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  • In The News: Global News Talks Canadian Consumer Debt

    In a recent Global News release, the most recent Canadian consumer debt statistics were examined, and what’s been found might surprise you.

    According to the article, debt levels vary from province to province, and the spending trends vary with them. The article states that in the east, where consumers are less likely to be able to handle the financial burden, spending has increased; debt levels have increased, on average, 4%. However, in the more economically prosperous west, people seem to be dialing back.

    Ontario seems to be sitting somewhere in the middle. The articles notes, “Ontarians increased their obligations by more than 2.5 per cent in the second quarter compared to the same period a year ago, to $20,385.”

    Check out this infographic from Equifax which highlights the average for each province and how much that average has increased over the year.

    raw_ane_consumer-debt-levels-map-online

     

    Check out the full article here.

    For more about Canadian consumer debt levels or how to get a handle on your own debt levels, please contact DebtCare Canada today by calling 1-888-890-0888.

  • Ring in the New Year with These Finance Fixing Tips for Paying Off Debt

    Paying Off DebtLast week, knowing that the holidays have now come to a close, we started 2015 off with a list of helpful tips to get rid of holiday credit card debt. This week, we thought we’d go a step further and help you get a handle on all of that debt – both credit cards and other debt – that has managed to stack up over the course of the year. If your debt has become a problem, and you are finding even the smallest minimum payment a struggle, this list will really help you stay on track when you start seriously paying off debt.

    2015 paying off debt tips list:

    1. Our first piece of advice: take a breath. Yes, we know how stressful debt can be – but it helps, even if just a little bit, to put it in perspective. You are not alone. Thousands of Canadians are in the same boat. And, there are resources to turn to when you don’t want to do it alone anymore.

    2. Make a budget. Include absolutely everything that you spend money on on a weekly and monthly basis, and the amounts. Estimating? Round up.

    3. Decide what can be removed from this list. Sure, you can’t stop paying your mortgage or rent, but the daily lunches out and weekly massages may not be financially feasible. Think about making that morning coffee at home – even the little things can make a huge difference. Cutting costs is perhaps an unwanted part of paying off debt, but it is completely necessary.

    4. Start with the credit product with the highest interest rate, and ramp up your payments on it first. Continue making payments (as much as possible) on the others. Once you feel more comfortable, move on to the next highest one.

    5. Start saving – even just your spare change – in a piggy bank. This way, when you want to make an indulgent purchase you can use that money rather than increasing your debt.

    If even these tips seem like a drop in the bucket, perhaps it is time to think about getting some extra help. A debt consolidation, one done by a reputable company, can turn all of those small monthly payments into one and cut the interest. A consumer proposal shares these benefits, as well as the possibility of cutting the total debt. Bankruptcy may also be a viable option.

    Our best advice as far as paying off debt? Be realistic. Speak to a debt specialist to find out exactly what works for you.

    DebtCare Canada has the resources to help you get that debt under control. For advice about your strategy for paying off debt, please call us today at 1-888-890-0888.

  • Holiday Spending Got You in a Crunch? Check Out These Credit Card Debt Solutions

    Credit Card Debt SolutionsHappy 2015 everyone! The holidays are wrapping up and that means that it is time to get back to reality, which, for most of us, means looking over those holiday bills that we’ve been attempting to avoid for the past month.  If holiday spending has you in a crunch, check out these credit card debt solutions to help get those finances back on track.

    • Stop using those cards! Right now. Take them out of your wallet, lock them away, and forget that you even have them. If most of your holiday spending was done on a credit card – whether as a way to gather points or just because it was more convenient than using your debit card – it is time to stop that trend.
    • If you can, pay off the balances in their entirety as soon as possible. If you are able to do so, avoid snowballing interest charges by paying off the totals at the bottom of that bill.
    • If you can’t pay off the balance in full, pay off as much as possible – try not to pay just the minimum payment required. This is mostly interest and won’t do anything as far as bringing that debt down.
    • More than one credit card? Try starting with the one with the highest interest rate and paying as much as possible each month. Then move on to the next one. Make sure that you continue to pay at least the minimum payment for every other card though – there is no point in paying off the one with the highest interest but letting the others go to collections!

