debtcare.ca

Author: mgoldenberg@debtcare.ca

  • Finding Debt Relief from Holiday Credit Card Bills

    Credit cards are scary because they are easy to run up and then difficult to pay down. Did you know that last year it was reported that the average Canadian is carrying over $40,000 in unsecured debt? If you are one of these Canadians then you probably had credit card debt before you even started holiday shopping! Now the holiday shopping credit card bills are rolling in and you are likely thinking that you could really use some debt relief.

    Credit card debt presents the following challenges:

    1. Damage to your credit. Even if you are making your minimum payments credit cards can still damage your credit. Did you know that if you let your credit card balance get close to the limit, or if you go over the limit, it reduces your credit score? Yes, it is true, and not only does it reduce your credit score it also causes a message to appear on the credit report that indicates that the proportion of the credit card balances are too close to the credit limits.
    2. Minimum monthly payments are too small. Credit card companies set your minimum monthly payment at 1-3% of your balance. This is simply too small. If you make only minimum monthly payments on credit cards it can take many years to pay down the balance.
    3. Monthly compound interest. Unlike loans, credit card interest compounds monthly (12 times per year). This means that interest is added to your balance each month. When you combine the fact that your interest compounds monthly with the fact that your minimum monthly payment on your credit card is likely set at 1-3% of your balance, the effective cost to borrow using your credit card is significantly higher than the interest rate on your credit card.

    Credit card debt can quickly become overwhelming because once it accumulates it can become really difficult to pay off. Most people do not have the kind of cash flow needed to really get those credit card bills paid off.

    Getting debt relief from your holiday credit card bills can be achieved three ways:

    1. By paying off the debt by liquidating your savings, getting help from family or winning the lottery. Unfortunately this is an option that most folks don’t enjoy.
    2. By consolidating debt through:
      1. A loan with the bank – you will need good credit for this option.
      2. A mortgage refinance – you will need a home with equity for this option.
      3. By taking advantage of an alternate financial program.

    If you don’t have good credit or assets then an alternate financial program may be the best choice for you.  An alternate financial program will enable you to make a single monthly payment, as in a debt consolidation, and will stop the interest from accruing on your credit cards. Sounds like a great solution right? Well, really the right solution will depend on your personal financial circumstances. Before making any of the above choices your best bet is to speak with a financial consultant who is hired by you, one who can offer you unbiased financial advice so that you can get debt relief from your holiday credit card bills and start off the year on fresh financial footing.

    For more information about finding debt relief contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Getting Out of Debt in the New Year

    So the holidays are over and no doubt the holiday bills have started rolling in. It is easy to do serious financial damage during the holidays. Debt can take a mere couple of weeks to rack up, but can take months and even years to pay off. Getting out of debt in the New Year is on many families’ ‘to-do’ lists, but getting out of debt is easier said than done.

    Your ability to get out of debt in the New Year will greatly depend on your own personal circumstances. Let’s review some of your options.

    Getting out of debt the good old fashioned way. Getting out of debt the good old fashioned way will take resources because it will involve using your existing assets and cash flow to get out of debt. If you don’t have savings or investments that you can liquidate to pay down debt you will have to take a good hard look at your budget. Think of the time frame in which you would like to be debt free. If it is 24 months for example, then take your total debt, divide it by 24 months and then increase the monthly amount by 30% (to account for interest).  Do you have enough room in your budget to pay off the debt on a monthly basis?

    Getting out of debt through a debt consolidation. Getting out of debt through a debt consolidation is an option for homeowners who have home equity or for those with very good credit. Though traditional debt consolidation can be a good choice for getting out of debt – the debt consolidation interest rate, fees and terms will determine whether it is the best choice for getting out of debt.

    Getting out of debt through a financial program. If you don’t have assets or savings to pay off your debt and you don’t have room in your budget to get out of debt in a reasonable period of time, then an alternate financial program may be the best solution for you. Some financial programs involve freezing the interest on your debt and even reducing your debt. This can result in greatly reduced monthly payments, making the prospect of getting out of debt a reality for an individual who doesn’t have much to put towards getting out of debt.

    It’s a jungle out there and with so many companies promoting different things it can be hard to know what the best financial choice is. Making the wrong financial choices can cause you to pay more in the long run and can even harm your credit. So how do you know a financial friend from a financial foe? By trusting your instincts and doing lots of research. Do they have a website? Do they have a bricks and mortar location? Do they have people following them on social media? Have you heard of them before? If you are dealing with a debt company or mortgage brokerage, is the company’s management accessible to you?

