140 – The Personal Toll of Debt and How to Overcome Financial Stress

Wayne Kay 00:04
Debt is one thing, but the personal toll can be something else. Our topic today beyond finances on today’s Debt Matters podcast, where we help Canadians find solutions to their debt with licensed insolvency trustees from across Canada. I’m Wayne K. And in today’s show, beyond finances, we’re going to talk about the personal toll of debt and how you can overcome it, how debt really affects people in different ways. What can be done to ease the personal toll, and where do you even start with that?

Who do you reach out for some help? And what are some practical steps to stop the stress? My guest today, Derek Chase from Chase & Associates Licensed Insolvency Trustee serving Vancouver island and the Sunshine coast. Thanks for being here, Derek.

Derek Chase 00:53
Hi, Wayne. It’s my pleasure to be here today.

Wayne Kay 00:55
Oh, I like this topic, beyond finances, personal toll of debt and how to overcome it. We all know that having that debt and dealing with it is, well, you see it all the time. You see it every single day. How does it affect people?

Derek Chase 01:13
Yeah, that’s a question that we could talk about for a fair while, how debt affects people. Thankfully, we’re not all the same. And because of that, that does affect people in different ways. I think the first go to answer that people would give is that they just feel a lot of stress and that’s natural. But it can be, there’s different levels of that, I think.

And so when we’re talking to people, there could be a life event that accompanies their  debt situation. It could be the small business that theyve been working on for a lot of time, a lot of years, theres been grinding away on, has collapsed for some reason, or theyve gone through some sort of relationship change, which these are big emotional events. And then in addition to that, theyve got this debt. And so we hear people saying to us that, I can’t sleep because of this. I just stay up all night thinking about it.

Or someone else might say, I’m out doing my job as a faller and I’m thinking about this tax debt and it’s dangerous, so it makes your mind wander, I think, during the day. So that’s another way it can affect people. And then, you know, unfortunately, people have done some drastic things because of their debt load. And I certainly want to talk to anyone out there that’s feeling like there’s no hope in continuing on, and I’m going to tell you that there is. So we try and not get numb to it. The fact that people are coming in and talking to us that are, often in a very fragile state.

Wayne Kay 03:14
It’s good for you to share this, because sometimes people are feeling these situations. They feel this boulder on their shoulders and can’t sleep. I mean, it’s just. It’s all consuming.

You cannot escape it. Even if you try to go have fun with the kids, you’re still thinking about it. You just cannot get away from it. And so finally they come and see you, and they go, this is going to shock you. It’s going to be the worst case you’ve ever seen.

And then you go through it and you say, oh, that’s actually not nearly as bad as I thought you were gonna say. Right?

Derek Chase 03:50
Yeah, that’s a good point. It is very relative in the sense that we’ve had people in that only, you know, owe less than $10,000, and they’re convinced that they’re gonna be sent to jail.

Wayne Kay 04:02
Right?

Derek Chase 04:03
Yeah, they’re just sweating bullets. Sweating bullets. And another one. Another person might be closer to a million dollars, and they’re just, you know, mildly uncomfortable.

Wayne Kay 04:14
Well, the thing is, you know, you’re doing great in life until you’re not. And there’s so many factors to that, as we have seen over the last many years, that you just don’t know what’s going to happen. So, I mean, you really want to be preparing for anything that could possibly go sideways. So we know that debt will affect people in many different ways. So let’s talk about what can be done to kind of ease some of that personal toll. And where do you even start to try to get rid of this ickiness?

Derek Chase 04:47
Yeah. Yeah, there’s definitely a personal toll. You know, how do you manage it while you’re dealing with it, or how do you mitigate it? And so I think a great solution, or a great part of the solution is just to get some physical activity into your day. And that’s different for different folks.

It could mean just to walk around the block, or it could mean actually working up a sweat on a bike ride or just get moving. And I find that’s a lot better than just sort of sitting and twisting things over in your mind or just having inactivity. So certainly I would recommend that if someone’s listening and they’re feeling this personal toll of debts so you can overcome partially with physical activity, I think you also want to talk about it with someone that you can trust. I think that’s a good way to unburden yourself, is to share that with someone who you feel that you can share personal things with. And that’s a good way to, in the short term, just feel a little bit better, and so you can’t be shy about that.

You just gotta go, and you gotta go and do it and. Yeah. So I think that would be a good first step to it, to at least allow you to sleep a little better that night.

Wayne Kay 06:20
That’s great advice. And reaching out to somebody, it’s amazing what people will share.

Look at somebody who, you know, has maybe gone through something or somebody who’s doing well and say, hey, can we go for a walk? I want to go for a walk, and I want to just maybe ask, bend your ear, get some questions, and people will always jump in to help.

Derek Chase 06:44
Yeah, there’s a lot of people that can help, and I think we kind of lose sight of the fact that we are surrounded by a lot of people that can help, are willing to help, and are paid to help, really. So one thing that I like to suggest to people. If they’re feeling this personal toll, having too much debt, is, you know, oftentimes when people, through people’s work.

They have access to counseling, and I think a lot of folks don’t even realize that, you know? So you typically need to be working for a bigger place. You know, it’s BC ferries or, you know, some other type of job that has a benefit package. And. And right within that, there’s access to counselors, and you just need to book an appointment over the phone and you can talk to them about your situation.

