Debt Relief Strategies for a Debt-Free Life

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Could you imagine what it would be like if you didn’t have any debt payments to make? How much of your budget would be freed up? You could finally open up that savings account you’ve been meaning to start, or you could give your monthly food budget a little extra padding to account for evenings out.

Address Your Debts

It’s normal to have some debt that you can pay back regularly in order to establish good credit, but constant calls from your creditors or the stress of being unable to pay your bills is a sign that you need debt relief support. That’s where debt relief with the help of a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) comes in.

A licensed insolvency trustee from David Sklar and Associates has extensive knowledge of the Canadian government’s Bankruptcy and Insolvency Act. When you book a consultation, they will assess your situation and propose what to do next. It might be that consumer proposals can offer a debt relief solution for your case, which can be a welcomed option, especially for those who are considering filing for bankruptcy.

Many Canadians Need Debt Support

It’s important to know that you aren’t alone in your debt worries. Many Canadians are living dangerously close to insolvency these days. High-interest rates are driving more and more individuals to seek debt relief services.

The Consumer Proposal Debt Relief Procedure

Consumer proposals are an excellent bankruptcy alternative for those who have less than $250,000 in unsecured debt, a stable source of income, and who can’t pay back their debts in full. With a consumer proposal, your bankruptcy trustee files a petition to your creditors to come to an arrangement that you pay back a portion of your debt in regular payments over a fixed amount of time.

This debt relief solution addresses things like credit card debt, lines of credit, consolidation loans, and any consumer debt not related to an asset. Filing a consumer proposal puts an immediate stop to collection calls and wage garnishment, giving a bit of agency back to the debtor.

Techniques for Paying Your Debt

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When juggling multiple bills and payments, do you know when each payment is due, what the minimum payment is, and what percentage of interest it holds? If you don’t already have a calendar system set up with payment reminders, do that first. You’ll develop a picture of your situation and can see down the line and know what future payments will look like.

From there, try a technique called the debt snowball method from Dave Ramsey. When working on a debt snowball, you tackle the smallest debts first, incrementally freeing up money in your budget that was otherwise used for payments. You pay out the smallest debt, move the money you were using to pay that bill onto the next debt, and so on.

Look to the Future

Don’t wait to address your debt. It’s time to find the debt relief solution that’s best for you. With the counselling from a bankruptcy trustee and commitment to healthy financial habits, you’ll be on your way to a debt-free future.