    Doing your due diligence and then partnering with a financial service provider who can help you come up with a meaningful solution to deal with your debt will be your first step towards getting out of debt and enjoying financial freedom in 2013.

    For more information about getting out of debt in 2013 or if you need help with your 2013 financial planning please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Top 5 Tips for Financial Fitness in 2013

    The holidays are behind us and 2013 has officially arrived. The holidays were a time for family and cheer; the New Year is an opportunity for new beginnings. If your New Year’s resolution involves getting financially fit, then this is the article for you!

    Here Are DebtCare’s “Top 5 Tips for Financial Fitness in 2013”:

    Financial Fitness Tip #1 – Determine what you really spend. For one week, closely monitor your spending. No expense is too small to track this week. If you buy a coffee, track it! You can do so using ‘notepad’ on your smart phone or by keeping a small notebook with you.

    Financial Fitness Tip #2 – A good budget will be the roadmap to your success. Put together a strong budget that includes both your fixed costs, like rent/mortgage, utilities, car payments, etc., along with a realistic estimate of everyday soft costs. Try to find places in your budget where you can save.

    Financial Fitness Tip #3 – A family that plays together stays together. If you are planning on tightening your belt in the New Year in an effort to reach your financial goals and you have a spouse and/or children, you are going to have to make them aware of your plans. As a family you can work together to find savings in your household and curb unnecessary spending.

    Financial Fitness Tip #4 – Review your debt. Look at your unsecured debts, interest rates and minimum monthly payments. Do you have room in your budget to double or triple up on your minimum monthly payments? You will need to. Since the minimum monthly payments on credit cards are generally set so low and the interest on credit cards is generally high, you will find it nearly impossible to pay off your credit cards in a reasonable amount of time by making only minimum payments. If you want to work towards financial fitness you will need to create room in your budget to pay down your credit cards.

    Financial Fitness Tip #5 – Request your credit report from Equifax. Even if you think your credit is going to be bad, it is still a good idea to request your credit report. It is important to know where you stand so that you can consider the state of your credit in your financial decisions. On the flip side, you may think your credit is great but learn that there are issues that you were not aware of that are impacting your credit score.

    Once you have a plan to deal with your debt, a budget, and an understanding of your credit, you must follow through with your plan to deal with your debt: you must follow your budget and you must work towards improving your credit. Achieving financial fitness takes time and commitment!

    When you achieve financial fitness you will find that you have more cash flow, can begin to amass savings and investments, qualify for lower rates on credit products, and more.

    The New Year is a better time than ever to commit to becoming financially fit!

    For more information about getting financially fit for 2013 or if you need help with your 2013 financial planning please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Small Businesses Can Be Subject to a Wage Garnishment From The CRA Too But How?

    Starting a successful small business takes hard work and perseverance. Unfortunately, small business owners are one of the largest groups that find themselves with tax problems.

    One of the main reasons why small business owners commonly run into trouble with the CRA is because it is tough starting a business and generally in the first couple of years small businesses are not really profitable. In many cases, small business owners don’t pay for bookkeepers and simply collect their receipts all year long. Then, at the end of the year, these owners go to an accountant with what records they have or attempt to do the returns on their own.

    This can result in incorrectly declared expenses and income that can end up costing the small business owner dearly in a re-assessment or audit.

    Other times, small business owners misunderstand filing requirements and fall behind filing returns. In some extreme cases, small business owners do not set aside their H.S.T. and then find that it is impossible to pay it when tax time comes.

    When things reach a breaking point and the CRA begins pursuing the small business owner to collect the tax debt, there are many collection methods – similar to when they collect from a consumer. Just as they can freeze a business bank account, they can also freeze a business owner’s bank account. Typically, when an individual has a tax debt and is employed, the CRA will send a wage garnishment to the employer directing the employer to forward a percentage of the individual’s earnings to the CRA. When a small business owes money to the CRA the CRA can send a notice to the business’s clients, directing them to forward the proceeds of all invoices to the CRA.

    With an individual, HR departments are generally used to receiving wage garnishment notices from the CRA. For small business owners however, this can have a lethal impact on a business and a business owner’s reputation, as many clients and companies may not want to deal with a supplier who has a tax problem.

