debtcare.ca

Tag: debtcare Canada

  • Tips for Starting Summer on Fresh Financial Footing

    summer familySummer is here, the kids are out of school and you have the next 3 months to look forward to “mom, do you have $20 so I can go to the movies?” Summer, more so than any other holiday, can be one of the most expensive seasons of the year. This is your opportunity to seize the day and kick your summer off on fresh financial footing.

    Cut back on expenses. People are out of the house more in the summer, so look at expenses you can trim back on.

    • Find savings in the budget – Even if you can find 10% savings in your budget you will be ahead of the game. It is not that hard to do either. Look at cable for example: during the summer everyone is out of the house, so why pay for the full supply of channels? Walk around the house – how many TVs do you have with rented cable boxes? Those boxes cost $5-$10 to rent monthly, and getting rid of 1 or 2 doesn’t mean those TVs won’t work – it just means that they may not have all 9999 channels – but your pocketbook will be heavier!
    • Register kids for activities – Registering the kids for activities is actually often far cheaper during the summer than having them home (depending on the activity). Organized activities are not only good for your kids’ personal development, they also keep them out of the house and keep them from eating all your food and asking for activity money, mainly because organized activities often involve some form of lunch room so your kids can bring a lunch instead of scooping $5 from you to go out to eat with their friends.
    • Have a garage sale – Want to generate a lump sum to pay bills or even for kids’ summer activities? A garage sale is a great way to do it. If you haven’t used something in a while, just get rid of it. This gives you a financial benefit and also leaves you with a de-cluttered house =)
    • Grow some produce at home – Food is often a huge expense, so curb your grocery expenses by starting a garden in your yard. Savings on produce can add up to a minimum $20 per week savings in your grocery budget.
    • Take a good hard look at your debt – If your cash flow feels pinched, one reason may be because your monthly payments on loans and credit cards are too high. Summer is a better time than ever to sit down with a financial professional to look at ways that you can restructure your debt to put more cash flow back into your household.
    • Take advantage of free, fun, family activities – There are tons of free activities that you can do with the family to help save. Look at the GTA – the beach, Centre Island, a host of parks – there are so many “entrance free” activities to enjoy that you can surely find savings on the weekends.

    Trimming back coming into the summer and clearly communicating your plans with your family is your best shot to glide through summer on better financial footing. Call DebtCare Canada today for more summer budgeting tips: 1-888-890-0888.

  • Ahead of the Game: Tax Debt Relief Before the Tax Deadline

    Tax Debt ReliefThe deadline for filing your 2014 tax return is fast approaching, and that means getting all of your ducks in a row to be able to meet those tax obligations that often arise once your assessment is returned to you. For those who know they won’t owe, this time of year represents just an added bit of necessary hassle – but for those individuals who either already owe a tax debt, or know that one is looming, this time represents significantly more stress.

    If you are in the latter group, avoiding the issue is never a good idea. If you owe the CRA money, they will try their very best to get it – as soon as possible. This might mean leveraging various enforcement actions against you, including wage garnishments, frozen bank accounts or even property liens. Pretending the problem doesn’t exist isn’t going to make it go away.

    Here are some options to consider for tax debt relief that may be beneficial:

    Negotiate with CRA

    • As mentioned, when the CRA is owed money, they will try their best to get it. Calling to negotiate with an agent might work as far as getting a payment plan in place – but there are number of things to be careful with when it comes to this option.
      • The CRA isn’t interested in your financial situation, and if you don’t have the extra income to pay the debt they are still going to attempt to get the maximum amount possible.
      • Miss one payment and they will leverage those above mentioned enforcement actions almost immediately.
      • Once you’ve called the CRA and tried to negotiate a payment plan, the CRA will be aware of all of your personal information – including your banking information – making self-protection almost impossible.
    • This option is usually one that is best accomplished by having an expert act on your behalf and not by acting on your own.

