Tag: Bankruptcy

Categories
Brandon Blog Post

CREDIT SCORE CHART MATCHMAKING SECRETS

budgetingX CreditX credit scoreX credit score chartX credit score rangeX credit scoresX DebtX Federal ReserveX financial healthX financial stressX money managementX starting over starting nowThe Federal Reserve uses the credit score chart for matchmaking?

Did you ever envision that your credit score chart would provide the key to successful matchmaking? From newspaper columnists to Dr. Phil, everyone is a relationship guru; but you may be surprised to learn that the Federal Reserve is also dispensing relationship advice.

Economists Jane Dokko, Geng Li and Jessica Hayes believe that the credit score range contained in a credit score chart has an important role to play in predicting the stability and potential longevity of a relationship. This is what they discovered:

  • People with credit scores at the higher end of the credit score chart are more likely to be in a committed relationship and stay together
  • People tend to form relationships with others who have a similar credit score as them
  • The strength of the match, both in the headline credit score and its details, is predictive of whether or not a couple are more likely to break up for observable reasons pertaining to finance and household spending
  • Credit scores are indicative of trustworthiness in general, and couples with a mismatch in credit scores are more likely to see their relationships end for reasons not directly related to their use of credit

Better budgeting and better ranking on the credit score chart leads to better relationships

Echoing these findings, in a recent survey by Ally Bank 55% of respondents said that a strong budgeting and saving strategy was the most appealing money-related quality a partner or potential partner could have. In addition, 75% of the respondents to this survey said it was moderately or highly important to find a partner with a similar approach to money and budgeting.

Get your rightful place on the credit score chart now

Financial stress and poor money management can ruin your relationship, but it doesn’t have to. Don’t be afraid of debt. Face it head on with the help of the Ira Smith Team. We can help you restore your life to financial health Starting Over, Starting Now. Contact us immediately so that we can create your personalized plan to get you your better place on the credit score chart. Give us a call today.

Categories
Brandon Blog Post

SENIORS DEBT RELIEF CANADA: STRESS FREE THROUGH SENIORS DEBT RELIEF CANADA

SENIORS DEBT RELIEF CANADA: STRESS FREE THROUGH SENIORS DEBT RELIEF CANADA

The topic of seniors debt relief Canada has been described in the media frequently over the last year. Last week we published our blog THE MODERN RULES OF SENIORS CARRYING DEBT. Before that we’ve done a series of blogs about seniors in debt:

Many Canadian seniors are struggling financially in what should have been a carefree retirement. They desperately need seniors debt relief Canada.

However, the problem with seniors carrying indebtedness into retirement is not going away. In fact, seniors have now become so accustomed to living this way that they are using it to finance their lifestyles instead of downsizing or cutting back on expenses.

The full story has not yet played out. Given that retirees and working seniors are less likely to be taking steps to accelerate their liabilities repayment, the stress on them will get worse.

The number of seniors in this situation is not only in low rate mortgages right now but is also increasing in other credit categories, such as auto loans, bank loans, lines of credit and credit cards.

This can be a recipe for disaster if interest rates rise. Where is the extra income going to come from? If you’re one of these seniors or anyone else who is relying on credit to support their lifestyle, give the Ira Smith Trustee & Receiver Inc. Team a call before interest rates rise and while you still have options. With immediate action and the right plan, we can solve your financial problems and set you on a path to a debt free and stress-free living Starting Over, Starting Now.

seniors debt relief canada
Seniors debt relief Canada – Picture courtesy of The Globe & Mail
Categories
Brandon Blog Post

7 REASONS WHY CANADIANS LIVING PAYCHEQUE TO PAYCHEQUE

Canadians living paycheque to paycheque, living paycheque to paycheque, debt, budget, balanced budget, trustees, trustee, Canadian Payroll Association, paycheck to paycheck, living paycheck to paycheck in america, more and more Canadians living paycheque to paycheque, not receiving their paycheque, Ira Smith Trustee & Receiver Inc., starting over starting now, how to stop living paycheque to paycheque, budget, Vaughan bankruptcy trustee, Vaughan bankruptcyMore and more Canadians living paycheque to paycheque (and people are also living paycheck to paycheck in America)

The results of a new survey released by the Canadian Payroll Association were quite frankly alarming.

