Know Your Rights: Talk to a Debt Specialist

2014-07-25   minute read

Getting into a situation where debt can get out of hand is a fairly common occurrence in today’s world. After all, we live in a society that is constantly encouraging us to go into debt. Just the other day, a client shared he was still getting credit card offers, despite already having thirteen separate credit cards and almost two hundred thousand dollars in debt. The lending policies of financial institutions and credit card companies have relaxed to such an extent that regardless of your existing financial situation, it’s not difficult to get another loan or another credit card. Needless to say, it’s not hard to see how people can find themselves in a situation where their debt has spiraled out of control.

Person talking on a cellphone looking at spreadsheets on their laptop

Living with out of control debt is no way to live. Clients tell me there’s an overwhelming sense of dread whenever the phone rings. They never know if the person calling will be another collections department or even worse, a hard-nosed collection agency. There are always two ways to deal with this problem. First, you can choose to ignore it and hope it goes away. Second, you can deal with it head on and gain control over the situation. Believe it or not, most people tend to bury their head in the sand and hope the debt problem will magically go away. Of course, the problem doesn’t go away…ignoring it just makes it get worse.

The first step in taking the debt bull by the horns is to admit there is a problem. It’s natural to feel degraded or like your creditors have the right to walk all over you. What few people realize is there are laws that protect debtors, just as there are laws protecting the rights of creditors. It is important to speak with a debt specialist who can explain what your rights are, as well as the rights and limitations of your creditors. 

In Canada there are a number of legislative and non-legislative options available to deal with one’s debt problem. For example, one legislative option is to file a Consumer Proposal. A Consumer Proposal is a powerful way to manage debt. It not only allows you to consolidate all of your debt into one affordable, interest-free monthly payment, but it also allows for a compromise on the total amount of the debt.

In order to discuss all of your options – including a Consumer Proposal – I encourage you to have a confidential consultation with a trusted debt specialist to discuss your particular situation and develop a solution tailored specifically for you.

When all is said and done, eventually the collection calls will stop and you will regain control of your financial life. 

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