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HOLIDAY SPENDING MISTAKES IN CANADA: 12 SECRETS TO SOLVE THEM

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Holiday spending mistakes in Canada: Introduction

Other than for some last-minute small items, your holiday spending is complete. The credit card bills will arrive next month. You will soon find out if you made any holiday spending mistakes in Canada.

Maybe you overspent and will now have too much debt you won’t be able to repay. Perhaps you spent wisely, but it will put you over the top given your current debt level. Regardless, you now need to know how to help yourself financially from holiday spending mistakes in Canada.

Holiday spending mistakes in Canada: You are not alone being in debt

Are you fighting financial threats daily? Do you wish you could unlock how to help yourself financially? If so, you are not alone. Lots of Canadians have fought the good fight to barely survive. There have been many articles in the media of the dangers of living with way too much debt. Many Canadians are living paycheque to paycheque.

The Bank of Canada has warned Canadians for years now. With the rate of interest having been so reduced, Canadians have taken on much debt. Now interest rates are beginning to rise. You have to know how to help yourself financially, so that you will not only be able to make your minimum payments, but you will also be able to start reducing your debt. Your holiday spending mistakes has now increased the pressure on you. I do not want to see anyone living this way.

Holiday spending mistakes in Canada: Who this information will help

You know you have debt troubles and this information will help if you:

  • often pay expenses after the date they are due;
  • on a regular basis write cheques that don’t clear your bank;
  • use room from one charge card to get a cash advance to pay the minimum due on a different card;
  • get telephone calls from a debt collector;
  • routinely ask pals or relatives for money;
  • utilities are threatening to cut you off;
  • cannot live to a balanced budget based on your current family income;
  • need to take a second job just to meet normal daily living expenses;

Holiday spending mistakes in Canada: Statistics Canada reporting

Statistics Canada reported that on average, at the end of 2016, Canadian families have a debt-to-income ratio of $1.67 for each dollar of after-tax revenue. At the end of the second quarter of 2017, they report that the ratio has risen to $1.68. Although Canadians’ net worth is also rising, primarily due to rising housing prices. So now housing prices have dropped, yet the debt remains.

If this sounds like how you have lived, then you need to take corrective action now from your holiday spending mistakes before it is too late. Bankruptcy should not be your first option. There are bankruptcy alternatives which include credit counselling, debt consolidation and a consumer proposal.

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Holiday spending mistakes in Canada: Our 12 secrets on how to help yourself financially

If you are living in a debt threatening zone, it is currently the time to act to turn things around. Consider the following 12 secrets to stop your debt from spiralling out of control.

  1. Safeguard Your Health – Make sure that you are taking good care of yourself and your health, both physical and mental. You won’t be any good to yourself or your family if you are ill.
  2. Don’t Talk Yourself Out of What You’re Worth – Don’t put up with the things as they are of your job without seeking out new opportunities. Don’t sell yourself short. Make sure you understand if there are opportunities awaiting you that will pay you more than you are currently earning. Stay current on your marketable skills.
  3. Keep It Simple – Don’t over-complicate things. Don’t get involved with difficult payment plans. Put yourself in a position where if you need an essential item, you can pay for it. Don’t get sucked in by sexy advertisements for things that have long-term payment plans.
  4. Give to Your Future Before Giving to Others – There are many worthwhile causes that clamour for our money. Make sure your own house is in financial order before you give to others. Volunteer your time and not your money. You will find it very rewarding and you will be helping both yourself and others at the same time. Just say no to relatives and friends who ask you for money, until you have no debt yourself.
  5. Make Savings Automatic – Otherwise known as pay yourself first. Set up a special bank account and have the same percentage hived off of your paycheque every payday. Do not touch the funds in that special bank account, until you have enough money to invest in a safe investment. Have this money work for you over and over.
  6. Control Your Impulse Spending – Make sure that you have a monthly budget and follow it. Your budget should account for all your necessary living expenses for you and your family AND allow the percentage you are hiving off each pay period for your investment savings account. If there is anything left over, this balance should be used for debt reduction. Don’t buy on impulse as you will regret it.
  7. Evaluate Your Expenses, and live frugally – We can all get by on less than we think. This ties back into your budget. Make sure that your necessities of life and your regular payday savings are all accounted for. By cutting out expensive daily coffee drinks and other non-essential items, you will be surprised how much you will have leftover for debt reduction.
  8. Invest In Your Future – Upgrade your skillset. Take a course that will make you more marketable. Make room in your budget for this type of expense, as it will generate more income for you for the long-term future.
  9. Keep Your Family Secure – Involve your entire family in the family budget process. Everyone needs to be on the same page and working towards the same goals. Meet regularly to go over your real performance as compared to budget. When everyone knows the plan is working, they will all feel secure and try even harder.
  10. Eliminate And Avoid Debt – Make sure that you are not taking on any new debt. Use budgeting to make sure that you allow a certain amount out of your monthly budget for paying down debt. Even small amounts add up over time. You will see and feel the difference it makes in your life.
  11. Use The Envelope System – Set up a separate envelope for each of your weekly necessities, based on your budget. Only take out enough cash for those amounts and place the right amount of cash in each envelope. Do not use credit cards to pay for the necessities; just use the cash in each envelope. Make the cash in your envelopes last the entire week, then rinse and repeat.
  12. Pay Bills Immediately And Automatically – If you don’t like the envelope system, here is another idea. Pay as much as you can online from your bank account. Set up regular automatic monthly payments so that the bills are paid. You can also use this method for your regular payday savings account. Make sure you budget properly so that you realize what money is coming out of your account in a month automatically so that you don’t overdraw your bank account.