  1. Almost half of people polled said they are Canadians living paycheque to paycheque and would find it difficult to meet their financial obligations if their pay was delayed by just a week resulting in their not receiving their paycheque on time
  2. Less than 25% of respondents said they could probably not come up with $2,000 if an emergency arose within the next month
  3. 36% per cent of working Canadians said they felt overwhelmed by their level of debt
  4. 12% per cent doubted they’ll ever be debt free
  5. 75% of working Canadians polled reporting having put aside less than 25% of the money they expect to need in retirement
  6. 35% of respondents expect to work longer
  7. 20% of employees surveyed said they will need to work four years or more than they originally expected before retiring, citing a lack of sufficient savings as the main reason

How to stop living paycheque to paycheque – behaviour modification

Although this situation is nationwide, it’s worse in Ontario, British Columbia and Atlantic Canada. Can the Canadians living paycheque to paycheque problem be cured with a change in spending habits? According to BMO’s 2015 Psychology of Savings Report, it is.

The report shows a majority of Canadians, or 88% of respondents polled, said they are willing to improve their current financial status. However, 38% also admitted that they have developed bad spending and savings habits and 31% said they’re not willing to let go of them.

Consult your Vaughan bankruptcy trustee

As professional trustees we recognize and preach the importance of a balanced budget. In fact we published two blogs on the subject.

If you’re like many Canadians living paycheque to paycheque, it’s time to put an end to the constant struggle. Contact Ira Smith Trustee & Receiver Inc. today. We can help to restore you to financial health with a balanced budget and a plan for healthy financial living Starting Over, Starting Now.

Categories
Brandon Blog Post

ADVANTAGES OF CONSUMER PROPOSALS VIDEO FOR YOU

Introduction

We have written many blogs on the advantages of consumer proposals, including:

We thought it would be good to now put together a short video on the topic.

The best alternative to personal bankruptcy in Canada

Of the various alternatives to bankruptcy, this government approved debt settlement plan is the one option with the most predictable and certain results for the insolvent person in dealing with their debt. You may have heard a proposal being called other names such as consumer credit proposal, debt proposal or debt settlement.

The main difference is that the only formal legal mechanism to be able to stop your creditors from continuing to harass and sue you is with a formal consumer proposal through a licensed trustee in bankruptcy. Unlike the other options, the consumer proposal is codified in the Canadian Bankruptcy and Insolvency Act which provides the trustee with certain weapons that can be used for your protection.

That is why we say that of all the bankruptcy alternatives, the consumer proposal is the best one. There are many bankruptcy options, but the consumer proposal also allows you to rebuild your credit thereby increasing your credit score.

Keep away from bankruptcy with the advantages of consumer proposals

If you are insolvent and are considering bankruptcy, contact Ira Smith Trustee & Receiver Inc. We offer sound advice, will check all of your bankruptcy options with you and then with you, formulate a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt-free life in no time.

advantages of consumer proposals

Categories
Brandon Blog Post

THE MODERN RULES OF SENIORS CARRYING DEBT

seniors, seniors carrying debt, seniors in debt, debt, auto loans, bank loans, lines of credit, credit card debt, interest rates, Ira Smith Trustee & Receiver Inc., retirees, starting over starting now, stress of carrying debtSeniors carrying debt becomes the norm

Many Canadian seniors are struggling financially in what should have been a carefree retirement. We’ve done a series of blogs about seniors in debt:

Seniors carrying debt is not going away

However, this problem is not going away. In fact, seniors have now become so accustomed to living with debt that they are using it to finance their lifestyles instead of downsizing or cutting back on expenses. For the time being, seniors are not feeling the stress of carrying debt. Given that retirees and working seniors carrying debt are less likely to be taking steps to accelerate their debt repayment, the problem may very well get worse.

