Personal Finance

Lessons About Personal Finance That We Weren’t Taught

Are you feeling frustrated by your finances? Do you wonder why you’re missing bills and barely making it to the end of the month? Have you tried books, videos, and other budgeting tools to help with your Personal Finances, but still can’t make it work?

Let’s simplify things for a moment here.

Practically every financial resource you run into will tell you the same thing:

The fundamental rule when it comes to personal finance is that you must spend less than what you earn.

And your financial freedom is really about widening the gap between those numbers.

There are only two ways to achieve this goal. You can either spend less than what you earn, or earn more to cover your expenditures. And there’s plenty of information out there to help you learn how to do just that.

But if it were as simple as all this, then why is it that…

Over half of all Canadians are within $200 of not being able to cover their bills and debt payments.

The unfortunate fact is…

Most Canadians have never had any education around financial literacy…

Be it formally in school or informally in our households growing up. And worse yet, we typically inherit our beliefs and habits around money from our families.

But there is another piece to this.

Because even though we may seek out literature to educate ourselves, we may not understand exactly how to do our own personal budget. And sometimes, when we are successful at accumulating savings, we may not know how to manage that money.

If this sounds like you, don’t be discouraged.

You can change your financial circumstances by getting professional debt help.

Think of it as you would your physical health. All the Google searching in the world may help you understand your physical symptoms. But if you’re not a doctor, you’d probably go see one for whatever ailment you’re experiencing. And you’d rely on that professional to identify the issue and provide you with advice on how to move toward better physical shape.

The same is true for your financial health.

If you need professional help with Personal Finance, you should seek it as soon as possible.

But before you pick up that phone…

Who is the best Financial Advisor to contact if you’re having debt trouble?

Debt Matters recommends that…

If you’re having problems with your debt, you should contact a Licensed Insolvency Trustee.

What is a Licensed Insolvency Trustee (LIT)?

A Licensed Insolvency Trustee (LIT) is a federally licensed and regulated financial professional that provides advice to individuals and businesses with debt problems.

How can a Licensed Insolvency Trustees help with your personal finances? Here are 8 ways that an LIT can help.

1. An LIT can help you figure out your cash flow and create a balanced budget.

This is exactly the kind of help you need if you can’t make a budget work and stick to it.

2. An LIT can help you if you’re at the point of insolvency.

LITs are the only debt professionals in Canada authorized by the federal government to assist debtors with filing Consumer Proposals and Bankruptcies. If this is the kind of help you need, only an LIT can give it to you. And you never need a referral to consult with an LIT. You can just pick up the phone and contact one.

3. An LIT can help you with all your debt relief options.

It’s not just Bankruptcy and Consumer Proposals that LITs deal with. LITs are able to assist you with everything from simple budgeting and debt consolidation all the way to Bankruptcy. What’s more, LITs are required by law to tell you what your debt relief options are.

4. LITs are arguably Canada’s best debt advisors.

LITs are licensed and overseen by the Office of the Superintendent of Bankruptcy (OSB). As such, LITs must not only complete a demanding academic program and pass thorough testing, they’re also required to take continuing education throughout the life of their career. Furthermore, LITs must abide by strict ethical regulations that are put in place to protect debtors’ financial interests.

5. An LIT takes you through the entire debt elimination process.

When you file for insolvency, your LIT will be there with you from the beginning through to the end.

6. An LIT protects you – and your rights – from your creditors.

Your LIT does not work for you or for your creditors.

However, once you file for insolvency, the Canadian government affords you immediate protection from your unsecured creditors. An “automatic stay” takes effect the moment you file a Consumer Proposal or Bankruptcy. This means your unsecured creditors cannot pursue you for the debt you owe. More specifically, they cannot start or continue any legal or other collection action against you.

Moreover, during the debt relief process, your LIT will ensure that your rights are protected and that all parties follow the rules.

7. With an LIT, there are no hidden or upfront fees to pay.

LITs’ fees are federally regulated when it comes to Bankruptcies and Consumer Proposals. They’re also tucked into your affordable monthly insolvency payment, so you won’t feel the sting of them.

8. An LIT’s initial consultation is free and you walk away with a plan to eliminate your debt.

Your first consultation with an LIT is free. At this meeting, your LIT will review your financial circumstances and advise you of every debt relief option available to you. They’ll then provide you with their seasoned advice on what they believe to be your best option. There’s also no pressure to proceed until you are ready to do so.

The Takeaway When It Comes to Personal Finance

If you’re facing financial distress and you haven’t been successful managing your money on your own, you can get professional help. Your best option is to contact a Licensed Insolvency Trustee. LITs are arguably the best financial advisors in the nation. They can help you create a budget and guide you through a debt relief strategy that will actually eliminate your debt.