debtcare.ca

Tag: credit report

  • 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.

  • Credit Report Spring Cleaning

    debt2Spring is here, and that means it is time to get down to the nitty-gritty and clean things up. Tackle those oft-neglected areas of your life – the closet under the stairs, the garage, the pantry, the bank account. Wait, the bank account? Yes, make a credit report spring cleaning part of the plan this year – your bank account will thank you!

    How do we spring clean the credit report? Start by requesting it, either through

    Equifax, at http://www.consumer.equifax.ca/home/en_ca, or TransUnion, at https://www.transunion.ca/ca/personal/credit-report.page?channel=paid&cid=ppc:bing:brandtransunionexact. Doing so will give you a much better idea of what lenders see when they pull your report, and it will also help you identify areas that may need a bit of work.

    If your score is not as high as you thought it would be, the next step is to identify what could be impacting your credit. Some examples of issues include too many inquiries, late payments, credit balances that are too close to, or over, the limit, or collection items. One or all of these may work to bring down your credit score. If your overall debt is high, this too may negatively impact the bottom line.

    Some people assume that late or missed payments are what most reflect borrowing behaviour and therefore are the items that make up your credit report and score. However, you can have a history which includes never making a late payment but actually have bad credit because you built up too much debt or maxed out cards or applied for a lot of credit.

    Right away, try to avoid making any more applications for credit, and then work on a plan to start paying off some of your debt. This is the best way to bring that credit report and score back up.

    What about errors? Sometimes credit reporting agencies make mistakes – but those mistakes, if not corrected, can seriously impair your credit and ability to obtain financing. These mistakes need to be corrected as soon as possible.

    One of the most common myths that still catches people off guard is that after time, things just disappear. And sure, after a period of time, most will just fade into the background, but we have seen people with things on their credit from 8, 10 even 12 years ago that are still reporting.

    If you have credit problems, we have the solution.

    DebtCare can help you get your credit report back on track. Call us today at 1 (888) 890-0888.

     

  • Repairing Bad Credit – What to Do When Old Items Just Won’t Go Away!

    deb2When money is tight, and bills can’t always be paid, choosing one bill over another may seem like the lesser of two evils. What can it hurt, letting a bill go unpaid, then planning to pay it the following month? Then next month’s statement comes, and the amount owing has doubled, so you opt to pay it and leave a different bill unpaid. What originally seemed like a solid plan has quickly turned into a nightmare. When this is the case, repairing bad credit becomes incredibly difficult.

    However, once you regain control of your finances, those items listed on the credit report should just disappear, right? After all, you are managing your money more effectively and not missing any bills. Unfortunately this isn’t how it works. This is especially true when items are sent to collections.

    Evolution of an erroneous collection item on your credit report:

    • You get behind with bills, and when bills are not paid monthly, these are reported to your credit report, causing trade lines for the credit product to go into default.
    • Eventually that account is assigned to collections and a second item for the same debt is registered.
    • Over time the account is cancelled with the collection agency and then assigned to another one, but the first one didn’t remove their item. The new collection agency now registers an item.
    • Fast forward 7 years – when you would assume everything should be gone – but all 3 items are still on the credit report and it feels like they are impossible to get rid of! So what can you do as far as repairing bad credit?

    Credit reporting agencies are regulated and have to follow the Consumer Reporting Act. They are regulated by the Ministry of Government and Consumer Services. According to the Act, after 7 years of no activity on an account (activity is a payment, using the account, writing off the account, etc.) it should be removed from the credit report. However, sometimes this does not happen.

    What are your options? Should you just continue to wait and hope for the best? No. There is no guarantee that the agency even knows about the mistake – they probably do not. This means you have to get your credit report, prove that no activity has taken place, and then start the battle with TransUnion and Equifax.