Holiday spending mistakes in Canada: Will you need immediate help from your holiday spending mistakes?

These 12 steps will ensure that you get back on the road to financial health as soon as possible. You can recover from your holiday spending mistakes.

If you find that you have too much holiday or other debt, debt collectors are harassing you and you can’t keep them all happy, then you need to take more action. I say more action because it will be in ADDITION to the above 12 steps. What you will need to do is to immediately speak to a professional trustee.

The Ira Smith Team has a cumulative 50+ years of experience helping people who are facing a financial crisis and we deliver the highest quality of professional service. Make an appointment for a free, no-obligation appointment today and Starting Over, Starting Now you’ll take your first steps towards financial freedom. We can devise a plan so you can come back from your holiday spending mistakes in Canada.

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CREDIT CHECK FAILED REASONS: 5 STUPID REASONS STOPPING YOU FROM GETTING THE LOAN YOU COULD ACTUALLY REPAY

Credit check failed reasons: Introduction

Below is our list of 5 stupid credit check failed reasons stopping you from getting that loan you can repay. You likely recognize that not paying your credit card on schedule or missing out on a settlement could harm your credit score. That is probably the most common credit check fail. So, those reasons are not on our list of credit check failed reasons. There are much less clear methods to sink your rating. You could be doing some without understanding the influence you’re triggering.

Below are 5 unexpected methods you could be damaging your credit score:

  1. Credit check failed reasons: Decreasing your credit line

You might assume that you’re increasing your credit score by reducing your credit line on your credit card. However that could be having the other impact. Credit score use is the second-most vital credit score aspect, after history of credit card repayments.

Your credit use is your compared with just how much you’re using. When you lower that proportion, that is a good thing. Many professionals suggest maintaining it around 30 to 35 percent.

By reducing your authorized credit amount, you’re really increasing your credit use proportion.

Toronto financial advisor Seun Adeyemi says that most people are not aware that cancelled credit lines, even after making full repayment, can hurt your credit score.

Here is an example. Say you have 2 credit cards:

  1. a Visa with a $1,500 balance as well as a $4,000 credit limit;
  2. as well as a MasterCard with $1,500 outstanding and a $6,000 credit authorization.

Your credit usage is just 30 percent since you’re making use of $3,000 of your readily available $10,000.

If you reduced your credit limit to $4,000 on that MasterCard, you’re currently utilizing $3,000 of a readily available $8,000. This presses your credit usage to over 35%.

credit check failed reasons 2
credit check failed reasons

  1. Credit check failed reasons: Leasing an automobile with a debit card as opposed to a credit card

When you’re leasing, it’s a great deal less complicated when you make use of a credit card.

Utilizing your debit card will lead to a pull on your credit report. While it could be a soft pull– implying it does not harm your debt– there’s a chance it might be a hard check. A hard check does affect your credit rating.

The procedure changes slightly in the auto rental business. Making use of a debit card will certainly result in a soft credit inquiry. However, when using a debit card to rent a car, there will probably be a hard pull on your credit rating at the first time (when you check-in and get the car).

There would not be a credit check if you use of a credit card for renting a car.

An included incentive of renting your car with a credit card as opposed to debit: Many credit cards offer vehicle rental insurance coverage. This saves you even thinking about taking the car rental company’s costly insurance package.

  1. Credit check failed reasons: Not paying your library fines (yes, libraries still exist!)

Not paying your penalties might lead the library to withdraw your privileges, as well sending your past due account to a collection company. When a collection agency obtains your overdue account, if you don’t pay, it will be noted on your credit report that you are in collection and have not paid. This will adversely influence your credit score.

credit check failed reasons
credit check failed reasons

Normally, you need to owe around $40 or more before the account being sent to collections. To prevent all this, check your public library’s plan on fines, as well as, obviously, paying your late charges in a prompt fashion.

