debtcare.ca

Author: mgoldenberg@debtcare.ca

  • Debt Relief Strategies to Help You Fall Back in Love with Your Bank Account

    Debt ReliefThis time of year, it is hard not to get swept up in the spirit of the season. Hearts and cupids in every store window and Valentine’s Day commercials for flowers and jewellery make it almost impossible to ignore. And perhaps there is love in your life – but when that isn’t an emotion you have towards your bank account it might be time to get your butt in gear and start fixing those finances.

    Check out this list of debt relief strategies to help you fall back in love with your bank account!

    1. If you feel as though you can handle your debt on your own, start with a budget and decrease your spending on unnecessary items and increase the amount you put towards your debt each month. This strategy can take time, but if your debt isn’t overwhelming it can be highly effective.

    2. For more complex debt, debt consolidation might be the answer. Simply stated, this means consolidating all of your debts into one, single, easy to manage monthly payment. This also means that you save on interest – a major bonus! This option is best suited to those with a stable credit history as it requires being approved for a secured or unsecured loan.

    3. Consumer proposals have also become very popular debt relief strategies. A consumer proposal involves applying to your creditors to reduce your debt and accept a regular monthly payment. Since this has to be handled by a licensed administrator, and thus can’t be done on your own, this option requires careful preparation with a debt consultant who will independently represent you in your proposal.

    4. Bankruptcy has always been an important avenue for debt relief for those with debt that has become insurmountable. When you are regularly missing payments, choosing between various bills and which ones will be paid, or are receiving calls from collection agencies all the time, your financial situation is likely in dire straits. A bankruptcy is not for everyone, but meeting with a debt consultant (not trustee in bankruptcy) can help you determine if it is the best choice for you. A bankruptcy gets rid of those debts and you are required to make a monthly payment in bankruptcy, giving you the chance to stop the collection calls, stop the interest and get back on a firm financial footing.

    When debt seems to be haunting even your dreams (or rather nightmares), stop worrying and start strategizing. Take advantage of the debt relief strategies out there that can help banish those bad dreams and help you fall back in love with your bank account.

    For more about debt relief and how to achieve it please call DebtCare Canada today at 1-888-890-0888.

  • Making a Proposal, and We Don’t Mean for Marriage: Consumer Proposals

    Consumer ProposalsWhen debt becomes unmanageable, knowing where to turn can be tough. Knowing the options available to deal with that debt can be difficult – and that is why getting outside advice is often a great idea. One of the most popular options right now, one that requires additional assistance, is a consumer proposal.

    New to this concept but wondering what a consumer proposal is all about? A consumer proposal is a legally binding agreement between you and your creditors.

    Consumer proposals have grown in popularity over the last few years, and for good reason. There are a number of significant benefits to filing a consumer proposal:

    • Provides immediate relief from collectors – stops the calls and the letters.
    • Will stop interest accumulating from the date that you file.
    • Will stop most wage garnishments or frozen bank accounts.
    • May decrease the total amount of your debts.

    Process:

    1. Assessment and Qualification – a meeting with a debt consultant will assess your current financial situation and determine the best route to take. If you qualify, the paperwork can be started.
    2. Repayment Terms – based on your monthly income and current debts, a repayment plan will be established that you can afford and that will please your creditors.
    3. Filing the Documents – your licensed proposal administrator will file all of the required documents. This includes submitting the consumer proposal to your creditors.
    4. Creditors Vote – once the documents are received by your creditors, they have 45 days to vote to accept or reject the proposal. If the vote is 25% or more to reject, a meeting will be held to try and negotiate. Once accepted, you will be required to make the monthly payments to your administrator to be distributed to your creditors.
    5. Completed Proposal – once you’ve completed the consumer proposal you will receive a Certificate of Full Completion as proof of the completed proposal. Typically, after three years following completion, the consumer proposal will be removed from your credit report.

    What if you can’t keep up with the payments?

    If an unforeseen circumstance makes fulfilling payment arrangements impossible (job loss for example), the first thing to do is call your administrator. By law you can miss or defer two payments without consequence, but after that the proposal will be cancelled. At the first sign of trouble, speak with your administrator to find out your options.