So that’s one good resource I’d hate for someone not to use if they had access to it. And then, of course, other people that can speak into your life about financial matters would be usually an accountant’s quite helpful with that, or a lawyer. And certainly in our role as licensed insolvency trustees, obviously, we’re more than comfortable talking about any type of debt or finance matter with people. And so the point is that there is a lot of people that can help, even if it’s just to get the facts, like what’s the law? And then it’s just better when you’re equipped with that type of information. So then you can make well informed decisions.

Wayne Kay 08:25
You always feel the stress leave your body when you actually get an answer, even if it’s a car problem, you know, and you don’t quite know what it is. And all of a sudden they say, well, it was just the fluid and the clutch was low, and, but, but yet when the clutch. I’m having a problem with it. I’m thinking, oh, this is a catastrophe.

It’s gonna cost me gazillions of dollars. And you know what I mean? But then all of a sudden I take it to the expert, they go over it and go, yeah, no, it’s an easy fix. And you’re like, oh, okay, okay, that’s good. At least I have some options.

Derek Chase 08:59
Yeah, I can share that. I probably couldn’t count how many times people have told that to us in some form or another to say, oh my gosh, I wish I knew about this consumer proposal three years ago. I’ve been dealing with this for the last three years and I’m just so glad, or just expressing how much less stress they feel while we’re still in the meeting. And they say, there’s this pathway I can take and wow, I feel way better. I can’t tell you how much better I feel. And so, yeah, it’s good to equip yourself with the facts and know what’s available and not take the ostrich approach and just plunk your head in the sand and just kind of endure the beatings.

Wayne Kay 09:48
Yeah, well, we know a lot of people who are in a tough situation financially, they’re often, maybe they can’t sleep, so they’re tuning in and all of a sudden they find, this podcast and they’re listening to you right now, Derek. So they’re not going to, they’re not going to book the appointment at this very moment. But they do want to know, what can they do? What are some practical things that they can do right now to stop the stress?

Derek Chase 10:12
Yeah, I think a couple of practical ways to go about things. There’s nothing wrong with contacting who you owe and letting them know your situation. And, you know, lots of times creditors will make different payment plans available or different, maybe they’ll defer a payment for a month. So contacting your creditors and letting them know what’s going on in your life, I don’t think it can hurt, and in fact, it might alleviate some stress. If a creditor is really collecting hard and they’re, you know, phoning multiple times, you can, it’s my understanding that you can send them a registered letter to advise them.

You only want to deal with them in writing and then they’re supposed to just write to you as opposed to badgering you on the phone. I believe that’s a provincial law here in BC. And of course, you know, other practical steps. If you’ve come to the realization that you’re just never going to pay down this debt, then we can certainly help with a consumer proposal or a bankruptcy protection.

Wayne Kay 11:25
Okay, so there is hope, is what you’re telling me.

Derek Chase 11:28
Yeah, 100%. You know, sometimes people think it’s never going to change. They’re stuck forever. And thankfully, not in Canada. In Canada, we have an excellent laws that enable people to have a fresh start.

And once you understand how the programs actually work, I think people are far and away just. Just very thankful that they’ve had a chance. They’ve got a chance to get back on a good path. So, certainly there is hope. And, um, we’d be in a terrible place if there was no hope.

Wayne Kay 12:01
You’re not kidding. The nice thing is, is that you can share, you know, who you see. You see this day in and day out for many years that you’ve been doing this. And as you said, people wait too long. They try to solve the problems on their own.

Maybe they start cashing in some of their RSPs, the TFAs. Okay, we’re gonna have to give up the kids education funds, and these are things you don’t need to do. And it’s got to be heart wrenching when they find out that. Oh, you mean I didn’t have to do that?

Derek Chase 12:37
Yeah, for sure. There’s different exemptions that allow you to protect assets when you get protection from your creditors. And I think it’s just natural to try and solve things on your own. But it is a shame sometimes that people get rid of assets that they might have otherwise been able to keep. So, yeah, it’s good to start asking the questions before you make any big decision about liquidating your assets. It’s something you might not have to do, so don’t be afraid to reach out. And I know we’re certainly glad to just take a call and give some information to people.

Wayne Kay 13:14
Right. And just because they call it doesn’t mean that all of a sudden now they’re going into bankruptcy, consumer proposal, anything like that. But oftentimes that can be the thing they need, just to see that there are some options and what not to do. What not to do is often. Is as important as what to do.

Derek Chase 13:33
Mm hmm. That’s. That’s true. And often we just steer people in a direction that they might not thought of.

Like maybe they need to apply for some rental assistance, or maybe they need to change their budget a little bit, and I. Or maybe they need to sell something, and they needed a voice to say that to them. So it’s just a matter of getting a fresh set of eyes on your situation, and that often can provide some clarity or some ideas that you might not have thought of before.

Wayne Kay 13:58
Right.

Derek Chase 13:58
So, yeah, why not? Why not take advantage of that?

Wayne Kay 14:03
Absolutely. Especially when it’s a free consultation. We’ll give the website in just a moment. But Derek, thank you very much for being on the show. It’s always a pleasure.

Derek Chase 14:11
Yeah, thanks, Wayne. I really enjoy it. And you have a great day.

Wayne Kay 14:14
Well, that was Derek Chase and you can learn more. Schedule that free consultation that we’ve been talking about through Chase & Associates Licensed Insolvency Trustee through the website bankruptcytrusteebc.ca. And that’s it for today’s Debt Matters podcast. If you know somebody who’s going through a tough time, feel free to send them this podcast and make sure you subscribe wherever you get your favorite podcast from. And for more information, you can always check out debtmatters.ca.

Thanks for listening.