debtcare.ca

Author: mgoldenberg@debtcare.ca

  • Tax Relief and the Canada Revenue Agency Tax Payer Relief Program Who Qualifies?

    When an individual or business falls behind filing tax returns, it is imperative that they become tax compliant.  Filing tax returns and being up to date is very important. It is important because as long as tax returns remain in arrears the taxpayer will not only face massive interest and penalties, but could also face prosecution.

    Usually financial problems are the primary reason cited for people falling behind in filing their tax returns. They don’t file because they know that once their tax returns are filed they will face the daunting task of paying their tax debt, in its entirety, to the Canada Revenue Agency.

    The Canada Revenue Agency Tax Payer Relief program offers individuals and businesses the ability to request relief of interest and/or penalties.  This is not tax relief; the Canada Revenue Agency will not reduce the actual tax debt and under this Tax Payer Relief Program, only interest and/or penalties can be forgiven.

    Applicants who want to apply for taxpayer relief under the Canada Revenue Agency Tax Payer Relief Program will have to satisfy the Canada Revenue Agency (C.R.A.) that any one of four circumstances prevented them from filing their tax returns or from paying their tax debt. These circumstances include:

    1.       Significant financial hardship.

    2.       A serious medical problem.

    3.       A natural disaster.

    4.       An error on the part of the Canada
    Revenue Agency.

    Very few applications for taxpayer relief are approved. Before one considers whether the cost of hiring a representative to make an application for interest and penalty relief under the Canada Revenue Agency Tax Payer Relief Program is worth his while, he should first consider if he even has the ability to pay his principal tax debt in full.

    Once a tax debt is owed to the Canada Revenue Agency, they will demand to be paid in full. They will also proceed to collect their money. Collection action could include wage garnishments, property liens, freezing bank accounts and more. Business owners could face having their customers notified of their tax problem and have a set off placed on their receivables.

    Directly attempting to negotiate with the Canada Revenue Agency is similar to playing Russian roulette. In most cases they will not make a voluntary payment plan with you unless you offer complete financial disclosure. Once they learn where you bank and what assets you have, you are in a very vulnerable position. Most voluntary payment plans that individuals self-negotiate are short term, so once the term is up and the taxpayer tries to negotiate another payment plan, they will refuse. This is simply due to the fact that they now have full financial disclosure, at which point they will proceed with further enforcement action ensuring that they collect all of their money.

    The good news is that Federal Government programs do exist. Programs that do offer taxpayer tax relief will not only eliminate interest and penalties but will also reduce the size of a taxpayer’s tax debt significantly. To see if you qualify for tax relief, you must deal with an agency that can provide you with access to these programs. For more information about tax relief and the C.R.A. Tax Payer Relief Program please contact DebtCare Canada at 888-890-0888 or visit www.debtcare.ca

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  • Small Business HST and Past Due Tax Returns What You Need to Know

    HST has intensified the tax obligation of small business owners. Prior to the HST, many small business owners only had to collect and remit 5%  GST. With the amount that must be collected and remitted increased to 13%, the stakes for those who fall behind in filing their HST returns is much higher.

    The Canada Revenue Agency is much more aggressive when collecting past due HST as opposed to GST because the tax revenue for the government is now more than double. In conjunction with that, they are also more diligent in their reviews of HST tax returns and claim expenses.

    Once tax returns (including GST returns) are more than 4 years past due, the Canada Revenue Agency will not permit the taxpayer to claim input tax credits. The interest and penalties on past due HST and GST returns are massive.

    According to the Canada Revenue Agency website http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/rtrns/pnlts-eng.html, when GST/HST returns are filed late the following formula will apply to tabulate the penalty that will be applied to the tax debt:

    a)     1% of the amount owing; plus
    b)      the result of the following calculation:

    A x B where A is 25% of the amount you calculated in (a) and B is the number of months the return is overdue (to a maximum of 12 months).

    In addition, the Canada Revenue Agency will also charge interest on an overdue amount equal to the basic rate plus 4%. Late filing of a GST return is not the only way you can incur GST penalties. You can also be fined for non-compliance. If you receive a demand to file a return and fail to do so, a penalty of $250 will be charged.

