to the chronic pain that many individuals experience.
It can certainly reduce your levels of productivity and limit the amount of work that you take on.
RSI is treatable but will often need extensive levels of treatment as well as medication.
While you might be able to rely on savings that you have built up, eventually you could end up pulling money from your RRSP.
Eventually, you might even find that your money runs out and this could lead to you starting to pay for more on credit.
Most long term illnesses will allow you to return to work eventually.
However, by this point, you could have built up quite a substantial level of debt.
Your income might also not be as strong as it used to be.
You could even be forced to default on some of your payments making matters a lot worse.
What Are The Options?
If you need support managing a growing level of debt due to a long term illness, your best option will often be a Consumer Proposal.
This is an offer put towards your creditors to limit your debt and set up a payment plan to cover the costs that you have built up.
It will help you avoid bankruptcy and ensure that you can get back on your feet.
Be aware that this will only be suitable for unsecured debts.
If you need further assistance with debt relief, get in touch with us today or fill out a free evaluation form on our website and an expert member of our team will get back to you without delay.