Ep. 1 - Help with Gambling Debt: Credit Counselling, Consumer Proposals & Bankruptcy
There are options for dealing with gambling debt
Read on and listen in to learn more
If you’ve looked at your finances and realize that you can’t pay off your gambling debt on your own over a 3-year period, gathering information about financial options is probably a wise idea.
In this episode of our podcast, Fold em: Help for Gambling Problems, Andre tells us how she started off talking to someone at her bank who then suggested she speak to a credit counsellor. After this conversation, she also spoke to an Insolvency Trustee (bankruptcy trustee). She says that she was anxious and embarrassed to let others know about her financial situation but was surprised at how kind and understanding these people were. Andre tells us that she felt such relief upon learning that there were options for help with paying off her debt.
Shannon Simms, a counsellor with the British Columbia Gambling Supports also joins us in this episode. She explains options that are available to people dealing with unmanageable gambling debt.
Debt Consolidation
Loans through a financial institution that involve the lender paying off your individual debts and rolling the combined balance into one loan which you repay over time, with interest.
One benefit of a consolidation loan is that the interest rate will be lower than what you would be paying on a credit card.
One challenge is that in order to qualify you may need an asset held as collateral for the loan, such as a vehicle or a home; a co-signer, or a high income and/or high credit rating.
Credit Counselling
Credit counsellors work with your creditors to develop a repayment plan.
Individuals pay back all of the debt over a period of up to 5 years but with interest frozen or reduced.
Not all creditors will accept credit counselling arrangements, which means some may continue with collection or legal action. Also, government debts like income tax and student loans will continue to charge interest.
Consumer Proposal
A legally binding arrangement where you settle your debt for a percentage on the dollar and pay it off with manageable monthly payments over a period of time (maximum of 5 years).
A licensed insolvency trustee will work with you to develop a proposal for your creditors that fits your household budget and personal circumstances.
A consumer proposal will impact your credit rating.
Bankruptcy
A process with a licensed insolvency trustee which legally eliminates your debt, rather than refinances it.
It involves forgiveness of nearly all types of debts and protection of assets and income that may otherwise be vulnerable to seizure by creditors.
Regular payments to the insolvency trustee are required
Bankruptcy impacts your credit rating and ability to access credit.
It’s best to consult with someone at your bank or credit union, a credit counsellor and an insolvency trustee for further information and to find out the best options for your financial situation. But, in the meantime, listen to Episode One of Fold em to hear more from Shannon and Andre about how to break free from unmanageable gambling debt. Click on the play button at the top of this blog or the red Listen Now button below.
Fold em is a podcast hosted by Adrienne Cossom and her colleagues at Gambling Support BC. Whether you are looking at stopping or scaling back your own gambling or supporting a family member with a problem, this podcast will help you take back control. Hear from gamblers who have been through it and get tips from counsellors.
If you live in British Columbia and would like to connect with Shannon Simms or the rest of the team with Gambling Support BC, click on the red “Connect with Supports in BC” button below.
To learn more about gambling concerns and how to access resources and support, go to the home page of this website OR click on the red “Learn More” button below.