  1. Credit check failed reasons: Not paying your parking tickets

When it concerns vehicle parking tickets, you have 2 choices:

  1. you could pay them; or
  2. go to Court and fight them.

Just what you do not want to do is disregard your parking tickets.

If you do choose to or forget to pay them, after a specific duration, your account will certainly go to collections. The policies on vehicle parking penalties differ by city. For instance, in Toronto, the use of debt collectors starts when your vehicle remains in plate rejection. This is when you could not restore your plate sticker label or acquire brand-new plates– for 2 years. Also, your tickets outstanding balance is more than $300.

  1. Credit check failed reasons: Owing the taxman

If you have an outstanding amount payable on your income tax return, it’s important to settle that financial obligation to the Canada Revenue Agency (CRA). Overdue tax obligations could cost you in penalties and interest. It will also make it more challenging to get loans.

When submitting your tax return, any amount owing is due on April 30th, or the next Monday if April 30 falls on a weekend.

Credit check failed reasons: Not paying CRA is a self-inflicted indirect hit

Not paying your taxes does not directly hit your credit rating. However, two standard questions on any loan application are:

  1. what is the last year you filed your income tax return for; and
  2. how much do you owe to CRA for personal tax.

Not being current in your filing, or having an amount owing to CRA, will limit your chances to get that loan you are applying for.

When applying for a mortgage or home equity line of credit, most lenders ask for a duplicate of your Notice of Assessment from the previous 2 years. If the potential lender sees that you owe the CRA a great deal of money, they might offer you a higher rate of interest than the posted rate or worse, refuse your application.

Credit check failed reasons: What to do if you can’t repay your debts – even if you still have an OK credit score

Maintaining a good credit score is more than just paying your credit card on schedule, yet it does not need to be made complex. You should always aim to pay any type of arrears in a prompt style, as well as understand how every activity or transaction can affect your credit score.

If you are having problems repaying your debt, don’t be afraid to seek professional help. Don’t be enticed by the commercials for debt settlement. A recent study by the federal government shows that people who first go to a debt settlement company, end up paying more to settle their debts than if they just went to see a . That same study shows that ultimately, the debt settlement program alone does not work and the person ends up filing a consumer proposal with a licensed insolvency trustee.

credit check failed reasons
credit check failed reasons

The Ira Smith Team has helped many people in debt get back on track and living debt free lives Starting Over, Starting Now. Take the first step and give us a call today.

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CO-SIGN CREDIT CARD MEANING: CO-SIGNING ON A CREDIT CARD CAN BE RISKY BUSINESS

imageCo-sign credit card meaning: Introduction

Co-signing on a credit card for a family member or a friend may seem like the right thing to do. However, do you really understand what you’re getting into? Too many people do not fully understand the co-sign credit card meaning. This is risky business that can cost you a lot more than you bargained for.

Co-sign credit card meaning: What does co-signing on a credit card involve?

The co-sign credit card meaning is that when you co-sign on a credit card it’s the same as getting a credit card yourself. You are 100% responsible for the debt. It doesn’t matter that none of the charges are yours and that you are not the primary card holder. The minute you co-signed on the credit card, you guaranteed repayment. If the person you co-signed for doesn’t make a payment for any reason, you’re on the hook for the money – all of it.

Co-sign credit card meaning: Why are you being asked to co-sign?

If you’re being asked to co-sign on a credit card it’s typically for one of three reasons:

  1. The person asking you to co-sign has a poor credit history and is deemed too great a risk by the credit card company. This should give you cause to pause.
  2. The person is very young and has no credit history (and not earning enough money to be considered a good credit risk). This should also give you cause to pause.
  3. You are co signing for your child for a credit card with a very low limit as part teaching your child to use credit wisely and to help them get a good credit score. This includes the parent willing to cosign for a credit card for a child under the age of 18.

The only one of these three possibilities that we actually think is good is number 3; a parent willing to co sign a credit card with a very limited credit limit while monitoring their child’s use as part of giving a financial education.

Rather than co-signing, you may wish to consider helping your friend or relative get a secured credit card. Put up a modest deposit for them. At least this way you limit your potential exposure.

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Co-sign credit card meaning: How can co-signing on a credit card negatively impact you?

As we’ve already mentioned, you will be on the hook for the money if the primary card holder doesn’t pay. However, there are several other ways in which you can be negatively affected.

  1. If there are any late payments on the account for which you co-signed, that can also negatively impact your credit score.
  2. The credit card company can increase the amount of available credit on the card without with the co-signer’s permission (if the borrower is over the age of 21). You could be on the hook for a lot more money that you anticipated.
  3. Co-signed debt Is part of the calculations that decide whether you’ll get approved for any kind of borrowing, including a mortgage.

