The truth is, you have debt-relief options

Making the first step to gain control of your debt can feel intimidating. But sharing your concerns with a debt expert means you’ll receive compassionate, non-judgmental advice that can help you make informed financial decisions. Here are some of the other benefits:

• Your consultation is completely free of charge
• Having a confidential discussion
• Feeling no pressure or obligation
• Exploring all available solutions
• Gaining confidence and relief knowing a solution is within reach

A consumer proposal significantly reduces most unsecured debts you have, including:

• Credit card debt
• Tax debt
• Student loans (if 7 years have passed since you were last a student)
• Personal loans
• Lines of credit
• Payday loans

A consumer proposal is a formal agreement between you and your creditors that’s submitted on your behalf by a LIT. It includes an offer to your creditors to settle your debt for an amount that is normally less than the total amount owing – as much as an 80% debt saving. Most importantly, it allows you to retain assets, such as your car and your home.A bankruptcy is a legal process in Canada legislated under the Bankruptcy and Insolvency Act (BIA) that’s designed to give a debtor a fresh start. A bankruptcy in Canada can only be filed with a LIT. With bankruptcy, you surrender your assets to the LIT for the general benefit of your creditors. However, you do not lose everything when you file a bankruptcy. Certain exemptions permit you to keep some assets.

There are two types of debt consolidation – high-interest debt consolidation loans and interest-free consumer proposals.Many people know about debt consolidation loans, but know less about an interest-free form of debt consolidation called a consumer proposal. It’s a better way to consolidate and reduce your debt in many situations. We do not provide loans. If you’re looking for a loan, we suggest you speak to your bank first to see if you qualify for one.For many Canadians, high-interest and hidden-fee debt consolidation loans can lead to even more financial stress and payments that even exceed the original debt. A consumer proposal is a federally regulated program designed to help Canadians reduce and eliminate debt without loans and rebuild their financial security. A debt consolidation loan does not eliminate interest, stop collection calls, wage garnishment, or offer the legal protection a consumer proposal can.

Each financial situation is unique. What could be considered serious debt problems for one person might be fine for someone else. Here’s how to recognize the warning signs about having too much debt:

• Struggling to pay your debts and expenses each month
• Only making the minimum payments
• Repaying your debt is causing you stress
• Hiding your debt from loved ones
• Receiving calls from creditors or collection agencies
• Using one credit card to repay debts on another
• Missing payments or making payments late
• Taking out new loans to afford to repay your current debts
• Don’t have a budget or can’t stick to a budget
• Not sure how much debt you have
• Regularly use payday loans