How an LIT Can Make Your Life Less StressfulNov 21, 2018
Stress. We all experience it from time to time and we’re constantly on the lookout for ways to reduce the stress that we may feel. For many Canadians, money and debt is a continual source of stress and one that might not always be easy to fix. In a recent survey, almost 34 per cent of Millennials reported feeling overwhelmed by the amount of personal debt they carry and are unsure of how to deal with their debt load. 26 per cent of Gen-Xers were in the same boat, followed by 13 per cent of those who fall in the Boomer age range.
When debt gets too stressful and overwhelming, seeking help is the first step. As a licensed debt relief professional, a Licensed Insolvency Trustee can help you find relief from debt and reduce your associated stress. Here’s how:
A consumer proposal
Filing a consumer proposal is one option for dealing with debt and a great alternative to filing for bankruptcy. When you file a consumer proposal, your LIT will negotiate with your creditors on your behalf to reduce the amount you will be required to repay and potentially increase the amount of time you have to repay this amount. In other words, you will only have to reimburse a small portion of your debt. Once the terms of the proposal have been agreed on, you’ll make one easy monthly payment to your LIT, who will distribute the funds to your creditors, until the agreed upon amount has been repaid.
Unfortunately, not all debts are eligible for a consumer proposal. If you find that filing a consumer proposal will not work in your situation, it may be necessary to work with your LIT to file for bankruptcy instead. Although it may be a difficult decision to make, remember that filing bankruptcy will provide immediate relief from the overwhelming debt that you carry. It’s also important to keep in mind that, contrary to popular belief, you will not lose all your assets when you file and you will be able to rebuild your credit after your bankruptcy ends. Your LIT will help you rebuild your credit, providing useful tips and information as well as they will be there for you throughout the whole process to provide needed guidance and support you may need.
Recommend other debt relief services and resources
An initial consultation with your Licensed Insolvency Trustee will help you determine whether filing a consumer proposal or filing for bankruptcy is really the right step for you to take in order to find immediate debt relief.
If bankruptcy or a consumer proposal is not right for you, your Licensed Insolvency Trustee can recommend resources and other debt relief professionals who can also help to reduce your debt-related stress. A credit counsellor, for example, can work with you to develop a budget and other financial tools and strategies to help you manage your money more effectively and regain control over your debt.
Are you feeling stressed out and overwhelmed by the amount of personal debt you carry? How do you plan to deal with your debt and reduce your debt-related stress?