debtcare.ca

Author: mgoldenberg@debtcare.ca

  • Wallet-Friendly Summer Fun Ideas – Don’t Get Caught Drowning in Debt

    drowning in debtAny parent knows that once school is out, the kids are itching for some fun outside of the classroom. For many, this means summer camps or family vacations, but if you are drowning in debt, the thought of shelling out all that extra dough just to keep the kids entertained may be a bit more daunting than you’d like. With that in mind, check out this list of wallet-friendly summer fun ideas to keep your little ones out of your hair and out of your wallet.

    1. Go to the beach – pack a picnic lunch, grab some towels and some water toys and head out for a day in the sun. Just don’t forget the sunscreen.
    2. Spend a day at the library – just because the kids are out of the classroom doesn’t mean they can’t read for pleasure. Head to the local library and get the kids signed up for a library card. Let them pick out their own book or spend some time on the computer.
    3. Craft day – tie-dyed t-shirts, homemade play-dough, a kite they can fly in the backyard. Check out Pinterest for some great ideas that don’t require a lot of payout.
    4. Berry picking and jam making – not only can you get them out of the house and out of doors, this can be a great way to get some preserving done for the coming months.
    5. Gardening – head to the garden centre and let the kids pick out a plant or two, then head back home and set out a separate space in the garden that they can design all on their own.
    6. Drive-in movies – check out the local drive-in theatre and get great bang for your buck. Take advantage of the outing and bring dinner and snacks with you to save on treats. Go for a walk around or spend some time at the park. And once they are tired out, take advantage of the peace and quiet and sit back and relax and enjoy the movie.
    7. Camp out – set up a tent in the backyard, light a bonfire, and get the ghost stories ready. The close proximity to a private bathroom is just an added bonus!
    8. Take a hike – fill your backpack with bug spray, a few bottles of water and some trail-mix and head to the local nature area. Keep kids’ minds going by creating a scavenger hunt so they can play along the way.
    9. Set up a lemonade stand – not only will this motivate the kids to get out there, letting them make some money, but it teaches them about working and can help you teach them about finances.
    10. Help out – contact local charities in your area and find out if you can help out. Spending the day at an animal shelter or at the community garden is a great way to teach kids about giving back and it doesn’t cost you anything more than your time.

    Summer spending doesn’t have to cost an arm and a leg. Get creative, and keep that money in your wallet!

    If you feel like you are already drowning in debt, use these tips to keep the spending to a minimum. And if you feel like you need some help getting those debts under control, contact DebtCare today by calling 1-888-890-0888.

  • DebtCare’s Financial and Debt Expert Sara Mitchell Interviewed on CFRB 1010 by Tim Hudak

    Sara Mitchell, financial and debt expert at DebtCare Canada, was interviewed on CFRB 1010 by Ontario’s PC leader Tim Hudak about the implication of debt on Canadian families and solutions for overcoming it. If you are in a financial crisis, feel free to reach out to Sara or the DebtCare team at www.debtcare.ca or by calling 888-868-1400.

  • Not So Happy Canada Day When it Comes to Canadian Consumer Debt According to Yahoo Finance

    Canadian Consumer DebtLast week we celebrated Canada Day and that means that half of 2014 is officially over. Just like New Year’s Day, this holiday often leads people to think back on the past 6 months – have you evaluated your current debt load? Well, if you haven’t, Yahoo Finance has, and has discovered just how much Canadian consumer debt is impacting the nation’s economy.

    Check out this recent release from Yahoo Finance, “Household Debt Overhang Holding Back Canada’s Economy”: https://ca.finance.yahoo.com/news/household-debt-overhang-holding-back-124451782.html. According to the article, Canada was able to overcome the recent financial crisis thanks in part to consumer spending. A hot housing market and consumer spending meant that our economy was able to rebound far quicker than the U.S., but at a substantial cost. Now, thanks to high Canadian consumer debt, individuals are spending less and paying off more, meaning that economic growth won’t reach the levels initially anticipated.

