debtcare.ca

Category: Deal with Debt

  • Dealing with Debt Part 2 – Gambling Debt in Canada

    Gambling debt in Canada is an epidemic not unlike the Flu. If you have a gambling debt in Canada, don’t get down on yourself. Addiction is an illness and gambling is something that is highly addictive. Casinos are more accessible than ever in Canada and the euphoria that is felt when you win can cause what would seem like harmless entertainment to turn into a serious life altering addiction.

    Many people realize that they have a problem when gambling habits lead to disruption in major parts of their lives. Financially, problem gambling can lead to a loss of income, potential loss of assets, lowered standard of living, or even a loss of employment. Personally, problem gambling can cause conflict with loved ones, and can lead to alienation from family and friends.

    Problem gambling can also impact your health. You can experience a number of health effects, including high blood pressure, digestive problems, stress and anxiety, depression and suicidal thoughts.

    CTV News recently reported on a study from Statistics Canada that showed that wealthier people, on average, spend more money on wagering, but gamblers who have less money spend a larger percentage of their income on gaming activities.

    According to the CTV report, Statistics Canada says that 6.3 percent of people are thought to be “at risk gamblers and problem gamblers.” Problem gamblers make up 0.6 percent of the Canadian population which is roughly 180,000 people. The Statistics Canada definition of a problem gambler is someone who has experienced negative consequences of gaming and who gambles more than five times a year.

    People who gamble responsibly:

    ·         Do so for entertainment rather than income.

    ·         Balance their participation with other activities.

    ·         Do not gamble alone.

    ·         Accept losses as the cost of the entertainment.

    ·         Set a realistic budget and stick to it.

    ·         Don’t borrow money to gamble.

    ·         Set a time limit for gambling.

    ·         Take breaks from gambling.

    If you have gone into debt in order to gamble you have a problem and you have to stand up against it. You are truly putting yourself in a position where you could lose everything, if it hasn’t happened already. There is a lot of support for people who have gambling debt in Canada. This support assists gamblers to deal with their addictions and the debt that they have accumulated as a result of the addiction.

    Some steps that you can take are to join a support group like Gamblers Anonymous, consider excluding yourself from gambling using the Responsible Gaming Commissions self-exclusion tool and seek professional financial guidance immediately. Do not transfer assets in the names of loved ones or borrow more money on top of the money you may already owe. There are many financial programs available that help gamblers who are dealing with a gambling debt in Canada and you can access these programs though debt consultants who are skilled at dealing with situations like the one you may be in now.

    If you are dealing with debt because of gambling you are not alone! Tens of thousands of Canadians are in your shoes and there is hope.

  • Dealing with Debt Part 1 – Collections Debt in Canada

    Many people have collections debt in Canada. Collection agencies are routinely hired by private businesses to collect money from individuals who have defaulted. When a company assigns an account to a collection agency, the collection agency will add their fees and additional interest to the debt which will cause the debt to grow at a rapid pace.

    Some collection agencies will use tactics, like calling you several times daily at home and work to collect money from you, while others may have been authorized by your creditor to take Small Claims Court action against you. Collection agencies can also file a “collection item” on your credit report which will do considerable harm to your credit; however if you have defaulted on a loan or credit card, the damage to your credit may have already been done. Any way you look at it, dealing with collections debt in Canada is no fun.

    Conventional debts like loans and credit card balances are not the only types of debt that get assigned to collection agencies. If you default on a debt to a utility provider, default on a phone bill, gym membership, toll bill, traffic fines all of these are examples of debt that may be assigned to collection agencies to be collected.

    The good news is collection agencies in Canada are regulated in most Provinces. This means you have rights! In Ontario for example, the Ministry of Consumer Services regulates collection agencies through the administration of the “Collection Agencies Act”. You can view the Ontario Collection Agencies Act on the E-Laws website. If a collections debt in Canada has occurred and a collection agency is getting out of hand, you can complain to the Provincial Ministry that regulates it. Some Provinces will receive online complaints (as is the case in Ontario) while others will require that you mail them a letter and include evidence to support your complaint.

    If you have a collections debt in Canada it is likely because you are dealing poorly with debt. Rather than facing collection action, it is better to come up with a solution to deal with your debt and there are solutions available. There are a number of programs available that help people to deal with their debt and stop collection action. Dealing with debt can cause stress and strain to relationships and many people think that the only way to get out of debt is through personal bankruptcy. This is not the case. There are other solutions to dealing with debt that involve freezing the interest accumulating on your debt and also reducing the principal amount of debt that you owe.

    When you are dealing with debt the worst thing to do is ignore it. This will only prolong the length of time that your credit is damaged and the debt will not go away but will only continue to grow over time. The faster you deal with your debt, the faster you can work towards rebuilding your credit and finances and put the period in your life where your debt got out of control behind you.

    For more information about dealing with debt and collections debt in Canada please visit www.debtcare.ca or call 416-907-2582.

  • Debt to Income Ratio Crisis in Canada – How to Deal with Debt and Protect Your Assets

    While the recession in Canada may have subsided, debt continues to cripple Canadians. So many Canadians struggle with debt for a myriad of different reasons. Many families who find themselves drowning in debt didn’t have it occur simply because of overspending. Those who lost employment or income during the recent recession represent a large group of individuals who have been trying to figure out how to deal with debt. Other reasons that people run into problems with debt include divorce, disability or other major life changes that create an immediate impact on one’s ability to pay his or her debts.

    The Globe and Mail has reported extensively on the “debt to income ratio crisis in Canada”. An individuals’ debt to income ratio represents the amount of debt an individual has measured against his or her income. In 2010, the Globe and Mail reported that the debt to income ratio of Canadians has surpassed the debt to income ratio to our American counterparts.

    In 2012, the Globe and Mail reported that the debt to income ratio report from Statistics Canada revealed that as of the third quarter of 2011, the average Canadian’s debt-to-personal-disposable-income ratio was 153 percent. That’s up from 150.6 percent in the previous quarter and higher than 148.3 percent a year ago. It seems that the debt that Canadians carry is ever increasing.

    One reason for this trend we surmise has to do with how Canadians families cope with loss of income. When a major breadwinner in the household loses income, one natural solution may be to use credit cards to bridge the gap until that income might be coming in again. Another reason for this trend is because of banks and finance companies over-lending to people based on their household income so when one person suffers a loss of income the payments become unmanageable for the family to continue to maintain.

    When a financial crisis emerges, naturally people begin to worry and wonder “what will happen to my home?”, “what will happen to my car?” and how to deal with their debt while protecting their assets. Most people want to pay their debt and don’t want to end up bankrupt. You can deal with debt and protect your assets and without filing for bankruptcy.

    There are many programs available to help Canadians to deal with debt without going into bankruptcy. These programs are also quite effective at enabling people to deal with their debt while keeping their home and vehicle. They are also able to stop enforcement action like wage garnishments.

    If your debt to income ratio is through the roof and you want to deal with your debt and protect your assets, you must act before things spiral out of control. Financial and debt consultants are a good option to help you not only deal with your debt but work through your budget and other financial affairs to help you get back onto a firm footing. Unlike bankruptcy trustees, financial and debt consultants represent you, not your creditors, and offer many more options than bankruptcy to deal with a financial crisis.

    For more information about the debt to income ratio crisis in Canada and how to deal with debt and protect your assets please call DebtCare Canada at 416-907-2582 or visit www.debtcare.ca