Seniors carrying debt not bothered by it

According to a survey conducted by Equifax for HomEquity Bank:

  • A number of Canadians over 75 are still dealing with a mortgage and their numbers are rising
  • 11.3 million Canadians 55 or older have some sort of debt. Of that figure, about 1.87 million are carrying a mortgage which is up 20% in two years
  • Outstanding mortgage balances are up for every segment of seniors, which for the purposes of the survey was anyone over the age of 55
  • In the 75-and-over category, the average senior with a mortgage had $133,944 outstanding, up 11% from two years ago
  • The number of seniors carrying debt is also increasing in other credit categories, such as auto loans, bank loans, lines of credit and credit card debt

Yvonne Ziomecki, senior vice-president of marketing and sales of HomEquity Bank states, “A lot of people I talk to, they just don’t really care. This is how they manage their finances and they are perfectly comfortable with it”.

Seniors carrying debt need to take action now

This can be a recipe for disaster if interest rates rise. Where is the extra income going to come from? If you’re one of the seniors carrying debt, or anyone else who is relying on credit to support their lifestyle, give the Ira Smith Trustee & Receiver Inc. Team a call before interest rates rise and while you still have options. With immediate action and the right plan we can solve your financial problems and set you on a path to debt free and stress free living Starting Over, Starting Now.

Categories
Brandon Blog Post

CREDIT CARD DEBT: 9 REASONS HOUSEHOLDS ARE BEING CRUSHED BY CREDIT CARD DEBT

average credit card debt, credit card debt, credit card debt consolidation loan, credit card debt help, credit card reward points, credit card debt settlement, credit card debt solutions, credit card, credit cards, debt settlement company, Visa, MasterCard, American Express, TransUnion, interest rates, budget, how to pay off credit card debt, paying off credit card debt, trustee, nerdwallet.com, starting over starting now, Ira Smith Trustee & Receiver Inc., how to get out of credit card debtCredit card debt because of reward points?

The quest for credit card reward points has caused many Canadians to overspend and get deeper into debt. We’re being lured by the promise of free trips, free merchandise, services and cash back. As a result we’re overusing credit and we’re left with monthly balances that are accruing high interest charges.

The 9 reasons people are being crushed by credit card debt

According to Canada.CreditCards.com:

  1. 52% of Canadian households had credit card debt not being repaid in full by the due date in 2014
  2. Credit card debt as of November 30, 2014: $75 billion
  3. Average credit card debt as of Nov. 30, 2014: $2,627 for each Canadian age 18 or over
  4. Average number of credit cards per Canadian adult: 2.9 in 2013 (including Visa, MasterCard and American Express)
  5. Canadian adult credit card holders carrying cards with rewards: 77% in 2013
  6. The average Canadian household has members belonging to a total of 8.2 loyalty programs

The US statistics are even more eye popping

According to nerdwallet.com:

  1. The average US household credit card debt stands at $15,706, counting only those households carrying debt
  2. Based on an analysis of Federal Reserve statistics and other government data, the average credit card debt per household is $7,327 on their cards
  3. Looking only at indebted households, the average outstanding balance rises to $15,706

What are your reward points really costing you?

Many Canadians don’t understand the true value of reward points. Typically reward points are worth 2% or less. However, annual interest rates are typically in the range of 20%. The reality is that if you’re paying interest on an unpaid balance then you’re really going into debt and not benefitting anything from your reward points. They’re costing you way too much for no return.

Start learning now how to pay off your credit card

TransUnion Canada says for every $1,000 charged in a given month, only about $600 will be paid off by the due date to avoid interest charges. Instead of focusing on reward points, make every attempt to pay off your credit card balance. If you are one of the many not paying off your balance in full each month, stop paying 20% in interest charges by:

  • Making a budget and sticking to it
  • Include some amount in your budget for paying off credit card balances
  • Use cash, not a credit card, to pay for necessities
  • Pay for everyday items with cash

When looking for credit card debt help, people normally first think of either a debt consolidation loan or a debt settlement company. Although these are two of the several credit card debt solutions for settling credit card debt, we caution:

How to get out of debt? Take action right now!

