Why trying to Google your way out of debt doesn’t work

“There were a lot of questions I had. I didn’t really understand the whole process,” said Tommy (a pseudonym), about researching his consumer proposal online.

And even when he then spoke with a big debt consultancy firm, he still didn’t get a full picture of what the debt recovery process looked like.

Like many other Canadians struggling with debt, Tommy thought he probably needed a solution like a consumer proposal or bankruptcy, but didn’t have all the information about these options, or how they might apply specifically to him.

That’s why he did a fair amount of research online, which he recommends as a first step to anyone looking for support with their debt. “The federal site, they have quite a bit of information on consumer proposals and bankruptcy and what it means to you. So that’s a good resource.”

But after that online research, Tommy knew he still needed more information before making a decision and moving forward with the right debt recovery solution for him and his family. First, he connected with the debt consultancy we mentioned earlier. But he didn’t feel heard by them and was still left with unanswered questions.

Ultimately, it was only after speaking with a Licensed Insolvency Trustee from Bromwich+Smith that he found the insight and clarity he needed to move forward with the right debt recovery solution for him and his family.

What Canadians are searching for (and finding) when looking for debt help online

In Canada, there are thousands of online searches for terms like “consumer proposal” and “minimum payment” every month.

Searching like this makes sense. When you’re stressed about money, you want answers fast and to understand your options before you talk to anyone. Many people also want to know whether what they’re facing requires help from professionals.

Government and other regulatory websites provide factual explanations of federal options like what a consumer proposal and bankruptcy can do and likely outline how the process, technical qualifications and what basic legal protections are offered. That kind of information is a good starting point.

What they can’t do is interpret that information in the context of your income, assets, family, goals and stress level. And, while each can contain a piece of the puzzle, none of them are catered specifically to your situation.

When online information is overwhelming, it’s time to have a conversation

Angela (also a pseudonym) fell down a Google rabbit hole, when trying to figure out the best debt-management path for her and her husband.

“I had researched bankruptcy, how you would declare bankruptcy, back in 2023 when I was in this state of panic, and then that’s the first time I saw there is something called a consumer proposal. But I didn’t understand, really, what the difference was,” she said.

After that initial online research, Angela was scared off from further investigation because all the options felt so overwhelming. A common experience according to the Government of Canada, that reports despite how common debt is, many people hesitate to talk about it or seek help. Only three in 10 (30%) Canadians with debt report seeking advice from a financial professional to help them manage debt.

It took a couple more years before she worked up the courage to speak with a Licensed Insolvency Trustee from Bromwich+Smith and get clarity on what these options meant for her family, before then moving forward with a consumer proposal.

Angela’s not the only person who’s held back from moving forward with a debt solution because online results were so intimidating.

Licensed Insolvency Trustee, Karen Adler, from Bromwich+Smith has seen Angela’s situation many times. “It’s like Dr. Google, right?” said Adler, referring to the large numbers of people who turn to the Internet for medical queries, which of course, is not as reliable as seeing an actual medical professional.

“The risk is getting into a situation that will ultimately not solve the problem, but only postpone it, and sometimes at great cost,” she explained.

Looking for answers online is unlikely to help you find the debt-recovery solution that’s most tailored to your circumstances.

Adler says that one thing she hears from clients all the time is, “I wish I had contacted a Trustee sooner.” And she encourages anyone struggling with debt to do just that, as there’s no cost or obligation to move forward with a solution just because you speak with a Licensed Insolvency Trustee.

“Just call and have one of those short consults,” she said. “Say ‘I’m not ready to do anything yet, but I’m trying to gather information. Tell me what this all means.’” And you’ll be one step closer to clarity.