The burden of debt can weigh heavily on you – which is probably why you are reading this right now. The good news is that you’ve already taken a big step to dealing with your debt – you’ve started looking for Kenora debt solutions. In this article, you’ll learn about the range of options available to you, helping you make the best choice. You’ll soon feel the weight of debt lifting from your shoulders.
Why do you need debt help?
According to a September 2018 survey by the Canadian Payroll Association:
- 40% of Canadians feel overwhelmed by their debt
- 33% of Canadians have seen their debt increase over the last year
There are many reasons you might be suffering with debt stress. Understanding the cause of your debt is important. This knowledge helps to design the debt solution. Reasons for overwhelming debt include:
- A reduced income
You may have lost your job or had your hours reduced. Bonuses and commissions may have been cut. Perhaps your partner has suffered an illness and can’t work, and now you are surviving on a single income.
- Divorce or separation
Divorce puts a financial strain on both parties, especially if children are involved. Suddenly there are two homes to pay for. If one partner is unable to pay child support, this creates an even bigger financial gap.
- Ill health
A period of illness could cause your income to fall, and make it difficult to meet your expenses.
- Payday loans
If you have suffered a financial emergency – perhaps your heating needed repairing, or your car broke down – you may have borrowed to pay the bill. If you forget to make the payment, or another unavoidable expense comes along, your debt can spiral – especially if the source of debt is a payday loan.
Personalizing Kenora debt solutions
Debt options that work to help relieve financial stress include:
- Credit counselling
Credit counselling could help you with money management, budgeting, and longer-term financial planning. This will help get your finances back on track and keep them healthy after your debt stress has been solved.
- Debt consolidation
The idea behind debt consolidation is to replace your existing debts with a single loan at a lower interest rate. Making one payment instead of several is easier to manage. A lower interest rate will cost you less. However, the amount you owe will be the same. Unless you can afford to continue to make payments, debt consolidation doesn’t work.
- Consumer proposal
A consumer proposal offers several benefits. For example:
- Your monthly payments will be lower
- The total amount you owe will be reduced by as much as 90%
- Your assets are protected
We negotiate with your creditors for you. We are required to offer them more than they would receive if you filed for bankruptcy, but, within that requirement, can offer an amount that works for you. The monthly payments will be within your family budget. Once an offer is agreed to by creditors holding more than half your debt, the agreement becomes binding on all of your creditors.
If you have large monthly debt repayments, a consumer proposal may be the best solution.
- Personal bankruptcy
As we discuss in our article, “How bankruptcy help today can make for a better tomorrow,” filing for bankruptcy could be the restart you need. Your unsecured debt will be eliminated, and you can start again with a clean slate.
If you are honest and hardworking but your debts threaten to eat you up, bankruptcy could be the best debt solution. Contrary to popular belief, you won’t lose everything. In personal bankruptcy, many of your assets are protected from your creditors.
The Executions Act of Ontario sets out those things that are exempt from seizure by creditors. It includes all of your clothing and that of your dependents, also furniture and household appliances up to a value of $13,150, as well as tools and property that you need to earn a living, up to the value of $11,300. Likewise, one motor vehicle up to the value of $6,600, and equity in your home IF it is less than $10,000 are also exempt from seizure. Your pension, as well as any RRSP’s and RIF’s are exempt, except contributions made within the last 12 months. NOTE: each province has an Executions Act, or similar legislation, and the exemptions are different from province to province. These are Ontario exemptions only.
What do you need to do?
Debt doesn’t have to be the burden it is today. You can take control of your debt and get your life back on track, but it’s difficult to do on your own. For more than 30 years, we have been helping Canadians navigate their finances. We offer our help with debt solutions in Manitoba and Northwestern Ontario, including Kenora.
As Licensed Insolvency Trustees, we have the experience and know-how you need. We’ll talk to you and discover all we need to know about your finances. We’ll learn what is important to you and understand how you got to this point. Then we’ll work to tailor a solution to your unique situation.
You’ll find our offices are easy to locate in Winnipeg and Kenora. Debt solutions that we will discuss with you are many and varied. This article will give you an idea of just how many options there are available to you, and the breadth of help that you can rely on from LCTaylor.
For a free and confidential consultation to discuss your financial situation and develop a personalized debt solution with options that work, contact the Licensed Insolvency Trustees at LCTaylor.