Debt can be a major cause of stress; at times, you may feel as if there is no way of escaping. If you are having trouble paying your bills, being harassed by creditors, or having high-interest costs that just keep piling up, then it’s probably time to consider your options. When coping with financial difficulties with hopes of building a better future, a LIT can be your secret weapon.
When to seek help from a Licensed Insolvency Trustee (LIT)
The Crippling Grip of Debt
If you’re making minimum payments on credit cards and the balances remain the same or are increasing, you have probably entered a debt spiral. This situation requires expert help. A LIT can develop a specific Debt Consolidation plan and commence negotiation of interest rates with creditors.
Missed Payments
Another red flag is missing payments on bills or loans. Failure to pay an account can damage your credit score and lead to high-pressure collection pursuits. A LIT protects your financial assets and bridges the gap between you and creditors on either side, who can make repayment arrangements to balance both rights.
Financial Anxiety
Financial stress can affect your health, both physically and mentally. It may manifest as problems in your sleep pattern, difficulties with focusing, or even physical symptoms, like headaches or abdominal pain. A LIT will offer advice and provide financial literacy support about budgeting, allowing you to take control of your finances and improve your overall well-being.
Payday Loans
Have you ever tried to get a payday loan to cover a payment gap but ended up with higher debt? Short-term, high-interest loans can offer quick cash relief but hurt your long-term budget. By adding these high interest rates, your initial debt will continue to go unpaid.
Contemplating Bankruptcy
If the weight of your debt is making you consider bankruptcy, a LIT can be a more promising alternative. Bankruptcy is a complex legal process that can have a long-lasting financial impact. A LIT can explain what happens in bankruptcy and help you evaluate options like a consumer proposal. They have the knowledge to provide support for your specific financial circumstances.
Benefits of Working with a LIT
LITs are government-regulated professionals who specialize in debt management. They can help with:
Assessment of Debt
Evaluating your financial situation and assisting in finding the best solution based on your unique situation.
Negotiation
Negotiate with creditors to lower interest rates or reduce your monthly payments.
Debt Management Plan
Aid in developing a budget you can manage and help create an affordable plan to get your debt paid.
Legal Protection
Ability to protect you from the pitfalls of creditors while you are on a debt-reduction path.
Money Management
Offer financial education to teach budgeting.
Taking the First Step: Choosing the Right Licensed Insolvency Trustee
Debt can be overwhelming, but there is help. A Licensed Insolvency Trustee may be your best ally on your path to financial freedom. Find a LIT with the knowledge, experience and compassion to help resolve your financial difficulties.
If you live in BC and are struggling with debt, contact D. Thode & Associates Inc., Licensed Insolvency Trustees. Book your FREE consultation, and we’ll help you understand your options. We want to help you become Debt-Free!
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