Why People Delay Getting Help With Their Debt

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More often than not people go to see a Licensed Insolvency Trustee only as a last resort.   The longer an individual waits to get help with their finances, the harder it is to help as the number of options is greatly reduced.  By the time most consumers come to us the only choices left are to file a personal bankruptcy or consumer proposal. In some respects, our personal finances are similar to a vehicle, if you don’t take care of the small repairs they eventually turn into major and sometimes catastrophic ones.   If you are starting to struggle financially it’s important to recognize some of the warning signs and reach out for professional assistance before things get beyond your control.

So why do people avoid seeking help with their finances when they know something is wrong?   The answers to this question can be both numerous and complex.   Here are a just a few of the reasons we hear when speaking with our clients:

Embarrassment/Guilt Most people have worked really hard to build their credit and do everything possible to keep up with their payments.  Admitting that you can no longer keep up and need help can make us feel like failures.  Finances are very personal so the idea of sharing our information with some stranger can cause us great stress/anxiety and force us to delay reaching out for help.  People need to understand that our team of professionals are here to help, not to lecture, judge, or speak down to people.  We deal with all of the facts surrounding your situation and help you find solutions that allow you to improve your financial health.  While it’s important to recognize past financial missteps,  it’s more important to implement solutions to help you get back on track, move forward and get a fresh start.

Privacy Concerns The most common misconception surrounding bankruptcy is that my family, friends and employer will know that I filed a bankruptcy or consumer proposal and my name will get published in the newspaper.    This is rarely the case so you should take a moment to read a previous blog we posted on this subject.

Credit/Credit Rating People often believe that their credit will be ruined forever and they will never be able to borrow again.   Your credit rating is definitely impacted by a bankruptcy or consumer proposal so it’s important to understand the implications before you make a decision.  You have to weigh both the short and long term benefits to any sort of debt restructuring to decide which option is best for you.

Bankruptcy Myths When looking for information or advice on any given topic we usually check the internet or speak with family or friends.  The internet is a good tool as long as you know where to look.  However, unless you are visiting the site of the Office of Superintendent of Bankruptcy or a Licensed Insolvency Trustee , then you may be getting inaccurate or misleading information.  Bankruptcies and consumer proposals are based on your individual circumstances and take into account your income, assets and liabilities.  Everyone’s situation is different and so are the outcomes so what happened to someone else (good or bad) may not be the same for you.

If you or someone you know is dealing with unmanageable debt we can help.  Just make the call and you will be pleasantly surprised by the understanding and knowledge of our staff.

Powell Associates Ltd. is a licensed insolvency trustee focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton or Charlottetown – it’s your choice.