Debt management : avoiding the trap of “It’ll Get Better”

Everyone who has experienced financial difficulties has thought, “It’ll sort itself out.” It’s a perfectly natural reaction. The feeling of losing control of your finances is unsettling. We remain hopeful that the situation will improve and that an unexpected windfall such as a salary increase will save the day.

Unfortunately, getting back on track after your debts have piled up is not always that simple. The longer you wait, the more your stress will increase. Then you’ll have difficulty turning things around.

The risks of not taking action

In reality, the longer you wait, the worse your financial situation will become.

• Interest will grow since a small debt can quickly double in size if you only make minimum payments.
• Your creditors will become less conciliatory over time.
• Constant stress will set in. Financial worries can impact your mental health and even lead to isolation.
• You could run out of options. As your debt grows, the number of simple solutions decreases.

In other words, waiting won’t make the problem disappear.

Acting fast gives you a chance

If you quickly take a proactive approach, you’ll prevent the situation from escalating. For example, you could:

• Review your budget to see whether you have any flexibility.
• Talk to your creditors to extend your deadlines or spread out repayments.
• Explore other solutions with a professional at Raymond Chabot, for example. Among other things, a consumer proposal allows you to reduce your debt and avoid bankruptcy.

It’s important that you don’t keep your financial worries to yourself.

Debt management : ask for help with settling your debts

Opening up about debts takes courage. Consulting a financial recovery professional (a Licensed Insolvency Trustee at Raymond Chabot, for example) isn’t a sign of weakness. It’s a positive action that allows you to regain control and peace of mind. Don’t hesitate to contact us. Together, we can come up with a solution. Your first appointment is free.