Debts do not become a problem overnight. They often build up little by little: a postponed payment here, a card used there, a “temporary” tight budget that eventually moves into the living room. In the current context, it is better not to wait until the situation overflows.
Consumer insolvencies have once again become a hot topic in Canada. Recent statistics from the Office of the Superintendent of Bankruptcy and media articles point to a marked increase in insolvency filings. Other recent data also point to a high Canadian level and significant average non-mortgage debt behind insolvency files.
Consulting a Licensed Insolvency Trustee does not mean you are automatically going to file for bankruptcy. It is first and foremost a meeting to understand your options, catch your breath and see whether your budget is simply tight… or structurally in deficit.
1. You pay your debts with more debt
Using one credit card to pay another, dipping into a line of credit to cover the minimum payment, or taking a cash advance to get through the month: these are common habits that can give the impression that everything is under control. This is no longer just a matter of budget discipline. It is purely financial gymnastics.
2. Your minimum payments are eating up your budget
Minimum payments can sometimes make it feel like the situation is under control. Yet they can keep a debt alive for a very long time, especially with high interest rates. If a large portion of your pay is used only to keep the accounts afloat, without really reducing the balance, it is time to ask for advice. Very few people take the time to carefully review the account statement that shows the number of years and months it will take to reach a $0 balance by paying only the required minimum.
3. You are postponing essential expenses
Many people instinctively cut back on groceries, rent, electricity, insurance or medication so they can pay their credit cards. Debts should never force a person to choose between taking care of their health and avoiding a collection call. At this stage, a professional assessment can help you identify your priorities.
4. You are receiving collection calls
Calls, letters, emails and text messages from creditors can become exhausting. Many people wait until the pressure is unbearable before consulting someone, but it is often more useful to act before remedies accumulate. A trustee can explain the protections available and the possible solutions, including a consumer proposal or, in some cases, bankruptcy.
5. You can no longer plan for next month
A healthy budget does not need to be perfect. It must, however, allow for a minimum level of predictability. If every month feels like a game of Tetris, with bills dropping too quickly, it may be a sign that your income can no longer support your current obligations. It is not a matter of shame. It is a matter of mathematics.
6. You hide the situation or avoid your accounts
Avoiding opening your banking app, not opening your mail, minimizing your balances or leaving your voicemail full to avoid new messages are signs that stress is behind the wheel and you are the passenger. Avoidance can be costly. The sooner a situation is examined, the more options may be available, and often at a lower cost!
7. You have no cushion left for the unexpected
An ordinary unexpected expense should not capsize the ship. If the slightest surprise forces you to borrow again, your budget is walking a tightrope. This is often the time to have your options validated before the emergency imposes its own rules.
Speaking With a Trustee: A Diagnosis, Not a Verdict
Speaking with a Licensed Insolvency Trustee is not a failure. It is reprogramming the GPS before continuing forward. A consultation helps you understand what is realistic, what is no longer realistic and which solutions can protect your financial stability.
Depending on the situation, consolidation, an arrangement with creditors, a consumer proposal or another solution may be appropriate. The important thing is not to wait until debts pile up to the point where they decide for you. When the signs accumulate, asking for advice is not an admission of failure: it is often giving yourself a second chance.
If you are struggling to make ends meet, it is important not to wait until the situation gets worse. We can help you understand your options and find a solution adapted to your financial reality.
If you are still struggling despite certain changes in your habits, know that we are here to help you regain control of your finances.
If you feel that you no longer have control over your financial situation, there is no shame in consulting a Licensed Insolvency Trustee who can support you and help you see your future after debt!
Several ways to reach the Ginsberg Gingras team:
- By phone (800)567-1905
- Website ginsberg-gingras.com
