Before a consumer makes the decision to enter into a credit counselling service program in Canada, it is most important to understand the long term implication to their credit.
There are many options available to consumers who struggle with debt and some pose greater implications to a consumer’s credit report than others. With all the choices available, unless you owe less than $7,000, credit counselling programs are the least attractive.
Credit counselling services are “not for profit” because they rely on donations from the big banks to operate. In many cases, the consumers are indebted to these very same big banks. Why would banks fund organizations who effectively allow consumers to pay less than what was originally contractually agreed upon? With all the debt relief options out there, credit counselling programs put the most money back into the coffers of the big banks.
Credit counselling involves the credit counselling agency arranging a reduced monthly payment to your creditors over an extended period of time (4-5 years). The result to your credit is horrendous. When a consumer enters into a credit counselling program, all of the ratings on their credit report turn from a “1” to a “7” and remain that way for 3 years from the date the credit counselling program has been completed.
Credit counselling services in Canada also have no formal authority to stop collection action on the part of your creditors.
If you have reached a point where you owe more than $7,000 and you can no longer make your minimum payments, keep in mind that there are other programs that have been made available by the Federal Government. These programs will result in more favourable outcomes for the consumer than credit counselling.
These programs provide immediate protection to consumers who have unsecured debt. What this means is that if the debt has gone to collections or the consumer is being sued, these programs can legally stop all collection action.
Debt settlements that are arranged are “final settlements”, so while they involve low minimum payments over 3, 4, or 5 years, if the consumer’s financial situation improves she can pay the balance of the settlement in full and thus begin the process of rebuilding her credit. Debt settlement also impacts credit for 3 years from the date it is paid in full, however, you can actually pay it off early.
All in all, consumers are looking for solutions to deal with their debt, solutions that don’t involve bankruptcy. What is important is educating yourself to fully understand what is out there and the possible implications for you when choosing an option that provides debt relief. Hiring a Financial Consultant/Advisor to guide you through your options is often an excellent choice. For more information about Credit Counselling Services in Canada and your credit report please contact Michael Goldenberg at DebtCare Canada by calling (888) 890-0888 or by visiting www.debtcare.ca
Tuesday, 18 October 2011
Tuesday, 11 October 2011
Debt in Canada vs. Debt in Toronto - Average Toronto Family Carrying $40k in Debt
Earlier this year, the Globe and Mail reported that the average household debt in Canada (minus mortgage debt) is approx. $38,000, which is very close to the amount of consumer debt that exists here in Toronto.
Last week the Toronto Star reported that the average homeowner in Toronto is carrying $40,000 in debt and that the debt to income ratio in Toronto has increased from 88% to a record 150% over the past 10 years. The headline of this article read, “Toronto's wealthiest are the most indebted”.
It is not a sign of wealth if the average Toronto household is $40,000 in debt, and the average Toronto household does not represent those who have the most wealth.
Increases in the cost of living combined with the recent recession and along with the ever-growing unemployment rate are all reasons for this astounding number. It is not a sign of wealth when, in many cases, the average family is dealing with debt that is more than their net annual take home earnings.
Is it easy to assume that people are living beyond their means? Sure it is, but we are noticing that this trend is part of a much deeper problem, with many moving parts.
Financial Institutions, including the big banks, have over the years made it far too easy for consumers to obtain credit. Credit that far exceeds their ability to maintain and bases their ability to repay their debt on the following factors:
-Their credit score (which is not a reflection of one’s cash flow)
-The equity in their home (the assumption is that if the debtor cannot pay they can always count on home equity to deal with their debt)
-Their household income (as opposed to the individuals’ income)
-The consumer’s income to debt service ratio; the credit limit is often approved based on the consumer’s ability to make minimum payments which often only covers monthly interest
When a consumer is granted credit based on the consumer’s ability to only manage interest payments, the consumer then becomes almost permanently indebted to the bank. If they cannot find the cash flow to make lump sum payments or pay 2-3 times more than their minimum payments, their balance will not move and they will forever owe the bank. Television programs like “Till Debt Do Us Part” have done a lot to shine a spotlight on this problem by showing individuals how long it will take them to pay down their debt if they continue to only make minimum payments.
