New Survey says Millions of Canadians Too Ashamed To Seek Debt Relief
Are you struggling with debt and feel too ashamed to seek help? Well, Licensed Insolvency Trustees MNP recently conducted a poll which found that a whopping 46 percent of respondents failed to seek help because they were ashamed to admit that they were in debt and a further third said they would put off seeking help because of the stigma attached to bankruptcy.
When Canadians feel a deep sense of embarrassment, shame and even guilt about their debt, the opposite of the desired effect can occur. Rather than cutting on spending and increasing debt repayment rates, shame prevents you from seeking the help you need to get your finances on the right track. The truth is that not getting help when you’re overwhelmed with debts means that you risk the situation becoming much worse.
Debt Relief for Canadians
According to the MNP experts, overwhelming financial burdens or unmanageable consumer debt breeds social isolation and loneliness because the embarrassment prevents consumers from seeking professional help. Sadly, the study found that those who are in direst need of professional help are the least likely to request it.
That has been shown by the study findings with 61 percent of Canadians who consider their individual debt load as dire and over 54 percent who are in financial difficulty and insolvency claiming that they would be ashamed to request for help even if they financial circumstances were severe enough to consider filing for bankruptcy. However, experts warn that attempting to keep debt a secret and maintaining the status quo is the greatest risk of all.
Filing for Bankruptcy
The number of Canadians filing for bankruptcy is on the rise, but that doesn’t reveal the extent of the problem in the country simply because millions of people postpone seeking help until they are in a crisis. When they are finally forced to talk to an expert, many might be reducing or even forgoing basic necessities like food, rent and medicine in a last ditch effort to avoid filing for Bankruptcy or a Consumer Proposal.
Debt Relief Education
According to the survey results, 30% of the respondents wallowing in debt simply don’t know what to do or where to seek help when things get out of hand; up to 47% including those who are financially insolvent.
There’s also the trust factor, with more than half of the survey’s respondents (52%) and 58% of young adults (18-34 years old), claiming that they are unable to trust professional companies in regard to providing them with debt relief.
Experts say that the trust issue is partially because of lack of financial literacy & awareness about debt management and relief options in Canada. Many Canadians, especially young adults, don’t know that there are procedures already put in place to help over-indebted individuals get on the right track financially. Licensed Insolvency Trustees, like MNP, are the only experts authorized to provide debt relief options such as Bankruptcies and Consumer Proposals, so consumers should avoid any companies that claim to offer quick-fix debt solutions.
Contact our Mortgage Experts in Collingwood to get your financial plan on the right path.