    Consumer proposals can offer individuals the chance to start fresh and eliminate financial stress in a major way. If you believe that a consumer proposal might be an answer to your debt problems, don’t wait. The process can take time, so it is best to get it started right away.

    For more information about consumer proposals and the many benefits of filing one please call DebtCare Canada today at 1-888-890-0888.

  • 2015 To Do List: How to Fix Your Credit

    How to Fix Your CreditOne of the worst things about rising debt, and the negatives that accompany that debt, is the hit your credit report takes as a result. Even after you have sought out assistance to deal with and pay down your debt, that credit report still reflects the last few years of not so great credit behaviour.

    So what? Your credit score is just a number – one you never really see. What does it matter? Planning on buying a house or car in the near future? Want to rent an apartment? Need a loan? Any of these will require a credit check, and if your credit score is low, so too might be your chances of obtaining financing.

    Have you checked your credit score lately? This should be done on a semi-regular basis, just so you are always aware of how your credit looks. But beware – we are not suggesting a monthly check as every inquiry shows up on your report and too many inquiries can have a negative impact.

    Want to know how to fix your credit? Here are a few useful and effective tips to do so.

    How to fix your credit – short-term goals

    Check your report for inaccuracies – anything that looks questionable on your report needs to be looked at further. Can’t determine what it is? Call the creditor. If it is in fact incorrect make sure you have that removed from your credit report right away.

    Catch up on any late and missed payments – these are some of the most detrimental activities reported to your report. If you continually miss payments or make those payments late, you will quickly be considered high risk.

    Get a secured credit card – a secured credit card is one that uses your own money, rather than the creditor’s, and thus there is no risk for the lender. However, you are still required to make regular payments and display good credit behaviour.

    How to fix your credit – long-term goals

    Reduce your balances to below 75% of your limit – or lower. Having accessible credit on your various credit products is a great way to show good borrowing behaviour and it also demonstrates that you are not borrowing outside of your means.

    Pay more than the minimums – paying the minimum balance on your credit cards specifically will make it nearly impossible to pay down that debt. Put aside a certain amount each month that is a designated debt payment and make sure to go above the minimums.

    Stop applying for new credit – too many applications for new credit and you start to look like a credit seeker – someone who can’t sustain their current spending habits.

    Fixing your credit will take time, but a constant attention to what needs to be done can make the process much smoother and far more effective.

    For more tips on how to fix your credit please contact DetbCare Canada today by calling 1-888-890-0888.

  • In The News: Global News Talks Canadian Consumer Debt

    In a recent Global News release, the most recent Canadian consumer debt statistics were examined, and what’s been found might surprise you.

    According to the article, debt levels vary from province to province, and the spending trends vary with them. The article states that in the east, where consumers are less likely to be able to handle the financial burden, spending has increased; debt levels have increased, on average, 4%. However, in the more economically prosperous west, people seem to be dialing back.

    Ontario seems to be sitting somewhere in the middle. The articles notes, “Ontarians increased their obligations by more than 2.5 per cent in the second quarter compared to the same period a year ago, to $20,385.”

    Check out this infographic from Equifax which highlights the average for each province and how much that average has increased over the year.

    raw_ane_consumer-debt-levels-map-online

     

    Check out the full article here.

    For more about Canadian consumer debt levels or how to get a handle on your own debt levels, please contact DebtCare Canada today by calling 1-888-890-0888.

  • Ring in the New Year with These Finance Fixing Tips for Paying Off Debt

    Paying Off DebtLast week, knowing that the holidays have now come to a close, we started 2015 off with a list of helpful tips to get rid of holiday credit card debt. This week, we thought we’d go a step further and help you get a handle on all of that debt – both credit cards and other debt – that has managed to stack up over the course of the year. If your debt has become a problem, and you are finding even the smallest minimum payment a struggle, this list will really help you stay on track when you start seriously paying off debt.

    2015 paying off debt tips list:

    1. Our first piece of advice: take a breath. Yes, we know how stressful debt can be – but it helps, even if just a little bit, to put it in perspective. You are not alone. Thousands of Canadians are in the same boat. And, there are resources to turn to when you don’t want to do it alone anymore.