The danger with these lending practices occurs when change happens in the household, such as an injury or an illness in the family, a marital separation, loss of employment etc… Individuals sometimes find themselves turning to credit to bridge the gap in order to make ends meet, the end result being even more debt. Those who have already maxed out their credit find themselves in deep trouble when they can no longer manage their minimum payments.
There is good news: the Canadian Government has responded by providing families who are struggling financially with access to programs that provide immediate debt relief. This can be achieved through freezing credit card interest, settling debt and these programs do not involve bankruptcy. If you are in trouble and would like more information on these programs please contact Michael Goldenberg at DebtCare Canada by calling (888) 890-0888 or by visiting www.debtcare.ca
Last week the Toronto Star reported that the average homeowner in Toronto is carrying $40,000 in debt and that the debt to income ratio in Toronto has increased from 88% to a record 150% over the past 10 years. The headline of this article read, “Toronto's wealthiest are the most indebted”.
It is not a sign of wealth if the average Toronto household is $40,000 in debt, and the average Toronto household does not represent those who have the most wealth.
Increases in the cost of living combined with the recent recession and along with the ever-growing unemployment rate are all reasons for this astounding number. It is not a sign of wealth when, in many cases, the average family is dealing with debt that is more than their net annual take home earnings.
Is it easy to assume that people are living beyond their means? Sure it is, but we are noticing that this trend is part of a much deeper problem, with many moving parts.
Financial Institutions, including the big banks, have over the years made it far too easy for consumers to obtain credit. Credit that far exceeds their ability to maintain and bases their ability to repay their debt on the following factors:
-Their credit score (which is not a reflection of one’s cash flow)
-The equity in their home (the assumption is that if the debtor cannot pay they can always count on home equity to deal with their debt)
-Their household income (as opposed to the individuals’ income)
-The consumer’s income to debt service ratio; the credit limit is often approved based on the consumer’s ability to make minimum payments which often only covers monthly interest
When a consumer is granted credit based on the consumer’s ability to only manage interest payments, the consumer then becomes almost permanently indebted to the bank. If they cannot find the cash flow to make lump sum payments or pay 2-3 times more than their minimum payments, their balance will not move and they will forever owe the bank. Television programs like “Till Debt Do Us Part” have done a lot to shine a spotlight on this problem by showing individuals how long it will take them to pay down their debt if they continue to only make minimum payments.
The danger with these lending practices occurs when change happens in the household, such as an injury or an illness in the family, a marital separation, loss of employment etc… Individuals sometimes find themselves turning to credit to bridge the gap in order to make ends meet, the end result being even more debt. Those who have already maxed out their credit find themselves in deep trouble when they can no longer manage their minimum payments.
There is good news: the Canadian Government has responded by providing families who are struggling financially with access to programs that provide immediate debt relief. This can be achieved through freezing credit card interest, settling debt and these programs do not involve bankruptcy. If you are in trouble and would like more information on these programs please contact Michael Goldenberg at DebtCare Canada by calling (888) 890-0888 or by visiting www.debtcare.ca
Tuesday, 4 October 2011
Credit Card Debt in Canada – Find out the Truth About How Much You're Paying
Credit card debt in Canada is forever on the rise. Those applying for credit cards don’t even realize what they are getting themselves into, until it is too late. Canadian banks have made it really easy for the average person to not only be approved for credit cards, but also to make them feel like they can afford to repay them on a monthly basis.
This can get tricky. The manner in which you manage your credit card, the credit card’s interest rate and the credit card’s repayment terms, will determine whether or not you are going to have credit problems in the future.
Credit card interest rates can range from prime (in the case of lines of credit) all the way up to 29% interest (in the case of store cards). You can usually estimate what type of interest rate you will be looking at depending on the credit card grantor. Department store cards like Sears, The Bay, Best Buy, etc.. generally offer higher interest rates (25%-30%), while Visa cards and MasterCards are usually between 16%-25% and lines of credit are generally less than 16%. Make no mistake; this kind of interest can quickly land you in a situation where you have more credit card debt than you can afford.