    Finally ready to admit that the debt that has accumulated is not just a result of holiday spending, and thus may be a bit larger than you can comfortably or realistically get rid of with these tips? It might mean taking a different route to get to financial freedom. Debt consolidation, a consumer proposal or even bankruptcy may be the right option to help you get rid of that mountain of debt that has not only become stressful but has also begun to impact your personal or work relationships.

    DebtCare Canada has the experience and knowledge with debt solutions to help you get out of debt – whether it is holiday debt or all-year round debt. For more about the various options available to you please call us today for a free assessment at 1-888-890-0888.

  • Health and Wealth: Toronto Star Talks Personal Debt and its Impacts

    Personal DebtIt is common knowledge that financial troubles and personal debt can be major stressors – and that this stress can then lead to other health impacts – but now studies have shown this to undoubtedly be the case.

    Check out this recent article from The Toronto Star.

    According to the article, “Studies show that illnesses such as diabetes are twice as common in Ontario’s poorest households. Cardiovascular disease is 17 per cent higher than the national average for low-income Canadians. Cancer, arthritis, and asthma are all more common amongst the poor. Research suggests that chronic stress, often caused by financial strain, can even impact our very biology.”

    A new initiative at St. Michael’s hospital is focussed on dealing specifically with the health impacts of financial stressors. This program, which was approved over a year ago, has already made significant inroads. One patient of the program noted, after receiving support through the program with rebuilding her finances, including filing for bankruptcy, “I just didn’t believe it. I couldn’t believe all of the things were finally lining up and I could start getting some help.”

    Dr. Bloch, the program developer, believes that this program is not only necessary, but effective, and states “the impact of this kind of support on patients can be more dramatic than any drug”.

    Knowing that financial stress, largely a result of personal debt, can be detrimental to your health, why continue to ignore it?

    Call DebtCare Canada today for the support and advice required to clean up your finances and eliminate the stress: 1-888-890-0888.

  • DebtCare’s Karen Goldenberg Made a Member of the Order of Canada

    Karen Goldenberg

    DebtCare is proud to announce that our own Karen Goldenberg, C.M., Director of Community Outreach at DebtCare Canada, has been made a Member of the Order of Canada. This prestigious award  recognizes a lifetime of achievement and commitment, and Karen’s work in developing the DebtCare public education program and our community outreach initiatives has been a great source of pride for the entire DebtCare family. Congratulations Karen!

  • DebtCare’s Financial and Debt Expert Sara Mitchell Interviewed on CFRB 1010 by Tim Hudak

    Sara Mitchell, financial and debt expert at DebtCare Canada, was interviewed on CFRB 1010 by Ontario’s PC leader Tim Hudak about the implication of debt on Canadian families and solutions for overcoming it. If you are in a financial crisis, feel free to reach out to Sara or the DebtCare team at www.debtcare.ca or by calling 888-868-1400.

  • Investment Advisors: Keep Clients’ Investments Protected with a Debt Management Company

    Debt ManagementAs a financial or investment advisor your clients look to you for protection: to protect their family in the event of a death, to protect their wealth, to protect themselves when the time comes to retire and more…  You are often the first person that a client will turn to in good times and bad. Sometimes people fall on hard financial times. A divorce, a job loss or even taking a tumble in the stock market can see someone who was otherwise on solid financial footing finding it difficult to make ends meet.

    Most people want to do the right thing! They want to pay their bills, provide for their families and no one wants to make tough financial choices when they fall on hard times.

