Same Year, Same Debt

Same Year, Same Debt

rebuild your worth, book a free consultation todayBook Now

By Bromwich+Smith Staff | 710 words | Reading Time: 3 minutes and 33 seconds| Date: 2023/01/03

As we enter a new year, we often reflect on the previous year. What we did, where we went and did we meet our goals. Financial goals are often at the top of the list. Maybe you are saving for retirement, or family vacation, you may find yourself wanting to pay off your student loans, mortgage or credit card debt. Wherever you stand financially this is a great time of year to take time and review your financial plan. If you find that you are holding on to debt, make 2023 the year you find a debt solution. To settle your debt in Canada, typically there are three options.

Negotiate with your creditor

If you are behind in bill payments, you may find yourself avoiding your creditors. Answering the phone and talking to them may feel overwhelming and stressful. It is important to know that the first step in your financial journey should be to start a conversation. Be honest with your creditors, if you are willing, they are often able to work with you. Letting them know your situation, be it a job loss or unexpected medical expenses and offer a payment plan. If this is the first time you are behind in payments, they will likely be willing to work with you. Here is a secret that they don’t want you to know- even though you owe them money they want to keep you as a client! It will cost them less money to keep you as a client- debt and all, then it will be to find a new client. Keep in mind, not all creditors will be willing to work with you but that doesn’t mean a bleak financial future! There are other ways to reduce your debt!

Enroll in a Debt Relief Program

When you search for Debt Relief programs in Canada, you will likely come across not for profit groups that offer debt services. There are Pros and Cons to every debt program and it is important to know them all before you commit. Often a debt relief program through a not for profit will help reduce the amount of money you owe however many will require a lump sum payment and that might not be possible.

Work with a Licensed Insolvency Trustee

In Canada, only a Licensed Insolvency Trustee is federally regulated to help you with your debt relief. A Trustee, often referred to as a LIT can counsel you on debt management, negotiate your debt settlement, and work with your creditors to get you the best debt repayment plan possible. They are able to work with you on a variety of debt solutions in Canada. This can include a Consumer Proposal, or Bankruptcy. While a Bankruptcy is typically looked at as a last resort it is important to know that can be a great option for many Canadians. An LIT can talk you through each option available and how it could help you, while offering advice on why it may not be right for your specific situation.

How do you know if you qualify for debt relief in Canada?

  1. You are behind in bill payments. This doesn’t always mean every bill, but if you find yourself figuring out which bill you can “afford” to not pay this month or are getting phone calls from your creditors asking when you will be paying you may want to investigate debt relief.
  2. You are only able to make minimum payments. Do you find yourself only able to pay the minimum balances? Maybe you have maxed out your credit cards, have been denied for additional credit.
  3. You have more than $1,000 in debt.
  4. You have tried on your own, but have not been able to make progress.
  5. You have creditors calling asking for payments you are unable to make. They may have threatened to start- or have started garnishing your wages.

Let’s start 2023 off on a brighter path. You don’t need to carry the weight of this financial stress any longer.


 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. 

Related Blog:
Consumer Proposal Eligibility: Do You Qualify?
Is Bankruptcy Right For Me?

Add new comment

Plain text