The minimum monthly payments are usually estimated at 1%-3% of your balance. The result is that people use their credit cards based on being able to manage their minimum payments, however these minimum payments will often only cover interest.
Here is an example. If you obtain a department store card at 27% interest and then spend $2,000 on appliances, your minimum monthly payment, at 3% of your balance, would be $60 per/month. Now let’s take a look at the interest. Credit card interest almost always compounds monthly (12 times per/year). To calculate credit card interest, take the annual interest rate and divide it by 12. In our example, take 27% divide it by 12 and you will get 2.25%. Take the credit card balance of $2,000 and multiple that by 2.25%. The monthly interest would be $45, which means that if you were only making minimum payments, 75% of your monthly payment would be going to interest!
A simple rule of thumb to remember when using credit cards is to not borrow more than you can afford to pay in full at the end of the month.
Many folks who don’t follow this rule of thumb often find themselves in a situation where they have multiple credit cards, stretched to their limits, and when minimum payments collectively become unmanageable, a financial debt crisis can ensue. If you have credit card debt and would like to have your situation evaluated to see what debt elimination options are available please contact Michael Goldenberg at DebtCare Canada by calling (888) 890-0888 or by visiting www.debtcare.ca
This can get tricky. The manner in which you manage your credit card, the credit card’s interest rate and the credit card’s repayment terms, will determine whether or not you are going to have credit problems in the future.
Credit card interest rates can range from prime (in the case of lines of credit) all the way up to 29% interest (in the case of store cards). You can usually estimate what type of interest rate you will be looking at depending on the credit card grantor. Department store cards like Sears, The Bay, Best Buy, etc.. generally offer higher interest rates (25%-30%), while Visa cards and MasterCards are usually between 16%-25% and lines of credit are generally less than 16%. Make no mistake; this kind of interest can quickly land you in a situation where you have more credit card debt than you can afford.
The minimum monthly payments are usually estimated at 1%-3% of your balance. The result is that people use their credit cards based on being able to manage their minimum payments, however these minimum payments will often only cover interest.
Here is an example. If you obtain a department store card at 27% interest and then spend $2,000 on appliances, your minimum monthly payment, at 3% of your balance, would be $60 per/month. Now let’s take a look at the interest. Credit card interest almost always compounds monthly (12 times per/year). To calculate credit card interest, take the annual interest rate and divide it by 12. In our example, take 27% divide it by 12 and you will get 2.25%. Take the credit card balance of $2,000 and multiple that by 2.25%. The monthly interest would be $45, which means that if you were only making minimum payments, 75% of your monthly payment would be going to interest!
A simple rule of thumb to remember when using credit cards is to not borrow more than you can afford to pay in full at the end of the month.
Many folks who don’t follow this rule of thumb often find themselves in a situation where they have multiple credit cards, stretched to their limits, and when minimum payments collectively become unmanageable, a financial debt crisis can ensue. If you have credit card debt and would like to have your situation evaluated to see what debt elimination options are available please contact Michael Goldenberg at DebtCare Canada by calling (888) 890-0888 or by visiting www.debtcare.ca
Monday, 26 September 2011
Dealing with Debt and Depression
Facing an insurmountable amount of debt can cause an incredible amount of stress and in some cases the stress can lead to depression. On the opposite end of the spectrum, stress and depression can cause individuals to stop paying their bills.
On EMedicineHealth.com, Dr. Roxanne Dryden-Edwards cites (amongst the most common causes of depression) situations like difficult life events, loss, change, or persistent stress.
Martha Manning (therapist and author of “Undercurrents”) describes depression this way: “Depression is such cruel punishment. There are no fevers, no rashes, and no blood tests to send people scurrying with concern. Just the slow erosion of the self, as insidious as any cancer”.
Major financial problems result in individuals not honouring their obligations to creditors (most people want to pay their bills) and having difficulties maintaining their standard of living and providing support to their families. Many people who own homes find themselves in this very situation.
Those who struggle with depression and have more bills than they have money sometimes try to ignore the problem, hoping that it will just go away. Debt will not go away by itself.
