Step into Spring with a Smile: Realistic Ways to Get Rid of Credit Card Debt

Is your credit card debt making it hard to get to sleep at night? Are you finding it hard to focus on daily tasks because of the stress? Are collection agencies calling you or your family members in an attempt to obtain what you owe? Are you avoiding opening bills that you know you can’t pay?

If you answered yes to any of these questions, don’t worry, you are not alone. Thousands of Canadians struggle with this financial problem on a regular basis. The ease with which credit companies extend credit and the high interest rates have made credit card debt a national problem, one that continues to plague the average Canadian no matter their income or financial status.

Does this mean that you have to continue to struggle to make those monthly payments or combat the stress? No – there are ways to get rid of credit card debt and stop the calls and finally get a good night’s sleep.

• Firstly, stop using those cards. Right now! Remove the cards from your wallet to help resist the temptation.

• Secondly, assess your debt. Make a list of the credit cards, the amounts you owe, and the monthly payments. Follow this up with a monthly budget, including everything you spend money on and all income. Once you’ve done this, establish what expenditures can be cut – and cut them.

• Attack your debt. Once you’ve cut your spending, start applying that extra income to your current debt load. Make sure that you are making at least the monthly minimum payment on each card, and apply any additional savings to the balances owed.

If this doesn’t seem like a realistic approach for the amount of debt you are currently carrying, or if making minimum payments has become almost impossible, some more serious methods may need to be considered. If this is your current situation, our best advice is to speak with an experienced debt specialist right away. Getting rid of your credit card debt might mean a debt consolidation, consumer proposal or bankruptcy – all of which are complex and come with a number of great benefits.

Stop ignoring those phone calls and throwing away those bills. Deal with your credit card debt and eliminate that stress.

For more about getting rid of credit card debt that seems to be holding you back please call DebtCare Canada today at 1-888-890-0888.

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.

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.

Getting Back in The Black: Credit Card Debt

Credit card debt – the giant elephant in the room that sometimes you don’t even want to acknowledge, let alone discuss with anyone else. We all know that sometimes it gets to the point that ignoring this monetary mountain seems like the only way to preserve your sanity – but if you’ve reached this point we urge you to reconsider! In this case, the phrase ignorance is bliss could never be more incorrect!!

Here are some realistic credit card debt solutions that can help you get a handle on these financial obligations:

• Pay the minimum monthly payment at the very least. Never ignore a credit card statement – this will quickly destroy your credit. If you can, pay a bit more than your minimum payment on each card. Since monthly minimum payments are mostly interest, paying just a bit more each month means you are actually paying off the balance.

• Pay the card with the highest interest first. With interest rates as high as 29%, your monthly payments on credit cards are going to be almost all interest – meaning very little is actually being achieved as far as paying these cards off. A popular method for getting rid of credit card debt is to start with the card with the highest interest rate and pay as much as your budget will allow on top of the minimum payment, while still maintaining the minimum payments on your other cards. Once that card if paid off, start on the card with the next highest interest rate.

Sure, these two suggestions are both great if possible – but if you can’t pay even the minimum, it might be time to think about some other options.

• Apply for a debt consolidation loan. One of the reasons that credit card debt is so problematic is because of its high interest. If you have more than one credit card company hounding you for payments on a regular basis, why not consolidate all of those debts into one with a consolidation loan with a lower interest rate. Not only does this option reduce the amount that you are required to pay (meaning more is applied to the amount owing rather than just empty interest payments), it also keeps it contained with one convenient monthly payment.

Can’t get a handle on your credit card debt and feel as though you are suffocating? Don’t let it become insurmountable. Get in touch with a debt solutions organization with the knowledge and expertise that can help you get a grip on this all too common financial problem.

For more about strategies for dealing with credit card debt please call DebtCare Canada today at 1-888-890-0888.

Say Goodbye to Credit Card Debt

With Canada’s consumer debt continuing to rise, although at a slower rate, it is no surprise when individuals come to us looking for credit card debt relief. The ease with which credit card companies extend credit, even to those with less than stellar credit, and with credit limits far exceeding what is necessary, it can be really easy to get in over your head relatively quickly. And with all of that spending, at month’s end, or a few months down the road, you might find yourself in the common position of wondering how you are ever going to pay down those debts!