    Consumer Proposal or Bankruptcy

    • If your tax debt is substantial, both of these options can offer a significant amount of tax debt relief. Either one might offer the benefit of a reduced debt and/or interest, and can ensure that your monthly payments are set at an amount that you can handle.
    • Neither of these options can be achieved on your own – as legal processes, both need to be conducted by a trustee in bankruptcy, someone with the knowledge and experience conducting these forms of debt relief. Just make sure to get the advice or assistance of a debt consultant first to represent you through the entire process.

    Debt Consolidation

    • Need to free up some money to be able to meet those tax debts head on? A debt consolidation may be the answer. This is also something to be considered when consulting a debt specialist.

    For many Canadians, this time of year is one that leads many to think about tax debt relief and how to obtain it. DebtCare Canada can help. Call us today at 1-888-890-0888.

  • Canadian Household Debt – How Do You Stack Up?

    Canadian Household DebtEarlier in February, the McKinsey Global Institute released a report regarding debt and global economies, and after surveying 47 countries, listed seven with ‘potential vulnerabilities’ when it comes to household debt. Among these seven is Canada, and the report argues that this Canadian household debt could prove disastrous, leading to further financial instability and a consumer spending slowdown.

    A recent Globe and Mail article touched on this report, stating that “As Canada’s economy begins to slow, the country’s growing household debt burden is raising new concerns as it outpaces that of most developed countries. In fact, Canada had the second-biggest jump in household debt-to-income ratios of any country other than Greece between 2007 and the second quarter of 2014.”

    You can view the entire report here.

    For many Canadians, this report likely does not come as a shock – a vast majority carry consumer debt loads that are significant. Canadian household debt has become a major source of stress for many individuals and families alike, leading either to a cut in consumer spending (which the report suggested as a potential outcome), placing some financial responsibilities before others, or both.

    If you find yourself in the Canadian household debt camp that is not so much swimming as treading water, it might be time to consider some alternatives. A debt consolidation, consumer proposal or bankruptcy can be a lifesaver when it comes to getting your finances back on track and eliminating financial stress from your life.

    Tired of being part of these startling statistics? DebtCare can help. Call us today to find out about the options available to help lower your consumer and household debt: 1-888-890-0888.

  • Tax Time is Upon Us: Are You Afraid You’ll End Up Owing Money to CRA?

    Owing Money to CRAIt is that time of year again; soon the tax man will be knocking at the door asking for your 2014 assessment. If you know that your taxes are all in order and are expecting a refund, that is great! However, if you are in the opposite camp, and are afraid that once those taxes are filed you are going to end up owing money to CRA, you might be a bit worried.

    Tax debt is really scary, and for good reason. Unlike other creditors, CRA does not need a court order to freeze your bank account or send a wage garnishment letter to your employer. Not only do these things impact your personal life, they can also begin to impact your professional life. This is not a good situation to be in!

    So, what can you do when you know that, upon receiving your assessment, there will be a balance owing at the bottom of the document?

    1. Think filing late in order to give yourself time to get your finances in order will do the trick? Think again. CRA applies a late filing penalty to every month you miss (5% of your 2014 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months). This doubles if you also filed late last year or in one of the preceding years.
    2. If you have the means to pay off the debt in its entirety, do so as soon as possible. This might mean using some available credit or dipping into your savings, but since the debt is not interest free and CRA is unforgiving when payments are missed, this is by far your best option.
    3. If you don’t have the ability to pay off the debt, consider a consumer proposal. Filed by a registered trustee in bankruptcy, a consumer proposal, once accepted, can stop interest, consolidate all debts (not just the tax debt) into one monthly payment, and in some cases can even bring your total debt down. But there are pitfalls, and to avoid them this should not be entered into without meeting with a debt consultant to give you independent advice prior to filing your proposal.

    Ignoring a tax debt in the hopes that it will go away is not a good idea. All this approach will garner is a higher amount owing once penalties and interest have been added. Don’t ignore the debt – deal with it.

    For more about what to do when you end up owing money to CRA, or any other debts, please contact DebtCare Canada today by calling 1-888-890-0888.

  • Step into Spring with a Smile: Realistic Ways to Get Rid of Credit Card Debt

    credit card debtIs your credit card debt making it hard to get to sleep at night? Are you finding it hard to focus on daily tasks because of the stress? Are collection agencies calling you or your family members in an attempt to obtain what you owe? Are you avoiding opening bills that you know you can’t pay?