    Furthermore, “Canada’s disposable household debt-to-income ratio is at a near-record high of 164.0 percent. By contrast, U.S. households reduced their indebtedness in the wake of the crash.” Clearly there are drawbacks to having dealt with the crash in a way that meant less economic meltdown for the average Canadian.

    If you are one of the many Canadians whose spending has led to a mountain of debt that now seems unmanageable, it might be time to start thinking about some viable solutions. Don’t get stuck barely able to make ends meet because of the interest on credit cards and the looming collection action being threatened by your creditors. Get in touch with a company today to find out what options exist to help you regain control of your finances.

    For more about Canadian consumer debt and taking back control of your money please contact DebtCare Canada today by calling 1-888-890-0888.

  • Why You should Never Go to a Bankruptcy Trustee in Ontario Without Representation

    Bankruptcy TrusteeA bankruptcy trustee is a court appointed officer. Their job is to administer bankruptcies and consumer proposals in Canada – and they do this by representing both you and your creditors. This means that they are expected to get as much as possible from you for your creditors.

    Take a look at the typical process and you will see how people get themselves in trouble:

    A trustee advertises a financial solution, and you contact them for help (thinking that because you have contacted them that they represent you). However, even though you are the one looking for assistance, they in fact represent both you and your creditors.

    Next, the trustee will pitch you on the financial solutions they can provide, which are usually bankruptcy or a consumer proposal. Since a trustee doesn’t make any money if you don’t sign up, things are often very pleasant at the beginning.

    At no point during this meeting will they tell you how they get paid, but it is important information. A trustee gets paid based on a tariff (a fee set by the government in the case of bankruptcy, a percentage in the case of a consumer proposal, a percentage of surplus income in the case of a bankruptcy) – this comes out of your monthly payment.

    How much you have to pay and the amount of your monthly payments in a proposal and bankruptcy depend on your income and assets – the more income and assets you have, the more you end up paying. In the case of a consumer proposal the amount of proposal you negotiate will be locked in once the proposal is accepted.

    In the case of bankruptcy you have to report your income to the trustee each month and they do a calculation called surplus income. If you have income above a certain threshold you will have to pay your trustee 50% of the amount that has exceeded the threshold. In bankruptcy, when there is surplus income (income over the amount defined by the Bankruptcy and Insolvency Act) your bankruptcy will go from being 9 months to 20 months which can make a huge difference.

    So, why is being represented when going to a trustee a much smarter idea? Because it gives you the chance to, firstly, openly discuss your information without reprisal or pressure to sign. This representation can mean negotiating a much lower proposal, or a much stronger financial picture with contingencies in place to help you bounce back quickly. Finally, when you have your own representation, you won’t have to deal directly with the bankruptcy trustee – that individual will handle most negotiations and correspondence for you!

    Before you call a bankruptcy trustee directly, call DebtCare Canada – we can help keep you protected. Contact us today by calling 1-888-890-0888.

  • Self Employed? Is a CRA Garnishment Going to Your Clients?

    Self Employed? Is a CRA Garnishment Going to Your Clients?

    CRA GarnishmentAnyone who is self-employed knows the many challenges that come with owning a business – and one of the greatest is dealing with the many complexities that come with the intricate tax process in Canada. Because of these complexities, many self-employed individuals find themselves owing money to the Canada Revenue Agency (CRA), for numerous reasons, and if unable to pay, face strict enforcement actions as a result. One of the most common of these is a CRA garnishment of your receivables.

    Here are some numerical facts when it comes to a CRA garnishment:

    The CRA can garnish up to:

    • 100% of subcontracted income
    • 100% of other income like pension
    • 100% of self-employed income

    If you are self-employed, the CRA can send a notice to your clients to direct your receivables to the CRA. This can cause significant financial hardship and stress, as well as the negative impact it can have on your client relationships.