Because they carry such high interest rates, and because the balance is revolving (meaning once you have paid off a portion, that credit becomes available again), credit cards are often the most difficult types of debt to pay off. But there is always hope. Start by paying more than the minimum payment each month, as much as you can. The minimum payment is typically little more than interest, and therefore not much is actually going onto the principal.

Don’t have enough extra each month to pay that much more than the minimum on more than one card? One of the best ways to deal with this situation is to start with the card with the highest interest rate and pay as much as possible. Since this card is costing you the most, work harder at paying it off. Once it is paid off, move to the one with the next highest rate.

So how can you cut down that monthly spending in order to find the cash to add to each month’s payment and cut down your credit card debt? What about taking advantage of these useful, but all too often ignored, money saving strategies:

-        Have a yard sale – you have all of that stuff lying around anyways – why not get rid of it and make some money in the process.

-        Save your change – when you empty your pockets, instead of using that money tomorrow, put it in a jar and save it up – you might be surprised how fast it actually grows.

-        Make your own lunch and brew your own coffee – sure, this might mean a bit of extra time and effort, but just think about the fact that that $2 a day coffee habit is actually costing you $40 a month!

-        Coupon clip – check the flyers, look online, and search for deals in store. Again, this might take a bit of extra time but the savings in your pocket can actually be well worth it!

-        Visit the library – don’t think that the theatre or overpriced bookstore are your only options for entertainment. Your local library probably has a great selection that is largely underused – and free!!

-        Plan your meals and groceries in advance – buying everything at once lets you take advantage of bulk buys, and can mean useful ways to stretch the budget and the food.

Credit card debt can be a nightmare to deal with, but with the right support and guidance it is possible to pay it off. DebtCare can help. Call us today at 1-888-890-0888.

DebtCare Canada Weighs In: Student Debt

It is very common nowadays to hear about 20 something individuals living with parents, or struggling to meet their financial responsibilities, especially when compared to 20 years ago – and as a recent Yahoo Canada article points out, much of this has to do with the rising costs of university education and the resulting student debt levels. This, coupled with the less than promising job market, has left many young Canadians facing significant challenges when it comes to their life plans.

Our very own Michael Goldenberg, President of DebtCare Canada, was interviewed for the article, and had this to say: “Increasing debt and no plan to pay it off is a common problem among young Canadians, known as Gen Y or Millenials.”And it isn’t just student debt that is getting these individuals into trouble - as Michael states, “the extreme accessibility to credit that helps fuel the need for instant gratification” is also causing major financial problems for young Canadians when it comes to establishing themselves financially and saving for the future.

Are young Canadians out of luck then when it comes to getting things straightened out? No, there are options available – it just requires discussing those options and choosing the one that best fits the situation.

Check out the full article here: http://ca.news.yahoo.com/challenges-facing-young-canadians-throw-life-plans-curve-184000091.html

Whether you are dealing with student debt, credit card debt, or a combination of the two, DebtCare Canada can help you get the relief you need to start over on fresh financial footing. Contact us today by calling 1-888-890-0888.

March Break Madness – Don’t Rack Up That Credit Card Debt

Hey parents: March Break is right around the corner, and for many Canadians with kids this can mean a week filled with activity and outings. And these outings can often become huge expenditures. When you are already in credit card debt up to your eyeballs, these costs are all that much more troublesome. This year, skip the costly jaunts and daytrips and opt for something a little less expensive.

Simple Saving Tip #1: Get crafty at home. If you are creative, this can be a great way to not only save a buck but also to get in some much needed family time. Check out websites for crafty ideas to keep the kids occupied (ones that involve things around the house rather than things your need to go out and buy).

Simple Saving Tip #2: Check out free community events. Many communities plan and organize events for school-aged kids over the March break, so why not take advantage of them. Better yet, get together with a few other parents and organize a pick up and drop off schedule so that one parent doesn’t have to do everything and the kids can participate in a group. Libraries and arenas are often a safe bet.

Simple Saving Tip #3: Skip the trip down south and opt for a day at an indoor waterpark. Pack up the kids and their swimsuits and head to the ‘beach.’ Even more savings can be had if you bring a picnic lunch, rather than shelling out major dough on fast food. Sure, you’ll be basking in the glow of artificial sunlight, but your wallet and the credit cards inside will thank you!

Simple Saving Tip #4: Plan a movie or game day. Sure, vegging out on the couch may not be something you want to drill into your children’s heads, but the odd movie date never really hurt anyone. Pop your own popcorn or bake some cookies together for snacks and sit down on the couch to enjoy a flick. Or grab those dusty board games from the top shelf and get a little healthy competition flowing.

