Debt Relief Experts
Facing gambling debt can feel overwhelming, isolating, and stressful, but you’re not alone. Single even sports betting was legalized in 2021 in Canada. Unfortunately, it’s now creating serious debt problems for many people who gamble on these events. Fortunately, there are clear and effective ways to deal with gambling debt in Canada, including consumer proposals and bankruptcy.
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Gambling Debt is More Common Than You Think
Gambling debt usually starts with small wagers, such as lottery tickets, scratch tickets, or online card games. Over time, what seemed like harmless entertainment can spiral into significant financial trouble. According to Statistics Canada, around two-thirds of Canadians aged 15 or older have participated in some form of gambling, highlighting how widespread gambling activities have become.
The truth is, anyone can find themselves struggling with gambling debt, often quietly. It’s essential to know that Licensed Insolvency Trustees (LITs) provide judgment-free help, offering compassionate guidance to those needing debt relief.
Why Gambling Debt Happens
Several factors can lead individuals into serious gambling debt:
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Easy Credit Access: Credit cards and payday loans make funds readily available, facilitating continuous gambling even when personal resources are exhausted.
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Chasing Losses: Many gamblers continue betting in hopes of recovering previous losses, inadvertently deepening their financial problems.
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Mental Health Connections: Issues such as anxiety, depression, or attention deficit disorders (ADD) can contribute to gambling behaviors.
What To Do If You Have Gambling Debt
If you’re dealing with gambling debt, it’s important to know that solutions are available, and it’s never too late to start turning things around. Below, we’ve outlined practical steps you can take right away to start managing your debt and regain control of your financial future.
Protect Yourself Financially
Your first step is to acknowledge you have a gambling problem and take steps so your financial situation does not become worse:
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Freeze Access to Credit: Prevent further debt accumulation by limiting your access to new credit sources or freezing existing credit accounts.
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Self-Exclusion Programs: Voluntarily exclude yourself from online and physical gambling locations.
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Talk With a Professional: Seek professional help to address underlying gambling addiction issues. If you are struggling with debt repayment, consider contacting a Licensed Insolvency Trustee. LITs are experienced in helping people find debt solutions and offer credit counselling advice is a non-judgmental manner.
Explore Debt Relief Options
Gambling debts are generally treated like other unsecured debts in Canadian insolvency proceedings. This provides a fresh start for people struggling with gambling-related financial problems.
When talking with your LIT, they can help you explore two primary options to deal with gambling debt:
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Bankruptcy: Bankruptcy does discharge gambling debts in Canada, however you must disclose to your LIT if the primary cause of your debts was due to gambling. In some cases the courts may require additional conditions for you to obtain your bankruptcy discharge. It is rare for the court to refuse a bankruptcy discharge due to gambling debts alone.
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Consumer Proposal: Unlike bankruptcy, there’s no court process involved when filing a consumer proposal – it’s more of a negotiation directly with your creditors. Basically, you work with a Licensed Insolvency Trustee who helps you put together an offer to pay back a portion of what you owe (often 30-50%) over a period of up to five years. As long as creditors holding the majority of your debt agree to the proposal, it becomes binding for all unsecured creditors – including gambling debts. This means you can settle your gambling debts for less than you owe while avoiding the more severe consequences of bankruptcy. Plus, you get to keep your assets, and the payment plan is designed to be manageable based on your actual income. Many people find consumer proposals less stressful since they provide debt relief without the stigma or restrictions that come with bankruptcy.
Case Study: Beau’s Journey from Gambling Debt to Recovery
Beau Humphreys, featured on our Debt Free in 30 podcast, began gambling as a child, initially buying lottery tickets. By university, Beau’s gambling escalated to online card games and sports betting, funded by easy access to credit cards. Eventually, he amassed $40,000 in gambling-related debts.
Beau chose a consumer proposal, reducing his debt significantly and fixing monthly payments at an affordable amount ($300 per month over 50 months). He credits the consumer proposal with giving him the financial stability to address his gambling triggers and rebuild his life and credit.
During his consumer proposal, Beau benefited significantly from credit counselling sessions. Our credit counsellors provided valuable financial education, helping him better understand how to manage money, rebuild his credit score responsibly, and recognize triggers for his gambling issues. Through counselling, Beau developed healthier financial habits, giving him the tools and confidence needed to maintain financial stability long after completing his proposal.
Is a Consumer Proposal Right for You?
A consumer proposal may be ideal if you want to:
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Keep your assets like your home and vehicle.
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Reduce the total amount owed without interest.
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Have fixed and manageable monthly payments.
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Rebuild your credit faster.
Licensed Insolvency Trustees can guide you through the consumer proposal process, clearly explaining every step and provide advice on how to get your finances back on track.
Where to Get Help in Ontario
At Hoyes Michalos, our Licensed Insolvency Trustees offer professional and empathetic advice, guiding you to the best debt relief solution tailored specifically for your needs. Hoyes Michalos has helped thousands of Canadians successfully eliminate their debt with a 99% proposal acceptance rate.
You’re not alone in your struggle with gambling debt.
Book Your Free, No-Obligation Consultation Today and reduce the financial impact of problem gambling.
