Stigma of Debt (3 Minute Debt Break)

2022-01-25   minute read

Lifestyle Debt

Often, people are uncomfortable speaking openly about their debt and its impact on their personal well-being. Those who are experiencing credit issues fear that the social stigma of debt may be viewed negatively by family and friends and society in general. 

person sitting at a table looking stressed while reading documents

In addition, many may feel ashamed, embarrassed and completely overwhelmed about their debt. People experiencing debt-related stress often suffer from many associated health issues, such as sleepless nights, headaches, tension and more. And feeling out of control when it comes to managing their debt payments often prevents people from taking control of their financial situation. 

Not all debt results from overspending, living beyond one’s means, frivolous behavior or money mismanagement.  Debt often occurs due to circumstances beyond a person’s control, such as financial hardships caused by a job loss, relationship breakdown, business failure or an inability to repay student loans. 

Although rising interest rates may eventually curb debt accumulation, this can still pose a serious threat to Canadians who are already struggling to manage their debt load. 

The financial stigma of filing a Bankruptcy or Consumer Proposal to your creditors is often not as bad as many may believe. While your credit score will be affected, taking charge of your situation by facing it head on can help you eliminate most debt. It also allows you to have a fresh start and provides you with an opportunity to rebuild your credit rating. 

Taking the first step is often the most difficult. Yet thousands of Canadians use the formal options of a bankruptcy or proposal each year. Sitting down to speak with a Licensed Insolvency Trustee or LIT should be the first step and not a last resort. The financial advice provided by an LIT like MNP Debt Solutions can help guide you in taking back control of your financial situation — and your life.

During a Free Confidential Consultation, a Licensed Insolvency Trustee will review your financial situation, seek to understand your goals and identify opportunities to help you eliminate your debt for good. This could include Bankruptcy or a Consumer Proposal, which will halt all present and future collections action and give you a clear path to becoming debt free. 

A Licensed Insolvency Trustee may also be able to identify other resources, strategies and professionals who can help you better manage your finances and debt and build a more positive financial future. Whatever path you choose, they’ll help you make the most informed and best decision to achieve a positive resolution.


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