Simple Saving Tip #5: Get some fresh air. Check out local hills and grab a toboggan for some fun in the snow. Take the family dog for a long hike through the forest. Take out the skates and head to the local outdoor rink. Bonus: exercise will make you feel better too!

Just because it is March Break doesn’t mean you need to rack up that credit card debt. Use these simple money saving methods to keep kids entertained without breaking the bank.

For more information about credit card debt, how to stop it from accumulating or how to deal with it, please contact DebtCare Canada today by calling 1 (888) 890-0888.

Credit Card Debt Relief Scams - Buyer Beware

If you are drowning in credit card debt then there is no doubt you have been thinking about how you can get credit card debt relief. Fortunately for you there are more companies than ever before advertising credit card debt relief services, but it is very important to do your due diligence when choosing one if you want to avoid credit card debt relief scams. 

Here are some things that you should ask yourself in order to find a legitimate company:
1.       Does the company have a website?
2.       Is the company listed with Industry Canada?
3.       Does the company have a bricks and mortar retail location?
4.       Have past clients of the company made positive reviews about them?
5.       Do the company and its employees have a presence online on sites like LinkedIn?

If you want to avoid credit card debt relief scams, ask a lot of questions: 

 1.       Does the company charge an upfront fee? If they do, this is a not a good sign. The company should be able to present you with financial options and advise you of the cost to participate in them. Only upon selecting a program should you pay any fee to the company. 

2.       Is the company going to hold the money you pay to them monthly and then disperse the money at a later date? Beware of credit card debt relief companies that collect money from you monthly on the premise that once it has accumulated, they will use it to settle your debt. You don’t know what could happen with the company in the future and this is risky business. 

3.       What will the impact be to your credit? Let’s be realistic – if you are behind making payments or know you will be soon, your credit has likely already taken a hit – or you should expect it to. Any debt solution that involves reducing your debt or freezing the interest will have a negative impact to your credit. A financial program that involves reducing your debt will cause you to pay off your debt much sooner so it really is short term gain for long term pain. Our point here is that the company that offers you debt relief should be open about the implications that different programs will have on your credit and have the ability to guide you through the process of rebuilding your credit. 

4.       Ask the company to be clear about their solution. Many companies will promote debt consolidation but there are different types of debt consolidation. Debt consolidation involves consolidating debts into a single monthly payment. Many credit card debt relief options achieve this but each is different. For example:

a.       If a bank gives you a debt consolidation loan your creditors will be paid off in full. Pros: You can preserve your credit and your relationships with your creditors. Cons: You will pay interest on the debt and it will take a long time to pay off. Also, you must have good credit for this option.
b.      You could refinance your mortgage to consolidate your debt. Pros: You can preserve your credit and your relationships with your creditors. Cons: You will pay interest on the debt and you will be stretching the debt out over your mortgage amortization.
c.       If you go to credit counselling they will allow you to make a single monthly payment to them. Pros: Monthly payments are low. Cons: Damages credit, damages relationships with creditors, takes a really long time to pay off.
d.      A consumer proposal also involves making a single monthly payment. Pros: Debt can be reduced, single monthly payment, stops collection action, interest is frozen. Cons: Damage to credit.
e.      A bankruptcy will also result in a consolidated single monthly payment. Pros: Debt can be reduced, single monthly payment, stops collection action, interest is frozen. Cons: Damage to credit, ongoing reporting obligation to trustee, if financial situation improves payments could be increased. 

When looking for a company that offers debt solutions remember that if you do your research and ask a lot of questions you should be able to find a debt solution while avoiding credit card debt relief scams. 

For more information about credit card debt relief or if you need help with a financial problem please call DebtCare at 1-888-890-0888 or visit www.debtcare.ca. 

Finding Debt Relief from Holiday Credit Card Bills

Credit cards are scary because they are easy to run up and then difficult to pay down. Did you know that last year it was reported that the average Canadian is carrying over $40,000 in unsecured debt? If you are one of these Canadians then you probably had credit card debt before you even started holiday shopping! Now the holiday shopping credit card bills are rolling in and you are likely thinking that you could really use some debt relief. 