    Great, a battle has to take place? The pen may be mightier than the sword, but that doesn’t necessarily mean these agencies are apt to read whatever you’ve written. Sometimes it takes a bit more pushing and shoving to get the job done. What you need is someone in your corner who can take up arms in your defense, a representative with the knowledge and understanding of both how these agencies function as well as the importance this issue holds for your financial stability.

    Bad credit makes it almost impossible to do anything, things like financing a home or car, and if you get the financing interest rates will be sky high! Don’t let the prospect of repairing bad credit scare you – it needs to be done.

    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.

     

  • Knowledge is Power – Changes to Your Equifax Credit Report Part 2

    Credit ReportSo, you’ve reviewed part 1 of this blog series and you have gained a better understanding of the elements of your credit report and what lenders are looking for. But wait – there is more to just understanding those elements – now there are new things that are reporting to your credit report that were not included in the past.

    In the past, primarily loans, credit cards and lines of credit reported in the trade lines area of the credit report. This meant that as long as you paid those creditors on time, if you paid your phone bill for example a month late, it wouldn’t negatively impact your credit report.

    Well things have changed.

    Mortgages – mortgages now report to your credit report. So, if you make a payment late on your mortgage, it will negatively impact your credit score. With this there is a new M Rating that relates to the reporting of mortgages.

    Telecommunication providers – While a few phone providers (both cell phone and home phone services) started this practice a couple of years ago, most are now reporting to your credit report. Make a payment late on your phone bill and risk damaging your credit. Typically telecommunication providers register their rating as an O rating because the payment terms are every 30 days.

    To review the entire Equifax Credit Report User Guide – click here: http://www.equifax.com/pdfs/corp/CIS-105-E_Consumer_User_Guide.PDF.

    If you have bad credit reporting to your credit report and don’t know what to do – Call us because we can help. DebtCare Canada: 1-888-890-0888.

  • Knowledge is Power: Changes to Your Equifax Credit Report Part 1

    Knowledge is PowerIn this day and age your credit report really matters! Where in the past, generally speaking, only lenders would ask to see your credit, now employers, insurance companies, even gyms ask to see your credit report before extending services/credit. The slightest blip on your credit report can even impact your ability to rent an apartment – never mind buying a house.

    Understanding the basic fundamentals of your credit report is very important. More important is understanding which elements lenders measure when determining if they will extend you credit. Making matters more complicated, Equifax is constantly changing what is reported in the credit report and often lenders will view a different version of your credit report than what you see when you request your credit report.

    This 2 part blog series will discuss the elements of your credit report, what they mean, what elements are included and how lenders interpret those elements. In part two of this series we will discuss changes to the credit report and also some things that lenders see on your credit report that you don’t.

    Click here to view the elements of your credit report.

    Now that you better understand the elements of your credit report, check out the second part in our blog series next week where we will discuss new things that now report to your credit report and things that are different on your credit report vs. your lender’s version of your credit report.

    For more information about your credit report to how to improve your credit or deal with bad debts, please call DebtCare Canada today at: 1-888-890-0888.

  • What is R9 Credit and How Can I Get Rid of It?

    What is R9 CreditMany individuals who have an R9 on their credit report will often reference their credit as ‘R9 credit’, as though R9 is the credit rating.

    Credit reports have an over-all rating. This is a number between 300 and 900.

    This rating is calculated based on everything that is listed on your credit report. 300 represents a poor rating and 900 represents the best rating.

    When you request your credit report this “score” is called a FICO score. When a lender requests your credit report they see the same score – this is called the “Beacon score”. A Beacon score and a FICO score are the same thing. R9 credit is not your overall credit score, although it will reduce it.

    What is R9 credit?

    The letter R stands for revolving and the 9 represents a “bad debt write off” so it’s a credit card, line of credit, store card or some other form of revolving credit that has gone into default. If you do not make a payment on a revolving credit product for 6 months your individual rating for that credit product will become an R9.

    An R9 will remain on your credit report for 7 years from the date of last activity (this is the last date that you made a payment on the credit).

