DebtCare’s CEO Michael Goldenberg Talks Debt Management Assistance

Debt continues to be something that many Canadian families struggle with. Check out this interview where Mint Intuit sat down with DebtCare CEO Michael Goldenberg to discuss what you should look for when seeking assistance from a debt management company.

Check out the full interview here: https://www.mint.com/expert-interview-michael-goldenberg-debt-management-assistance.

DebtCare has the experience and knowledge that can help you achieve financial freedom. Call us today at 1-888-890-0888. 

Debt Consolidations – The Dos and Don’ts

Over 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

It 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

This 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

When 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.