    This can cause a GST/HST tax debt to double or even triple in size. Facing this type of tax problem, especially where multiple past due returns are involved, can be paralyzing. It simply can’t be ignored because it will not go away on its own.

    Fortunately, there are programs that are not offered through the Canada Revenue Agency but are Federal Government programs that will provide a small business owner tax relief as well as relief of interest and penalties. These programs do not involve bankruptcy, and not only will they eliminate interest and penalties but will also reduce the size of the overall tax debt.

    It is best not to wait until the Canada Revenue Agency is pursuing enforcement and collection action. Act now and take the steps necessary to deal  with a tax debt. If collection action has already begun, these Federal Government programs will stop all collection action including garnishments and frozen bank accounts. For more information about small business HST and past due tax returns please contact DebtCare at 888-890-0888 or visit www.debtcare.ca

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  • It’s a Matter of Life and Debt: Understanding Debt for Young Adults

    Though nobody should aim to be in excessive debt, managing marginal debts helps people to establish credit. Another word for credit in this context is trust. You build trust with creditors by managing any outstanding debts you owe. By building this trust with creditors, you gain access to larger lines of credit. This is how credit is supposed to function in a perfect world.

     

    However, circumstances arise that quickly dispel the myth of a perfect financial world. Maybe you get rear-ended and need to shell out $1,000 for repairs. Or, perhaps, you fall and break your wrist. There will always be emergencies and hidden expenses. Sometimes these hidden expenses compound. You can use credit cards to cover these expenses, but it soon becomes a slippery slope of ever-mounting debt that becomes harder and harder to navigate.

    You Need A Separate Emergency Fund

    Just like a savings account for retirement or vacation, you need an emergency savings fund. Don’t rely on credit cards to bail you out of a medical expense or an emergency home repair. Or, at least, mitigate the costs partially by using an emergency fund to help cover the costs. Like any savings account, make contributions every paycheck or monthly. It’s essential to have some extra funds to fall back on. Credit cards are like the witch’s apple of solutions to an emergency. They might cover the initial expense, but now you are on the hook for interest, which can severely increase the total amount owed depending upon the interest rate.

    APR Madness

    For example, let’s say you need to make emergency home repairs, and the bill is $3,500. You have a credit card that you keep for small items like groceries that you pay off monthly to build credit. It has a max credit line of $5,000 with an interest rate of 16.8% APR (which was the average in 2020).

     

    That increases your total amount owed to $4,095 on a bill that could have been $3,500 if you had an emergency savings fund. Unfavourable interest rates are what make credit cards pernicious. That’s why if you find yourself in debt, you need to —

    Prioritize Credit Card Debts First, Other Debts Second

    Or rather, prioritize the debt that has the highest interest rates, which — let’s face it — are often credit cards. Then move on to other debts that may not have such high-interest rates. Tax debts or different types of loans fall into this category.

     

    Eliminating credit card debt is not easy at first, but there is light at the end of the tunnel with the proper guidance. There are companies out there that can help you to restructure or consolidate your debts without having to hire a bankruptcy attorney, or declare bankruptcy.

     

    It can seem overwhelming, but —

    There Is a Way Out of Debt

    Unfortunately, on average, most Canadians carry higher debt loads than even our neighbours down south in the USA. If you are feeling overwhelmed by ever-mounting debt, contact DebtCare Canada. Consultations are free, and there are no harm is learning your options.

     

    Take the next step toward debt relief.

    About the Author

    Veronica Baxter is a writer at Assignyourwriter, blogger, and legal assistant operating out of the greater Philadelphia area.

  • Rising Consumer Debt in Canada and the Need for Timely Personal Finance Management

    Rising Consumer Debt in Canada and the Need for Timely Personal Finance Management

    Consumer debt has been increasing over time in Canada.

    Even in 2020, due to a very resilient housing market and applications for new auto loans, total consumer debt went up by 3.8% to $2.041 trillion in the third quarter of the year!

    Equifax Canada shared in-depth insights, drawn from banks and other lenders, in its recent report.

