debtcare.ca

Tag: debt companies

  • Differences Between Various Types of Debt Companies

    As a financial consulting company, we are often asked about the different types of debt companies. With several different types offering several different services, it is so important to know what these differences are. When you’re looking for solutions to a financial problem, ensuring you’re dealing with the right company is essential.

    Debt settlement companies. These types of debt companies have received a significant amount of bad press in recent years – and for good reason. While these companies claim to offer debt help, what they actually do is often far more dangerous. Most will tell you to stop paying your bills and instead they will collect your money to later settle your debts. Over time, as this money accrues in their account, your debts grow, and your credit is severely damaged. By the end of the agreement, you will likely have paid far more in fees, ruined your credit, and made your overall financial problems worse. What’s worse, many of these companies have gone out of business before ever releasing any money collected.

    Debt consultants. Debt consultants typically offer one service and that is to review your financials and then send you to a trustee for a consumer proposal or bankruptcy. If your debt is significant, sometimes a consumer proposal or bankruptcy is the best option. However, debt consultants will present them as the only ones, even if they don’t actually make the most sense, sometimes causing more harm than good.

    Financial consulting companies. These companies deal with a wide range of financial products and services and can help both those with major financial troubles as well as those with smaller financial issues. These companies don’t take the ‘one-size-fits-all’ approach and instead begin with a thorough examination of your circumstances to be able to offer the most valuable advice. Most will offer solutions such as mortgages, consulting, help with budgeting, even overall representation in addition to bankruptcies and consumer proposals. These companies are more concerned with ensuring you make the right decision for your circumstances – not their bottom line.

    When you’re struggling to meet your financial obligations and the stress is keeping you up at night, you need real help, help that will actually make sense. Financial consulting companies are there to ensure that you receive the advice and assistance you need, no matter what your situation is.

    When it comes to debt companies, don’t settle for anything less than the best. It is your money, protect it. DebtCare Canada is proud to be a financial consulting company that offers a wide variety of services to clients looking for debt help.

    Call us today for a free consultation: 1 (888) 890-0888.

     

  • Debt Settlement Companies to be Regulated in Ontario

    After regulating industries like the collection industry and payday loans industry, Ontario is making a responsible move and will also be regulating debt settlement companies.

    Ontario made this announcement in January 2013. This regulation comes on the heels of an explosion of ‘debt reduction’ companies that charge up-front fees and will even collect money from consumers with the promise of settling debts in the future.

    The Ontario Government’s new regulations will include:

    1. Not allowing debt settlement companies to charge up-front fees when negotiating debt settlements.
    2. Limiting the amount that a debt settlement company can charge.
    3. Requiring that debt settlement companies are transparent and provide their clients with clear written agreements.
    4. Allowing a consumer to have a 10 day cooling off period in the event that the individual changes his/her mind.

    The Ontario Government has put out requests for consultation from the public, including from debt settlement companies themselves. We have long advocated for this kind of regulation. As a financial consulting firm committed to helping those Canadians struggling with debt, we have never charged up-front fees or made exaggerated claims to our customers.

    Debt continues to be a rampant problem in Canada with many consumers turning to credit to balance the shortfalls with the ever rising cost of living and transportation in major city centres.

    The idea of regulating debt settlement companies is not restricted to Ontario. It is an idea that is spreading across the country. Stated in the press release issued by the Ontario Government was the fact that Alberta, Manitoba and Nova Scotia have also introduced regulations with respect to debt settlement companies.

    Here are some other sobering facts that the Ontario Government included in their press release:

    1. Average consumer debt in Ontario is up to $25,447 in the second quarter of 2012, compared to $24,721 in the second quarter of 2011.
    2. For every dollar Canadians earn, they have $1.64 in unsecured debt (Statistics Canada).

    These figures substantiate why there are more than 20 debt settlement companies already operating in Ontario. Perhaps while the Ontario Government looks at regulating these 20 debt companies, they should also take a look at reducing the fees and interest rates that credit card, loan and payday loan companies are allowed to charge which often results in consumers needing financial help.

    There are systemic problems in this country and unfortunately the ones who always seem to get the short end of the stick are consumers.

    It is the consumers who are drowning in debt and then finding themselves in the offices of debt settlement companies looking for relief. These are the same consumers who (depending on their choice of debt settlement company) may also end up in a debt reduction program that doesn’t make sense or whose fees are sky high.

    So regulate, regulate, regulate we say! We support any effort on the part of the Ontario Government to see Canadian consumers get fair treatment.

    For more information about debt settlement companies or if you have a debt problem and need help, please call 416-907-2582 or visit www.debtcare.ca.