    So, can you stop a CRA garnishment? It is difficult, but you do have options.

    1.     You can try to get the CRA to agree to stop, but know that the chances of this happening are slim to none. As far as the CRA is concerned, you owe the money and their job is to retrieve it. Also important to remember, in the process of trying to cooperate, many who attempt to negotiate divulge information to the CRA that can cause even more problems; providing financial disclosure can prompt further enforcement action, a frozen bank account or a property lien for example. This option should be avoided at all costs!

    2.     Consumer proposal. By entering into a consumer proposal you can immediately stop a garnishment – with the added benefits of stopping interest and likely reducing the size of your overall debt. However, there are a few caveats:

    o   If you have other creditors they will be included in the proposal too.

    o   If the CRA is your majority creditor, they have to agree to the proposal (if they don’t respond within 45 days they are deemed to have agreed).

    o   If you own a home and the CRA has a lien on it, this greatly complicates things.

    3.     Bankruptcy. Like a consumer proposal, this would immediately stop a garnishment, and is likely to stop interest and perhaps reduce the size of your overall debt. Things to keep in mind:

    o   You have to report income and your financial circumstances to a trustee every month – if your financial situation improves you will have extra repayment added which has to be paid before you can get discharged.

    o   Your payment to the trustee depends on your income and can change if there is an increase in income.

    o   If you own a home and the CRA has a lien on it, this greatly complicates things.

    If you are suffering from a CRA garnishment of your receivables, there are options to have the garnishment lifted while keeping yourself protected from further enforcement action. DebtCare has the tools and experience to help. Contact us today by calling 1-888-890-0888.

  • Will a Consumer Proposal Ruin my Credit?

    Consumer ProposalMany of us have been there – finances are tight, and even making the minimum payments on your credit products has become difficult. Maybe you are opting to make payments on one card each month, or are continually increasing your available limit just to be able to keep your head above water. Whatever the situation, know that there are solutions, one of which is the consumer proposal.

    Maybe you have already looked into this option but are asking yourself, ‘will a consumer proposal ruin my credit.’ Among the many things to be considered with this form of debt relief, the impacts are important. That being said, it definitely isn’t the only thing you should be thinking about.

    The Process: The process is fairly straightforward. A consumer proposal must be conducted by a trustee in bankruptcy, but it is always smart to have your own representation – someone who can negotiate on your behalf and keep your best interests in mind. A proposal is drawn up that addresses your debt, and this is forwarded to your creditors. Once the majority of your creditors have approved the proposal (they have 45 days to accept or reject it), it is filed and you begin making monthly payments to a trustee, and that is then handed over to your creditors. Most proposals are made over five year terms, but can be paid off in full at any time.

    The Benefits: There are many benefits of a consumer proposal. Firstly, it reduces your debt. Since you make a proposal to your creditors with an amount that matches your budget, this can mean a significant reduction in the overall amount that you owe. Secondly, it stops interest. Often, especially with regard to credit card debt, it is the interest that kills you, and so with a consumer proposal the interest is stopped and you can actually make significant payments of the principal, rather than the majority continuing to go to interest. Furthermore, a consumer proposal means a single monthly payment, rather than a bunch of payments on different days (again, a great deal of which goes directly to interest).

    The Impacts: Will a consumer proposal ruin my credit? Firstly, if you are considering a consumer proposal, your credit may not be in the best shape as it stands currently, and so before getting even further in over your head, it is best to gain control of your finances. The consumer proposal, like any credit activity, will show on your credit. It will remain on your report for 3 years following the date it is paid in full (so it is better to pay it off quickly). Although it is not considered positive credit activity, you can actually start rebuilding your credit as soon as you enter into a consumer proposal.

    If you are thinking about a consumer proposal but are worried about the impacts on your credit, please contact DebtCare Canada today for a free consultation: 1-888-890-0888.

