Options to Deal with Outstanding Debt

Debt is always hard to deal with and at times you may find yourself completely overwhelmed and feel like you have absolutely no options but to turn to bankruptcy. However, that is definitely not the end all be all!

I’m here to tell you that you do have options and sometimes bankruptcy can be the option for you, but that there are several other ways to deal with debt that you feel you cannot handle anymore.

When it comes debt, you don’t have to feel like you’re drowning or that there is no good way out. There is and I’m going to explain a few good options that could work for you and help you today!


The first option is consolidation, consolidating your debt is a really good option to put all the outstanding debts that you currently owe all into one easy payment. This is a great option because you can get a good low interest rate and have just one simple payment rather than many scattered payments. This will make it easier for you to pay down all your outstanding debts in full.


Now if unfortunately, your debt has gone to collections because you’ve fallen behind on payments you still have options at the point as well. That could involve directly contacting the collections company that has purchased your debt and making arrangements for an affordable monthly payment on your outstanding debt. You can also negotiate your outstanding debt as most collections company are motivated to collect and are willing to accept a reduced amount on your debt. That can be a really good option for you if you want to make a lump sum payment, but make sure you get everything in writing and that the agreed upon amount will fully settle your debt. You certainly don’t want the collections company coming after you for the rest of the amount at a later date.

There is absolutely no situation so bad that you cannot get out of and improve! You are the sole master of your situation and what comes next.

 Statute of Limitations

Now the statute of limitations is not exactly an option I would recommend, however if your debt has gone beyond a certain amount of time and you have neither acknowledged the debt in writing or made any payments, this is something to take into consideration.  The statute of limitations means that depending on which province you are in; the lender or collections agency can no longer come after you in a court of law for the money owed. There won’t be any actual consequences on debts past this limitation point on your credit score. I will list the statute of limitations for debt for each province below:

Alberta – 2 years

British Columbia – 6 years

Manitoba – 6 years

New Brunswick – 6 years

Newfoundland & Labrador – 6 years

Northwest Territories – 6 years

Nova Scotia – 6 years

Nunavut – 6 years

Ontario – 2 years for claims arising after January 1st, 2004, 6 years for claims arising before January 1st, 2004.

Prince Edward Island – 6 years

Quebec 3 years

Saskatchewan – 2 years

Yukon Territory – 6 years

The options listed above are not exhaustive of course and bankruptcy is another option if you find yourself in dire straits. However, this should be the last option you consider especially because of the hugely negative impacts it will have on your credit report. Make sure to always consult a financial adviser when it comes to figuring out what will be right for you in your current situation.

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