    Many people think that somehow the bad rating will magically disappears after 7 years but it is important to note that it is 7 years from the date of last activity and it won’t necessarily go away on its own. This is a very common credit report error that many people end up spending many months to resolve.

    R9 credit can be resolved in one of a few ways:

    1. You can pay the debt in full – it should be removed 7 years from the date the debt has been paid in full.

    2. You can make a settlement on the debt with your creditor(s) the R9 credit should be removed from your credit 7 years from the date it is reported as settled.

    a. Settlements must be documented, including proof of settlement being accepted by your creditor and proof of payment.
    b. Equifax must be independently notified of the settlement.
    c. You must follow up to ensure that the settlement has been reported to your credit report.

    3. If you go to credit counselling, the R9 credit will turn into an R7 credit and the R7 will be removed from your credit report 3 years from the date the credit counselling plan is paid in full.

    4. If you file a consumer proposal the R9 credit will be removed from your credit 6 years from the date it is paid in full make sure when you file a consumer proposal that you independently send proof of the consumer proposal to Equifax.

    5. A bankruptcy  the R9 credit will be removed from your credit 6 years from the date the bankruptcy is discharged make sure when you file a bankruptcy that you independently send proof of the bankruptcy to Equifax.

    6. R9 credit can also be removed 7 years from the date of last activity if that was the last time a payment was made on the credit product. This is in no way a slam dunk often creditors will continue to report activity to the credit report even after there hasn’t been any. Also, if the account is purchased by a collection agency, this can become extremely complex.

    Having this issue on your credit report is not great but it isn’t the end of the world either.

    There are ways to not only work to have the R9 removed but also to correct any other bad credit to help rebuild your credit score. Speaking with a financial consultant skilled in dealing with R9 credit is a smart practice.

    If you have R9 credit and need help please contact DebtCare by calling 1-888-890-0888 or visit www.debtcare.ca.

  • How to Deal with Credit Report Errors

    Thousands of Canadians have credit report errors on their credit reports – the scary part is many of them don’t even know it.Credit Report Errors

    Credit report errors most commonly occur when your creditors don’t accurately report information to your credit report. The reason credit report errors are so common is because the data is reported electronically by your creditor to your credit report.

    You may be getting declined for credit or quoted higher interest rates on credit because of credit report errors and new lenders you apply to for credit are not allowed to tell you what’s on your credit, so it won’t be pointed out to you.

    The most common types of credit report errors are payments and settlements that have not been reported. The only way to avoid credit report errors is to know what’s being reported to your credit report. The first step you have to take if you want to avoid credit report errors is to request your credit report from both Equifax and TransUnion.

    Credit report errors can be extremely difficult to get resolved because Equifax will require evidence from you to support that there is an error and if you don’t have it or they won’t accept what you provide you then have to rely on your creditor to report the correct information. Creditors can take months to do so, if they do so at all.

    The only way to get credit report errors corrected quickly is to know your rights and to dedicate the time needed to accomplish the task.

    1. The Ministry of Consumer Services is the ministry responsible for the Consumer Reporting Act which is the legislation that consumer reporting agencies like Equifax and TransUnion, as well as your creditors, must follow when reporting your personal information.

    2. Any communication concerning corrections that are needed should be sent in writing and should be sent by registered mail.

    3. You must know the timelines in which you should expect credit report errors to be updated, make sure that you request your credit report to ensure that they have been made and if they have not follow up again in writing.

    Failing to ensure that there are no errors reporting to your credit report can have serious consequences. Not just because you may not be able to obtain the credit you need but also because you will most certainly pay higher interest rates on credit products if lenders view the credit report errors as derogatory which could cost you thousands of dollars or more.

