Creditors won’t stop calling? Here’s what you can do about it

Life is a beautiful journey filled with family, friends, and countless experiences that create cherished memories. As we go on this exhilarating journey, many things are thrown in the way of the happiness we’ve managed to build. Debt is one of those things.

Dealing with debt can undoubtedly be one of the most overwhelming and frustrating experiences of our lives as adults. It's easy to spiral into self-doubt and self-blame, especially when creditors bombard us with frequent and aggressive calls demanding payment. The pressure mounts, and we may even feel like burying our heads in the sand, hoping for a magical solution to our problems.

But here’s the good news: we don’t have to yield to the weight of debt. Despite the frequent communication from debt collectors and the possibility of asset seizure, we can overcome this obstacle. Here’s a good way to start:

Understand your rights

The first thing you should know is that you have rights as a consumer when it comes to debt collection. Debt collectors are prohibited from using threatening, harassing, or deceptive tactics when trying to collect a debt. This includes calling you at unreasonable hours and making false statements about your debt. If you believe a debt collector is violating your rights, you can file a formal complaint with your provincial consumer protection agency.

Communicate with your creditors

Ignoring calls from creditors always seems like the right thing to do, but you’re better off communicating with them and letting them know your current financial state. Have an honest conversation about what you’re able to pay and when. Many creditors are willing to work with you to come up with a payment plan that fits your budget.

Consider a debt consolidation loan

A debt consolidation loan may be a good option if you have multiple debts with high interest rates. This involves taking out a loan to pay off all of your existing debts, leaving you with just one monthly payment to make. This can make it easier to manage your debt and may also lower your overall interest rate, saving you money in the long run.

Consider a Consumer Proposal or Bankruptcy

If you are unable to pay off your debts and your creditors are threatening legal action, an insolvency filing such as a Consumer Proposal or Bankruptcy can provide relief as they will immediately stop collection actions, interest, and garnishments. Both options allow you to get a financial fresh start. Both options also have the added benefit of budgeting and money management counselling thereby assisting with your future financial success.

Speak to a professional

Speaking with a Licensed Insolvency Trustee (LIT) can give you the clarity you require to manage debt collectors. They can review your financial situation and advise you on debt relief options that are particular to your situation, including those outside of a Consumer Proposal or Bankruptcy, and the implications on your assets and income. Get a Free Confidential Consultation from your local MNP Trustee.