We recently discussed the differences between a bankruptcy vs a consumer proposal and discovered that both debt relief solutions are quite different. We discovered both are governed by the Bankruptcy and Insolvency Act, which are provincial laws and regulations issued by bankruptcy and insolvency trustees.
It was said that nearly half (48%) of Canadians admitted that they are left with less than $200 at the end of every month, the latest Consumer Debt Index (covering September 2019) by MNP indicated. This really doesn’t give anyone much wiggle room for enjoying their earnings. This would commonly put anyone under stress and overall, affect their mental health.
It’s clear that Canadians are in debt and too embarrassed to seek help. When becoming insolvent and choosing to enter a consumer proposal, it’s hard to know who to tell and where to begin. A question a lot of people ask themselves when they enter a Consumer Proposal is: “How do I tell my family”? These situations can put stress on home life and the feeling of hopelessness can often cross our minds – but we want to help you. It’s important to not only do your research on your current financial situation, but also to ensure that you look after yourself and your own well-being in these challenging times.
If you’ve recently entered a consumer proposal and are struggling on where to begin, check out these five tips on what way you can address your family or loved ones about your consumer proposal.
#1 Breath it out
This one might seem obvious, right? But we don’t mean literally just breath. Breathing exercises are one of the most effective and underrated relaxation strategies. You can calm your body and mind anytime, anywhere with simple techniques.
Sit, lay down or whatever’s comfortable and put one hand on your belly. Breathe into a slow count of three, and then breathe out to the same slow count of three. Feel your belly rise and fall as you breathe in and out. Repeat five times, or for as long as you need to feel relaxed. Remember, concentrate on your breathing and relax before addressing your family. Remember, they want what’s best for you at the end of the day and wouldn’t like to see you upset or stressed.
#2 Don’t rush!
We know your first instinct is to rush, panic and tell your family as soon as you know in a complete fluster. It’s just as important to take your time and tell them when the time is right in an appropriate setting and when you’re ready. Have a cup of tea – Camomile is perfect for soothing and calming, or even a berry tea. Remember our first step to breath it out and take one minute at a time.
#3 Explain your Consumer Proposal
We’ve written several posts on consumer proposals, including The good, the bad, and the ugly of consumer proposals, The real (and hidden) costs of a consumer proposal,. In short, it’s a legally binding agreement between you and your creditors to repay some or all your debt.
As the old saying goes ignorance is bliss, right? Wrong. When it comes to insolvency and consumer proposals, the more you know, the less you worry. Education is key. This applies to not only you as the consumer, but your family also. It’s important to give your family as much information as you know about your current situation. This will help them to be clear on what is happening.
When you first tell your family, they may first ask what is a consumer proposal? You first need to educate them on what’s happening and give them an insight of what your journey will be from debt to relief. We feel once we debunk the confusion around becoming insolvent and choosing to enter a consumer proposal, and once your family understand what is happening, they can be fully there for you during this stressful time.
#4 A solution for your Consumer Proposal
The most ideal way to let your family know you’ve entered a consumer proposal, is to pair it up with the way in which you’re going to get your finances back on track. At Marble, we want to help you exit your consumer proposal and begin rebuilding your credit score, in a fast and efficient way to get you back to mainstream banking.
Firstly, we offer Fast-Track credit rebuilding product. We work with your trustee and pay off entire consumer proposal debt immediately. This then involves reasonable monthly loan payments, which are then reported to the credit bureau to further build your credit. Your credit score will instantly increase from 30 to 70 points and continue to increase depending on your financial habits.
As difficult as your journey is, we can help you get back on the fast-track to financial wellness.
#5 You’re not alone
As said in the Financial Post by Andre Bolduc, a senior vice-president at BDO Canada; “I think it’s important for the public to understand that if they are in financial difficulty, they are not alone”. At Marble, this is something we truly believe. We know your current situation may be challenging. But remember, there is a wide array of resources and financial advisors available to you. And many other underserved Canadians in the same situation.
It’s vital to discuss your options with your family and be extremely open and honest about your insolvency and why you’ve chosen a consumer proposal as a solution. When your loved ones understand that you’re not on your own and you are able to get professional advice, it will make the situation a lot less difficult. We’re in this together!
Let’s start the conversation. Talking to your friends and family about your financial issues will help your mental well-being immensely. Also, helping to open the topic up to other Canadians. To explore our product range, visit us online here.
About Marble Financial Inc. (CSE: MRBL; OTCQB: MRBLF) We are a group of forward-thinking financial technology experts that fully understand the benefits and drawbacks of credit in Canada. Marble helps Canadians rebuild their credit to gain access to prime lending. This is through our industry-leading proprietary technology solutions Fast- Track, Score-Up, and Credit-Meds. Our proven strategy guides our customers back to a meaningful credit score, 50% quicker than traditional methods. Since 2016, Marble is proud to have empowered thousands of Canadians to a positive financial future. We continue to establish ourselves as leaders in financial wellness.