Why Getting Help With Debt Now Can Make It Less OverwhelmingOct 21, 2018
Have you ever left a problem longer than you should, fix it, and then wonder why you waited so long? That’s the feeling you get after getting help with your debt. We’ve all done it in some way or another — whether it’s with a problem with money or something else in our life. We can’t go back and change it, but we can do something about it moving forward.
The cost of day-to-day living across the country continues to rise making affordability for individuals and families more challenging every day. BDO Canada set out to learn more about the financial challenges facing Canadians. The results of our Ipsos poll can be found in our first Affordability Index.
What we learned may be surprising to you: 74 per cent of Canadians are carrying non-mortgage or personal debt. The average amount: $19,977. One-in-four Canadians feel their debt is overwhelming. And three-in-10 respondents told us they don’t have the money to pay for their basic needs.
If you’re in debt, overwhelmed or struggling with everyday expenses, there are two things you can take away from those results. First, if you thought you were alone in your struggles, you now know that’s not the case. Second, you don’t have to be reluctant to get help with your debt.
How does debt help eliminate the feeling of being overwhelmed?
- It establishes a plan to pay down your debt
Not knowing how or where to start is usually the biggest obstacle for many people when it comes to dealing with debt problems. A Licensed Insolvency Trustee (LIT) is your best resource for learning about debt relief options.
An LIT will sit with you and listen to the challenges you’re facing and then work with you to establish a plan. That plan can instantly relieve some of the stress that personal debt can create in your day-to-day life.
- Your monthly debt payments typically will become smaller
Each debt relief option works differently. For instance, a debt consolidation loan merges multiple consumer debts into one loan, most often at a lower rate of interest. That means you will have one payment each month, which can create a little more wiggle room in your budget to help with affordability challenges.
When it comes to more serious debt problems, an LIT is the only debt professional that can help you with formal options — a consumer proposal or bankruptcy — that can provide you with a fresh financial start.
- Teach yourself new skills to effectively manage your finances in the future
Once you have a plan in place to reduce or eliminate your debt, chances are excellent that you’re learning new money management skills along the way. This is a great time to further expand your financial knowledge. The Financial Consumer Agency of Canada website offers all kinds of tools and resources for budgeting, managing credit, savings and investments and much more. Check it out!
If you’re feeling overwhelmed by your personal debt, don’t hesitate to seek help now. Doing so not only helps you reduce debt and stress, but it can assist in making day-to-day life more affordable.