Talking about debt remains difficult, but there are solutions
BDO Debt Solutions offers help for Canadians living with unmanageable debt.
The high cost of living and interest rates continue to be the leading financial concerns of Canadians. While everyone complains about the rising cost of living, talking about debt remains extremely difficult. Our 2023 Affordability Index showed that talking about debt is extremely difficult — the simple thought of reaching out for help is daunting.
It’s normal to feel uneasy about the unknown but living with the overwhelming stress that goes together with an unmanageable debt load isn’t. The good news? There are solutions.
Financial problems can happen to anyone
It’s important to know that anyone can become financially vulnerable — regardless of income, background or education. All it takes is an unexpected life event to leave people in financial difficulty. Some of the most common causes are the breakdown of a relationship that results in divorce or separation, the high interest rates we’re all struggling with right now, the loss of a job or physical and mental health issues.
Why are people afraid to ask for help?
BDO’S Affordability Index found that financial issues are the number one hardest topic to discuss for 21% of Canadians. That’s more than relationship issues (18%) medical issues (12%) employment challenges (9%) and housing concerns (8%).
Why are Canadians afraid to talk about their finances with others when we all know just how much the cost of living has risen? The survey pointed to a number of reasons.
Fear of judgment or shame topped the list, at 38%, but privacy concerns (35%) and the fear of their friends and family thinking they’re being asked for money (31%) weren’t far behind.
Other reasons included the fear of damaging a relationship (29%) a lack of financial literacy when it comes to understanding debt (17%) and the lack of a supportive network or safe space (16%).
Canadians unsure who to turn to for help
The survey found that while Canadians struggle to talk about their debt, they’re certainly worried about it: 54% are concerned about their current debt situation.
Many say they don’t want to discuss their finances with anyone, with 36% saying they’d like to avoid discussing their money issues altogether.
For those that are open to discussing their issues, there’s a lack of knowledge about who they can tell about their situation: 22% they have no idea who they can talk to.
Canadians can turn to us
As a Licensed Insolvency Trustee (LIT), I can help relieve your financial stress and address the most complex debt situations.
I’ll listen to your story without passing judgment, so I can find the best option to help you get back on your feet. I know that no debt situation is ever the same,
and that’s why the solutions to it shouldn’t be one-size-fits all either.
How we can help
LITS are the only professionals in Canada who can legally offer debt relief options like a bankruptcy and a consumer proposal.
While many haven’t heard of it, a consumer proposal is the most common solution to insolvencies in Canada. Bankruptcy is now only used for about 20% of consumer insolvencies in Canada.
Consumer proposals make up the other 80%, making it the most common legally binding debt relief solution in the country.
A consumer proposal means that an LIT will negotiate with your creditors to lower the amount of unsecured debt you owe. This could lower your monthly
payments by 30% to 80% rather than trying to pay back the full amount.
When you meet with us, we’ll help you figure out your income, assets, liabilities and expenses. This will determine how much of your total debt you can afford to pay. With this information, consumer proposal will be created. It will outline your monthly payments and your repayment period, which can be as long as five years. Once you pay it off and attend two debt counselling sessions, the rest of your debt will be forgiven.
A consumer proposal is customized to fit your situation. Your information, your story, and your expectations, allow us to provide a solution tailored to your needs.
The initial consultation with a LIT is free and confidential.
If you’re having trouble making ends meet, talking about it is the first step to relief. Visit the BDO Debt Solutions website for more information, or call 1 855-236-3328 to book a free, no obligation consultation.