    Some of the key findings included:

    • In Q3 2020, mortgage balances increased by 6.6% compared to the same time in 2019.
    • For the first time, the average new mortgage loan amount surpassed $300,000.
    • In Q3 2020, new auto loans were also up 11.7% compared to the same period in 2019.
    • Average credit card spending was almost back to the pre-COVID levels during this time period.
    • About 12% of new credit products in Q3 2020 were opened by consumers who had some form of deferral on their credit file.

    High levels of consumer debt are not sustainable in the long run because they lead to vulnerabilities not only for individuals but also for the economy as a whole.

    For instance, if you lose your job or are faced with an unexpected expenditure, it will become hard for you to manage your finances as you already have significant debts to pay off. Similarly, for the economy, as a whole, larger debts can create further problems during economic crises.

    This is why it is important to keep a track of your debt-to-income ratios.

    So, once you ascertain that you may need to work on your personal finance management, there are some strategies you can put into place.

    Four of these key strategies for reducing your debt and ultimately become debt-free are shared below:

    I.  Have a comprehensive budget in place. This enables you to monitor your monetary inflows and outflows. You are able to gauge how much total income you are receiving from different sources and how many expenses you have.

    II.  Start small. When it comes to debt reduction, a good way to continue reducing your debt is by taking small steps. This can be by opting for a more cost-effective cell phone plan, preparing home-cooked meals to avoid excessive outdoor dining, and cancelling subscriptions you don’t need.

    III.  Monitor your debts. This can help you identify high interest debts, such as credit cards, and ensure that you’re paying them off sooner or at least making the minimum required payments. If you have multiple types of debts and believe that repayment could be an issue in the future, you can look into consolidating your debts into a single payment.

    IV.  Save. It is important to save. You could either choose to invest in programs such as retirement saving plans or set aside a certain percentage of your salary for savings before you start spending and paying your bills.

    At DebtCare, we are committed to supporting you in financial planning and elimination of debt. We do this by working with you to identify where you should start, what steps you should take when you should take them, the best mix of options for you, and more.

    To date, we’ve helped thousands of Canadians fix their credit, lower their debt, and improve personal financial management. We can help you, too!

    Contact us today for a free consultation to start reducing your personal debt. Call 1-888-890-0888 or visit www.debtcare.ca.

  • What’s the ‘Right’ Debt-to-Income Ratio?

    When it comes to managing your personal finances, it is essential to keep a track of your debt-to-income ratio.

    This helps you keep an eye on your debt levels and take corrective measures if your debt seems to be going on an upward trajectory.

    This is particularly true during a global pandemic!

    So, what is the debt-to-income ratio?

    This ratio measures the amount of debt held by a person or household against the amount of disposable income they have.

    It can be calculated monthly or yearly. You just need to add up all your monthly debt payments and then divide them by your gross monthly income to arrive at the monthly ratio.

    Some of the common sources of income and debt are mentioned below:

    • Income

    a)  Total household income;
    b)  Child care benefits;
    c)  And retirement benefits.

    • Debt

    a)   Mortgage;
    b)  Other personal loans;
    c)  Vehicle loans;
    d)  Credit cards;
    e)  And monthly bills.

    A low debt-to-income ratio indicates that you have lesser debt and that’s almost always a good thing.

    Though, how bad is a high debt-to-income ratio?

    Well, an important thing to note is that higher levels of debt can make you financially vulnerable. For instance, if you lose your job or are faced with an unexpected expenditure, it will become hard for you to manage your finances as you already have significant debts to pay off.

    Similarly, high debt-to-income ratios are worrying for policymakers too. In June 2020, Statistics Canada reported that the household credit market debt as a proportion of household disposable income rose to 176.9%.

    High ratios are concerning because high levels of debt can reduce the economy’s ability to withstand economic shocks in the long-run.

    Coming back to personal debt, what is the best debt-to-income ratio?

    While there is no specific number and everyone’s situation is different, it is advisable to keep your debt-to-income ratio below 40%. If the number you calculate is higher than this, it is prudent to get rid of high-interest debt such as credit cards and work towards reducing other types of debt.

