Lottery odds – 7/7 numbers – 1 in 28,633,528
Feeling overwhelmed! DEBT can also have that same overwhelming feeling!
Countless reasons why Canadians experience overwhelming debt:
- Divorce
- Illness
- Unemployment
- Economic downturn – Business failure
It has been my experience that 1 in 5 is living the life of what I called uncontrolled debt. Every second week the pay check comes in and the payments roll out. Who do I pay this month? How do I borrow from this credit card to make the minimum payment on this other credit card? Many consumers struggle for years before making a resolution that they can’t keep juggling bills like a gymnast every single month.
Why the reluctance of getting help? Embarrassment perhaps! Pride! Statistics show that a person will struggle over their financial situation for three years before actually doing something about it.
Financial restructuring is the process where a consumer or business negotiates with their creditors to reduce its debt or to revise a repayment plan. A person has numerous options:
- Debt Settlement means that if successfully complete you pay back part of what you owe – usually negotiated as a lump sum
- Consumer Proposal – legal process where a consumer offers the creditors part of what is owed resulting in a repayment plan that can be structured in many creative ways, up to 5 years.
- Consolidation loans– debts being paid off through a financial institution resulting in one monthly payment
- Bankruptcy – legal process where you cannot pay your creditors
- Budgeting – learning to live within your means and creating a repayment plan for each creditors
Financial decisions are difficult to make so I encourage you to BE the person that defies the odds and take action now instead of waiting 3 years to secure a healthy financial future. Debt is the biggest single threat to Canadians financial future and speaking with an expert about your options to get out of debt should be a part of every financial plan.
About the Author:
Pauline Chiasson operates the 4 Pillars Guelph, ON office. If you want to contact her directly call her at: (519) 341-9604.