Don’t add more debt to your existing debt and don’t ignore your debt! Contact a trustee for professional help. The Ira Smith Trustee & Receiver Inc. Team will evaluate your situation and come up with a solid financial plan to put you back on the right track. We will review your options with you on how to reduce credit card debt and eliminate it, hopefully using one of the bankruptcy alternatives. Call us today and take the first step towards living a debt free life Starting Over, Starting Now.

Categories
Brandon Blog Post

# VIDEO: THE HISTORY OF CONSUMER PROPOSAL DEFINITION #

consumer proposal definition, starting over starting now, trustee, BIA, Bankruptcy and Insolvency Act, debt, bankruptcy, trustee in bankruptcy, consumer proposal, debts, Office of the Superintendent of BankruptcyConsumer Proposal definition

It is important to know what the consumer proposal definition is. A consumer proposal is a relatively new addition to the Bankruptcy and Insolvency Act (BIA), even though it has been around for 23 years. Although the origins of the current BIA can be traced back to the original 1869 An Act respecting Insolvency, the consumer proposal section was enacted with the 1992 amendments to the BIA.

According to the Office of the Superintendent of Bankruptcy, the consumer proposal definition is:

“A consumer proposal is a formal, legally binding process that is administered by a bankruptcy trustee. In this process, the trustee will work with you to develop a “proposal”—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both. The term of a consumer proposal cannot exceed five years.

Payments are made through the trustee, and the trustee uses that money to pay each of your creditors.”

My consumer proposal definition

My consumer proposal definition is THE GREAT alternative to bankruptcy. It’s available only to people, whose total debts do not exceed $250,000, not including debts secured by their principal residence. Working with a trustee in bankruptcy you make a consumer proposal to:

  • Pay your creditors a percentage of what you owe them over a specific time
  • Extend the time you have to pay off the debt
  • Or a combination of both

Watch this short video

I hope that you enjoy the video. Most people facing financial challenges, or insurmountable debt that they can never repay, cannot focus on the consumer proposal definition. We understand that what you need is an experienced trustee to recommend you solutions tailored specifically to your situation. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice and a solid financial plan for Starting Over, Starting Now.

 

Categories
Brandon Blog Post

CONSUMER PROPOSAL VS DEBT SETTLEMENT

consumer proposal vs debt settlement
consumer proposal vs debt settlement

Consumer proposal vs debt settlement vs. debt settlement companies

If you have serious financial problems, there is an option available to you to avoid debt settlement companies and bankruptcy. In fact, more Canadians are now choosing consumer proposals instead of declaring personal bankruptcy. The purpose of this Brandon’s Blog is to explain the benefit of consumer proposal vs. debt settlement companies.

The advantages of consumer proposals with a Trustee can save you from debt settlement companies. Here’s how. Unlike a trustee in bankruptcy, debt settlement
companies have long been a hot-button issue and as a result, we’ve posted several blogs on the subject:

How successful is consumer proposal vs. debt settlement companies?

One of the advantages of consumer proposals vs. debt settlement companies is a high chance of success. Consumer proposals filed by a trustee have an excellent chance of being accepted by creditors. The consumer proposals our office files have experienced almost 100% acceptance by creditors. We know of other trustees who say their success rate with consumer proposals is in the high 90% range.

According to the Canadian Bankers Association, only 10% of offers received from debt settlement companies are accepted and it’s estimated that only 3% are successfully completed. As you can see, consumer proposals vs. debt settlement win hands down!

Advantages of using a licensed trustee in a consumer proposal vs debt settlement company

The reason for the advantages of consumer proposals is because a licensed trustee understands the behaviour of your creditors, is obligated to check all options with you and explain why a consumer proposal is a better option than other ones available, including personal bankruptcy. A trustee can recommend you properly on how to reach a mutually satisfactory compromise on your debt that you can actually complete it successfully, taking your family income and situation into consideration.

If you are considering consumer proposal vs. debt settlement companies

The advantages of consumer proposal vs. debt settlement companies are simple; a trained, educated, licensed financial services professional delivers results. Contact Ira Smith Trustee & Receiver Inc. for sound, professional advice and a solid financial plan for Starting Over, Starting Now.