    Also, it matters what type of debt you have accumulated over time.

    If your debt is primarily due to a mortgage, on a property that has high equity, that is better than having a debt that’s not backed by an asset.

    If you are unsure of how to manage your debt or are contemplating how to consolidate your debt, a personal debt management plan could be helpful. Working with a debt consultant can enable you to create a tailored plan that helps you gain better control of your finances and maintain a healthy debt-to-income ratio.

    We offer a free consultation to explore what options are available to you.

    To learn more about our services call or text us on 1-888-890-0888 or visit www.debtcare.ca.

  • Credit Repair Companies: How Do They Work?

    If you’ve been working on getting out of debt and improving your credit score, you’ve likely come across credit repair companies during your journey. This encounter leads to a lot of questions about what credit repair companies do, if the process works, or if it’s all just a scam.

    Here’s everything you need to know about credit repair companies, so you can determine if this course of action is right for you.

    Credit Repair Companies

    What is a Credit Repair Company?

    A credit repair company is a service that reviews your credit report and works with creditors and reporting agencies to improve your credit score. This task is accomplished by flagging negative items, such as collections payments, and reaching out to the creditors to validate the information. If the information isn’t validated within the legislated time period, the credit repair service files a dispute to have the item removed.

    As you learn about how credit repair companies work, you might discover that they aren’t offering anything that you couldn’t do yourself— and you’d be right. You can follow the same steps of the process and even gain access to affordable software programs that can help create letters and track your progress.

    The benefit of working with an experienced credit repair service is the knowledge they offer, as well as the time spent going back and forth with creditors.

    What do Credit Repair Companies do?

    It’s important to understand what a credit repair company can do and can’t do before proceeding. A credit repair service can look at your report and challenge negative items. They know who to contact and can efficiently follow the right channels to have inaccurate information removed from your report. A credit repair service can even file paperwork to get creditors to stop calling you at certain times or places.

    What does a Credit Repair Company not do?

    A credit repair company isn’t a guaranteed solution for fixing your credit score. While they can dispute items, they can’t remove anything that’s rightfully there. For example, if you missed a car payment and it went to collections two months ago, it’s rightfully on your credit report. However, if you did the same thing ten years ago, past the statute of limitations, they can have that wrongful item removed.

    These services can’t make any guarantees or give you a clean slate. If they promise these solutions to you, run in the other direction. It’s also important to note that credit repair agencies aren’t legally allowed to take your money before they’ve offered a service. If they want to be paid upfront, that’s a red flag.Credit Repair Companies

    What to Look for in a Credit Repair Company

    Reputation is everything when looking for a credit repair company. While the Credit Repair Organizations Act (CROA) has helped mitigate the scammers, there’s still a lot of fraudulent service providers out there. 

    Look for a credit repair company with proven results that promotes transparency. They should have a discussion with you before agreeing to help and provide realistic expectations about what they can and cannot accomplish.

    Is a Credit Repair Company Right for Me?

    Credit repair companies can help those who feel overwhelmed by the process of reviewing and improving their credit score. However, it’s important to note that you can do the work on your own. 

    Using a credit repair service will cost you money with no guarantees, making it risky if you’re already in a precarious financial situation. Using this service also fails to help improve your financial literacy and create a healthy money mindset that sets you up for success in the future.

    If you require any help understanding your credit score, dealing with debt or want tips for repairing your credit, please call DebtCare Canada today for a free consultation. We can be reached at 1-888-890-0888 or by email at info@debtcare.ca.

  • CRA’s Personal Income Tax Debt Collection – All You Need to Know

    This year has been a challenging one for most Canadians. Restrictions continued to evolve and business and individuals, across different provinces, are being impacted.

    The measures put into place to curb the spread of the COVID-19 pandemic have resulted in job losses and financial distress for many. Even though the government launched multiple programs to support Canadians, debt has continued to accumulate for many.

    While collection action was temporarily halted during the early months of the pandemic, the CRA has now resumed some of its compliance, audit, and collections programs.

    This blog helps answer the most frequently asked questions about personal income tax debt collection so that you can be more prepared when it comes to managing and paying off the tax debt.

