4 Things to Remember When Considering Debt Solutions
If you are struggling with overwhelming debt, your path to financial freedom starts with a FREE consultation with D. Thode & Associates.
We meet with people every day who struggle with financial challenges and are just trying to make ends meet. They are stressed, worried and have usually been trying to find solutions on their own for some time before they land at our doorstep.
Here are a few things to remember when it comes time to find a permanent debt solution:
1. Get help sooner rather than later. Many of the individuals we assist tell us they were anxious or embarrassed about seeing a Licensed Insolvency Trustee – and that they put off seeking help for fear of being judged. Remember that we chose this profession in order to help good people who are dealing with tough times. We know life happens and understand what you’re going through. We can help you to stop the harassing calls, get a realistic plan in place, and finally find peace of mind.
2. Bankruptcy and Consumer Proposals don’t follow you for life. There is a common misconception that once you file for bankruptcy or have a consumer proposal in place that you will always be considered a credit risk. The reality is, your credit rating has probably suffered if you are considering bankruptcy or consumer proposal. Often filing and clearing the debt is the fastest way to save your financial future and your credit rating. A first-time bankruptcy can be discharged in as little as 9 months and will stay on your credit bureau for 6 years after you are discharged. A consumer proposal must be paid within five years and is removed from your credit bureau after 3 years. For many debtors, a chance to wipe the slate clean gives them an opportunity to build a strong financial plan that can help build personal credit and savings.
3. Not all credit counselling options are created equal. Licensed Insolvency Trustees are just that – licensed. They have undergone rigorous training and certification and are obligated to ensure that you have the information needed to make an informed decision. They are the only individuals who can administer bankruptcy or consumer proposal. And yet there are many “credit counselling” options out there that claim to be able to fix your credit rating or solve your debt problems for a fee. Make sure you seek out a Licensed Insolvency Trustee to ensure you are getting the help and advice you need to change your financial situation for the better.
4. Report all your debts to your Licensed Insolvency Trustee. Everyone knows they need to disclose their credit card debts and their unsecured loans to their Trustee. Many people overlook some equally daunting debts that may not necessarily come in the form of a monthly bill. Tax debt should always be considered as a part of your debt solution, but so should personal loans, such as significant amounts owing to family or friends. If you are going to need to repay these amounts at some point, it’s important to front load your debt discussion and make sure that all funds owing – no matter who or where they are owed – are disclosed as soon as possible in order to determine your best options going forward.
If you are struggling with overwhelming debt, contact D. Thode & Associates Inc. for a FREE consultation. Your path to financial freedom starts here.