Happy Thanksgiving: The story of a thankful debtor

Navigating financial difficulties can be overwhelming, especially when life takes unexpected turns. I had a client that I will call Jane Smith, a single mother, who faced such a challenge after going through a painful divorce. With her children now in her full-time care and receiving only minimal and inconsistent child support, Jane found herself struggling to manage her debts on a single income. Thankfully, a Consumer Proposal offered her a way to regain control over her finances and rebuild her life.

Caught in the debt cycle

As the dust began to settle post-divorce, Jane was left to handle not only the emotional impact but also a significant financial burden. All of the credit cards that had accumulated over the 10 years together with her former husband were solely in her name. Bills were piling up, and the stress of creditors demanding payments added to her anxiety. She was making the minimum payments, but this was leaving very little for groceries and other needs of her two young children. With the minimum payments barely covering the interest accumulating on her debts, she was having a hard time seeing a light at the end of the tunnel. With her limited income, it became clear that she was stuck in a cycle of debt. Jane needed a solution that could provide her with the relief she desperately sought.

The promise of a debt free future

Admitting that you are insolvent and reaching out for help can be very difficult. However, for Jane, speaking with a Licensed Insolvency Trustee (LIT) showed her a path to a fresh start that provided a promise of a debt free future. During her first free confidential consultation with me, Jane was very emotional but was finally able to speak honestly with someone about her financial struggles. She communicated that she was nervous before coming in about feeling shamed or judged but that in reality, she felt very supported and more empowered and optimistic after being informed about her options: a Consumer roposal or a Bankruptcy. 

I took the time to listen to Jane’s story and get a full picture of her financial situation and her concerns. I was then able to walk her through each choice and explain the specific implications of each option to Jane specifically. I could see Jane visibly relax as she started to see a path forward towards handling her debt. Jane decided that she would like to move forward with a Consumer Proposal which provided her with one monthly payment over 5 years that she could afford. The Consumer Proposal also reduced her total debts significantly and stopped interest from accumulating.

New tools on the path to financial freedom

With a clear understanding of the path forward and one fixed payment to address all of her credit card debt, Jane, with our team’s assistance, was able to work on a budget that reflected her new reality. It allowed her to prioritize essential expenses and allocate funds for her child’s needs while reducing unnecessary expenditures. The shift to living within her means without the weight of the debt reduced her stress levels and allowed her to reclaim her independence and stability. With the tools she learned throughout the process, she created an emergency fund and began laying the foundation for a more financially secure future.

A time for thanks

By the time the Consumer Proposal was completed, Jane expressed her gratitude. Not only had she eliminated a significant portion of her debt and was now living free of debt payments, but she also gained some valuable financial insight and budgeting skills. She is now setting money aside each month towards an emergency fund, retirement savings, and her children’s future education costs. But on top of that, she has the ability to set a little extra aside to treat herself and her children to some quality trips and activities together.

In my practice as a LIT, I see so many stories like Jane’s. Financial difficulties can happen to anyone and a change in your life circumstances is often one of the main reasons for debt becoming unmanageable. Seeking information from a Licensed Insolvency Trustee is the first step to getting that information and peace of mind. There are options to help you regain control of your finances to gain quality of life back.