When debt goes into default and creditors start trying to collect their money, phone calls and letters can cause personal anguish and embarrassment at work. Even high income earners who accumulate an unmanageable amount of debt may feel like the financial problem cannot be overcome.
If you are feeling depressed about your debt, you will feel much better if you come up with a plan to deal with it. This will empower you to begin working your way out of your financial situation. The first things to consider are:
1. How much in unsecured debts have you accumulated?
2. Have you badly damaged your credit?
3. Do you have the ability to make your minimum monthly payments?
If the answer to question number one is “more than $8,000”, the answer to question number two is “yes”, the answer to question number three is “no” and you know you have equity in assets, you may be relieved to hear that you could achieve immediate debt relief through a Federal Government program.
If you still have decent credit and some income, you may have other options to deal with your debt. Even when experiencing a financial crisis, it makes the most sense to speak with a Financial Advisor about your options.
You see, no matter how bad things may appear to be, there is almost always a solution. Many debt solutions enable individuals to get out of debt by creating a single and manageable monthly payment. This monthly payment is affordable and helps protect assets like your home and car.
Just as debt does not go away by itself, in many cases depression doesn’t either. Remember that your health and happiness come first so make it a priority to take care of it. There are more resources than ever for individuals who are battling depression. CAMH offers an abundance of resources and information. You can also speak with your family doctor and ask for a referral to a therapist.
If you would like more information about dealing with debt and depression, please contact Michael Goldenberg at DebtCare by calling 1 (888) 890-0888 or by visiting http://www.debtcare.ca/
On EMedicineHealth.com, Dr. Roxanne Dryden-Edwards cites (amongst the most common causes of depression) situations like difficult life events, loss, change, or persistent stress.
Martha Manning (therapist and author of “Undercurrents”) describes depression this way: “Depression is such cruel punishment. There are no fevers, no rashes, and no blood tests to send people scurrying with concern. Just the slow erosion of the self, as insidious as any cancer”.
Major financial problems result in individuals not honouring their obligations to creditors (most people want to pay their bills) and having difficulties maintaining their standard of living and providing support to their families. Many people who own homes find themselves in this very situation.
Those who struggle with depression and have more bills than they have money sometimes try to ignore the problem, hoping that it will just go away. Debt will not go away by itself.
When debt goes into default and creditors start trying to collect their money, phone calls and letters can cause personal anguish and embarrassment at work. Even high income earners who accumulate an unmanageable amount of debt may feel like the financial problem cannot be overcome.
If you are feeling depressed about your debt, you will feel much better if you come up with a plan to deal with it. This will empower you to begin working your way out of your financial situation. The first things to consider are:
1. How much in unsecured debts have you accumulated?
2. Have you badly damaged your credit?
3. Do you have the ability to make your minimum monthly payments?
If the answer to question number one is “more than $8,000”, the answer to question number two is “yes”, the answer to question number three is “no” and you know you have equity in assets, you may be relieved to hear that you could achieve immediate debt relief through a Federal Government program.
If you still have decent credit and some income, you may have other options to deal with your debt. Even when experiencing a financial crisis, it makes the most sense to speak with a Financial Advisor about your options.
You see, no matter how bad things may appear to be, there is almost always a solution. Many debt solutions enable individuals to get out of debt by creating a single and manageable monthly payment. This monthly payment is affordable and helps protect assets like your home and car.
Just as debt does not go away by itself, in many cases depression doesn’t either. Remember that your health and happiness come first so make it a priority to take care of it. There are more resources than ever for individuals who are battling depression. CAMH offers an abundance of resources and information. You can also speak with your family doctor and ask for a referral to a therapist.
If you would like more information about dealing with debt and depression, please contact Michael Goldenberg at DebtCare by calling 1 (888) 890-0888 or by visiting http://www.debtcare.ca/
Monday, 19 September 2011
Deal With Your Debt Before a Layoff – Ontario May Lose Manufacturing Jobs
While the Canadian economy is in better shape than many of our international counterparts, the strength of our Canadian dollar continues to be a concern for the manufacturing sector.