    1. Has the tax debt collection resumed?

    Yes, as of September 2020, the CRA has resumed its debt collection activities.

    CRA officials are reconnecting with taxpayers to discuss outstanding payments, gauge their financial standing, and work out payment arrangements, where possible.

    1. Will I receive a call from the CRA?

    Yes, you will be contacted over the phone or via mail. Collections officers or agents from the debt management call centre will be informing you about the balance you owe and evaluating your financial situation.

    1. What can CRA do if I don’t pay my tax liability?

    While no legal actions are being taken (at this point), it is good to know about what actions can CRA take if debts are not repaid in a timely manner.

    Usually, the CRA sends you the notice of assessment or reassessment by mail and waits for 90 days before taking legal action.

    Though, when CRA proceeds with collection action, it will take an aggressive approach. To get the payment, CRA can seize your bank account, garnish your wages and even register a lien on your property.

    1. How should I deal with a CRA collections agent?

    The CRA is known to take a tougher approach than any other agencies. Hence, it is usually more difficult to negotiate favourable terms of payment with the agency.

    Collection officers get you to complete a financial disclosure form and once they have the information, they can use it to take actions such as garnishing your wages. Hence, we don’t ever recommend trying to negotiate with the CRA directly.

    To avoid weakening your case and to negotiate properly, it is important to approach them represented.

    1. How can an experienced debt consultant help?

    When you get notified about your tax debt, reach out to a debt consultant. Debt consultants have years of experience in dealing with CRA and have long-standing partnerships with industry peers.

    An experienced debt consultant can help negotiate a payment arrangement that works for you and the tax department collections agent. If you reach out to a debt consultant as soon as you are notified by the CRA, you can also avoid collection action.

    No matter what your situation is, they enable you to analyze all of your options, discuss various strategies for repayment, and bring together the resources you need to resolve your debt issues.

    At DebtCare, we work with you to create an action plan that not only reduces but ultimately eliminates your debt.

    Contact us today to learn about one of the only programs that can resolve a CRA back tax problem and get a free consultation. Call us on 1-888-890-0888 or visit www.debtcare.ca.

  • Looking to Buy a House?

    Our feature in Redfin’s latest article:

    11 Tips on How to Save for a Downpayment

    Owning a home is a milestone is a person’s life. However, it has not always been easy to accomplish. By learning some of the basics of home ownership and how to save for a downpayment, you will be able to make wiser decisions about owning a home. Whether you are looking to buy a condo in Miami or a home in Atlanta, each of these tips is important. Take a look at what we had to say about the most effective ways to save for a downpayment.

    Looking to Buy a House? 11 Tips on How to Save for a Downpayment

  • Facing Bankruptcy During COVID-19? There are Other Options too.

    If you are faced with tough financial decisions, bankruptcy can seem like the option that will reduce the burden of debt.

    As Bankruptcy Canada puts it, in simplest terms, in personal bankruptcy, you assign everything you own to a Licensed Insolvency Trustee in exchange for the elimination of your debts.

    While many individuals and companies file for bankruptcies, particularly during financial crises, bankruptcies come with their own challenges.

    To begin with, bankruptcy is expensive and can have personal implications if the debt carries director’s liability – such as unpaid source deductions and GST/HST liabilities.

    Also, when you file for bankruptcy, the trustee involved does not represent you. The trustee is an impartial court appointed officer, who has to look out for both your and your creditors’ interests. So, it is always recommended to work with a debt consultant, who can support you through the process.

    Lastly, bankruptcies are likely to cause your credit score to drop to the lowest possible rating at most Canadian credit bureaus.

    This is why it is important to evaluate other options available to you as well.

    Some of these options can not only help you retain your assets but also save your credit rating.

    Mortgage refinancing, for instance, is a popular way to get out of debt.

    When you’re looking to reduce your debt load, having equity can be incredibly beneficial. If you own a home, you can use available equity to consolidate your debts into one payment. This is an effective way to quickly deal with high-interest debt while managing your budget and minimizing the negative impact on your credit score.

    When you have to make one fixed payment on a fixed schedule, it is easier to keep track of what you owe.