    2. Make a budget. Include absolutely everything that you spend money on on a weekly and monthly basis, and the amounts. Estimating? Round up.

    3. Decide what can be removed from this list. Sure, you can’t stop paying your mortgage or rent, but the daily lunches out and weekly massages may not be financially feasible. Think about making that morning coffee at home – even the little things can make a huge difference. Cutting costs is perhaps an unwanted part of paying off debt, but it is completely necessary.

    4. Start with the credit product with the highest interest rate, and ramp up your payments on it first. Continue making payments (as much as possible) on the others. Once you feel more comfortable, move on to the next highest one.

    5. Start saving – even just your spare change – in a piggy bank. This way, when you want to make an indulgent purchase you can use that money rather than increasing your debt.

    If even these tips seem like a drop in the bucket, perhaps it is time to think about getting some extra help. A debt consolidation, one done by a reputable company, can turn all of those small monthly payments into one and cut the interest. A consumer proposal shares these benefits, as well as the possibility of cutting the total debt. Bankruptcy may also be a viable option.

    Our best advice as far as paying off debt? Be realistic. Speak to a debt specialist to find out exactly what works for you.

    DebtCare Canada has the resources to help you get that debt under control. For advice about your strategy for paying off debt, please call us today at 1-888-890-0888.

  • Holiday Spending Got You in a Crunch? Check Out These Credit Card Debt Solutions

    Credit Card Debt SolutionsHappy 2015 everyone! The holidays are wrapping up and that means that it is time to get back to reality, which, for most of us, means looking over those holiday bills that we’ve been attempting to avoid for the past month.  If holiday spending has you in a crunch, check out these credit card debt solutions to help get those finances back on track.

    • Stop using those cards! Right now. Take them out of your wallet, lock them away, and forget that you even have them. If most of your holiday spending was done on a credit card – whether as a way to gather points or just because it was more convenient than using your debit card – it is time to stop that trend.
    • If you can, pay off the balances in their entirety as soon as possible. If you are able to do so, avoid snowballing interest charges by paying off the totals at the bottom of that bill.
    • If you can’t pay off the balance in full, pay off as much as possible – try not to pay just the minimum payment required. This is mostly interest and won’t do anything as far as bringing that debt down.
    • More than one credit card? Try starting with the one with the highest interest rate and paying as much as possible each month. Then move on to the next one. Make sure that you continue to pay at least the minimum payment for every other card though – there is no point in paying off the one with the highest interest but letting the others go to collections!

    Finally ready to admit that the debt that has accumulated is not just a result of holiday spending, and thus may be a bit larger than you can comfortably or realistically get rid of with these tips? It might mean taking a different route to get to financial freedom. Debt consolidation, a consumer proposal or even bankruptcy may be the right option to help you get rid of that mountain of debt that has not only become stressful but has also begun to impact your personal or work relationships.

    DebtCare Canada has the experience and knowledge with debt solutions to help you get out of debt – whether it is holiday debt or all-year round debt. For more about the various options available to you please call us today for a free assessment at 1-888-890-0888.

  • Health and Wealth: Toronto Star Talks Personal Debt and its Impacts

    Personal DebtIt is common knowledge that financial troubles and personal debt can be major stressors – and that this stress can then lead to other health impacts – but now studies have shown this to undoubtedly be the case.

    Check out this recent article from The Toronto Star.

    According to the article, “Studies show that illnesses such as diabetes are twice as common in Ontario’s poorest households. Cardiovascular disease is 17 per cent higher than the national average for low-income Canadians. Cancer, arthritis, and asthma are all more common amongst the poor. Research suggests that chronic stress, often caused by financial strain, can even impact our very biology.”

    A new initiative at St. Michael’s hospital is focussed on dealing specifically with the health impacts of financial stressors. This program, which was approved over a year ago, has already made significant inroads. One patient of the program noted, after receiving support through the program with rebuilding her finances, including filing for bankruptcy, “I just didn’t believe it. I couldn’t believe all of the things were finally lining up and I could start getting some help.”

    Dr. Bloch, the program developer, believes that this program is not only necessary, but effective, and states “the impact of this kind of support on patients can be more dramatic than any drug”.