    A small business owner who has a tax problem must act quickly to avoid the consequences of CRA collection/enforcement action. Tax problems are usually financial problems, requiring a financial solution. At the end of the day, tax debt is debt like any other debt, only the CRA has greater collection powers than regular creditors which creates a major sense of urgency.

    If you are a small business owner with a tax problem you definitely want to come up with a plan before you face the embarrassment of having your clients notified that you have a CRA debt and are facing a possible 100% garnishment of your receivables, which can cause irreparable financial hardship. If the worst has already come true and your receivables are already being garnished you still may be able to stop it.

    Working with a good financial consultant who routinely works with individuals and small businesses who have problems with the CRA is your first step towards a meaningful solution to your tax problem.

    For more information about how to avoid or stop a garnishment of your receivables please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Late Filing of Income Tax Returns – How Late is Too Late?

    With tax time right around the corner, some folks are already getting their receipts in order. Others however are not so concerned with filing their taxes on time because they are already late filing for previous years. If you find yourself in the latter group, you may want to think about changing your tax filing strategy.

    Late filing of income tax returns is a slippery slope, often with a snow ball effect. Unfortunately, those hardest hit with income tax problems are small business owners. This is for a few primary reasons:

    1. The owner doesn’t have the “know how” when starting out to keep solid records and when tax time comes he is lost.
    2. The owner doesn’t have the money when starting out to hire an accountant and instead tries to do the taxes himself and makes mistakes or gives up because he finds it too challenging.
    3. The owner spends trust monies, such as H.S.T., and doesn’t want to file because they will have to repay the money.
    4. The owner knows that there will be money owed but has no way to pay it.

    Here is the problem. It is not against the law to owe money to the Canada Revenue Agency. It is illegal to not file your tax returns. Like most problems, a tax problem with not go away by itself and will continue to grow over time.

    You see, the most common penalty that the Canada Revenue Agency uses to penalize a later filer is a financial penalty. First, when you file your tax returns late you will be subject to a penalty. This penalty will grow each time you repeat the offence. For example, if the first year you filed late was in 2009, the second year you filed late was 2010 and the third year you filed late was 2011 you would be assessed a late filing penalty in 2009, it would then be greater in 2010 and greater again in 2011. In addition, interest will continue to accumulate on the debt.

    Many individuals think that if they don’t file it will buy them more time to come up with a plan to pay the tax debt. This doesn’t work. Eventually, over time, employers file tax slips, your clients will file T4A income slips or declare the income paid to you as expenses and the CRA will be in a position to estimate your income. It is very common for the CRA to perform what’s called a “notional assessment,” which is essentially an estimate of what they believe you earned and the corresponding tax debt, interest and penalties that you should owe.

    Once this occurs the CRA will proceed with collection action against you, which could include a wage garnishment, freezing your bank account, contacting your clients, and more…

    If you have a tax problem, what you need is a financial plan. Your first step is to work with a financial consultant who specializes in tax debt to help you determine if in fact there is any way that you can reasonably pay your tax debt once your returns are filed. If the answer is one of the following: a) yes, in instalments; b) yes, if the interest was frozen; c) yes, if the amount of the debt was reduced; or c) no, I simply can’t, then believe it or not there are financial solutions to help you deal with your tax problem, avoiding the stress and embarrassment of having the CRA come after you. You have to make the decision to take the first step towards facing your past due returns and the tax debt you will owe if you want to have an opportunity to put your past due taxes behind you.

    For more information about what to do if your tax returns are past due or how to deal with a tax debt please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Stopping Collection Action before the Holidays

    The holidays should be a time for joy and family, not a time to be stressed out about your finances and trying to deal with bill collectors. Bill collectors are employees of collection agencies, and it doesn’t matter to them what time of the year it is. If a bill collector has been hired to collect a debt he or she will proceed with collection action.

    When bill collectors begin collection action you may feel powerless to stop it. Stopping collection action is difficult, and before you can do it you have to educate yourself about what types of collection action are legal. You also need to have a plan to deal with the debt. This way, when you begin taking steps towards stopping collection action, you have something to propose to your creditors to satisfy them so that you can enjoy your holiday without worrying about your debt.

