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

Last 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

Happy 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

It 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.

Backed into a Corner: Stopping a Wage Garnishment

You’ve just received your bi-weekly paycheque, but the money deposited in your account is far lower than what is stated on your paycheque. After inquiries to your payroll department, you realize that this is not a mistake to be remedied by your company, but rather the result of some unpaid bills. A wage garnishment can be a financially devastating thing, one that is actually incredibly common, so what can you do to stop it?

Firstly, what is a wage garnishment? Well, when you owe money to a creditor that you have not paid, they may opt to head to court and obtain an order to have those debts garnished from your paycheque, unless you owe money to the Canada Revenue Agency and then a court order isn’t even necessary. Once this order is obtained, a requirement to pay letter is sent to your employer, who is then legally required to submit a portion of your wages – to the tune of up to 50% - directly to the court.

Wait – can’t your employer just say no? Not unless they want to deal with the repercussions! When it comes to these court orders, besides paying your debts, there are only 3 other ways to stop a wage garnishment:

1. Making a deal with your creditor. Start here, but we suggest not getting your hopes up. If your creditor has taken the steps to obtain a court order against you, they likely have already attempted to contact you on numerous occasions and would therefore be unlikely to accept a negotiated repayment plan.

2. Consumer proposal. Once a consumer proposal has been filed, all wage garnishments stop! And the bonus here is that not only are you stopping your wages from being taken, you also stop all interest and merge all of your debt payments into one convenient monthly payment that you can afford. The downside – your credit can be negatively impacted (although that has likely already occurred).

3. Bankruptcy. Like a consumer proposal, declaring bankruptcy stops all wage garnishments and eliminates many of your current debts. In exchange for this, you are required to adhere to certain regulations including attending credit counselling sessions and declaring surplus income. And like a consumer proposal, your credit can be negatively impacted.

If you believe a wage garnishment may be forthcoming, or if one has already been leveraged against you, don’t worry – we can help. For more about stopping the garnishment of your wages please contact DebtCare Canada today by calling 1-888-890-0888.

Happy Holidays From DebtCare Canada

It is officially that time of year again, and we just want to wish everyone a very happy holiday season. For many of us, 2014 has been full of great memories to cherish, and for many of our clients, it has also been a time of exciting financial victory – we are proud to have been a part of that triumph!

With the New Year just days away, and New Year’s resolutions being written, just remember – if you are struggling with financial problems, DebtCare Canada can help. You don’t need to struggle or continue to face those financial hardships on your own. Call us to help establish a plan to make 2015 your year for financial freedom!

Call DebtCare Canada today at 1-888-890-0888.

Who Is Spending? Canadian Household Debt

Canadian consumer debt has continued to rise over the last few months, and although the delinquency rate has dropped, the spending has not. But since the delinquency rate has dropped, that means that individuals are more conscious of the need to keep up with paying off Canadian household debt – which is always a good thing.

So who is spending, who is responsible for dealing with household debt, and how do Canadians feel about their retirement financials? Check out this great infographic “He Debt, She Debt.”

According to the survey, both men and women say debt repayment should be a top priority, but there were a few interesting findings:

• Who is responsible for household debt?

• It is equal: 39% men vs. 54% women
• Me or mostly me: 56% men vs. 36% women
• My partner or mostly my partner: 4% men vs. 10% women
• Are you confident you’ll be debt-free at retirement?
• 55% of men and 49% of women said yes
• Do you find the idea of retiring with debt stressful?
• 60% of women and 42% of men said yes

Where do you stand as far as these survey results? Are you the big spender in your household? Do you feel as though retiring without debt is a feasible achievement?

If Canadian household debt seems to be a stressor, no matter who is responsible, or if you feel like retiring without debt might be an impossible goal, please call DebtCare Canada today. We can help you deal with your debt problem and get you back on a firm financial footing: 1-888-890-0888.

Tips for Dealing with Debt Over the Holiday Season

The holidays should be time to relax, enjoy time with family and friends, and eat far too much delicious food – but for far too many of us, this time of year is also accompanied by a biting anxiety when you think about the amount of money being spent. For those individuals with debt, holiday spending can be a major stress inducer – so we’ve developed a list of easy to implement tips to help with dealing with debt over the holidays.

Tips for dealing with debt over the holidays:

First off, set a holiday budget and keep track of what you spend. Establishing a budget is the best way to ensure that you don’t overspend. Have several people to buy for? Divide that budget into envelopes and take those with you when you shop – once an envelope is empty you are finished with that person.

Start a Secret Santa tradition. Instead of buying for all of the adults in your family, draw names and set a budget and each person buys only for one person – this can seriously cut costs.

Shop with a list. This can help curb over-spending if you stick to the list rather than buying everything that you see and think others will love.

Shop early. You still have a few weeks before you have to give those gifts, so get started right now. This also helps to give you time to price match, ensuring everything you want is in stock. And when shopping early, take the time to look for sales and discounts.

Get creative. If you have the time and the imagination you can save a ton of money by making gifts rather than buying them. Take advantage of Pinterest for great gift ideas that you can make yourself – you might even find some great ideas and suggestions on saving money in other ways.

Remember: many of us start out with good intentions –buying everything with credits cards with the intention of paying these cards off as soon as the holidays are over – but this isn’t usually what happens and many individuals find themselves paying for their holiday spending months into the New Year. Don’t let the holidays = huge credit card debt.

Dealing with debt during the holidays can be a challenge, especially if you are already struggling financially, but these tips may just help you keep things in perspective and stop you from going overboard.

For more about dealing with debt, whether during the holidays or at any time during the year, please contact DebtCare Canada for tips that you can use any time: 1-888-890-0888.