Categories
Brandon Blog Post

THE NEW ECONOMIC ATTACK IS ON CANADA MIDDLE CLASS

young Canada’s middle class, Canada’s middle class, Statistics Canada, renter households, living paycheque to paycheque, trustee, debt, starting over starting now, Vaughan, “middle class”, middle class, definition of Canada middle class

Canada middle class – what is your definition?

My definition of Canada middle class is the group under a new economic attack because of housing costs. Affordable rental housing for Canadians has become an oxymoron in term. In fact, rental housing has enslaved young Canada’s middle class, forcing them to spend so much of their incomes on a place to live, that many are in danger of becoming homeless.

What Statistics Canada says

According to the experts, spending more than 30% on housing is unaffordable. This doesn’t take into account food, clothing, transportation or any of the other necessities of life. According to data from Statistics Canada:

  • There are more than 4 million renters in Canada
  • Over 40% of all renter households are spending in excess of 30% of their gross income on rent
  • 20% of all renter households are spending in excess of 50% of their gross income on rent which housing advocates say puts them at high risk of becoming homeless
  • In Vancouver and Toronto, 45% of renter households are spending more than 30% of their income on rent

Not just a big city problem for Canada middle class

The lack of affordable rental housing is not a problem exclusive to the big cities. Renters in small cities across Canada are also struggling financially. In the Toronto area, average rents are higher in the suburban communities of Milton and Vaughan than in the City of Toronto. And, Mississauga ranked among the worst cities in the country when it comes to a shortage of affordable rental housing.

Traditionally people rented apartments to save money and eventually buy a house. With young Canada middle class enslaved by rental prices, buying a house isn’t even on their radar; keeping a rental roof over their heads is a primary concern.

What to do if you have debt problems

Are you living paycheque to paycheque because you’re enslaved by rental prices? We can’t help you find a cheaper place to live, but we can help you deal with what may seem to be insurmountable debt. Call Ira Smith Trustee & Receiver Inc. today. We’ll review your file and come up with a plan so that you can be Starting Over, Starting Now.

Categories
Brandon Blog Post

▓ VIDEO: CONSUMER PROPOSAL VS. PERSONAL BANKRUPTCY ▓

consumer proposal vs. personal bankruptcy, "consumer proposal", doug hoyes, personal bankruptcy, c.e. craig & associates inc., colleen craig, trustee in bankruptcy, debts, credit, consumer proposal canada, the consumer proposal, bankruptcy canada, avoid bankruptcy, hoyes michalos, a "consumer proposal, bankruptcy ontario, bankruptcy trustee, personal debt, bankruptcy alternative, bankruptcy toronto, personal bankruptcy, toronto, barrie, debts, ira smith, starting over starting nowconsumer proposal vs. personal bankruptcy

This short video (found at the bottom of this page) explains the differences between a consumer proposal vs. personal bankruptcy. A consumer proposal is a deal to end your debts. A consumer proposal is a legally binding process that is administered by a licensed trustee. Ira Smith Trustee & Receiver Inc. is a Toronto bankruptcy trustee and consumer proposal administrator.

We have written previous blogs about consumer proposals, including:

We offer personal bankruptcy and consumer proposal services, as well as corporate restructuring and corporate receivership and bankruptcy services to residents of the Greater Toronto Area. We explain the differences between a consumer proposal vs. personal bankruptcy. In most cases we can get a consumer proposal done and it usually results in a substantial reduction in the amount you have to repay. The amount you are required to pay when you file a consumer proposal depends on a number of factors as explained in this short video. We hope that you find the short video informative and interesting. If you have any topics about debt, insolvency or finances that you would like us to cover in future videos, please let us know by leaving a comment.

If you are experiencing financial problems, or you know that you are insolvent and are considering a consumer proposal vs. personal bankruptcy, or looking at all of your realistic options, including all alternatives to bankruptcy, contact Ira Smith Trustee & Receiver Inc. We offer sound advice, a free consultation and a solid plan for Starting Over, Starting Now so that you’ll be well on your way to a debt free life in no time.

Call a Trustee Now!