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

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

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

Use these links to find financial help in your language:

-          http://bankruptcy-chinese.com/

-          http://bankruptcy-korean.com/

-          http://bancarrota-canada.com/

-          http://debt-chinese.com/

-          http://debt-korean.com/

-          http://www.deudas-canada.com/

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

The Last Loan

We wanted to write this blog because we often see patterns regarding triggers for serious financial problems and clear points in time where different choices could have changed the course of the problem. Sure, there are instances where a sudden occurrence, such as a job loss or divorce, can cause abrupt and unexpected financial turmoil, but more often than not people build their financial problem over time.

This is evidenced by just about every news publication reporting that Canadians are carrying a dangerously high level of personal debt. Over time debt accumulates like a snowball.

Example scenario:

·         It only takes using those credit cards too much one month to push you into a situation where you can’t pay in full and so you make a smaller payment.

·         Eventually you have a few cards with small balances so you decide to get a line of credit to consolidate them – only you keep using the cards once you’ve paid them off.

·         Finally you decide that enough is enough - you get a consolidation loan at the bank to pay the line of credit and the credit cards.

·         You go a couple of months without using the cards but then your transmission goes. You think, well, you will only use the card once, but this means the cycle starts again…

·         A year later, you have the consolidation loan and a balance on the line of credit and a couple of credit cards.

·         You have accumulated some equity in your property, so you decide to get a second mortgage to pay off all the debt one final time. You are successful in doing so.

·         However, in the end, just like with the last consolidation loan, a few months later you begin using your cards again and a year later you find yourself making a slew of minimum payments on your credit cards.

Now you reach a pivotal point – another loan? We say no! Let your last loan be the last loan.

Just as Einstein said, the definition of insanity is doing the same thing over and over again and expecting different results. If you continue to refinance and restructure your debt year over year, each year owing more, you will be caught in a cycle that is not going to break unless you win the lottery or get a major raise at work (and how likely is either one of these?).

There comes a time when one must say “self, I need to get some professional help”. Just like you may go to a therapist for a personal problem or a lawyer for a legal problem, one who continues to struggle with accumulated debt also benefits from professional guidance.

Stop the insanity! Maybe there is a quick fix and some help with budgeting is the answer, or perhaps you have really dug yourself into a hole and need some major intervention. Either way, you are going to need to do something very different to break the financial cycle you are in.

If you would like to make your last loan your last loan and need financial guidance DebtCare Canada can help. Call us today 1-888-890-0888. 

The Truth About Canadian Payday Loans

Canadian payday loans are a controversial topic and while they are now regulated in Ontario they still continue to be the reason that many consumers run into severe financial problems.

Canadian payday loans are a type of credit product that is very easy to get. Whether you have good credit or bad credit, if you are employed with a paystub you can get a payday loan. Canadian payday loan companies will not pull your credit report and the loan is granted based on your income. Payday loans are short term loans that have to be repaid in full from the first paycheque that the client receives after receiving the payday loan.

Here is how Canadian payday loans work:

1.     The Canadian payday loan company will give you a loan based on your income. Some Canadian payday loan companies will lend you up to 100% of your income on a given pay period. For example, if you earn $1000 bi-weekly you can borrow up to $1000.

2.     The payday loan company will charge you to borrow the money until your next paycheque – the charge is usually large and a $1000 payday loan for 2 weeks could bear a charge of $100-$250.

3.     On your next paycheque (still following the $1000 example) you would owe $1100-$1250 even though your paycheque is only $1000. 

Many, many people find that when a payday loan comes due the loan cannot be paid in full, resulting in a default, rolling over the payday loan, or taking out another payday loan.

If you default on Canadian payday loans, the situation can get very embarrassing very fast. The Canadian payday loan company will not hesitate to call your employer, may fax notice to your employer, may send you to collections, or worse, sue you.

If you roll over a $1000 payday loan that costs you $150 bi-weekly to borrow, at the end of 6 months you will have paid $1300 in fees on a $1000 loan, which is more than the amount of the original loan.

If you take out multiple payday loans you could end up owing more in fees on payday loans than you earn.

This is a dangerous cycle, and if you are drowning in Canadian payday loans you have to break the cycle. You can get rid of Canadian payday loans but the method you use to do so will greatly depend on your personal financial situation, how many you have, whether or not you are in default and more.

Speaking to a consultant who knows how to deal with payday loans is a sound way to get both good advice and put plan together. Once you deal with your Canadian payday loans the key is to never take them out again!

For more information about Canadian payday loans or if you need help to get rid of Canadian payday loans please visit www.debtcare.ca or call 416-907-2582.

How to Stop a Small Claims Court Action in Canada

Bad things happen to good people, and nobody intends to run into financial problems that can lead to defaulting on obligations to credit card companies. Individuals lose jobs, income, have medical problems in the family, or separate from spouses. These are just a few of the reasons why an individual might see his or her credit and finances turn into a mess that can seem impossible to clean up. 