    If you answered yes to any of these questions, don’t worry, you are not alone. Thousands of Canadians struggle with this financial problem on a regular basis. The ease with which credit companies extend credit and the high interest rates have made credit card debt a national problem, one that continues to plague the average Canadian no matter their income or financial status.

    Does this mean that you have to continue to struggle to make those monthly payments or combat the stress? No – there are ways to get rid of credit card debt and stop the calls and finally get a good night’s sleep.

    • Firstly, stop using those cards. Right now! Remove the cards from your wallet to help resist the temptation.
    • Secondly, assess your debt. Make a list of the credit cards, the amounts you owe, and the monthly payments. Follow this up with a monthly budget, including everything you spend money on and all income. Once you’ve done this, establish what expenditures can be cut – and cut them.
    • Attack your debt. Once you’ve cut your spending, start applying that extra income to your current debt load. Make sure that you are making at least the monthly minimum payment on each card, and apply any additional savings to the balances owed.

    If this doesn’t seem like a realistic approach for the amount of debt you are currently carrying, or if making minimum payments has become almost impossible, some more serious methods may need to be considered. If this is your current situation, our best advice is to speak with an experienced debt specialist right away. Getting rid of your credit card debt might mean a debt consolidation, consumer proposal or bankruptcy – all of which are complex and come with a number of great benefits.

    Stop ignoring those phone calls and throwing away those bills. Deal with your credit card debt and eliminate that stress.

    For more about getting rid of credit card debt that seems to be holding you back please call DebtCare Canada today at 1-888-890-0888.

  • Debt Consolidations – The Dos and Don’ts

    Debt ConsolidationsOver the last few years, debt consolidations have become a very popular form of debt relief. For various reasons, not least of which are the single monthly payments and the significantly reduced interest, debt consolidations make it easy for those struggling to maintain a hold on their finances to regain a measure of control.

    That being said, there are some definite dos and don’ts when it comes to debt consolidations. If you are considering this method as a means to fix your financial situation, here are some important things to think about before going full-steam ahead.

    Do: Talk to a professional debt consultant. For some, debt consolidation is the best option – but this will depend on a number of different factors, including the amount of debt, type of debts, and your current credit status. For example, if your credit is less than stellar, you may not be able to obtain approval for a debt consolidation loan.

    Don’t: Going with the first company you find is never a good idea. Do your research. There are a great many companies that claim to offer debt consolidations – but some are more reputable than others. Beware of those companies that require you to pay upfront and amass a small sum before any money goes to creditors. Also be wary of those with a less than stable history: if the company has only been in business for a year, it might be better to stay away. Read up on those companies you are considering. Make sure that they have a well-established, respected reputation, and the experience that means they can actually help relieve your debt worries.

    Do: Once you have decided that a debt consolidation is the right choice for your financial situation, think carefully about repayment terms. A longer term may be attractive because it offers lower monthly payments, but just remember that you will end up paying more in interest vs. a shorter term with higher monthly payments.

    Don’t: Using those cards that you have cleared with a debt consolidation is a very bad idea. For example, if you completely clear a credit card with a limit of $10,000, that doesn’t mean that you have $10,000 to spend!! Consider reducing the limits on cards you’ve cleared, and stop using these unless you absolutely have the money to pay them off as soon as you get the bill. This is a very dangerous temptation for many – so try and remove the temptation as much as possible.

    A debt consolidation can be incredibly beneficial – you just need to be careful before enlisting the services of a company that offers this service.

    DebtCare Canada has the knowledge and experience – and the reputation! We know how to help you get rid of those debts and get back on track financially. Call us today for a free consultation: 1-888-890-0888.

  • More Money, More Problems? The Danger with Payday Loans

    payday loansIt is becoming far more common these days to hear advertisements on the radio, or see gigantic signs when driving down the street, for relief from financial woes in the form of payday loans. These “convenient”, and we use that term very loosely, almost immediate loans claim to offer that extra money to get you through until the next payday – some even use the excuse to treat yourself as a reason to obtain one. So, does more money really equal more problems?

