How Debt Impacts Canadian Families
rebuild your worth, book a free consultation todayBook Now
By Bromwich+Smith staff | Reading time: 5 minutes | 1000 words | Date: 2023/09/01
In a world that is constantly changing, we know that prices will continue to evolve, supply and demand will affect pricing of everything we come in contact with, and without proper support and guidance debt will continue to grow. At Bromwich+Smith, we understand that debt is not just a number on a balance sheet; it's a physical strain on day to day life as it touches every component. The burden of debt, can lead to struggles in our mental health and relationships and it is important to reflect on all touchpoints when we are evaluating if we are able to manage our current debt or if it has taken the next steps into becoming unmanageable.
Mental Health
Debt is more than just a financial concern; it's an emotional struggle that can wear down on anyone struggling with debt. The constant stress, anxiety, and worry over unpaid bills, looming payments, and the fear of creditors' calls can take a toll on mental health. In 2023, as families contend with the ongoing economic uncertainties, this emotional strain is more evident than ever.
The emotional exhaustion that debt can bring on is real, and is only one of many reasons why understanding that addressing the mental health aspect is just as crucial as dealing with the financial aspect of debt.
Education
For many Canadian families, providing their children with the best education is the ultimate goal. However, as the cost of education continues to rise, the weight of debt can be a leading factor in this stage of life. Can we afford to send our children to their dream school, how can we support them during their program? Student loans, credit card debt, and other financial obligations often force parents and students to make difficult choices between pursuing higher education and managing debt.
We understand that due to the Covid-19 Pandemic, it is even more difficult for families to save for education while keeping up with their financial commitments. While we truly believe that no family should have to choose between a brighter future and financial stability- we know that choice often needs to be made.
Perhaps you are the one with dreams of going back to school to further your career, but due to current debt or the fear of added debt, that has not been an option. The decision to go back to school can be scary, not knowing how much debt you will be taking on or how to manage school loans with cost of living. There are options available through grants and scholarships to lessen the financial burden, even as a mature student. Many schools continue to offer online programs, which may make it easier to juggle your schedule and make going back to school an option while you are working.
If your current debt contains student loan debt, and you are considering debt relief programs it is important to know the date of your loan. If your student debt is less than 7 years, you will not be able to include it in any debt relief programs. This doesn’t mean you are not qualified for debt relief, however the debt may not be included and you will be responsible for paying the student debt in full. There may be additional options available if you are able to provide proof of hardships, and a Licensed Insolvency Trustee will be able to walk you through all available options.
Click to Book A Free Consultation
Relationships
Debt doesn't discriminate based on gender, marital status, employment status, age etc. Debt can strain relationships across generations. Marital conflicts, parent-child tensions, and even strained friendships can stem from the financial struggles that debt brings. The pressure to manage debt payments can sometimes overshadow the joy of your personal relationships.
Perhaps you find yourself struggling with social interactions due to your current financial situation. It can be difficult to navigate social gatherings if your inner circle is not aware of your
finances, or are not in similar situations. It is important to over extend yourself financially just to maintain social situations and not isolate yourself because you do not have the finances. There is a happy middle ground! Take a look at your budget and determine how much you can put towards social functions each month. Then you need to look at what engagements you have and allocate accordingly. Perhaps you do not have the means to attend a 3 night trip for a friends pre wedding party but you can attend the wedding engagement party. Determine which event is a priority to you, and then see how your budget can work to support you without further hurting your finances.
Finding Solutions in 2023
While the challenges of debt are undeniable, so are the solutions that can guide families towards a brighter future. At Bromwich+Smith, we recognize that each family's financial situation is unique. We understand the pros and cons to each debt relief program available, and have a strong team of partners that we can refer clients to if we are not the right resource for them. of the debt labyrinth. We understand that the journey to financial recovery can be overwhelming, and that's why we're here to provide support every step of the way.
If you are facing overwhelming debt, remember that you are not alone. 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, or request a call back at contact us page.