How Do Debt Relief Programs Work

_{By Bromwich+Smith Staff | 689 words | Reading Time: 3 minutes and 26 seconds | Last update: 2022/11/14}

If you have never heard the name D.B Cooper you aren’t alone, but his story is an interesting one. November 24, 1971 a man only identified as D.B Cooper boarded a plane in Oregon destined for Seattle. During the flight, he informed a flight attendant that he was armed with a bomb and demanded $200,000 (Today that would be over $1.4 million USD). Upon landing and obtaining the money he allowed the passengers to get off the plane and instructed the flight crew to continue on to Mexico City. Shortly into this second flight, D.B Cooper opened the doors and parachuted out over Washington. In 1980, a small portion of the marked bills were located along the Columbia River, but no other trace was ever found- of the man or the money. What provoked this man to take drastic steps?

While we can agree, that hijacking a plane, or robbing a bank is not a realistic plan. However we may daydream about coming into a large sum of money and what we would do if we ever won the lottery. When we find ourselves in debt through job loss, medical expenses, or the rising costs of living. When faced with debt, it is quite easy to become overwhelmed and believe that you will never be able to pay off your creditors. Debt relief programs can offer a workable way out of these financial challenges- and they don’t include jumping out of an airplane!

When it comes to debt relief, there are many options available. Whatever form it takes, the goal of debt-relief is the same, we want to alleviate the stress from dealing with overwhelming debt. Doing the right research and finding a suitable debt-relief program is a great first step toward regaining control of your finances.

Types of Debt Relief

Though the methods and timeframe for each one varies, it’s best to know none of these options will be overnight. They each have pros and cons, and they will not be the same from person to person. Knowing the choices that will work for your financial situation will give you the ability to erase your debt completely and rebuild your credit.

Credit Counselling can provide you with the tools and knowledge you need to take control of your finances. Helping you build a secure financial future by better managing your debt and supporting you to stay out of unnecessary debt.

A Debt Consolidation loan consolidates all of your creditors into a single loan. With this type of loan you are required to pay back 100% of your debt with interest. This can be a great option, for those who have a good credit report, and the means to pay back the debt but just require more time to do so.

A Consumer Proposal consolidates all your debts into one monthly payment, but unlike a consolidation loan, you pay back only a portion of your debt. Your debt will be negotiated with your creditors, with all parties agreeing to the debt to be paid and what debt will be forgiven. A consumer Proposal offers significant legal protection against creditor actions, which are immediately stopped upon filing. You get to keep your assets, and have up to five years to pay. 

Bankruptcy eliminates debt and allows you a clean slate. If you do declare bankruptcy there will be no garnished wages, active lawsuits come to an end, and any frozen bank accounts are thawed. Under Canadian law, you can only file for bankruptcy through the help of a federally Licensed Insolvency Trustee like Bromwich+Smith.

Make sure you do your homework and work with a professional Licensed Insolvency Trustee or a Debt Relief Specialist to determine the best course of action for you. Not all debt relief options will work for every financial situation, and it is important to talk to a specialist to know what options you have.

If you are facing overwhelming debt, remember that you are not alone. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. 

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