    Additionally, given the all-time low interest rates, you could save money on your monthly mortgage payments if you bought your home at a time when interest rates were higher.

    If you do not have home equity, consumer proposals can be a viable option especially when you are facing collection action and have unsecured, non-mortgage debts between $8,000 to $250,000.

    It is a proposal made to your creditors, where your creditors agree to accept a single payment representing a percentage of your overall debt, that you repay monthly, normally over a term of 5 years.

    This helps in consolidating your debt, preventing collection action, and protecting your assets.

    While your credit score does take a hit after you file for a consumer proposal, this is usually temporary. Two years after your proposal is paid in full, your credit score can bounce back.

    Deciding what works for you depends on the level of debt you need to pay off, the worth of your assets, and your current financial standing.

    At DebtCare, we review all these aspects and propose a plan of action that helps you eliminate your debt on terms that are favourable for you. So, if you’re facing insolvency, contact us today for a free consultation on 1-888-890-0888 or visit www.debtcare.ca.

  • The Complete Guide to Credit Repair for Real Estate Investors

    The importance of a good credit score should never be overlooked or taken lightly. This is more trying for real estate investors. A high credit score means better offers, deals, and money-saving options, which would provide a real estate investor many options to finance properties and manage the mortgage lending process.

    In this blog, we will talk about the impact of credit reports on real estate investors, as well as what to do if you have bad credit, how to maximize credit repair, and how to utilize credit repair service. 

    Why credit score matters

    One of the first few things a lender looks at is a person’s credit report. This is vital to them as the report determines the risks of their investment. A credit report is essentially a statistical method to identify a person’s chances and ability to pay back the money that they borrow.

    The average credit score for a normal real estate loan is 752. Anything about 760 is already considered top tier, which ensures they get the best rates and most choices from lending companies. It’s also inevitable that they get prioritized during the lending process. 

    However, credit scores that fall below 620 are considered subprime accounts, making it more challenging to find a loan provider that could – or would – provide individuals with a good deal for their loan. This is where credit repair comes in.

    Reasons why you need credit repair

    A credit score doesn’t only matter when it comes to real estate or property investment. Here are some valuable information and other reasons that will inspire you to have or maintain a good credit score:

    Better Interest Rates

    Low credit scores often result in higher interest rates, which would mean property loans would have higher interest charges. Having good credit would give you the chance to enjoy competitive interest rates, as well as save on the interest you need to pay.

    Avoid Debt Collector Harassment

    One of the most stressful parts about being in debt is the harassment from debt collectors that come with it. This is inevitable as these agents will do everything they can to get you to clear your debts, such as balances on credit cards. There’s a good chance that if you don’t clear out the issue, your account will be passed on from one collector to another, multiple agents will have your information, and you’d go through the entire collection process all over again.

    Less (or No) Reliance on Co-Signers

    When you apply for a loan but have bad credit, creditors would often require you to provide a co-signer, such as a family member or friend, before you can proceed with your application. But keep in mind, by doing so, you’re putting financial—and perhaps even legal—pressure on them.

    Fund Your Startup Business

    A lot of entrepreneurs looking to start their new business often rely on small business loans to get their venture off the ground. Like with any other loan type, having bad credit can hinder you from getting the funds you require for your startup.

    Rent or Lease an Apartment

    For people who are not yet ready to buy real estate, renting an apartment is the better—and more common—option. However, more landlords are now becoming more particular with who they take on as tenants. Because of this, they’re now performing credit checks to determine the odds of possible late payment from tenants.

    Buy a New House

    Now to the big one—home ownership. This is the dream for most people. Unfortunately, not everyone gets the chance to achieve this due to bad credit. Most banks will reject applicants with disappointing credit, and in the case that they will give these borrowers a chance, they might find the high-interest rate difficult to deal with. However, for those who are looking to sell their homes to buy a new one, getting the help of Trusted House Buyers is a must to ensure better prices and hassle-free processes.

    Credit repair tips for real estate investors

    A good credit report is one of the most important things a real estate investor can ever have. This information can amplify an investor’s chances of getting excellent deals when seeking a loan, such as an attractive mortgage and refinancing fee.