  • 채무조정의 장점과 단점- 채무해결의 다양한 방법

    채무조정의 장점과 단점- 채무해결의 다양한 방법

    채무조정에는 많은 장점과 단점들이 존재합니다.

    여러 종류의 채무조정은 여러분의 신용(credit)과 예산에 의해 다른 영향을 받게 됩니다. 오직 노련한 재정 컨설턴트에게만 모든 종류의 채무 조정을 검토하고 그것들의 장단점을 평가할 수 있는 적합한 자질이 있습니다. 이 포스트는 채무 조정을 생각하는 여러분에게 그에 관한 여러 방면의 통찰력을 제공 할 것입니다.

    채무 통합은 여러분의 빚을 해결하는 방법 중 하나 입니다; 여기에는 여러 유형의 채무 통합이 있고 서로 다른 결과를 얻게 될 것입니다.

    만일 여러분이 좋은 신용 및 가처분 소득을 많이 가지고 있지만, 최근에 여러 개의 신용 카드로 인하여 채무를 지니게 된 경우에는 낮은 금리의 신용대출(line of credit) 좋은 선택지입니다. 낮은 금리의 신용대출(line of credit)을 사용하여 적은 금액의 카드 채무를 통합 할 수 있습니다.

    장점: 낮은 금리와 부채통합 , 단점 : 너무 쉽게 최소 금액 지불(minimum payments)만을 하게 될 수 있습니다. 이 선택을 할 수만 있다면 여러분 가능한 빨리 신용 대출을 상환하는데에 집중적으로 노력해야 합니다.

    여러분은 어쩌면 적은 신용카드 채무나 채권 추심 회사로 넘어간 다른 청구서들을 가지고 있을 지도 모릅니다. 아마도 여러분에게는 $ 5,000  – $7,000 의 부채가 있고  여러분의 좋지않은 신용도(bad credit) 때문에  아무도 여러분에게 채무 통합을 해주지 않을 수도 있습니다. 이러한 시나리오에서 여러분은 여러분의 채권자들과 직접 합의를 할 수 있을 것입니다. 여러분은 채권자와의 협상을 위하여 재정 전문가를 고용해야 합니다. ; 그들은 여러분을 위하여 가능한 최고의협상을 해 줄 것입니다. 많은 경우에 여러분은  여러분이 지니고 있는 빚보다 훨씬 적은 비용으로  여러분의 빚을 해결 할 수 있습니다.

    여러분이 주체할 수 없을 만큼의 너무 많은 채무를 지니게 되었다 하더라도 당황하지 마세요. 여러분의 자산과 소득, 채무와 채권자들을 포함하는 구체적인 정황에 따라 여러분은 연방 정부가 제공하는 여러 프로그램을의 자격이 되실수도 있습니다.

    이 프로그램들은 파산과 개인회생/신용회생을 포함합니다.

    파산은  여러분이 정해진 기간 동안 매달 지불 해 나가며 동시에 여러분이 신용 상담에 참여하고 소득을 보고하는 것과 같은 다른 조건들을  만족시켜야 할 것을 명령합니다. 파산 신청시에는 여러분의 의무를 충족시킬 때까지 여러분은  아직 “채무불면책(undischarged)”인 것입니다.명심하세요. 파산과 개인회생 관리의 책임을 지니는 파산 관재인(트러스티- trustees) 은 법원이 임명한 사람입니다.

    파산 관재인(트러스티- trustees) 은 채권자 의 이익을 대변하고 여러분이 채무불면책(undischarged) 상태일 동안, 여러분의 상황이 좋아진 것이 있는지 확인하기 위하여 여러분의 자산과 소득을 검토 할 것입니다. 아주 간단하게 말하여 그들은 여러분이 채권자에게 지불 할 수 있는 잉여 수입이 있는지 확인하고 찾아 낼 것입니다. 여러분이 더 많은 돈을 벌었다면 또는 자산을 취득했을 경우, 여러분의 파산관재인(트러스티)는 “잉여소득”을 평가할 것이고 여러분이 열심히 일하여 얻은 추가 소득의 절반을 지불할 것을 요구 할 것입니다.  여러분이 파산 신청서류에 서명을 하고 트러스티의 관리하에 들어가게 되면 이 때부터  파산관재인(bankruptcy trustee)은  여러분에게  더 많은 돈과 더 많은 개인 금융 공개를 요구하는 편지를 보내기 시작합니다. 첫번째 파산 신청은 파산 이행이 된 날부터 7년간 신용 보고서(credit report)에 남아있게 됩니다.

