Wednesday, 18 November 2015

In the News: Woman Decides to File a Consumer Proposal to Conquer High Interest CitiFinancial Loan

When stuck in a financial rut, with credit that may be less than stellar, many Canadians choose to turn, often out of necessity, to the alternative lending market, or payday loan companies, to meet financial obligations. Donna Border is just one example of this - and her story has made it to the Huffington Post.

According to a recent article, Borden’s story was brought to light thanks to a lender’s predatory behaviours which seemingly took advantage of the single mom. According to the article, thanks to her credit history, “Borden couldn’t qualify for a line of credit from a bank, which typically charges less than 10 per cent interest. She was forced to turn to the alternative lending market, where lenders operate outside of regulated financial institutions. She settled for a 28.99 per cent interest rate.”

This eventually resulted in Borden paying $25,000 on a subprime, $10,000 loan, at which point she said enough was enough and decided to fight back. Read all about her story here:

Unfortunately, Borden’s situation is not uncommon. Lenders price to risk, and this means that once there is more risk, rates go through the roof. So what happens when your financial obligations become too tough to handle and you think a loan is the only way to regain control?

As Borden and the thousands of others like her have learned, borrowing your way into more debt and higher interest credit products until you pop is not the best way to deal with debt.

Strong initial signs that you are running into credit problems:
-          You are making only the minimum monthly payments to your credit cards
-          You are getting payday loans to avoid having your credit pulled and to make ends meet
-          You owe more debt than you could reasonable afford to pay in full within 4 years

Filing a consumer proposal is a viable option for dealing with debt now – you don’t have to wait until everything is in default and collectors are harassing and humiliating you. It also has the added benefit of halting any enforcement action that has already been levied against you, and puts a stop to sky high interest.

As the article notes, predatory lending will not go away. The government has regulations in place, but they don’t make interest illegal until it reaches 60% and payday loans can charge up to a 21% fee to borrow for only 2 weeks. As long as there are people who are vulnerable because they have had financial problems and have fewer options, these lenders will continue to gouge consumers who believe they have no other options.

Filing a consumer proposal is an important debt relief option to consider when it comes to getting a fresh financial start. If your credit is making it hard to find relief, and you find even paycheque to paycheque living has become difficult, a consumer proposal may just prove to be your best bet.

To find out more about how filing a consumer proposal can help you rebuild, call DebtCare Canada today at 1-888-890-0888.

Wednesday, 11 November 2015

How to Consolidate Debt and Start the New Year Fresh

2016 is fast approaching, and that usually means setting goals for the year ahead and making plans to get certain things back on track. For many Canadians, this means taking a good, hard look at finances and often attempting to take control of unruly debt by consolidating it. Often the first thing people wonder when considering this option is how to consolidate debt to best suit their own needs.

There are different ways to consolidate debt depending on your credit, assets and cash flow. Each offers its own pros and cons. If you are considering debt consolidation to help start 2016 on fresh financial footing, here are a few of the most popular options:

Mortgage Financing

Mortgage financing usually means taking out an additional mortgage alongside the one you currently have.

·         Pros: One low payment, lower interest than a loan or line of credit.
·         Cons: Expensive closing costs, uses up equity, stretches out debt repayment over a really long time, harder to get for those with bad credit, home ownership a prerequisite.

Personal Loan/Line of Credit

This option usually involves heading to the bank or a private lender and taking out a personal loan or line of credit to consolidate.

·         Pros: Usually easy to get compared to a mortgage, not a long process, no upfront fees to borrow.
·         Cons: Generally higher interest rates, and if revolving can become a temptation that is hard to resist for many.

Consumer Proposal

·         Pros: One payment, no interest, stops collection action, reduces debt, often a lower monthly payment
·         Cons: Temporary impact to credit.


·         Pros: One payment, significantly less debt, stops collection action, no interest
·         Cons: Reporting obligations to the trustee, impact to credit, the amount to be repaid in bankruptcy can change – for example, if you make more money or acquire something the trustee can ask you to repay more surplus income.

When debt consolidation seems like the best route to take to re-establish your finances and achieve financial stability, these may be the options you consider. Each of these has some important advantages, and the choice will largely depend on your own circumstances and future goals.

Our best advice - get professional advice. A financial consultant with experience helping people regain their financial footing is the best person for the job - take advantage of their knowledge and expertise and get a plan in place that helps you achieve your goals.

Want advice you can trust? Call DebtCare Canada today at 1-888-890-0888. We can help you get ready for 2016!

Wednesday, 4 November 2015

We Speak Your Language. Having Some Financial Problems and Need Help? DebtCare Offers Services and Consultants that Speak Your Language

DebtCare Canada is proud to announce that we now offer services in a number of different languages. When you are struggling with your finances, language should not be a further hindrance to obtaining help.

We now offer financial services in English, Mandarin, Cantonese, Korean, Japanese and Spanish!

Use these links to find financial help in your language:


Need help with a financial problem? DebtCare Canada can help. Call us today at 1-888-890-0888.