    Knowing that financial stress, largely a result of personal debt, can be detrimental to your health, why continue to ignore it?

    Call DebtCare Canada today for the support and advice required to clean up your finances and eliminate the stress: 1-888-890-0888.

  • Backed into a Corner: Stopping a Wage Garnishment

    Stopping a Wage GarnishmentYou’ve just received your bi-weekly paycheque, but the money deposited in your account is far lower than what is stated on your paycheque. After inquiries to your payroll department, you realize that this is not a mistake to be remedied by your company, but rather the result of some unpaid bills. A wage garnishment can be a financially devastating thing, one that is actually incredibly common, so what can you do to stop it?

    Firstly, what is a wage garnishment? Well, when you owe money to a creditor that you have not paid, they may opt to head to court and obtain an order to have those debts garnished from your paycheque, unless you owe money to the Canada Revenue Agency and then a court order isn’t even necessary. Once this order is obtained, a requirement to pay letter is sent to your employer, who is then legally required to submit a portion of your wages – to the tune of up to 50% – directly to the court.

    Wait – can’t your employer just say no? Not unless they want to deal with the repercussions! When it comes to these court orders, besides paying your debts, there are only 3 other ways to stop a wage garnishment:

    Making a deal with your creditor. Start here, but we suggest not getting your hopes up. If your creditor has taken the steps to obtain a court order against you, they likely have already attempted to contact you on numerous occasions and would therefore be unlikely to accept a negotiated repayment plan.

    Consumer proposal. Once a consumer proposal has been filed, all wage garnishments stop! And the bonus here is that not only are you stopping your wages from being taken, you also stop all interest and merge all of your debt payments into one convenient monthly payment that you can afford. The downside – your credit can be negatively impacted (although that has likely already occurred).

    Bankruptcy. Like a consumer proposal, declaring bankruptcy stops all wage garnishments and eliminates many of your current debts. In exchange for this, you are required to adhere to certain regulations including attending credit counselling sessions and declaring surplus income. And like a consumer proposal, your credit can be negatively impacted.

    If you believe a wage garnishment may be forthcoming, or if one has already been leveraged against you, don’t worry – we can help. For more about stopping the garnishment of your wages please contact DebtCare Canada today by calling 1-888-890-0888.

  • Happy Holidays From DebtCare Canada

    DebtCare - Happy HolidaysIt is officially that time of year again, and we just want to wish everyone a very happy holiday season. For many of us, 2014 has been full of great memories to cherish, and for many of our clients, it has also been a time of exciting financial victory – we are proud to have been a part of that triumph!

    With the New Year just days away, and New Year’s resolutions being written, just remember – if you are struggling with financial problems, DebtCare Canada can help. You don’t need to struggle or continue to face those financial hardships on your own. Call us to help establish a plan to make 2015 your year for financial freedom!

    Call DebtCare Canada today at 1-888-890-0888.

  • Who Is Spending? Canadian Household Debt

    Canadian consumer debt has continued to rise over the last few months, and although the delinquency rate has dropped, the spending has not. But since the delinquency rate has dropped, that means that individuals are more conscious of the need to keep up with paying off Canadian household debt – which is always a good thing.

    So who is spending, who is responsible for dealing with household debt, and how do Canadians feel about their retirement financials? Check out this great infographic “He Debt, She Debt.”

    Who Is Spending? Canadian Household Debt

    According to the survey, both men and women say debt repayment should be a top priority, but there were a few interesting findings:

    • Who is responsible for household debt?
    1. It is equal: 39% men vs. 54% women
    2. Me or mostly me: 56% men vs. 36% women
    3. My partner or mostly my partner: 4% men vs. 10% women
    • Are you confident you’ll be debt-free at retirement?
      • 55% of men and 49% of women said yes
    • Do you find the idea of retiring with debt stressful?
      • 60% of women and 42% of men said yes

    Where do you stand as far as these survey results? Are you the big spender in your household? Do you feel as though retiring without debt is a feasible achievement?

    If Canadian household debt seems to be a stressor, no matter who is responsible, or if you feel like retiring without debt might be an impossible goal, please call DebtCare Canada today. We can help you deal with your debt problem and get you back on a firm financial footing: 1-888-890-0888.