Due to the economic instability in Greece, Europe and the US, and a strengthening economy in Canada, our dollar has continued to hold strong. A strong Canadian dollar means the cost to manufacture and import products from Canada is more expensive. Over time, a strong dollar causes organizations to reconsider their Canadian manufacturing operations.
Between 2008 and 2009, 250,000 manufacturing jobs were lost in Canada. Some experts have speculated that the strong Canadian dollar could result in a second wave of layoffs in the manufacturing sector.
The Canadian job market isn’t what it once was. As recently as 15 years ago, “The Canadian Dream” was to get a job with a good company, work hard for 25 years or so and then retire with benefits. No one believed in that dream more than the thousands of GM employees who lost their jobs in 2009, some after many years of service and pension contributions.
The job landscape has changed. Many companies now hire employees on a contract or consulting basis and have a much higher turnover ratio than what was seen in the workplace in years past. Some employers have capitalized on the news of the troubled economy, trimming their workforces without even making it on the news.
So what can you do if you work in an industry that is impacted by the economy and have a strong feeling that a layoff may be in your near future? Get your financial house in order!
You have many more financial options available to you while you are still employed. Take a good hard look at your finances, your budget and your debts. If you owe debt that is more than you can pay in full in the near future, consider a debt consolidation loan. You will have a better chance of getting approved for a consolidation loan if you are employed. Once laid off, you will likely not qualify, as most banks require applicants to be gainfully employed. A debt consolidation may be a good choice to deal with debt as it usually results in a reduction to monthly payments creating a greater cash flow.
Look for ways to trim your budget then add those savings to any cash flow you have already created by consolidating or paying off your debts. Start to bank that money immediately. Try to bank as much money as possible so that if you are laid off, you have a safety net while you wait for employment insurance or find another job.
If you have been laid off, cannot manage your debt and have not been able to get approved for a debt consolidation loan, you may have other options. The Federal Government has introduced programs that provide immediate debt relief and protection to those who cannot pay their debts. For more information about dealing with your debt before a layoff, please visit http://www.debtcare.ca/
Due to the economic instability in Greece, Europe and the US, and a strengthening economy in Canada, our dollar has continued to hold strong. A strong Canadian dollar means the cost to manufacture and import products from Canada is more expensive. Over time, a strong dollar causes organizations to reconsider their Canadian manufacturing operations.
Between 2008 and 2009, 250,000 manufacturing jobs were lost in Canada. Some experts have speculated that the strong Canadian dollar could result in a second wave of layoffs in the manufacturing sector.
The Canadian job market isn’t what it once was. As recently as 15 years ago, “The Canadian Dream” was to get a job with a good company, work hard for 25 years or so and then retire with benefits. No one believed in that dream more than the thousands of GM employees who lost their jobs in 2009, some after many years of service and pension contributions.
The job landscape has changed. Many companies now hire employees on a contract or consulting basis and have a much higher turnover ratio than what was seen in the workplace in years past. Some employers have capitalized on the news of the troubled economy, trimming their workforces without even making it on the news.
So what can you do if you work in an industry that is impacted by the economy and have a strong feeling that a layoff may be in your near future? Get your financial house in order!
You have many more financial options available to you while you are still employed. Take a good hard look at your finances, your budget and your debts. If you owe debt that is more than you can pay in full in the near future, consider a debt consolidation loan. You will have a better chance of getting approved for a consolidation loan if you are employed. Once laid off, you will likely not qualify, as most banks require applicants to be gainfully employed. A debt consolidation may be a good choice to deal with debt as it usually results in a reduction to monthly payments creating a greater cash flow.
Look for ways to trim your budget then add those savings to any cash flow you have already created by consolidating or paying off your debts. Start to bank that money immediately. Try to bank as much money as possible so that if you are laid off, you have a safety net while you wait for employment insurance or find another job.
If you have been laid off, cannot manage your debt and have not been able to get approved for a debt consolidation loan, you may have other options. The Federal Government has introduced programs that provide immediate debt relief and protection to those who cannot pay their debts. For more information about dealing with your debt before a layoff, please visit http://www.debtcare.ca/
Monday, 12 September 2011
Divorce Debt Can Cause Major Financial Problems – There are Solutions for Divorce Debt
Households that include a married couple that are both working and earning a decent income, are often able to accumulate assets and debts faster than a single individual or a family in a single income household.