    개인회생은 한 번에 여러분의 채권자 모두에게 채무 조정 제안을 하게 됩니다. 이 제안이 승인되게 되면 조정은 이것으로 끝입니다. 이것은 매달 최소 금액을 지불 하는 것 이외에 파산 관재인에게 지속적으로 행해야할 아무런 의무도 없습니다. 처음부터 공정한 채무조정 협상을 하는 것이 중요합니다. 파산 관재인은  여러의 개인 회생 금액의 크기에 비례하여 보상받게 됩니다. 여러분이 개인회생으로 여러분의 채권자에게 더 많은 돈을 지불한다고 동의하게 되면 여러분의 파산 관재인은 더 많은 돈을 벌게 됩니다. 이것은 어쩌면 여러분이 감당 할 수 있는 지불 금액보다 더 많은 금액의 개인회생 신청을 하게 만드는 결과를 가져올 수 있습니다.

    이 채무 조정 옵션들은 자신의 고유한 장점과 단점을 가지고 있으며 사실 여러분은 금융 컨설턴트로부터 그에 관한 최선의 조언을 받을 수 있습니다. 여러분에 의해 고용된 금융 컨설턴트는 여러분을 견고하고 효과적인 재무 계획으로 안내하고 도와줄 것입니다. 저희 DebtCare는 매우 어려운 재정 문제를 가진 개인들을 도와주며, 즉시 채무 탕감을 받을 수 있는 다수의 프로그램에 접할 수 있게 도와드립니다.

    채무 조정에 관한 안내를 원하시면 DebtCare Canada Inc (주)캐나다개인회생/채무조정센터에서 재무조정스페셜리스트로 일하고 있는 나오미 조에게 지금 바로 연락주세요.

    무료 상담전화는 1-866-413-3716 그리고 빠른 이메일 상담은 ncho@debtcare.ca입니다.

    더 자세한 정보를 원하시면 www.debtcare.ca/korean 또는 www.debtcare.ca 를 방문해 주세요.

    가족처럼 함께 고민하며 깨끗히 해결해드리겠습니다!!

    • 친절한 무료 상담전화 및 이메일 상담
    • 철저한 채무자 권익옹호 및 채무자 대변인
    • 전문가의 분석 및 채무해결방안 제시
    • 채무청산과 부채탈출로 새로운 삶 새로운 출발

    희망은 항상 출발이자 영원한 시작입니다!!

  • The Challenges of Dealing with Debt Through a Divorce

    In Canada, divorce is one of the biggest causes of debt, and debt is one of the biggest causes of divorce. No matter how you look at it, financial strain wreaks havoc on your life in a number of different ways. When you separate, and go from a 2 income household to a 1 income household, it can become incredibly difficult to navigate this change in your financial situation. Maintaining a hold on your current debtload, meeting minimum payments, even establishing and sticking to a realistic budget can be really tough. Check out this video of DebtCare’s own Pam Shimmerman, our financial restructuring specialist. With a legal background, Pam has helped countless individuals deal with the debt that comes from divorce.

    One of the best things that you can do once a divorce is initiated is to take a detailed look at your household income and expenses, as well as your current debt load and future financial goals. Working through these items with a financial specialist can help ensure stability and can help you to achieve your financial goals. If you are in the midst of a divorce and would like some help dealing with the financial repercussions, please contact Pam for a free consultation. You don’t have to do it alone. Please call 1-888-890-0888 or email Pam directly at pshimmerman@debtcare.ca.

