The BC debt help specialists at Sands & Associates work with people across the province every day who are seeking a better way to manage their debts and get a financial fresh start. Whether it’s being unsure where to turn for answers, believing a situation could be impossible to solve, or feeling embarrassed to be asking for help – a lot of consumers have long delayed seeking professional debt advice by the time they get solutions underway.
Many of these same people have later said that they wish they hadn’t waited so long to get support, or how the first time they spoke with a debt expert they felt the weight of their debt lifted from their shoulders. If you need a reason to stop procrastinating, to get motivated to move forward financially and to be excited about your future, this post is for you.
Here are some key reasons why you should connect with a Sands & Associates Licensed Insolvency Trustee to get started with a plan to be debt-free:
Stop Your Debt-Stress and Worry
Debt-stress can affect your emotional and physical self and anxiety about your debts and finances can feel paralyzing and all-consuming. We know that prior to finding a debt solution and working with a Licensed Insolvency Trustee many of our clients felt debt-stress in virtually every aspect of their daily life, and the majority felt constant worry about their debts.
Some of the other debt-stress impacts our clients commonly experience before getting a plan to deal with their debts included:
- Self-esteem suffering
- Feeling alienated and alone
- Health impacts including:
- Anxiety and/or depression
- Sleeping poorly
- Heart problems and/or high blood pressure
- Family and relationship strains
Removing debt-stress and financial worries can completely change your life. According to one BC Consumer Debt Study:
- After filing a Consumer Proposal or personal bankruptcy, 92% of people said that the debt option they chose allowed them to feel good about the demands of their daily financial life.
- 89% of people polled said they felt extremely satisfied or mostly happy with the outcome of the choice they made to deal with their debts – and 82% said they would have taken action sooner if they’d been aware of the process details.
- Only about 33% of people who had a debt problem but had not filed a Consumer Proposal or personal bankruptcy said they felt very positive or optimistic about their financial situation and future, whereas nearly 75% of people who had filed said they now felt positive or very positive.
At Sands & Associates we believe that everyone is entitled to live with dignity and without the overwhelming stress and negative impacts of debt.
Carrying debt simply isn’t affordable long-term for most people. Debt-free plans like consolidating with a Consumer Proposal or even getting full debt forgiveness with a personal bankruptcy serve to:
Make Monthly Debt Payments Affordable
Consumer Proposals in particular offer substantial benefits when it comes to making debt payments affordable, especially compared to traditional consolidation loans that require you to take on borrowing with interest, and even credit counselling programs that only stop future interest charges but require full payment of amounts outstanding.
- A Consumer Proposal consolidation plan allows you to reduce your debt repayment down to what you can afford, in full settlement. Any portion of the debt that you’re unable to repay is simply written-off and forgiven by your creditors at the end of your Consumer Proposal.
- Interest charges are automatically halted as part of the proposal, with no negotiation required.
- There is no service cost on top of what you’re repaying on the debt as part of your Consumer Proposal – essentially your creditors will pay the administrative cost of your proposal which is deducted from the money they receive.
Here’s an example of the potential financial savings you might find with a Consumer Proposal:
You have debts totalling $10,000 at an 18% interest rate that you’re aiming to repay without consolidation over a 3-year period, so you will need to pay approximately $360 per month for 3 years to pay this debt off.
If you were able to access a debt consolidation loan to pay off that debt instead, with an interest rate of 12% you would pay around $330 per month for 3 years. That’s not much of a difference on a monthly basis is it?
The cost-saving benefits that come with a Consumer Proposal’s “automatic no interest provision” are considerable for your day-to-day cashflow. Using that same example, a Consumer Proposal could potentially:
Reduce total debts of $10,000 down to 60% repayment (to settle in full) over a 3-year period, which would require monthly payments of around $165. What could you do with that extra $165 a month?
Not only are you freeing up money that can be used to improve your cash-flow on a monthly basis, you also avoid an overwhelming long-term cost of borrowing – compounding interest charges. For many people that we help, particularly those who have been struggling to manage all their financial obligations, having an affordable monthly payment is life changing.
Cutting your payments down to what you can afford helps you move towards another great reason to get a debt-free plan:
Start Financially Fresh
Sometimes a person just does not have the ability to repay their debts, despite careful planning (and of course intention). Carrying burdensome debt long-term or facing monthly payments that are seemingly never-ending can be overwhelming emotionally – and financially.
Delaying dealing with debts usually means that the debts grow, whether through interest accruing, or by continuing to take on more debt. It’s not uncommon for someone to have a budget that will allow them to make sizable regular payments towards their debt, but not see the principle balance being reduced – even for years at a time. Many people are surprised to learn that at ‘normal’ credit card interest rates of approximately 19.9%, their debts will double on their own in just 3.6 years, even if no further purchases are made.
Choosing a legislated debt solution like a Consumer Proposal or personal bankruptcy allows you to get a clear “debt free” date and move forward with a financial fresh start.
Many people our Licensed Insolvency Trustees assist worry about the potential long-term impact to their credit history. A “reset” on your credit history may actually help you build up a favourable high credit score faster than if you kept trying to repay the debt on your own. It’s also important to understand that:
- Credit scores are not accurate measures of “financial health”.
- Credit scores can change dramatically in just a few short years.
- Consumer Proposal consolidation and even bankruptcy are not permanently indicated on your credit history.
Still not sure about asking seeking professional debt solutions? Try doing the “Rule of 60” math:
- Add up your total non-mortgage debts, then divide the number by 60. Does the number you get look like an affordable monthly payment you could make consistently to payoff your debt in the next 5 years?
If that 5-year monthly payment doesn’t seem realistic or would leave your budget strained, take some time to find out about debt options that can help you become debt-free with an affordable monthly payment.
Many people feel that carrying debt hindered them from achieving “life event” milestones such as starting a family or purchasing a home. Get your financial fresh start now with help from a local BC debt expert.
Put Yourself in the Driver’s Seat
If you’re overwhelmed by your financial situation you may feel like you are living at the mercy of your debts – as though you don’t have much control over your life because your money problem has taken over pretty well everything. Making the decision to work with a Licensed Insolvency Trustee and get a plan to be debt-free puts you back in charge.
- Stop juggling debts, trying to manage creditor payments and deal with difficult collection agents – you can streamline your debts into one manageable process with a clear debt-free date.
- You can even get there early if you choose – with options like a Consumer Proposal you can pay off your consolidation settlement early at any time, without penalty.
- Instead of feeling alone and not knowing what might happen, or how you can address your financial challenges – access professional support and resources.
Licensed Insolvency Trustees are the only debt help professional endorsed and authorized by the government of Canada to help individuals with their debts. Knowing this you can feel confident that you’ll be backed by transparent processes and reputable professional help.
Although all Licensed Insolvency Trustees can offer you the same resources and solutions, it’s important to feel comfortable and confident with the professional you chose to work with. Consumer Proposals and personal bankruptcies are legislated processes, but kindness, respect and empathy are equally important. Supporting you using an approach of “Debt Smart with Heart” is important to Sands & Associates – it is our goal for you to get all the information you need to make an informed decision about your situation and the possible solutions, so you can move forward towards personal success.
Whether you want to stop debt-stress, cut your monthly debt payments, or simply take charge of your financial future with a fresh start, we’re here to help you. You have options that can help you reach your financial goals and it could take less than an hour to work with a Trustee on a plan that can allow you to become debt-free for good.
Get started with your plan to be debt-free today. Book your free confidential debt consultation with a friendly non-judgmental BC debt expert from Sands & Associates.