Canadian Debt Solutions- What options do I have?

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_{By Bromwich+Smith Staff | 1117 words | Reading Time: 5 minutes and 35 seconds| Date: 2023/11/23}

In these days of high interest rates and continued inflation, managing our finances can often be hard. Many Canadians are dealing with financial challenges that feel overwhelming, and the burden of debt can cause stress and anxiety. We want you to know that there is hope, and you have options.

Understanding Your Financial Situation

The first step in finding the right debt solution is to understand your financial situation. To know what options are available, you must have a clear picture of your financial health. This includes assessing your assets, identifying your sources of income, tracking your expenses, and determining which of these expenses are negotiable. It's fundamental to have a comprehensive understanding of your financial circumstances before moving forward with any debt relief plan.

Debt Relief Consultation

Over 73% of Canadians have debt with more than half reporting that they feel overwhelmed. At Bromwich+Smith, we understand the fear and stress that often accompany debt, and we are here to help. Our commitment to helping you regain control of your finances begins with a free, no-obligation consultation. During this conversation, we work closely with you to review your current financial situation and help to find the best debt relief option available.

Debt Consolidation

Debt consolidation is a viable option for Canadians with good credit and the assets needed to secure a loan. This approach combines all your creditors into a single loan, simplifying the repayment process. However, it's important to note that you are still required to repay the entire debt, and you will continue to accrue interest. Debt consolidation can be the ideal solution for those who can pay off their debts but need a bit more time to do so.

Consumer Proposal

A consumer proposal offers an opportunity to renegotiate your debt with creditors, aiming to reduce the total amount you owe. A consumer proposal can reduce your total debt by as much as 85%, and it stops the accrual of interest. Because it is a government legislated program, it also requires that your creditors halt all actions against you, such as phone calls, emails, wage garnishment, or active lawsuits. Bromwich+Smith specializes in working with creditors to ensure your proposal is accepted while protecting your best interests.

Advantages of a Consumer Proposal:

Your debt is settled based on what you can afford.
Creditors must stop all actions against you during the proposal.
You can make one easy monthly payment, giving you up to five years to pay off the agreed-upon amount.
A consumer proposal doesn't involve your assets or possessions.
No additional fees are required.
It is simple, and sets you up for rebuilding your credit, and your finances.

Bankruptcy

Bankruptcy is a legal process that eliminates all creditor actions against you and offers a fresh start. At Bromwich+Smith, we understand the concerns and stress associated with bankruptcy and are here to help you decide if this is the right option for you.

Bankruptcy doesn't have to be as scary or difficult as you might imagine. While declaring bankruptcy may require you to pay down some of your current debts, your income needed to maintain a standard of living is protected. There are also exemptions in most provinces that allow you to retain the equity in your home, vehicle, RRSPs, pensions, household items, and tools of trade.

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Advantages of Filing for Bankruptcy:

Bankruptcy is based on a financial review with a Licensed Insolvency Trustee.
The process can take less than nine months.
All creditor actions must stop, just like with a consumer proposal.
The process is short, and you can get back to rebuilding your credit quickly.

In Canada, a variety of debt relief programs cater to different financial situations. As we start to plan for a new year, let’s make this the time to take back control of your financial future. Overwhelming debt can be a heavy burden, but you don't have to face it alone. Bromwich+Smith offers a range of debt relief strategies to help you regain control of your finances.

If you find yourself trapped under the weight of debt, remember that there is help available. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at  1.855.884.9243, Live Chat or you can request a call back at contact us page. We want to see you flourish!  

FAQ Related to Canadian Debt Solutions

1. What is the first step in finding the right debt solution?

The first step in finding the right debt solution is to understand your financial situation, including assessing your assets, identifying your sources of income, tracking your expenses, and determining which expenses can be negotiated.

2. What is credit counseling, and how can it help with debt management?

Credit counseling is a resource that helps you create a budget, manage your debt effectively, and stay out of debt. Bromwich+Smith provides two sessions of credit counseling during a debt relief program to support you and build your knowledge toolkit.

3. What is debt consolidation, and who is it suitable for?

Debt consolidation combines all your creditors into a single loan, simplifying the repayment process. It's suitable for Canadians with good credit and the assets needed to secure a loan, especially if they can pay off their debts but need more time to do so.

4. What are the advantages of a consumer proposal?

The advantages of a consumer proposal include settling your debt based on what you can afford, forcing creditors to halt all actions against you, making one easy monthly payment, no involvement of your assets or possessions, and no additional fees required. It's a step towards rebuilding your credit and financial stability.

5. What is bankruptcy, and when should it be considered?

Bankruptcy is a legal process that eliminates all creditor actions against you and offers a fresh start. It should be considered when you're in dire financial straits, and it may be the last viable option. Bromwich+Smith can support you throughout the bankruptcy process if it's the right choice for your situation.

6. Can you explain the advantages of filing for bankruptcy?

The advantages of filing for bankruptcy include a financial review with a Licensed Insolvency Trustee, a relatively short process (often less than nine months for first-time bankruptcies), a halt to all creditor actions, and the opportunity to quickly start rebuilding your credit.