As a first step, most people try to manage their debt on their own. And that’s fine! Solutions that are regulated by law are meant to be a last resort. People try cutting their expenses, earning more income, liquidating assets, and acting more disciplined. In some cases, that’s enough – but sometimes, pressure mounts to a point that DIY solutions won’t cut it.
In those moments, it’s important to know when it’s time to ask for help. Seeking professional assistance means giving yourself the means to break the cycle of debt once and for all.
Is your debt taking up too much space?
Debt doesn’t just appear from one day to the next. Usually, it starts quietly. Only making minimum payments on your credit card, delaying a bill payment, juggling multiple cards. Then, things become more dire: late payments on large bills, agreements to extend payment deadlines, and an increasing number of collection calls.
People often talk about their account balance, but your mental balance deserves just as much attention. Together, they represent the true burden of being in debt. You’ll know your debt is taking up too much space when:
- You’re not sleeping due to stress
- Your health is being affected by anxiety
- Tensions are rising at home and at work
- You’re avoiding opening the mail or answering the phone
- Your voicemail is full
When these financial and personal signs start piling up, it’s time to pay attention. Asking for help as soon as discomfort arises is always more effective than waiting until the situation spirals out of control.
Three questions to evaluate your situation
The signals listed above should set off alarm bells, but you may be asking yourself: am I worrying for nothing, or do I actually have a problem on my hands? To get a clearer picture, step back and ask yourself these three questions:
- Could I go three months without income?
If the answer is no, that’s a sign of vulnerability. Without a safety net, the slightest issue can overwhelm your budget: job loss, illness, or even a loved one getting sick can disrupt your financial health. - Am I able to save each month, even if it’s just a small amount?
If you answered no to the previous question, ask yourself whether you can reorganize your budget or earn more income to start saving and building a nest egg. - If not, what’s stopping me from saving?
If the answer is “anything I’m not spending on essentials is going towards debt repayment,” that’s a clear indicator that it’s time to ask for help. If you act early, you’ll have more options available to you and be able to recover faster.
How a trustee can help when doubt creeps in
Consulting a licensed insolvency trustee doesn’t mean you’re obligated to declare bankruptcy or file a consumer proposal. First and foremost, their role is to listen, ask the right questions, and analyze the situation with you. Together, you’ll explore every possible course of action: budget reorganization, debt consolidation, a consumer proposal, or – only if absolutely necessary – bankruptcy.
If formal proceedings are the best option, certain protections will immediately come into play:
- You will stop receiving calls and threatening messages
- A detailed and customized plan will be established
- You will no longer receive pressure from creditors
In short, a trustee is your trusted partner (it’s in the name!). They understand the law and the financial solutions available, but above all, they understand the emotional toll debt can take on your everyday life.