Credit card debt presents the following challenges: 

1.       Damage to your credit. Even if you are making your minimum payments credit cards can still damage your credit. Did you know that if you let your credit card balance get close to the limit, or if you go over the limit, it reduces your credit score? Yes, it is true, and not only does it reduce your credit score it also causes a message to appear on the credit report that indicates that the proportion of the credit card balances are too close to the credit limits.

2.       Minimum monthly payments are too small. Credit card companies set your minimum monthly payment at 1-3% of your balance. This is simply too small. If you make only minimum monthly payments on credit cards it can take many years to pay down the balance.

3.       Monthly compound interest. Unlike loans, credit card interest compounds monthly (12 times per year). This means that interest is added to your balance each month. When you combine the fact that your interest compounds monthly with the fact that your minimum monthly payment on your credit card is likely set at 1-3% of your balance, the effective cost to borrow using your credit card is significantly higher than the interest rate on your credit card. 

Credit card debt can quickly become overwhelming because once it accumulates it can become really difficult to pay off. Most people do not have the kind of cash flow needed to really get those credit card bills paid off.  

Getting debt relief from your holiday credit card bills can be achieved three ways:

1.       By paying off the debt by liquidating your savings, getting help from family or winning the lottery. Unfortunately this is an option that most folks don’t enjoy.

2.       By consolidating debt through:

a.       A loan with the bank – you will need good credit for this option.

b.      A mortgage refinance – you will need a home with equity for this option.

3.       By taking advantage of an alternate financial program. 

If you don’t have good credit or assets then an alternate financial program may be the best choice for you.  An alternate financial program will enable you to make a single monthly payment, as in a debt consolidation, and will stop the interest from accruing on your credit cards. Sounds like a great solution right? Well, really the right solution will depend on your personal financial circumstances. Before making any of the above choices your best bet is to speak with a financial consultant who is hired by you, one who can offer you unbiased financial advice so that you can get debt relief from your holiday credit card bills and start off the year on fresh financial footing.

For more information about finding debt relief contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

Post-Holiday Debt Consolidation… Bah Humbug!

This holiday season is forecasted to be a big one in the area of personal spending. This trend has been gradually increasing over the last few years, especially in the area of e-commerce spending, and retailers are gearing up for the boom.

Over the holiday season, so many families find themselves using their credit cards to make ends meet. The holiday is a special time with the family and the last things people want to think about during that time are mounting credit card bills or debt consolidation.

The challenge and reality is that credit cards are the most expensive way to shop for the holidays and ignoring your finances through the holiday season can have devastating long-term impacts. With some planning and guidance you can navigate the holiday season with less debt and with a financial plan moving into 2013.

If you have credit cards, then by now you likely know how expensive they can get. You may still be carrying debt left over from last year’s holiday season. The interest is what makes credit cards so expensive. Because minimum required monthly payments are set so low on credit cards, and because the interest compounds monthly (12 times per year), once a credit card debt accumulates it becomes very difficult to pay off. Even low rate lines of credit are difficult to pay off, not just because of the interest rate but because of the way the interest compounds.

For example, if you owe $3000 on your credit card and your interest rate is 17%, that means your monthly interest is $42.00. This will mean that you will have to make significantly more than your minimum payment to pay your balance down. If you accumulated the debt thinking that the minimum payments on your credit card were manageable, chances are you have realized that this is not the case. In reality, it can take years to pay off a debt, even one as small as $3000, by just making the minimum monthly payments. Once the interest begins accumulating, it will begin to consume most of your minimum monthly payment.

Some people find themselves in so much credit card debt that even managing the minimum monthly payments becomes challenging. No one finds themselves in this situation intentionally and it usually happens over a period of time. Paying them outright is often impossible, as things always come up, such as car repairs, children's back to school costs, and of course – at the most expensive time of year – all of that holiday spending.

A debt consolidation can be a vital part of a strong holiday financial plan. By consolidating your debt into a single monthly payment you won't have to pay all of your credit card bills over the holiday season, thus freeing up some much needed cash flow for holiday shopping. Because a debt consolidation involves consolidating your debt into a single monthly payment, you will sail through the holidays without bills from creditors and will be able start the New Year with one, low, single monthly payment.

Choosing the right type of debt consolidation is very important. Some debt consolidations bear interest or are over long terms, whereas others can freeze the interest you owe on your debts. The right debt consolidation solution for you will largely depend on your own personal financial circumstances.

For more information on holiday debt consolidation and to see if you qualify please contact DebtCare at 416-907-2582 or visit www.debtcare.ca. 

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