When marital problems surface, the stakes are high, particularly when children, assets and debt are involved. Some instances see all of the debt in the name of one spouse (in some cases even when he or she is not the primary income earner in the household). Also, when a separation occurs, assets become tied up until the terms of the separation can be determined.
When a couple separates, both spouses will experience a major change to their financial situation. Especially if the choice is made to live in separate dwellings, at this point their cost of living will increase or even double.
In more accelerated situations, couples have already divorced and a determination has been made as to “who” will be responsible for “what” debt. In these cases, dealing with the debt for a single income family can create a harsh reality and an almost impossible situation. This is particularly true if the party who is held responsible for paying most or all of the marital debt also has to make support and/or alimony payments. This is one example of a situation where a financial restructuring may be warranted.
If things get ugly, no one wins, and this presents many challenges.
If you are in the process of a separation or divorce, you don’t have to go to a divorce lawyer or attend divorce court to negotiate with your spouse. There are family law lawyers that specialize in mediation and collaborative law; they help people come to an agreement on contentious issues, without going to court.
If you are separating or divorcing, have accumulated marital debt, will not be able to pay it living independently and own a home, it will be in your best interest to find a way to work with your spouse. This could enable you to refinance joint assets such as your home, to raise proceeds to deal with debts and hire legal representation to help you and your spouse work through the separation or divorce.
One major mistake people often make when separating or divorcing, is that one or both spouses will stop paying divorce debts until it is determined “who” will owe “what”. This is the worst thing to do. Even if you are having a dispute over your debts, it is important to maintain at least the minimum monthly payments on any credit that you have signed off on.
Letting your divorce debt destroy your credit will impair your options when moving forward independently. On the other hand, if you are left with debt and have absolutely no ability to pay it, you may have to seek out other options to help you deal with your divorce debt. The solution could include a debt consolidation, financial restructuring or even financial protection.
The best thing to do if you are separating, divorcing or have divorced and are dealing with divorce debt is to contact a Financial Advisor. One who will look at all available financial scenarios to come up with a strong financial strategy so you can come out of your divorce on a sound footing. For more information about solutions to divorce debt, please visit http://www.debtcare.ca/
When marital problems surface, the stakes are high, particularly when children, assets and debt are involved. Some instances see all of the debt in the name of one spouse (in some cases even when he or she is not the primary income earner in the household). Also, when a separation occurs, assets become tied up until the terms of the separation can be determined.
When a couple separates, both spouses will experience a major change to their financial situation. Especially if the choice is made to live in separate dwellings, at this point their cost of living will increase or even double.
In more accelerated situations, couples have already divorced and a determination has been made as to “who” will be responsible for “what” debt. In these cases, dealing with the debt for a single income family can create a harsh reality and an almost impossible situation. This is particularly true if the party who is held responsible for paying most or all of the marital debt also has to make support and/or alimony payments. This is one example of a situation where a financial restructuring may be warranted.
If things get ugly, no one wins, and this presents many challenges.
If you are in the process of a separation or divorce, you don’t have to go to a divorce lawyer or attend divorce court to negotiate with your spouse. There are family law lawyers that specialize in mediation and collaborative law; they help people come to an agreement on contentious issues, without going to court.
If you are separating or divorcing, have accumulated marital debt, will not be able to pay it living independently and own a home, it will be in your best interest to find a way to work with your spouse. This could enable you to refinance joint assets such as your home, to raise proceeds to deal with debts and hire legal representation to help you and your spouse work through the separation or divorce.
One major mistake people often make when separating or divorcing, is that one or both spouses will stop paying divorce debts until it is determined “who” will owe “what”. This is the worst thing to do. Even if you are having a dispute over your debts, it is important to maintain at least the minimum monthly payments on any credit that you have signed off on.
Letting your divorce debt destroy your credit will impair your options when moving forward independently. On the other hand, if you are left with debt and have absolutely no ability to pay it, you may have to seek out other options to help you deal with your divorce debt. The solution could include a debt consolidation, financial restructuring or even financial protection.