    Are you thinking of getting a payday loan to tide you over for a bit – or even to treat yourself? Wait – these seemingly innocent fast-cash solutions come with their own host of problems, and if you are not aware of the risk you can easily get in over your head – and rather quickly!

    First, payday loans are not free – obviously. When a company offers you fast cash, $100 for $20 for example, you might think that this $20 is worth the extra cash in hand at this moment. So you head into the business, provide your paystub and walk out with your loan. The fact that no credit report is required should be a major red flag!! This is definitely one of those times when “sounds too good to be true” really does ring true.

    What if that $100 though just doesn’t seem to cut it and instead you are thinking $1000 would be that much better? Now you are talking about a $200 cost – that is a 20% fee to borrow money for sometimes as short a period as two weeks. And borrower beware – 20% here is just an example, as some places will charge far more!

    Worse than the fees is the jam you find yourself in when, at the end of the month, you are yet again strapped for cash and can’t pay that payday loan in full. Think about it; if you didn’t have the cash at the beginning of the month, what makes you think you’ll have it at the end? Can’t pay it back in full? Now you are looking at another $200 in interest plus a fee for the extension.

    When broken down, it is clear that payday loans are a prime example of fool’s gold – money that never actually belongs to you and just ends up costing you dearly in the end. Know the dangers before you head into that establishment and perhaps consider some other avenue.

    For more about the dangers of payday loans, or for help dealing with a revolving payday loan you can’t seem to shake, please call DebtCare Canada today at 1-888-890-0888.

  • Debt Relief Strategies to Help You Fall Back in Love with Your Bank Account

    Debt ReliefThis time of year, it is hard not to get swept up in the spirit of the season. Hearts and cupids in every store window and Valentine’s Day commercials for flowers and jewellery make it almost impossible to ignore. And perhaps there is love in your life – but when that isn’t an emotion you have towards your bank account it might be time to get your butt in gear and start fixing those finances.

    Check out this list of debt relief strategies to help you fall back in love with your bank account!

    1. If you feel as though you can handle your debt on your own, start with a budget and decrease your spending on unnecessary items and increase the amount you put towards your debt each month. This strategy can take time, but if your debt isn’t overwhelming it can be highly effective.

    2. For more complex debt, debt consolidation might be the answer. Simply stated, this means consolidating all of your debts into one, single, easy to manage monthly payment. This also means that you save on interest – a major bonus! This option is best suited to those with a stable credit history as it requires being approved for a secured or unsecured loan.

    3. Consumer proposals have also become very popular debt relief strategies. A consumer proposal involves applying to your creditors to reduce your debt and accept a regular monthly payment. Since this has to be handled by a licensed administrator, and thus can’t be done on your own, this option requires careful preparation with a debt consultant who will independently represent you in your proposal.

    4. Bankruptcy has always been an important avenue for debt relief for those with debt that has become insurmountable. When you are regularly missing payments, choosing between various bills and which ones will be paid, or are receiving calls from collection agencies all the time, your financial situation is likely in dire straits. A bankruptcy is not for everyone, but meeting with a debt consultant (not trustee in bankruptcy) can help you determine if it is the best choice for you. A bankruptcy gets rid of those debts and you are required to make a monthly payment in bankruptcy, giving you the chance to stop the collection calls, stop the interest and get back on a firm financial footing.

    When debt seems to be haunting even your dreams (or rather nightmares), stop worrying and start strategizing. Take advantage of the debt relief strategies out there that can help banish those bad dreams and help you fall back in love with your bank account.

    For more about debt relief and how to achieve it please call DebtCare Canada today at 1-888-890-0888.

  • Making a Proposal, and We Don’t Mean for Marriage: Consumer Proposals

    Consumer ProposalsWhen debt becomes unmanageable, knowing where to turn can be tough. Knowing the options available to deal with that debt can be difficult – and that is why getting outside advice is often a great idea. One of the most popular options right now, one that requires additional assistance, is a consumer proposal.

