How do you improve your credit score? In this post, we discuss four ways to help maintain a healthy credit profile.
No shame in your (bankruptcy) game
Imagine how many Canadians might be freed from the burden of overwhelming debt if society stopped perpetuating the idea that net worth is equal to self-worth. If bankruptcy was perceived as it really is, a valid option for many Canadians struggling with debt, instead of a scarlet letter signaling failure, we’d be better off.
The idea that bankruptcy indicates a moral failing is reductive at best, and harmful at worst
Financial institutions take advantage of naïve clients by extending more credit than they can healthily carry. Culturally, Canadians will surround themselves with messaging that emphasizes the accumulation and display of wealth, encouraging and normalizing the carrying of large loads of debt. Despite vastly different economic realities than their parents’ generation, millennials still feel pressure to keep up with societal expectations (house, cars, kids, marriage, vacation).
A tired but true cliché, ‘bad things happen to good people’ is an apt catch-all for the myriad of reasons Canadians may find themselves in financial trouble or considering bankruptcy.
It’s easy to make the mistake of equating net worth with self-worth when society measures pride in oneself by the ability to provide financially.
The cost of this (false) pride, however, may be steeper than the majority of us realize.
“…financial problems can deal devastating blows to our self-esteem…lead to feelings of guilt and shame, and cause us to isolate from our family and friends out of embarrassment” – Bradley Klontz. Clinical psychologist
5 signs bankruptcy might be best
- You miss bill payments. Missing a payment on occasion, like when an unexpected expense rears its ugly head, isn’t optimal. But this happens to even the most financially focused. When missing payments becomes the norm instead of the exception, however, it might be time to consider bankruptcy.
- You’re not paying down debt. Minimum monthly payments on debt pay down interest, not the principle. If you’re struggling to meet even minimum payments, with no foreseeable changes in your financial future, bankruptcy is an option you can’t overlook.
- Foreclosure is in your future. This one seems like an obvious red flag, but bears mentioning! If you’re unable to make mortgage payments and are in danger of being foreclosed upon, forgo your Canadian pride and speak with a trusted financial advisor today about your options going forward (including bankruptcy).
- The stress is unbearable. Lack of sleep, loss of focus, nagging worry, and a general all-around decline in mental and physical health. These are unfortunate comorbidities of carrying unhealthy amounts of debt. Your health is worth more than your pride, and bankruptcy may give you the clean slate you need to get back on track!
- Payday loans suddenly seem appealing. Whether payday loans are predatory sharks or a crucial fix in a quick pinch has been hotly debated for quite some time, but there’s no denying they’re a band-aid solution to a holistic problem. It shouldn’t cost more to be poor- which is why sometimes, bankruptcy is best.
For more information on bankruptcy in Canada click here!
To speak with a member of TeamClinton click here!