    Unfortunately, sometimes difficult financial times lead people to make the wrong financial choices. All too often we see people who have a tax problem or excessive debts owed to creditors coming to us after they have liquidated their investments, giving all their money to their creditors in an effort to pay their obligations – yet they still find themselves owing more than they can pay, leading them to file a consumer proposal.

    The challenge with this is that most people don’t know that even in a consumer proposal many of their assets like their home, vehicle and yes some investments like RRSPs can be legally protected.

    Oftentimes people see a consumer proposal as a last resort – when really it is a viable option for getting out of debt that leads to quick recovery times where credit is concerned. If you have a client with financial problems the best thing to do is get them an unbiased financial evaluation from a financial consultant that specializes in consumer proposals. This way all options can be presented and strong contingency plans can be put in place which will better protect your client in the long run.

    Another common occurrence is financial and investment advisors who don’t understand insolvency and submit their clients right into the clutches of a trustee in bankruptcy. This could be a big mistake. When you send your client directly to a trustee, your client is not the trustee’s client – they actually represent the interests of your client’s creditors. With that said, without your client they would not be in business so there is a high motivation to make your client feel secure and sell their services. While they may make your client feel secure at the time that they sign on the dotted line it doesn’t mean your client is safe, and the story at the time of signing can change later.

    Financial consultants offer a wide range of financial services so they can present all options. Forging a strong relationship with a good financial consultant who specializes in consumer proposals will provide you and your clients with huge value in the long run.

    For more information about how financial consultants can help you to protect your clients please call Michael Goldenberg at DebtCare at 416-907-2582 or visit www.debtcare.ca.

  • Don’t Be Fooled: The Truth About Pay Day Loans

    Payday LoansIn the world of credit, a payday loan has become an increasingly popular form of financial funding. The ease with which they can be obtained makes them seem attractive to many who need quick cash. The ability to walk into a payday loan location and walk out with cash can be very tempting – but beware. This week’s school for debt relief is all about the truth about pay day loans.

    What is a pay day loan? Pay day loans are those loans given by an institution that is not a bank, and are generally short term. They are called payday loans because the borrower typically borrows just enough money to get through to the next payday, at which time repayment is due.

    These are just short term loans, so what’s the harm? Well, when you take out a pay day loan you are agreeing to pay back the full amount in a very short period of time (usually by the time you next get paid), coupled with a fee that can range from 20 to up to 500 percent.

    Think about it this way: Let’s say your car breaks down and the total cost of the bill is $1000 (unfortunately a very common occurrence). However, your finances are tight right now so that $1000 is not readily available but you can’t get to work without your car. So you decide to go to a pay day loan company to borrow that $1000 for a period of 1 month. Let’s say that company charges $20 per $100 borrowed (a typical fee). That means that on top of the $1000 you owe $200 in fees. So, at the end of the loan period you owe $1200. Hmmm, if you didn’t have that extra $1000 at the beginning for the month, are you likely to have it at the end. So you roll it over, getting charged an extra $200 for a month’s extension…the loan doesn’t seem so small now, does it?

    If you require a short term loan, initially pay day loans can seem very attractive. But once you have broken them down and added the fees and interest, it is clear why these credit products are less than beneficial, no matter how you look at it. Pay day loans should be avoided at all costs – their costs to you are just too high.

    If you have found yourself stuck in a pay day loan cycle and need help getting out please contact DebtCare Canada today by calling 1-888-890-0888.

  • Bankruptcy Trustee – Recognizing their Role

    Bankruptcy TrusteeIf you are drowning in debt and having trouble making even the minimum payment on any of your cards – or worse, not making them – it might be time to admit that you have a debt problem. Ignoring this problem will only end up making things worse, and so avoidance should never be an option. For many in this position the best solution is bankruptcy – but how does one know who to turn to when this is the case – who can you trust? It is very important when making this type of financial decision to understand the role of a bankruptcy trustee and the part they play in your financial future.