Unfortunately, the big banks and most creditors will not be considerate of your personal situation. Your account simply represents a numbered debt to them, and so if you don’t pay them you can quickly find yourself in Small ClaimsCourt.

Most Small Claims Court actions in Canada follow the same process:

1.       Your creditor sues you by filing a claim in the Small Claims Court (depending on the amount that you owe).

2.       Your creditor serves the claim upon you.

3.       You have an opportunity to file a defence.

a.       At this point many people do not file a defence because they are ashamed and know that they owe the money and don’t want to face the embarrassment of going to court. In the absence of another plan to deal with the debt, that is the reason that you are being sued – so not filing a defense is a big mistake.

4.       If no defence is filed, your creditor can obtain a default judgement from the Small Claims Court.

5.       Once your creditor obtains a default judgement, he or she can utilize enforcement remedies that are available through the Small Claims Court, such as garnishing your wages or freezing your bank account.

So how can you stop a Small Claims Court action in Canada? If you know that you owe the money and you know that there is no way to pay the debt off, then you have two choices:

1.       File a defence with the Small Claims Court requesting a monthly payment plan.

2.       If you already have a judgement against you, you can file a motion with the Small Claims Court explaining why you didn’t file a defence and request permission to file one and then request a monthly payment plan.

Here are the challenges with the above 2 scenarios: 1) Your creditor will still have to accept your monthly payment plan; 2) Interest will continue to compound on the debt; 3) The moment you default, you creditor can obtain a judgement against you; 4) The Small Claims Court will continue to be in your life until such time as the debt is paid in full.

Fortunately for you there are programs available in Canada that are legislated options for getting out of debt, and these options may not involve bankruptcy. Leveraging one of these financial programs can stop a Small Claims Court action, even if your wages are being garnished or your bank account is frozen! These programs can reduce your overall debt and freeze interest. If you owe money that you can’t repay, don’t deny or ignore the fact that you owe the money, especially if you have been sued in Small Claims Court. The best way to stop a Small Claims Court action that has arisen from an unpaid debt and resolve your financial problem is to seek professional financial guidance.

For more information about how to stop a Small Claims Court action that is associated with an unpaid debt, contact DebtCare at 416-907-2582 or visit www.debtcare.ca.

Credit Counselling Canada - How Does It Work and Who Qualifies

If you are having challenges managing your debt there are many solutions available. The solution you choose will largely depend on your personal and financial circumstances. The amount of debt that you have, for example, will change the financial solutions available to you.  

Credit counselling Canada is a service that helps many Canadians deal with financial challenges. Credit counselling Canada, like any other financial solution, has its pros and its cons. While Credit counselling Canada can help Canadians with any amount of debt, you are best suited to consider it as an option if you owe $7,000 or less in total debt. 

Credit counselling Canada is largely funded by creditors and is not for profit. The credit counselling agency will make a proposal to your creditors that allows you to make a reduced, fixed monthly payment each month. This proposal is not a consumer proposal and this proposal will not reduce your overall debt. It simply provides for a reduced monthly payment.

The main benefit here is that if you cannot manage your current monthly payments, this will enable you to do so. People who have payday loans and only payday loans are best suited to consider credit counselling Canada. Generally people who have multiple payday loans and no other debt only owe a small amount of money, so other financial options, such as a consumer proposal, are not available to them. Credit counselling Canada will enable someone who has expensive payday loans to make a single reduced monthly payment that they can afford.

The cons of a credit counselling program include:

·         Damage to credit (likely damage to credit has already occurred though if you are not managing your monthly payments)

·         Overall amount of debt is not reduced

·         Depending on the repayment plan you negotiate, it could extend over many, many years

The cons that exist with Credit counselling Canada are the primary reasons why an individual who owes more than $7000 should consider other financial options rather than jumping into a credit counselling program.

A consumer proposal is often a better option than a credit counselling program. When a consumer proposal is arranged, it is formal and final. If your creditors accept a consumer proposal you have the option to pay it off in full at any time. While a consumer proposal can also have some negative impacts on your credit, your credit can often be repaired faster with a consumer proposal when compared to a credit counselling program. Evidence of a consumer proposal will be removed from your credit report three years from the date it is paid in full.

A consumer proposal may reduce the overall amount of your debt, and because you can pay it off in full, the ball is in your court as far as how long it takes for you to pay it off in full.

Generally speaking, if you have a financial problem that is resulting in an inability for you to make your monthly payments, or if you have too much debt, you should seek financial guidance. It is advisable to seek this guidance from an independent financial professional who you can hire to help you make the best financial decision and who does not work for the company that is providing you the services. For example, if you are considering a credit counselling program, do not go directly to the credit counselling agency because they will advise you based on the programs they have available, or if you are considering a consumer proposal, do not go directly to the trustee in bankruptcy or you may not get the best deal.

For more information about credit counselling Canada or to see if you qualify please visit www.debtcare.ca or call 416-907-2582.

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/