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Financial help: solutions for your debt problems

Posted on 15 November 2021

With rising inflation and living costs increasing each year, it is common for many of us to need financial help at some point in our lives. This is even more common for those of us who live in expensive cities in Canada like Toronto and Vancouver, and already face high costs of living. Sometimes a life event, like a divorce or costly medical bills can lead to spiralling debt. This can perhaps result in taking out credit card debt or relying on payday loans – with extremely high interest rates, the situation can quickly escalate. Before you know it, you have unmanageable debt and are unsure of what to do next. If you find yourself in need of financial help, we have shared some of your options below in this article.

Speak to a Licensed Insolvency Trustee

You may not be familiar with what a Licensed Insolvency Trustee is, as they were once known as bankruptcy trustees. Their roles were renamed by the government because they cover so much more than simply bankruptcy. In fact, Licensed Insolvency Trustees are the only professionals in Canada legally able to administer all forms of debt relief, including bankruptcy and consumer proposals. For this reason, no matter how much debt you may have, they will review your situation and offer advice on the best form of financial help for you. It is important to remember that no matter how bad your financial situation, there is always a form of debt relief to help. If you are struggling with debt and need financial help, it is best to reach out to a reputable and experienced Licensed Insolvency Trustee immediately, as there may be something you can do to act quickly and prevent further debt. Book a free consultation with Spergel today to gain financial help from our team. We have been helping Canadians gain debt relief for over thirty years.

Credit counselling

Credit counselling is a great way of gaining financial help in Canada. It is the process of working with a Licensed Insolvency Trustee or a not-for-profit credit counselling agency to find a solution to your overwhelming debt, and to improve your finances. Ideal for smaller debts, a professional will offer financial help by working with you to create a debt management plan. This could involve combining various different debts in an attempt to lower your interest rate, or creating a budget to help you curb your spending. The purpose of credit counselling is to provide suggestions to improve your finances, be it by a collaborating on a spending plan or otherwise. If your debt is more substantial, a debt consolidation loan or a consumer proposal may offer greater financial help.

Debt consolidation loan

For anyone in need of financial help and with multiple different debts, a debt consolidation loan may be a welcome solution. Simply put, it is most often a new loan that is taken out to condense multiple loans into one. This has the advantage of simplifying your payments into a more manageable monthly figure, and often means interest rates are lowered or cleared completely. At Spergel, our experienced Licensed Insolvency Trustees will help you to understand the implications, as well as how to go about getting a debt consolidation loan. Another form of debt consolidation is a debt management plan. This is where a credit counsellor will negotiate a lower interest rate with your creditors in an attempt to simplify your debts and help you pay them off within three years.

Consumer proposal

A consumer proposal can offer some much needed financial help to those with substantial debt. With the potential to reduce your unsecured debt by up to 80%, it is also the only legal form of debt settlement in Canada. A consumer proposal works by having a Licensed Insolvency Trustee collaborate with you to establish a manageable monthly amount for you to repay on your debts. Your trustee will then work to negotiate this amount with your creditors on your behalf. Should your creditors agree, your remaining debt will be cleared. It is a great bankruptcy alternative, and also enables you to keep your assets. At Spergel, we have a 99% acceptance rate on consumer proposals, and unlike other bankruptcy firms, you will receive your own trustee to walk you through the process.

Bankruptcy

Should you not have any assets to lose, and perhaps a poor credit score already, bankruptcy may be the financial help you need to start afresh. Bankruptcy in Canada is the legal process of assigning any of your non-exempt assets over to a Licensed Insolvency Trustee. They will use the value of these assets towards the repayment of your debts in exchange for the clearance of any remaining debt from your creditors. Bankruptcy has the added advantage of generating a stay of proceedings, whereby creditors are no longer able to contact you. It is a great way of enabling you to start a fresh financial future, free from the burdens of overwhelming debt. At Spergel, we have helped over 100,000 Canadians become debt free by offering financial help and providing debt solutions.

Financial help resources

At Spergel, we have a wealth of financial help resources that may be useful to you and your situation. Take a look at these resources, and book in a free consultation with one of our welcoming and experienced Licensed Insolvency Trustees to take the next step:

If you are looking for financial help in order to get back on track as quickly as you can, book a free consultation with Spergel. Our reputable Licensed Insolvency Trustees will provide you with the financial help you need, from reviewing your circumstances to putting you on the path to a life free from debt. Get in touch today to begin addressing your overwhelming debt – you owe it to yourself.

Helpful starting information:

What to Bring to an Appointment

To get the debt help that you need, please bring a list of who you owe and how much to each, a list of everything you own and your monthly household budget. Don’t have everything right away? Don’t worry – We will guide you through each step.

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Your Information

We’ll walk you through our application process. But, if you want to prepare for your debt free assessment consultation in advance, download our information form and fill in what you can.

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Calculate Your Debt Repayment Options

How can you compare your debt repayment options if you don’t know how much they will cost you? Your solution will become much clearer when you are able to compare costs.

Debt Calculator

Ready to Be Debt-Free?

If you’re ready to be debt free, it’s time to meet with one of our knowledgeable Licensed Insolvency Trustees at your convenience and get started

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