    What is a bankruptcy trustee? Bankruptcy is a legal process and must be handled by a licensed professional, a bankruptcy trustee. This is the individual who will administer your bankruptcy or consumer proposal and manage your assets held in trust. This individual can also provide advice and assistance to make sure both your rights and your creditor’s rights are protected. They are an objective party – their role is to remain impartial throughout the process, acting in both parties’ best interests.

    A bankruptcy trustee has several jobs. The first main job is to repay your creditors – this is done by selling your assets. This includes negotiations with your creditors as far as settlements. A bankruptcy trustee may also provide debt counselling or put you in contact with an insolvency lawyer if deemed necessary.  During your bankruptcy, a bankruptcy trustee is the person who monitors your activities and ultimately decides when you can be discharged. For example, if your financial situation changes and your income now leaves room for surplus income, a bankruptcy trustee may determine that a longer term may be necessary before discharge.

    Can you trust a bankruptcy trustee? The short answer is yes – they are licensed and regulated by the Superintendent of Bankruptcy, their actions monitored and any questionable behaviour is addressed. Their goal should ultimately be to help get you out of the financial pickle you are in – and most adhere to this. All of this being said, it is sometimes best to visit a professional debt solutions company first – that way you can be sure that all avenues have been examined before entering into bankruptcy, and if the end conclusion is to file, they can put you in touch with one that is trusted and respected.

    For more information about bankruptcy and the role of a bankruptcy trustee, please contact DebtCare Canada today at 1-888-890-0888 or visit www.debtcare.ca.

  • Personal Financial Improvement: How to Rebuild Credit in 3 Simple Steps

    How To Rebuild CreditGetting into debt is often very easy, and when that debt gets out of control it can be much harder to get out. The consequences of debt, especially when those debt responsibilities are not being met, can be devastating. Getting financing for a car, obtaining mortgage financing, or even being approved for a small loan for incidentals can be extremely difficult, and so getting out of debt is critical if you want to have a secure financial future. And, not only do you need to know how to get out of debt, you will then need to know how to rebuild credit.

    How can debt impact your credit? Missed or late payments, too much credit, too many credit checks and credit going to collections all work towards bringing your credit score down. Your credit report also reflects any credit activity and so any lending institutions can easily gauge credit behaviour based on this reporting. Many debt solutions, such as consumer proposals or bankruptcies can also harm your credit, but if it has gotten to the point that these debt solutions are where you turn for help, they can actually be the first step in how to rebuild credit.

    How to rebuild credit: Step 1. Recognize that you may have a financial problem. If you are at the point where you are living paycheque to paycheque and have accumulated so much debt that you are only making minimum monthly payments – even if you make those payments on time – you have a financial problem. Making minimum payments on credit cards barely covers interest and so the debt will never be paid off. If you can’t manage minimum monthly payments, you have a financial problem. If you rely on your credit or payday loans to make ends meet – even if you are honouring your repayment terms – you have a financial problem.

    How to rebuild credit: Step 2. As noted, the best way to start rebuilding your credit is to get rid of your debt. A professional debt management company is the smartest way to do this as they will be able to offer you the guidance and help that you need to get those debts paid off. Debt consolidation, a consumer proposal, bankruptcy or a debt settlement might be the answer – it all depends on your current financial situation.

    How to rebuild credit: Step 3. Once you have paid off/settled all of your debts, you need to attempt to establish your credit once more in order to repair it. A great way to do this is with a secured credit card. With a secured credit card, you offer a cash collateral and the lending institution will take that money and it becomes your credit limit. You then use the credit card as you would any other – and make sure to make regular payments, never just the minimum. Also, stay away from payday/cash advance loans. These do not report to your credit report and can start a vicious borrowing cycle that can be hard to get out of.

    Rome wasn’t built in a day, and rebuilding your credit won’t be either. It takes time, but knowing where to start is the first step.

    For more information about how to rebuild credit, or to find out about possible debt solutions, please contact DebtCare Canada today by calling 1-800-890-0888.