The 2014 study by Sands & Associates is the only BC-specific study to gather and analyze responses from nearly 900 individuals throughout the province to take an in-depth look at consumers’ debts, the factors causing their financial difficulties, strategies used to resolve debts and the level of knowledge consumers have regarding their debt restructuring options.

Click here to read the full report in PDF format.

The 2014 BC Consumer Debt Study highlighted the following trends:

• Overextension of credit and financial mismanagement was cited as the number-one primary cause of financial difficulties.
• Nearly 65% of respondents indicated that making only the minimum payments on debts was the trigger for them to conclude their debts were becoming a problem.
• 12% of individuals were charged a fee to meet with a debt solution provider other than a licensed Trustee – of this 12%, fees of $1,000 or more were charged to nearly one-quarter of respondents.
• 57% of participants felt they had a good or excellent grasp of financial skills and concepts, however, only 3% correctly answered a series of questions relating to knowledge of debt and debt solutions.  Of that 3%, all had previously filed a Personal Bankruptcy or Consumer Proposal.

As debt levels continue to rise among Canadians, concerns among industry professionals surrounding consumers’ debt knowledge and understanding have also increased.  British Columbia residents continue to remain particularly vulnerable due to a lack of both awareness, and regulation surrounding non-legislative debt settlement options.

Blair Mantin, Vice-President of Sands & Associates offers further insights, “The high cost of living in BC’s lower mainland combined with attempting to service debt at unmanageable levels often leaves people reaching out for solutions in the wrong ways.  The need for consumers to become better educated when it comes to debt management tools and identifying warning signs that could reduce their personal distress and financial difficulties is very real.  Too many British Columbians are driving blind when it comes to debt.”

Mantin urges consumers to take a closer look at their finances, if your debt payments are higher than roughly ten percent of your monthly take-home pay, you should investigate whether professional debt assistance is necessary.  He invites individuals with further questions or need of an assessment of their available options to contact Sands & Associates for a free, confidential consultation.

Click here to read the full report in PDF format.

About Sands & Associates:

Celebrating 30 years providing debt solutions, Sands & Associates is British Columbia’s largest firm of licensed Credit Counsellors, Proposal Administrators and Bankruptcy Trustees, focused exclusively on personal and small business insolvency services.  Currently operating from offices throughout British Columbia, Sands & Associates uses a non-judgmental, empathetic approaching to helping resolve financial difficulties and has been recognized as a multi-year Consumer Choice Award winner.

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Who are bankruptcy trustees?

Bankruptcy trustees are individuals who are government-licensed by the Office of the Superintendent of Bankruptcy to administer both consumer proposals and bankruptcies. There are approximately 1,000 trustees currently licensed in Canada. The Superintendent must be satisfied that individuals wishing to obtain a license meet certain qualifications and have successfully completed a specialized program and gained relevant industry experience before a license will be granted.

How are bankruptcy trustees different? 

Bankruptcy trustees are the only people who are legally empowered to shield you from creditors – they are also the only people able to offer a debt solution called a Consumer Proposal. While programs offered through debt consultants or credit counsellors may sound similar, they do not offer the same protections. Furthermore, debts such as income taxes owing to Canada Revenue Agency can only be successfully reduced (or eliminated altogether) by working with a licensed bankruptcy trustee.

Why meet with a bankruptcy trustee? 

Because bankruptcy trustees are impartial and will review all your debt options (this includes Consumer Proposals, credit counselling and bankruptcy) with you, you’ll generally be able to walk away armed with a lot of knowledge about how you could resolve your situation.

When should I contact a bankruptcy trustee? 

Generally it’s better to speak with a bankruptcy trustee sooner rather than later if your debts are causing you difficulties. Sure signs that you should seek assistance are things like missing payments, collection calls and wage garnishment, but there’s no need to wait until the situation is that pressing. If you know you’re looking at years of minimum payments, never touching the principal balances, or constantly shuffling credit to keep accounts current those are also signs that a chat with a trustee can help.

What does it cost to see a bankruptcy trustee? 

Absolutely nothing!  A licensed bankruptcy trustee will meet with you at no cost or obligation to review your specific situation and provide you with your legal options.

Where do find a bankruptcy trustee? 

Sands & Associates has local offices throughout BC – you can view a list of all our offices here. If you are outside the areas we serve please contact us and we can put you in touch with a trustee in your area.

Whether you’re sure about which debt option you’d like to pursue, or you’re unsure as to what options you’re eligible for, a licensed bankruptcy trustee will be able to help you assess your circumstances and make sure you understand the solutions available to you.

Book your free confidential debt consultation today.

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