  • 비지니스 소유자의 개인 신용 사용과 재정문제의 관계

    비지니스 소유자의 개인 신용 사용과 재정문제의 관계

    온타리오주의 개인 가계 부채는 지난 10년동안 꾸준히 증가하고 있습니다. 2008년의 경기침체는 많은 사람들에게 좋은 연금을 받기 위하여 자신들의 삶을 회사에 헌신하는 것이 더이상 안전한 옵션이 아니라는 것을 증명하였습니다. 대부분의 회사는 직업 안정성이 그다지 높지 않습니다.; 이러한 이유로 많은 사람들이 자신의 사업을 시작하게 되었고 스몰 비지니스의 수를 증가시키게 되었습니다.

    개인 채무에 관한 이야기로 이 글을 시작하는 이유는 대부분의 경우 스몰 비지니스 소유자가 그들의 개인적인 신용을 가지고서 그들의 꿈인 스몰 비지니스의 재정 문제를 해결하고 있다는 사실 때문입니다. 온타리오에 있는 대부분의 금융 기관은 스몰 비지니스 소유자가 개인적으로 채무에 서명하지 않고서는 돈을 빌려주지 않습니다. 따라서 비지니스에 재정적인 문제가 발생하는 경우, 비즈니스 소유자는 채무에 대한 개인 책임을 부담하게 됩니다.

    비지니스 소유자가 자신의 사업과 관련하여 빚을 얻게 되는 세가지 주요한 이유를 들어보겠습니다. :

    –  비지니스 성장을 위하여

    –  비지니스의 시작을 위하여

    –  매출이 줄어든 동안 비지니스를 유지하기 위하여

    비지니스 소유자가 자신의 사업에 관하여 개인 신용을 사용하는 경우, 그들은 큰 도박을 하고 있는 것과 같습니다. 이 리스크는 자신의 개인적인 재정뿐만 아니라 건강과 인간관계에까지 심각한 결과을 초래 할 수 있습니다. 재정적인 문제는 엄청난 강도의 스트레스를 받게하며 이러한 문제들은 가족들을 흩어지게 만들수도 있습니다.

    비지니스 부채에 개인 신용을 사용하거나 개인적으로 서명하는 것 이외에 일부 스몰 비지니스 소유자는 일년 내내 판매세(sales tax)를 모아두어야 합니다. 하지만 사람들은 이 판매세를 비지니스의 이익을 위해 사용하고 연간 송금액으로 따로 마련 해 두지 않습니다. 따라서, 세금 지불 기한이 될 때까지 재정 상황이 좋아지지 않게되면 이 채무는 증가하게 되고 이것은 캐나다 국세청이 전액 지불을 요구하는 채무가 되게 됩니다.

    스몰 비지니스와 개인 부채가 합하여지게 되었을 때, 강력한 재정 계획의 첫번째 단계는 재정회복(financial recovery)입니다. 재정적인 문제로 고민하고 있는 스몰 비지니스 소유자들을 도와주기위한 방법이 있습니다. 연방정부는 개인적인 채무와 비지니스 빚의 늪에 빠져있는 사람들을 위한 프로그램을 제공하고 있습니다. 이 프로그램의 신청을 도와주고 강력한 재무 계획을 세워줄 수 있는 일부 금융 어드바이져가 존재합니다.

