Single Parent Debt

Confronting the Challenge of Single Parent Debt: A Journey to Debt Forgiveness

Single parent debt is a prevalent issue that arises from the long-term consequences of relying on credit to navigate through the vast sea of financial obligations. This is a narrative about an individual’s struggle against the increasing tide of debt and her path to financial liberation.

An Ongoing Battle Against Single Parent Debt

In the peaceful outskirts of Kingston, Ontario, resides a single mother, who we’ll call Jane for the sake of anonymity. Jane is a hardworking woman in her late forties who holds a full-time job and rents her home. She is also the proud owner of an old vehicle, her lifeline for her daily commute to work.

Jane’s vehicle, however, has been a constant source of financial stress due to frequent repairs, which she has been handling with her credit cards and lines of credit. Life hasn’t always been a bed of roses for Jane. She brought up her two children single-handedly, amidst countless hardships.

Single Parent Debt: A Deepening Crisis

After her children moved out and started their independent lives, Jane found herself alone, shouldering all her expenses. The financial strain began to mount, and her credit card bills started to pile up. Despite her love for her work, Jane was increasingly worried about her financial future and the possibility of a peaceful retirement.

With every passing year, Jane’s debt started to accumulate, reaching a staggering amount of over $130,000. This debt included her credit card balances and lines of credit. Jane’s financial institution kept increasing her credit limit, assuming she could keep up with her monthly payments. This led to a vicious cycle of debt accumulation, pushing Jane further into the abyss of financial distress.

 

“It is not uncommon for single parents to accumulate debt over $100,000. This often happens due to a gradual increase over many years. Despite their best efforts to keep up with the payments, the financial institution increases their credit limit, leading to a debt trap,” says John Doe, a licensed insolvency trustee.

 

Jane tried her best to reduce her debt. She even took up a second job to make ends meet. However, the physical and mental strain of juggling two jobs began to take a toll on her health and wellbeing.

Seeking Help: The Turning Point in the Battle Against Single Parent Debt

In March, Jane decided to reach out to a financial advisory firm for help. She was desperate to find a solution to her financial troubles but was apprehensive about declaring bankruptcy.

During her consultation with the financial advisor, Jane was introduced to the concept of a consumer proposal. She learned that a consumer proposal is a legal agreement between a debtor and their creditors, negotiated by a Licensed Insolvency Trustee. The trustee works out a plan for the debtor to pay back a portion of their debts, making it a viable alternative to bankruptcy.

 

“When I explained the process of filing a consumer proposal, Jane was incredulous. She thought it was ‘too good to be true,'” says the advisor.

 

A Ray of Hope: Discovering the Consumer Proposal

Despite its increasing popularity as a form of debt forgiveness, many individuals, like Jane, are unaware of consumer proposals and their benefits over declaring bankruptcy. A consumer proposal can significantly reduce a debtor’s liabilities.

In Jane’s case, her debt of $134,000 was reduced to $36,000, a remarkable reduction of 73 percent. This proposal was unanimously accepted by her creditors.

 

“Today is a monumental day. I am beyond grateful for all the help I have received. I can’t articulate how relieved and hopeful I am. I am confident of a positive outcome with the advisory firm navigating my way. A simple thank you doesn’t seem enough to express my gratitude,” says Jane.

 

The Road to Financial Freedom

Each consumer proposal is unique, and a Licensed Insolvency Trustee tailors it to ensure a sustainable debt repayment plan for the debtor. This plan is broken down into manageable monthly installments over a maximum of five years.

Jane is now three months into her consumer proposal. Instead of paying over $2000 monthly to multiple creditors, she is now paying only $600 as a single monthly payment. In five years, Jane will be free from the shackles of debt.

Jane decided to share her story to raise awareness about the debt forgiveness programs available to those struggling with immense debt. She wanted to highlight the relief these services can provide.

 

“I can’t describe the relief of having to pay only one bill. Earlier, I struggled to keep track of my payments. After getting paid, my account would be empty within minutes. Now, when I get my salary, I can afford groceries, gas, and even have some money left. No more feeling overwhelmed. I am deeply grateful and glad to have my life back on track,” says Jane.

 

If you, too, are grappling with unmanageable single parent debt, remember that help is just a call away. You can book a free consultation online and learn more about managing your personal finances. Get in touch with us on Twitter and Facebook.

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