    If you are thinking right now that you don’t have the time, energy or know-how to take on your credit report errors on your own – you are not alone. Many who advertise ‘fix your credit’ programs are actually companies looking to see you deal with credit problems through a bankruptcy or credit counselling. We take the position that credit errors are credit errors – not bad credit – even bad credit can be addressed using various financial strategies that do not involve bankruptcy. Following the Consumer Reporting Act and leveraging our in-house legal counsel, we fight Equifax, fight your creditors and get your credit fixed.

    If you need to fix credit report errors on your credit report, contact DebtCare Canada today by calling 888-890-0888.

  • How to Check Your Credit Score?

    In Canada, a credit Check Your Credit Scorereport and credit score is used by many different institutions, including banks, credit agencies, and even employers. These documents contain important information about your borrowing and repayment habits, and provide a detailed account of your past financial history. Even though these reports are so important, many Canadians are not familiar with the process of requesting and understanding the credit score.

    Understanding your credit score is important for a number of reasons. One of the most important is because, whenever you apply for credit, be it a mortgage, automotive financing, or a credit card, your credit report is pulled by the lending institution and assessed. In order to qualify, you must meet certain qualifications with regard to the report, and so knowing where you stand is crucial.

    What if your credit score is less than stellar? Too much credit, being too close to your limits or too many late or missed payments can severely reduce your credit score.

    In order to bring the score up, it might be prudent to speak with a financial debt consultant to discuss some options to reduce your debt and regain those lost credit points. Debt consolidation or consumer proposals are great options to help you get rid of your debt.

    So, do you know how to check your credit score and credit report? Here is some important information that will help.

    Requesting your credit score is actually quite simple. There are a few different credit reporting agencies in Canada, but the most popular are TransUnion and Equifax. Both of these agencies provide online copies of your credit report and credit score for a fee – simply visit the website, enter in some identity confirming information, and you will be able to print your credit report and credit score.

    Another reason that it is important to understand how to check your credit score and credit report is to make sure that everything it contains is accurate. Credit reporting agencies can make mistakes when compiling the information, and if something is reported incorrectly this can harm your overall credit. It is important to check your report regularly in order to find any mistakes and remedy them. That being said, when a mistake is brought to the attention of a credit reporting agency you may find yourself frustrated by the amount of back and forth that takes place. If you find yourself having a hard time dealing with those credit reporting agencies and their unwillingness to accept responsibility or fix the incorrect data, contact a financial consultant who can help get the issue resolved.

    If you want more information about how to check your credit score and how to understand your credit report, please contact DebtCare Canada by calling 888-890-0888 or visit www.debtcare.ca.

  • How Can I Fix My Credit?

    Fix My CreditWe all know that bad things happen to good people. No one wakes up in the morning wanting to damage his or her credit. Thousands of Canadians have damaged credit, so if you are wondering “how can I fix my credit”, know that you are not alone and fortunately it can be done – and fairly quickly.

    To all those who want the answer to the question “how can I fix my credit”, here are some tips:

    Before you can repair credit you must deal with any past problem credit. First of all, the old adage that bad credit, even bad credit with unpaid balances, will simply fall off the credit report after 7 years is a myth and banking on that happening may leave you disappointed in the end. Before you can repair your credit you must get rid of unpaid balances associated with bad credit. Easier said than done, right? Well, actually it isn’t. There are many programs available to consumers who have outstanding balances on bad credit where you can make settlements at significantly less than what you owe and freeze the interest accruing. Debt consolidation is another realistic option. Leveraging home equity or having a co-signer can enable you to consolidate debt, paying off the defaulted balances.

    Once the bad credit balances are dealt with it’s time to get to work and rebuild. The two best products that can be used to accomplish this are a secured credit card which reports to your credit report coupled with a secured loan like a GIC which will report to your credit and enable you to work towards an asset. Avoid credit products that bear sky high interest and don’t report to your credit report like payday loans.