    However, not every optimistic future homeowner has a that can easily be approved for loans. There’s a big chunk of real estate investors who currently need help with credit repair. To help resolve this, we’ve listed down a few essential credit repair tips that every real estate investor should look into:

    Get a Copy of Your Credit Report

    Before anything else, you must first get a copy of your credit report from at least three credit bureaus. The biggest credit reporting bureaus in the United States are Experian, Equifax, and TransUnion. Doing so will allow you to assess your score, compare conflicting information, and see how bad the damage is. By seeing and understanding your score, as well as your credit history, you’ll get a good grasp of where to begin to improve your credit.

    The reason why we recommend that you get a credit report from three different credit reporting companies is that banks usually use more than one credit bureau to review personal credit reports and make lending decisions. Unfortunately, not all credit bureaus have the same updated information. Hence, errors such as work history, date of birth, and paid but not removed debts could harm you.

    Dispute Wrong Information

    It’s important to note that everything on your credit report may not entirely be accurate. Compare your report to your financial accounts, documents, and receipts, and go through everything thoroughly. If there are inconsistencies or wrongful late charges, you must address them right away. Don’t be afraid to dispute anything that you think might be an error. Credit bureaus are required to investigate claims and get back to you within 45 days of your notice as part of their dispute process. 

    Avoid Late Payments

    One late payment can have a huge impact on your score, so you must avoid them at all costs. However, if you’ve recently had delays with bills, you can contact the biller and ask that they remove it. Not all companies would agree to this, but you can try offering a regular payment setup in exchange for their consideration on the matter. Strive to avoid this issue altogether by doing your best to pay your bills on time from the get-go.

    Settle or Pay Down Existing Debts

    As we’ve established, your credit history and existing debt make up your score. Paying off credit card loans and other financial backlogs would greatly help your credit repair process. If you can’t pay these off in one go, you can at least ensure that they’re minimized as much as possible to give you a good chance before you apply for financing in real estate.

    Benefits of using a credit repair company

    Credit repair is not a walk in the park. It’s time-consuming and quite stressful, especially if you’re no credit expert. However, the benefits are all worth it. That’s where credit repair companies come in. These credit repair companies are experts in the field of the credit report, credit repair process, and credit repair organizations act.

    Here are the top reasons why using credit repair services are recommended:

    Expert Advice

    A credit repair company can give you expert credit consultation from the very beginning, as well as guide you through the entire credit repair process. Their objective is to get you out of the financial tangle you may be in. They would look into your credit reports, your accounts, and finances to effectively identify the root of your financial problems. Doing so would allow the credit repair company to provide you with tailored solutions, resulting in more productive consultation.

    Professional Approach

    Credit repair companies have no emotional attachments to you or your situation. However cold that sounds, it would allow them to efficiently guide you on how to make payments. It’s also part of their duty to draft policies and strategies to aid you in managing your expenses to ensure you can fix your credit.

    Connection with Creditors

    Credit repair experts often have better relationships with lending companies. This allows them the flexibility to negotiate on a client’s behalf and makes the entire process easier for real estate investors.

    Comprehensive Knowledge of Laws

    In-depth knowledge and understanding of policies and laws allow credit repair companies to help clients get the best chances. A professional credit repair company is well-versed and compliant with laws, such as:

    • The Fair Credit Reporting Act (FCRA).
    • The Fair Debt Collections Practices Act (FDCPA).
    • The Fair Credit Billing Act (FCBA).
    • Other consumer financial protection statutes that follow policies of the Federal Trade Commission.

    For those who have good credit, ensuring that it’s maintained at a good standing is important. But for those whose credit reports are at a disadvantage, then focusing on credit repair is a must to ensure you can have the best chances when investing in real estate. Using every strategy to repair your credit is essential that includes trusting a legitimate credit repair company with extensive experience.

    DebtCare Canada has a brand new program that places a representative in your corner – someone with the ability to deal with TransUnion and Equifax and have old items removed from your credit report. When it comes to repairing bad credit, call us for help: 1-888-890-0888.