One of the most unmistakable signs of a gambling problem is spending more money than you can afford. Debts start to mount, past due notices pile up and bank statements tell a grim story.
Frank, who hasn’t gambled since 1999, talks about how gambling affected his finances, “I was borrowing from relatives to try to stay ahead of the creditors, or to even buy groceries. I’d go to the casino convinced I was only one good win away from clearing up all the debts and keeping my wife from ever knowing there was a problem.”
The quick fix never happened. “The walls closed in around me and there was nowhere to run.
I had to stop and face the reality that I couldn’t hide my problem any longer.”
After getting help for himself, Frank came clean to his wife and family. “My wife was in shock when she realized our finances were in a shambles. We were about to lose the car, were in danger of being evicted from our home. She was angry and hurt.”
Frank made an offer to his creditors to pay off a portion of his debts over a four-year period. He took on a part-time job on top of his day job, working seven days a week. “We paid off the creditors and have recently re-established our credit rating. It wasn’t easy, but I felt it was my responsibility.”
Many people, from all walks of life, can find themselves in financial difficulty, their income reduced through illness, unemployment, divorce or past financial decisions. If you find yourself in financial trouble, no matter what the cause, remember: you have options.

There are steps that you can take to reduce your debt: track spending, devise a budget and contact your creditors directly to negotiate lower payments over a longer period of time. But often, expert assistance is needed to help you get a clear understanding of the situation and take those first steps. This is where a credit counsellor can help.

Most credit counselling agencies provide free counselling, helping people to resolve their debt problems and learn to use money and credit wisely. The first meeting with a credit counsellor is a time to assess where you are financially. You will go over your income, monthly expenses and debt and discuss your options.  Sometimes it’s simply a matter of tracking your expenses and creating a budget, “When people write down what they are spending, they gain some clarity and quickly realize where their money is going,” says Elena Jara, a Creditor Relations Specialist and Education Coordinator with Credit Canada.

1. Bankruptcy is a legal process performed under Bankruptcy and Insolvency Act, and should be used as a last resort -- an option only if you have no means of paying back your debt. You assign all your assets, except those exempt by law, to a licensed trustee in bankruptcy.  It takes nine months from the date you file for the debts to be considered discharged.
2. Consumer Proposal is an option for those who don’t want to declare bankruptcy. A repayment schedule is devised based on the amount owing and your income and a settlement is reached.  For example, if someone’s debt is $30,000, the debt repayment may be 30% of the total debt, with three to four years to pay it back depending upon income. This option is also negotiated through a trustee.
3. Debt Repayment is a service offered by counselling agencies. The credit counselling agency contacts all creditors, informs them that you have signed up for debt repayment and sets up a timeframe for monthly payments. People most commonly take this route if they have assets that they would lose if they declared bankruptcy. The repayment schedule is three to four years depending on your situation. The counselling is usually free, although there is a fee associated with the Debt Repayment process.  The fee is based on your income and your ability to pay, but the most a payment would ever cost is 10% of the total debt.

Ideally, it’s better to tackle your financial troubles before it gets to this stage.
“We try to encourage people to get in touch with us before they get in trouble,” says Jara. “That’s why we have a strong focus on preventative education. Even if your credit is in good standing, credit counselling services can help you pay your debts off faster.”

To find a credit counselling agency in your area, visit www.oaccs.com/referralservice.html  or call  1-888-7-IN DEBT (1-888-746-3328) to reach the OACCS Central Referral Service.  For more information, visit www.indebt.org