    Generally speaking, the number one tactic that collection agencies deploy is communication. They will communicate with you by phone and by mail. The agency may call you several times per/day, in the evenings and on the weekends. For those of you who live or work with others who don’t know about your debt, this can be very embarrassing.

    Some collection agencies have paralegals on staff and have the ability to sue you. In this case, stopping collection action can become even more difficult because the court is involved. With that being said, it is possible to stop collection action being taken against you, even if the collection agency has sued you on behalf of your creditor.

    Certain communication from collection agencies is acceptable, while other forms of communication are not. Excessive phone calls, leaving personal information on voicemail or threats are all tactics collection agencies are not allowed to use when collecting a debt. Collection agencies in Ontario are regulated by the Ministry of Consumer Services. On the Ministry of Consumer Services website you can learn about your rights and even lodge a complaint if you believe that a collection agency has violated them.

    Now, if you have debt that has gone to collections you cannot ignore it. While you may be able to stop some collection actions, the debt will not simply go away. Owing that money is not the only thing to think about, as collection action can have long-term implications on you and your family. You need to have good credit these days because everyone checks credit. Having bad credit and debt can impact your ability to get a job, buy a home and even open a utility account or bank account.

    There are programs available which are effective at stopping collection action, even if the collection has a judgement against you or plans to or is garnishing your wages. These programs can also help you get rid of your debt and rebuild your credit. This is why it is so important not to ignore your debt over the holidays and look for ways to deal with it once and for all.

    By working with a good financial consultant, you can have your credit and finances reviewed to see what options are available to you and you may find that you can start the New Year collection free.

    For more information about stopping collection action and how to deal with your debt please contact DebtCare by visiting www.debtcare.ca or call 416-907-2582.

  • Post-Holiday Debt Consolidation… Bah Humbug!

    This holiday season is forecasted to be a big one in the area of personal spending. This trend has been gradually increasing over the last few years, especially in the area of e-commerce spending, and retailers are gearing up for the boom.

    Over the holiday season, so many families find themselves using their credit cards to make ends meet. The holiday is a special time with the family and the last things people want to think about during that time are mounting credit card bills or debt consolidation.

    The challenge and reality is that credit cards are the most expensive way to shop for the holidays and ignoring your finances through the holiday season can have devastating long-term impacts. With some planning and guidance you can navigate the holiday season with less debt and with a financial plan moving into 2013.

    If you have credit cards, then by now you likely know how expensive they can get. You may still be carrying debt left over from last year’s holiday season. The interest is what makes credit cards so expensive. Because minimum required monthly payments are set so low on credit cards, and because the interest compounds monthly (12 times per year), once a credit card debt accumulates it becomes very difficult to pay off. Even low rate lines of credit are difficult to pay off, not just because of the interest rate but because of the way the interest compounds.

    For example, if you owe $3000 on your credit card and your interest rate is 17%, that means your monthly interest is $42.00. This will mean that you will have to make significantly more than your minimum payment to pay your balance down. If you accumulated the debt thinking that the minimum payments on your credit card were manageable, chances are you have realized that this is not the case. In reality, it can take years to pay off a debt, even one as small as $3000, by just making the minimum monthly payments. Once the interest begins accumulating, it will begin to consume most of your minimum monthly payment.

    Some people find themselves in so much credit card debt that even managing the minimum monthly payments becomes challenging. No one finds themselves in this situation intentionally and it usually happens over a period of time. Paying them outright is often impossible, as things always come up, such as car repairs, children’s back to school costs, and of course – at the most expensive time of year – all of that holiday spending.

    A debt consolidation can be a vital part of a strong holiday financial plan. By consolidating your debt into a single monthly payment you won’t have to pay all of your credit card bills over the holiday season, thus freeing up some much needed cash flow for holiday shopping. Because a debt consolidation involves consolidating your debt into a single monthly payment, you will sail through the holidays without bills from creditors and will be able start the New Year with one, low, single monthly payment.

    Choosing the right type of debt consolidation is very important. Some debt consolidations bear interest or are over long terms, whereas others can freeze the interest you owe on your debts. The right debt consolidation solution for you will largely depend on your own personal financial circumstances.