    여러분은 여러분의 거래 은행이나 돈을 빌려주는 회사 혹은 파산에 관여하는 트러스티(파산관재인)를 통하여는 이러한 유형의 재정적인 도움을 받을 수 없을 것입니다. 여러분의 채무를 해결하기 위해 회사를 선정할 때 따라야할 올바른 규칙은 그 회사가 제공하는 서비스가 단지 재정적인 계획과 지침만을 제공하는 회사여야 한다는 것입니다. 만일 회사가 돈을 빌려주는 곳이라면 그들은 여러분이 더 많은 돈을 빌리게 하여 자신들의 영업 이익이 늘어나도록 할 것입니다. 파산에 관여하는 트러스티(파산관재인)와 신용 카운셀러는 여러분의 채권자들의 이익을 대변합니다.; 이것은 여러분이 여러분의 최대 이익을 대변하기 위한 재정 조언을 얻는데에 그들을 의지할 수 없다는 것을 의미합니다. 여러분을 위한 최선의 조언을 받을 수 있는 유일한 방법은 여러분을 대변하고 여러분에게 필요한 부채 탕감을 받을 수 있는 프로그램들에 접 할 수 있는 회사와 함께 일하는 것입니다. 이것은 여러분이 다시 긍정적인 재정상태를 얻을 수 있게 해 줄 것입니다.

    만일 여러분이 재정적인 문제가 있고 도움이 필요하신 스몰 비지니스 소유자시라면 DebtCare Canada Inc (주)캐나다개인회생/채무조정센터에서 재무조정스페셜리스트로 일하고 있는 나오미 조에게 지금 바로 연락주세요.

    무료 상담전화는 1-866-413-3716 그리고 빠른 이메일 상담은 ncho@debtcare.ca입니다.

    더 자세한 정보를 원하시면 www.debtcare.ca/korean 또는 www.debtcare.ca 를 방문해 주세요.

    가족처럼 함께 고민하며 깨끗히 해결해드리겠습니다!!

    • 친절한 무료 상담전화 및 이메일 상담
    • 철저한 채무자 권익옹호 및 채무자 대변인
    • 전문가의 분석 및 채무해결방안 제시
    • 채무청산과 부채탈출로 새로운 삶 새로운 출발

    희망은 항상 출발이자 영원한 시작입니다!!

  • Is Credit Counselling in Canada a Debt Consolidation?

    Credit Counselling in CanadaWe have all heard the commercials on the radio and television talking about debt consolidations and credit counselling. When you have a debt that is becoming increasingly difficult to pay, these may seem incredibly enticing – but it can be difficult to know what each one means, or if they are in fact even different. So, is credit counselling in Canada the same as debt consolidation, and if not, what is the difference?

    Firstly, no, credit counselling is different from a debt consolidation. Many people confuse the two, but there are major differences. Both can represent significant debt relief, but each one requires a specific process that needs to be followed properly in order to be successful.

    Credit counselling in Canada – credit counselling is usually not for profit and is usually funded by the bank or your creditors. With a credit counselling proposal, you are essentially going to your creditors and asking to have the interest on your debt frozen and for them to accept a reduced monthly payment based on your budget. If accepted, you make one payment to credit counselling and they disperse the money to your creditors. This means a single monthly payment for you, that you can afford, and drastically increases your creditors’ chances of being paid, on time, each month.

    Some things to keep in mind with credit counselling: it does not reduce your overall debt. Although your interest is frozen and your payments may be reduced, you are still on the hook for the entire amount. Additionally, with credit counselling in Canada, the damage to your overall credit rating is the same as in bankruptcy – all ratings turn into R7 and I7 for a period of 3 years from the date the proposal is paid in full.

    Debt consolidation – A debt consolidation is when you are approved for a loan to cover the entirety of your debt. You then pay off your debt completely, and just pay that one loan on a monthly basis. With a debt consolidation, many of the same benefits are visible, such as one monthly payment and reduced interest, but without the damage to your credit.

    When you have financial challenges and you want to consolidate debt into a single payment, you have a few options, including a debt consolidation loan or mortgage financing. Other options for debt relief may include a consumer proposal or bankruptcy. You viable options will depend on a number of things, including your credit, assets, budget and cash flow, and so it always helps to speak to a debt specialist to determine all of your options.

    For more about debt consolidations and credit counselling in Canada, please contact DebtCare Canada today by calling 1-888-890-0888.