This post is by Bob Osborne, from our 4 Pillars Kootenays office. You can read his bio and find out about his debt consolidation services for Castlegar, Nelson, Cranbrook, Trail, and Grandforks here.
I was playing with my phone –Galaxy 4 – I am no techy by the longest stretch of the imagination when I come across this site that supposedly rates different businesses. Someone posted a question – What can my friend do she has debt problems? – She tends to fall for sales pitches.
It was amusing to see that not one respondent with the right information albeit with their free advice, in fact there were several who gave really poor advice.
As a debt expert with over 8 years experience I wanted to share some of my knowledge. So, what should you do if you have a debt problem, here is some free professional advice for a debtor.
First don’t panic, set those feelings aside and take an honest look at where you are at with your debt. Write it all down on paper and don’t beat yourself up about it. Often with debt comes denial, through the ages we were taught if you couldn’t pay your debts then you were a “bad person.”
In today’s economy with record level of issued credit cards, hundreds of buy now pay later programs, a 50% divorce rate, incomes being capped and huge pressure to use credit to support an unrealistic way of life – its no wonder people have so much debt!
It has simply become a way of life – a treadmill that makes credit companies massive profits – when was the last time you saw an ad on TV that said “use cash and save 20%”? You are not a bad person so stop with the guilt and it’s time to deal with your debt issue.
Now that you have all your debts listed and totalled in front of you take a few minutes to go back through in your mind ‘how did I get here’ don’t let guilt be part of this process just simply be honest in your assessment, was it event driven – you used credit and planned to pay it off then something happened ie; loss of income or maybe health issue or was it just overuse of credit with not so good spending habits – this is important.
This does not help your present situation but it will help you in moving forward in your life once you have dealt with your debt.
At present you are probably feeling helpless and overwhelmed and you know that you are easy pickings for a great sales pitch, so now what?
The very best thing that you can do for yourself is to educate yourself, find out what options are available in dealing with your debt. What are the different options and what companies offer possible solutions.
Your different options can be broken down into the following:
- Selling Assets
- Budgeting
- Consolidation Loans,
- Informal Proposals,
- Formal Proposals (Consumer Proposals)
- Credit Counseling Services,
- Bankruptcy
The options are listed from the least damaging to most damaging to your credit rating.
Let’s look at what companies offer various services to deal with your debt:
- Banks and Credit Grantors,
- Trustees in bankruptcy,
- Informal Debt Settlers (most are American with a suite box number in Canada to make them legal)
- Private credit counselors,
- Credit Counseling Societies
- Debt Management Companies (4 Pillars)
Here is what you do next: get a pen and writing pad, make a call to each of the types of businesses listed and tell them you have a debt problem and looking for a solution based on your circumstances.
Do not buy into anything until you have heard them all and are at home and have compared what they offer to what you want.
When you are in the meeting with them you want to ask the following:
1) How are they going to resolve your debt issue (short term goal) and how is this going to work in your life?
2) How long is it going to take to pay off the debt and what you can do to impact the length of time you pay and how much you pay (medium term goal)?
3) What tools does this company have going forward for you after your debt has been cleared up (long term goal)?
This need not be as scary as it is right now because you are going to become an informed consumer that will not be at the mercy of a fast sales pitch. There is life after debt and it can be much better than you may expect.
Be educated be empowered!
You can read more about Bob Osborne and the excellent work he has done helping families and businesses get out of debt in Nelson, Castlegar, Trail, Grandforks, and Cranbrook. His office page is here.
Bob Osborne
4 Pillars Kootenays
Direct Line: 250-365-8070
740 Chickadee Lane, Castlegar, BC V1N 1E1
Google+ (Debt Consolidation for Castlegar and Nelson)