    For more information on holiday debt consolidation and to see if you qualify please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Rent-to-Own is Investing in Real-Estate and The Home Buyer Too – Find Out What You Need to Know Before Renting to Own

    Investing in real estate is not how it once was. Recent changes to CMHC lending guidelines have made it increasingly difficult for individuals and families to purchase homes. In the past year, Canadians have seen CMHC reduce maximum mortgage amortizations from 35 years, to 30 years, and most recently down to 25 years. They have also tightened up other lending guidelines and reduced the number of products they will high ratio insure. This has forced those who have considered investing in real estate by purchasing a home to live in or to resell to come up with innovative ways to make the financing happen.

    To make the dream of homeownership a reality, some real estate investors and builders have come up with rent-to-own programs that enable families to begin their dream of home ownership by renting with a later option to own. Generally people who opt for rent-to-own do not qualify with the bank for traditional mortgage financing because they cannot get approved for CMHC high ratio mortgage insurance due to problems with credit, income and debt.

    Most real estate investors and builders offer rent-to-own programs to provide homeowners with a stepping stone. The homeowner begins by renting the home with the expectation that later they will be able to qualify for a mortgage to own it. When a real estate investor or builder agrees to offer rent-to-own financing they are not only investing in real estate but they are also investing in the borrower too. Real estate investors and builders who offer rent-to-own programs do so to help give people the ability to buy homes. The faster the borrower can fulfill the rent-to-own contract and buy the home, the better.

    A big challenge that people face when renting to own because of credit, income or debt problems is that once in the home, they are faced with the question of how they will improve the state of their credit and finances so that they can qualify for conventional mortgage financing in the future. Well, if they are in a financial pickle, they likely will not be able to get out of it without some financial guidance.

    The fact of the matter is that where credit is concerned, most people can obtain mortgage financing with 2 years of good credit after having cleared up past bad credit. Generally, CMHC will want to see that whatever problem credit existed is paid off and that there are 2 years of rebuilt credit. CMHC will also want to see that debt servicing ratios are in line with their guidelines and that the individual is not loaded with debt.

    Clients who decide to go the route of rent-to-own should not do so without a strong financial plan; a plan that will see that all credit and finances are in order before looking to obtain conventional mortgage financing is critical. Where real estate investors and builders are concerned, when we say that investing in real estate means investing in your client, we mean that when you take a risk on someone, it is prudent to give them all of the tools and resources necessary to be able to fulfill the end agreement.

    Rent-to-own can be a great resource to leverage when pursuing home ownership, especially when combined with a solid financial plan at the get-go.

    DebtCare Canada works with many real estate investors, builders, and consultants who offer rent-to-own programs to put their clients back on a path to financial wellness. We work with clients with all types of credit and incomes, and can assess your clients to give both you and your clients a financial opinion as far as where they are today financially, as well as providing you with a plan to see that they can improve their circumstances. Many real estate professionals have found our services to be very valuable because they also help to identify clients who have deeply rooted financial issues that may need to be considered when making lending decisions.

    For more information about the programs offered by DebtCare Canada please call Michael Goldenberg at 416-907-2582 ext 102 or visit www.debtcareservices.ca/real-estate.

  • Credit Card Payment Calculator – How Long Will it Really Take to Pay off Your Credit Cards

    You likely stumbled upon this article looking for an online credit card payment calculator or for information about using a credit card payment calculator because you are looking to calculate ways to pay off your credit card debt. There are many different debt and credit card payment calculators out there but seeking one out at this point may not make sense. Having too much credit card debt can present a big problem and paying it off can be difficult. Assessing your true ability to pay off your debt and estimating the time it will take to do so involve many considerations.

    Each credit card will have a different interest rate, so unless you have the ability to use a single credit product to pay off all of your credit cards, in essence consolidating your debt, you may find using a credit card repayment calculator inaccurate because of the varying interest rates and credit terms.

    Consider using the credit card payment calculator that exists in your own head. Here are some very simple credit card payment calculations that you can use to get an idea of how long it will take you to pay off your credit card debt.

    How much would it cost you per/month to pay off your existing debt over 4 years at 0% interest? Take your total debt and divide it by 48. E.g. $20,000 debt divided by 48 months would mean it would cost you $416 per/mo. to pay off your debt at 0% interest over 48 months. Now that you know this number, let’s look at the interest rates you are paying on your credit cards.

    Interest rates on credit cards generally range from prime to $29% (Lines of credit are usually prime to 10%, regular credit cards from 15%-23%, department, furniture and department store credit cards are usually from 24%-29%). Credit card interest compounds monthly which means that each month, one month’s interest is applied to the bill.