    New to this concept but wondering what a consumer proposal is all about? A consumer proposal is a legally binding agreement between you and your creditors.

    Consumer proposals have grown in popularity over the last few years, and for good reason. There are a number of significant benefits to filing a consumer proposal:

    • Provides immediate relief from collectors – stops the calls and the letters.
    • Will stop interest accumulating from the date that you file.
    • Will stop most wage garnishments or frozen bank accounts.
    • May decrease the total amount of your debts.

    Process:

    1. Assessment and Qualification – a meeting with a debt consultant will assess your current financial situation and determine the best route to take. If you qualify, the paperwork can be started.
    2. Repayment Terms – based on your monthly income and current debts, a repayment plan will be established that you can afford and that will please your creditors.
    3. Filing the Documents – your licensed proposal administrator will file all of the required documents. This includes submitting the consumer proposal to your creditors.
    4. Creditors Vote – once the documents are received by your creditors, they have 45 days to vote to accept or reject the proposal. If the vote is 25% or more to reject, a meeting will be held to try and negotiate. Once accepted, you will be required to make the monthly payments to your administrator to be distributed to your creditors.
    5. Completed Proposal – once you’ve completed the consumer proposal you will receive a Certificate of Full Completion as proof of the completed proposal. Typically, after three years following completion, the consumer proposal will be removed from your credit report.

    What if you can’t keep up with the payments?

    If an unforeseen circumstance makes fulfilling payment arrangements impossible (job loss for example), the first thing to do is call your administrator. By law you can miss or defer two payments without consequence, but after that the proposal will be cancelled. At the first sign of trouble, speak with your administrator to find out your options.

    Consumer proposals can offer individuals the chance to start fresh and eliminate financial stress in a major way. If you believe that a consumer proposal might be an answer to your debt problems, don’t wait. The process can take time, so it is best to get it started right away.

    For more information about consumer proposals and the many benefits of filing one please call DebtCare Canada today at 1-888-890-0888.

  • 2015 To Do List: How to Fix Your Credit

    How to Fix Your CreditOne of the worst things about rising debt, and the negatives that accompany that debt, is the hit your credit report takes as a result. Even after you have sought out assistance to deal with and pay down your debt, that credit report still reflects the last few years of not so great credit behaviour.

    So what? Your credit score is just a number – one you never really see. What does it matter? Planning on buying a house or car in the near future? Want to rent an apartment? Need a loan? Any of these will require a credit check, and if your credit score is low, so too might be your chances of obtaining financing.

    Have you checked your credit score lately? This should be done on a semi-regular basis, just so you are always aware of how your credit looks. But beware – we are not suggesting a monthly check as every inquiry shows up on your report and too many inquiries can have a negative impact.

    Want to know how to fix your credit? Here are a few useful and effective tips to do so.

    How to fix your credit – short-term goals

    Check your report for inaccuracies – anything that looks questionable on your report needs to be looked at further. Can’t determine what it is? Call the creditor. If it is in fact incorrect make sure you have that removed from your credit report right away.

    Catch up on any late and missed payments – these are some of the most detrimental activities reported to your report. If you continually miss payments or make those payments late, you will quickly be considered high risk.

    Get a secured credit card – a secured credit card is one that uses your own money, rather than the creditor’s, and thus there is no risk for the lender. However, you are still required to make regular payments and display good credit behaviour.

    How to fix your credit – long-term goals

    Reduce your balances to below 75% of your limit – or lower. Having accessible credit on your various credit products is a great way to show good borrowing behaviour and it also demonstrates that you are not borrowing outside of your means.

    Pay more than the minimums – paying the minimum balance on your credit cards specifically will make it nearly impossible to pay down that debt. Put aside a certain amount each month that is a designated debt payment and make sure to go above the minimums.

    Stop applying for new credit – too many applications for new credit and you start to look like a credit seeker – someone who can’t sustain their current spending habits.

    Fixing your credit will take time, but a constant attention to what needs to be done can make the process much smoother and far more effective.

    For more tips on how to fix your credit please contact DetbCare Canada today by calling 1-888-890-0888.