Photo credit: Len dela Cruz
We recently asked our Debt Bootcamp students: what’s preventing you from getting professional help with your debt?
The number one reason? They were “ashamed of their debt.”
As a few of our students put it:
“Fear…that I haven’t done enough myself. I created this mess I should be doing more to get out of it.”
“No, I did not because I’m ashamed of my debt”
“I have too much pride. I’m embarrassed by my debt.”
“Embarrassment shame and fear”
“The thought of being in such debt was embarrassing”
I know that debt can be embarrassing. But these thoughts need to change. You are hurting yourself by using embarrassment as a reason to not get professional help.
By the end of this article, I promise that your entire outlook on debt is going to change.
You are going to see debt and your embarrassment in an entirely new light.
You’ll see that debt is a business decision. You need to remove your emotion. It’s hurting you and holding back your family.
I’m Paul Murphy, by the way. I’ve worked in the financial services industry for 20+ years. I’ve seen thousands of families in your situation and I know that this is a tough time.
But there is a way out and you’ve likely already heard about it in the news or in a business magazine.
Debt is a business decision
Every day, we hear in the news about huge corporations going through bankruptcy or financial restructuring.
These are household names such as Air Canada, Lehman Brothers, General Motors, Enron, Delta Airlines, Blockbuster, Marvel, Texaco, Trump Entertainment.
All the companies above have gone through bankruptcy or financial restructuring and come out the other side. Did you know that you can use these same methods?
Families, individuals, and small businesses can also restructure their debt.
Debt restructuring isn’t the end. It’s a new beginning.
For instance, Air Canada restructured their debt—now they’ve refocused and were recently rated one of the top airlines in North America by Skytrax.
Businesses aren’t embarrassed by their debt. They restructure and negotiate with creditors. You can use similar methods and get professional help with this situation.
So how does restructuring work? During periods of economic decline, it’s very common for distressed companies to initiate a formal restructuring or file for bankruptcy.
For corporations, this is not seen as a desperate measure or throwing in the towel. It’s the first step in reorganizing the business.
Debt restructuring is a common strategy. It’s a way to deal with financial challenges and is much better than bankruptcy.
Even solvent companies use debt restructuring when they struggle to refinance their loans or face huge debt payments that are restricting their ability to grow.
The role of the debt restructuring expert
When facing financial trouble, companies engage the services of a restructuring specialists.
These experts reorganize their operations and identify opportunities for future success.
Bankruptcy and restructuring are part of a strategy with a full understanding of the short-term implications. They build a complete recovery plan.
Can an individual in Canada use these same methods?
Of course. That’s why you shouldn’t be embarrassed by your debt.
If you are reading this, it’s not your fault.
Your finances have progressed beyond simple tactics like budgeting, spending less, or paying down interest.
There are a number of life events that can generate an enormous amount of financial stress and lead us to incur significant and unwanted debt.
Often, our clients have become ill or are recovering from a divorce.
Or they have to find new work after their small business failed.
Or they have made poor financial decisions—and would never make those same mistakes again.
Either way, it’s beyond your control. Your debt has become too large and you need some professional help.
You need to separate your emotions from debt.
This is now a business problem. You owe a lot of money. You can’t pay the interest (or would take years of hardship to pay) and you need to take a different route.
Why should you face this financial hardship different than a large corporation?
When a company has a poor performing product line or strategy decisions that didn’t work out, they use debt restructuring and bankruptcy.
You can use the same tactics that large corporations use to push the restart button. With the help of a professional, you can put this behind you and move on to new successes.
I guess what I am trying to say is that the same options exist for individuals as they do for these giant corporations.
The huge names of companies we all know and love come out the other side seemingly unaffected. So can you. The great news is you won’t be on the front page of the newspaper or be a feature on the nightly news.
From now on, I don’t want you to think of debt as a shameful burden. Yes, it’s a problem. But we can help you solve this.
The sad part is that Canadians often wait. They live in stress, get pulled down by emotion, and blame themselves.
They are so ashamed.
Ashamed of their decisions. Ashamed of their inability to solve this without professional help.
This makes them wait until the last minute.
In contrast, corporations have it completely figured out.
They act quickly when they see financial trouble. They know that the longer they wait, the bigger the debt grows.
The longer you wait, your options and future opportunities become restricted.
Our restructuring specialists do more than restructure your debt. They give you a comprehensive plan for the future to minimize the impact of your debt.
Like big corporations, all the same options are available to every consumer in Canada feeling the pressure of debt.
It just needs to be carefully planned.
You need a long-term strategy and need to take this as the opportunity to make some life changing decisions versus constantly looking to the past and blaming yourself.
Don’t be ashamed—even great men and women have debt troubles.
Bankruptcy is the most severe form of financial restructuring and there are other less severe options available to remedy financial challenges.
Take a look at the famous people that have personally been through bankruptcy and come out the other side with amazing results.
Entrepreneurs Who Went Bankrupt
| Name | Birthdate | Profession | Bankruptcy Date | Eventual Net Worth |
| Henry Ford | July 30, 1863 | Founder of Ford Motor | 1903 | $188,000,000,000 |
| Donald Trump | June 14, 1946 | Real Estate Developer | 1990 | $3,000,000,000 |
| Walt Disney | December 5, 1901 | Founder of Disney | 1921 | $1,100,000,000 |
| George Foreman | January 5, 1949 | Boxer/Grill Spokesman | 1983 | $300,000,000 |
| Kim Basinger | December 8, 1953 | Actress | 1993 | $250,000,000 |
| Larry King | November 19, 1933 | News Anchor | 1978 | $144,000,000 |
| Burt Reynolds | February 11, 1936 | Actor | 1996 | $30,000,000 |
| Randy Quaid | October 1, 1950 | Actor | 2000 | $25,000,000 |
They solved these debt challenges. You can use the same methods. Give yourself the opportunity to push the restart button.
So what should you do next?
Last year, 4 Pillars helped over 3500 Canadian families deal with $160 million in consumer debt.
We will never judge you, no matter how large your debts or the decisions that brought you to this place. Begin your path from debt by contacting one of our 50 offices across Canada.
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Case studies from actual families in Canada
Begin with this true story of man in his 50s who lost everything. He survives his crisis and restructures his debt.
An Ontario family is faced with bankruptcy. Here are the 6 steps they took to reduce debt from $57K down to $15K.
Here are 60+ reviews from Canadian families who used our services.