    The biggest problem with credit card interest and paying off credit card debt is the amount and frequency of the interest coupled with the fact that minimum monthly payments are set very low, usually 1% to 3% of the credit card balance. You will notice that banks will now tell you on your bill the number of months it will take you to pay off your credit card debt. I had a client show me a credit card statement for a Visa with a 19.9% interest rate which indicated that it would take the client 96 months to pay it off at the minimum payments.

    Here’s why. If you took that same $20,000 credit card debt in our first example and made it a single product at 19.9% interest, your minimum monthly payment would likely be $200-$300 per/mo. To calculate the monthly interest that would be applied to the credit card, all we have to do is take the interest rate of 19.9% and divide it by 12 months (remember it compounds monthly). In our example, that would make the monthly interest 1.66%. Now multiply the $20,000 by the 1.66% and presto, the monthly interest would be $320. That means on your monthly billing date $320 would be added to the credit card, making the balance $20,320. Even if you make a $300 payment, you owe more than you started with, which is why credit cards are so difficult to pay off. To pay off credit card debt in a reasonable time period you would have to double or triple your minimum payments.

    Before playing around with the numbers using a credit card payment calculator take a step back and be realistic about your situation. How much money can you apply in addition to minimum monthly payments? Is it realistic that you will be able to pay off your credit card debt without restructuring it? Are you finding it difficult now to even manage your minimum payments?

    Figuring out how to deal with credit card debt will involve closely analyzing your budget, cash flow and resources to come up with a solution. There are some debt restructuring programs available that can freeze or even reduce the amount of debt you owe and offer you a single monthly payment. The best thing that you can do is seek out financial counselling if you are struggling with a financial problem. By working with a financial specialist who focuses on debt consolidation and financial restructuring you can access the programs and resources that are available to help you get out of credit card debt.

    If you would still like to use a credit card payment calculator, click here to use DebtCare Canada’s online credit card payment calculator. If you have a financial problem and need help, please contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Is a Consumer Proposal a Debt Consolidation Loan?

    When looking for a solution to a financial problem or accumulated debt, you will find that there are many services available that offer different things. Banks and finance companies traditionally offer debt consolidation loans, while trustees in bankruptcy deal with debt through bankruptcies and consumer proposals.

    Debt consolidations involve consolidating debt into a single payment and debt consolidation loans have very similar characteristics to consumer proposals. A consumer proposal involves a proposal being made to your creditors wherein you agree to repay a portion or all of your debt through a single, fixed monthly payment.

    A consumer proposal is much like a debt consolidation loan because:

    • You begin owing a fixed sum of money.
    • You begin making a single monthly payment.
    • You can pay it off at any time.

    Some of the benefits that are offered through a consumer proposal that are not offered by debt consolidation loans are that in many cases a consumer proposal will reduce the overall debt owing, will stop collection action, will freeze the interest accruing on debts, and more.

    One of the drawbacks of filing a consumer proposal vs. taking out a consolidation loan is that it will impact your credit and your relationship with your creditors. Because creditors are not being paid according to the original terms of your agreements with them when accepting less than what they are owed and/or being repaid over a longer period of time, they will not likely do business with you in the future. In addition, the consumer proposal will be reported on your credit report for 3 years from the date it is paid in full.

    Now, one must weigh the impacts on credit against getting out of debt. If you owe so little debt that you could pay off all of your creditors in 3 to 4 years and have good enough credit to get a debt consolidation loan, then a debt consolidation loan may be the right answer. However, a consumer proposal may be the best answer if:

    • Your credit is already damaged to the point where you cannot get a debt consolidation loan, or;
    • You have so much debt that you cannot consolidate it all, or;
    • You have so much debt you just can’t see a way to pay it off in a reasonable amount of time.

    When it comes to making a choice with respect to how to deal with your debt it is important to recognize that each person’s financial situation is different. A debt consolidation loan or consumer proposal may not be the right answer for you at all. The best thing that you can do is consult a financial counsellor/consultant to perform an unbiased review of your finances, give you some practical advice, and provide the resources and representation to see your plan through.

    For more information about consumer proposals and debt consolidation loans or if you need a debt consolidation please contact DebtCare Canada at 416-907-2582 or visit www.debtcare.ca.