What If We Have Debt And We Do Nothing?
Being in debt can raise many emotions, including shame, fear and guilt to name but a few; and all of them are emotions that can be difficult to stand up to.
With emotions flared and creditors on their backs, it’s unsurprising that many people try to ignore their debt as a tactic for dealing with the stress.
Here at Bankruptcy Canada, we’ve seen hundreds of cases where people have tried to ignore their debt and here’s what we have learnt.
Ignoring your debt rarely helps
Unless you are approaching the end of your statute of limitations liability period, then ignoring your debt is rarely the answer.
Burying your head in the sand and trying to pretend that your debt doesn’t exist, tends to only lead to further problems and complications that make your financial situation worse in the long run.
Creditors won’t stop calling, your interest will continue to compound and your debt will grow, leaving you in more of a mess than you started with.
If ignoring debt isn’t the answer, then what is?
Instead of ignoring your debt, there are several other options available to you that will help you to pay back what you owe, or to start a new financial slate if your debt is too much to pay back.
Some of the things that you could do instead of ignoring your debt include:
Negotiating with your creditors
Believe it or not, your creditors want to help you to pay them back, and many are willing to negotiate payment plans, interest rate freezes and lower interest rates to help you.
If you’re worried about negotiating with your creditors yourself, then speak with a Licenced Trustee who will be able to liaise with them on your behalf.
Consolidating your debts
If you have multiple debts and are feeling overwhelmed, then consolidating your debts into one more manageable monthly repayment could be the answer.
If you have a large amount of debt, but don’t want to risk losing your assets by filing for bankruptcy, then a consumer proposal can help you to pay back affordable repayments to your creditors.
Consumer proposal payments last for a fixed period of time (usually five years), after which any remaining debt will be discharged.
Even if you have no way to repay your debt and are declared insolvent, then you can still start a new financial slate by filing for bankruptcy.
Contrary to popular belief, many people get to keep more than they think during a bankruptcy proceeding, exiting the process with most of their personal belongings and without the stress of debt on their shoulders.
Choosing the right debt relief service for you
Here at Bankruptcy Canada, we understand that debt can be scary but trust us when we say that ignoring it won’t make it go away.
With just one phone call, we can match you with a local Licenced Trustee who will be able to assess your debt and advise you on the best debt-relief route to take.
To find out more about what we do or to be matched with a Licenced Trustee, call us on (877) 879-4770 or fill out our online form.