The best thing to do if you are separating, divorcing or have divorced and are dealing with divorce debt is to contact a Financial Advisor. One who will look at all available financial scenarios to come up with a strong financial strategy so you can come out of your divorce on a sound footing. For more information about solutions to divorce debt, please visit http://www.debtcare.ca/
Tuesday, 6 September 2011
Unemployed and In Debt – How to Cope With Debt When You Lose Your Job
If you have found yourself unemployed and in debt, it can literally take your breath away. What will your priorities be? What payments will be made when push comes to shove?
These are tough financial choices that are intensified if you have children (or a family), debt, own a home, or if a business is involved. At this point the stakes become higher, and the last thing anyone wants to do is ruin their credit or worse, lose assets they have worked their whole life to gain.
These tough financial decisions can be the source of incredible stress, which can often lead to illness. When change happens in our lives, especially change that is out of our control, it is easy to find our lives consumed with stress. It is easy to start ignoring your bills, which is always the worst thing you can do.
The best thing you can do to empower yourself when a job loss occurs, is to not sweat what you can’t change. Instead, get into the most positive state of mind possible, set personal goals to create awareness and then work through your list.
Here are some examples of goals you may set for yourself to find ways out of a financial crisis caused by unemployment:
If you qualify for employment insurance with Human Resources Development Canada, apply for it immediately. It can take time to be approved and the sooner you apply the better (whether you think you have found a job or not). You can always cancel it if you are presented with a job offer.
Create or refresh your resume. If you need help, you can turn to organizations such as JVS Toronto. JVS is a non-profit organization that helps people find jobs. They offer free career counselling, help with building a resume and offer support when preparing for a job interview.
Use Social Media platforms, like LinkedIn, to source job opportunities online.
Don’t apply only for jobs that are posted. Think outside the box. Make a list of companies that you would like to work for and reach out to them. Often large organizations have positions available that are not being advertised.
Take a good hard look at your budget and finances. Financial Counselling is something else that is going to be a vital resource. Not “Credit Counselling”, not “Debt Counselling” but “Financial Counselling”. A skilled Financial Advisor can look at your entire financial profile, make recommendations and find the resources that you will need in order to deal with your debt and restructure your finances, while you are bringing in less income. For more information about how to cope when you find yourself unemployed and in debt, please visit www.debtcare.ca
These are tough financial choices that are intensified if you have children (or a family), debt, own a home, or if a business is involved. At this point the stakes become higher, and the last thing anyone wants to do is ruin their credit or worse, lose assets they have worked their whole life to gain.
These tough financial decisions can be the source of incredible stress, which can often lead to illness. When change happens in our lives, especially change that is out of our control, it is easy to find our lives consumed with stress. It is easy to start ignoring your bills, which is always the worst thing you can do.
The best thing you can do to empower yourself when a job loss occurs, is to not sweat what you can’t change. Instead, get into the most positive state of mind possible, set personal goals to create awareness and then work through your list.
Here are some examples of goals you may set for yourself to find ways out of a financial crisis caused by unemployment:
If you qualify for employment insurance with Human Resources Development Canada, apply for it immediately. It can take time to be approved and the sooner you apply the better (whether you think you have found a job or not). You can always cancel it if you are presented with a job offer.
Create or refresh your resume. If you need help, you can turn to organizations such as JVS Toronto. JVS is a non-profit organization that helps people find jobs. They offer free career counselling, help with building a resume and offer support when preparing for a job interview.
Use Social Media platforms, like LinkedIn, to source job opportunities online.
Don’t apply only for jobs that are posted. Think outside the box. Make a list of companies that you would like to work for and reach out to them. Often large organizations have positions available that are not being advertised.
Take a good hard look at your budget and finances. Financial Counselling is something else that is going to be a vital resource. Not “Credit Counselling”, not “Debt Counselling” but “Financial Counselling”. A skilled Financial Advisor can look at your entire financial profile, make recommendations and find the resources that you will need in order to deal with your debt and restructure your finances, while you are bringing in less income. For more information about how to cope when you find yourself unemployed and in debt, please visit www.debtcare.ca
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