    Once new credit is arranged to rebuild, how you manage the new credit will be vital. Many misguided consumers think that when they get that secured credit card they should use it and make monthly payments to rebuild. Unlike installment credit (a loan), revolving credit can be good for your credit or ruin your credit depending how you manage it – even if you make your monthly payments on time. If you run up a large balance on your secured credit card and it is close to, at, or over the limit, this will negatively impact your credit. A good rule of thumb is to only use what you can pay in full each month and don’t exceed 50% of your credit limit as a balance. This means that if you have a secured card with a $200 limit, keep your monthly spending on the credit card under $100 per month. How you manage even the smallest credit card is an indicator to future creditors of whether or not you are a credit risk.

    What to avoid: avoid store cards like furniture cards. All too often people buy furniture and get financing on a card offered through the store. If you buy $2,000 worth of furniture and then they get you approved for $2,000 worth of financing – even if it is interest free and even if there are no monthly payment obligations – this will have the impact of a maxed out credit card on your credit report. Avoid making more than 4 applications for credit in any one given calendar year. Credit applications are reported to your credit report and too many will reduce your credit score and make you appear as a “credit seeker” to new creditors. Be careful because many companies will try to look at your credit: employers, banks when opening accounts, gyms, insurance companies, etc. Generally speaking, if you are about to go into a contract with any organization and you are being asked to sign something, read the small print – it could include your permission to access your credit report.

    Now that we have addressed the question “how can I fix my credit”, let’s get started! Contact DebtCare Canada today at 888-890-0888 or visit www.debtcare.ca.

  • Debt Relief in Canada Blog Series Part 4 – The Reality of Making a Debt Settlement

    You may have heard about debt relief in Canada being offered by debt reduction companies or some of the government reports warning consumers about the risks associated with debt reduction companies.

    The debt reduction companies that the government has been speaking out against are those who offer debt relief in Canada without a bankruptcy or consumer proposal. These debt reduction companies will offer you a program whereby you pay them on a monthly basis over a period of time with a promise at the end that they will settle your debts.

    The reality of making a debt settlement with your creditors is that generally a creditor will not make a debt settlement unless you have the funds to forward them the full settlement amount at the time the debt settlement is made. In almost all cases, your creditors and their collection agencies will not accept monthly payments when they approve a debt settlement, unless it is part of a consumer proposal. For example, if you owed $1,000 and the creditor agreed to accept $600 as a full and final debt settlement, they would want to be paid $600 at once, not paid in monthly instalments.

    Direct debt settlements are often made with creditors when an individual owes a small amount of debt (less than $8,000 in total).

    So, making a debt settlement with your creditors is a real possibility and is something to be considered, but only if you are in a position to pay the settlements in full if they are accepted. Where debt reduction companies are concerned however, and in almost all cases, money is collected from you monthly and a full and final settlement with your creditors is not made until all of the money has been collected to satisfy any settlements that the debt reduction companies were considering offering.

    In the absence of the ability to make a debt settlement, you can look at a consumer proposal, which is another viable option for achieving debt relief in Canada. The benefits to a consumer proposal are:

    You can usually reduce the amount of debt that you owe

    1. It is a legal process that can, in most cases, stop collection action
    2. It will result in a single monthly payment which is typically less than what you have to pay your creditors now
    3. Your money is administered by a trustee who is an official appointed by the superintendent in bankruptcy and not a private debt reduction company (who may or may not be in business when the time comes to make a debt settlement)
    4. You can re-build credit quickly because the consumer proposal is removed from your credit report 3 years from the date it is paid in full
    5. Because a consumer proposal is negotiated, once accepted the balance can be paid off at any time should your financial situation improve

    The best thing to do if you need options for debt relief in Canada is to work with a Canadian provider of financial or debt consultation services that is not a trustee or a debt reduction company who administers debt reduction plans. A debt consultant will be able to assist you in establishing a plan that will help you achieve your financial goals, will be able to align you with the right professionals to achieve them, and will represent you through the process.

    For more information about debt relief in Canada or if you would like to discuss making a debt settlement please contact DebtCare Canada at 416-907-2582 or visit www.debtcare.ca.