You Can Conquer Your Debt

_{By Bromwich+Smith Staff | 750 words | Reading Time: 3 minutes,  45 Seconds | Date: 2024/01/23}

It seems like something we find ourselves saying every January, “last year was hard”. It truly feels like 2023 was full of more stress and continuous change compared to other years. We navigated the pandemic, and many of us are still struggling with the aftermath. We encountered challenges renewing mortgages, finding homes to rent, managing interest rate hikes and navigating shortages at stores.  It’s difficult to know what is around the corner, and how to manage the surprises of daily life but year after year, we manage.  

While the struggle can be isolating, we want you to know that you are not alone. At Bromwich+Smith, our specialty is helping Canadians dealing with overwhelming debt, and we know that debt can affect both mental and physical health. Those struggling are more likely to experience anxiety, depression and sleep disorders, and they are less likely to go to a doctor than when they have a physical ailment.  

Reach out, because no one needs to suffer with financial struggles in silence . The moment you start exploring your options with a specialist, you take back control and allow yourself to start rebuilding your worth.  

Here are a few helpful tips that you can implement immediately.  

• Talk to your creditors about your situation. They may be able to freeze interest payments, extend payment dates or be more understanding to your overall situation if you work with them.  

• Sit down with your family, spouse, or partner and review your finances to determine a plan together. Don’t keep your loved ones in the dark: chances are they may know someone who has been in a similar place. They may even be able to provide insight on next steps.  

• Do not pay anything upfront to deal with debt. Avoid taking out a loan to pay your debt as it will only increase how much you owe in total. 

• Avoid cashing in investments or RRSPs. 

• Avoid borrowing from one credit card to pay another. 

• Get in touch with a compassionate Licensed Insolvency Trustee (LIT) to get real advice. A no obligation consultation with a LIT is always free, and this simple phone call could save you thousands of dollars. It’s a quick and effective way to get your life back on track.  

When getting out of debt is a priority, there are also several longer-term solutions that can set you on that path: 

1. Bump up your debt repayment percentage 

Consider putting at least 15 per cent of each paycheck towards credit card debt and loans. This approach can help you pay down those commitments much more quickly, and save you a significant amount of money on interest payments alone. 

2. Negotiate for a lower interest rate 

Call your creditors to negotiate a lower interest rate. You'll be surprised how many creditors are willing to reduce your interest rate if you just ask.  

3. Use your tax refund to pay down debt 

Tax season is fast approaching and if you are expecting a return this year make sure to file early on. The sooner you receive your tax return, the sooner you can make a lump payment on your debt. Imagine being able to tackle your debt head on, rather than making minimum payments and watching your interest costs rise. Using your tax return in this way will help you without taking money out of your budget.  

4. Sell unneeded items 

Put together a list of items that you could sell on eBay, Craigslist, or at a garage sale. Baby items, toys, books, or other extra items could be in high demand in your area, so be sure to check current listings and price accordingly. This extra cash can declutter your debt and clean up your home!  

5. Consider a consumer proposal to manage your debts.   

A consumer proposal is a renegotiation of what you owe to your creditors, handled by Bromwich+Smith on your behalf. You pay what you can afford, instead of what your creditors are demanding, and it usually reduces your debt to a fraction of the original amount owed! Think of it as a settlement with those you owe on terms you both agree with. A consumer proposal is a government regulated program that can only be administered by a Licensed Insolvency Trustee. 

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 1-855-884-9243 are available by phone at  1-855-884-9243, Live Chat  or you can request a call back at contact us page. We want to see you flourish!