Co-sign credit card meaning: What to do if you have debt problems

Co-signing on a credit card can be risky business and land you in financial hot water. Are you experiencing financial distress as a result of co-signing on a credit card or otherwise?

If you’re struggling with debt for any reason Ira Smith Trustee & Receiver Inc. can help. We’re experts in dealing with debt. Give us a call today and take the first step towards conquering debt Starting Over, Starting Now.

 

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#VIDEO – AVERAGE CANADIAN DEBT: THE EASIEST WAY TO REDUCE YOURS AND MAKE YOU ONE OF THE SMARTEST CANADIANS#

Average Canadian Debt: Introduction

The average Canadian debt will never be repaid if you only make the minimum monthly payments. Making simply the minimal payment on your charge cards and car loans is leading a lot more borrowers right into trouble, says a brand-new study.

Average Canadian Debt: February 2017 released TransUnion study

Chicago-based TransUnion checked 1,010 customers in Canada. They discovered 88 percent of bank card owners in Canada commonly make a higher payment compared to their minimum due on their rotating financial debts every month. Regardless, 39 percent of those charge card owners doubt of the advantages of repaying greater than the minimal payment noted on their credit card statement!

“Making more than the minimum payment makes them a more attractive customer to their financial institution,” stated Todd Skinner, president of TransUnion Canada.

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bankruptcy policy TPR average Canadian mortgage debt

Average Canadian Debt: The new Total Payment Ratio (TPR) statistic

TransUnion is currently utilizing exactly what it calls a trended information report over 24 months, as opposed to a month-to-month picture. They find this offers a clearer representation of the state of a person’s financial resources. It remedies a stat that could be manipulated if, for instance, your credit report was pulled in January after your financial debts increased through the holiday period.

The credit rating company has actually likewise developed exactly what it calls a TPR statistic. It decides the connection between the repayment measure as well as the defaults throughout the many debts. The TPR calculation separates a customer’s complete month-to-month credit repayments by the complete minimum due on every one of the customer’s credit items. The greater the TPR the much less likely a customer falls back on repayments.

Average Canadian Debt: How to calculate a TPR

A person making $400 in repayments on 3 cards when the accumulated minimum due was $200 would have a TPR of 2.0. A person with $1,200 in repayments with an accumulated minimum due of $200 would have a TPR of 6.0.

In its research, TransUnion discovered among Canadians with a TPR of less than 5 on their charge card there was a 1.77 high threat of vehicle finance default. This is specified as not paying back for 90 days or even more. When the TPR rose to greater than 15.0, the high threat of default went down to 1.4 percent.

Average Canadian Debt: What a TPR score tells us about you

“This may sound intuitive — consumers who are able to pay more usually have more liquidity and are less likely to miss payments. But it is assigning a number to this intuition that is important,” stated Ezra Becker, vice-president as well as head of TransUnion’s worldwide research. The research study validated that as TPR boosted, delinquencies decreased for charge card and vehicle funding.

Average Canadian Debt: You will never get out of debt only making the minimum monthly payment

Making the minimal repayment on a credit card leaves you little possibility of in fact ever getting out of financial debt. I understand that many times, people have actually been making minimal repayments on credit cards, by obtaining money from one card to pay a different one.

Credit card statements in Canada currently consist of a line that shows for how long it will take to repay your bank card expense in months. It assumes that you are making just the minimal repayment each month as well as not increasing the amount owing. There are no regulations as to exactly how they place it on the statement. It’s typically in the small print that many people overlook.

Average Canadian Debt: What should you do if you have too much debt

Get in touch with a licensed insolvency trustee. We’re government licensed and supervised. Our costs are government controlled and we’re subject to a stringent code of principles. We must also take necessary professional development courses yearly.

A qualified licensed insolvency trustee (bankruptcy trustee) MUST initially check every one of your alternatives with you in order for you to prevent bankruptcy. The trustee must as well find the very best bankruptcy choice option for you. Lots of times the trustee could effectively carry out a financial debt restructuring for you as an option to avoid bankruptcy.

Get in touch with Ira Smith Trustee & Receiver Inc. Allow us aid your recovery to financial health and wellness. Let us give you back tranquility of mind, body and soul, Starting Over, Starting Now. Call us today.

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BANKRUPTCY TRUSTEE IN VAUGHAN BECOMES LICENSED INSOLVENCY TRUSTEE

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The bankruptcy trustee in Vaughan: Why did we transform into a licensed insolvency trustee?

Similar to caterpillars turning into butterflies, this bankruptcy trustee in Vaughan went through a metamorphosis. The Office of the Superintendent of Bankruptcy officially changed the name “bankruptcy trustee” to “licensed insolvency trustee” (LIT). As of April 1, 2017, all licensed trustees must have fully transitioned to the use of the LIT designation.

The purpose of this blog is to offer an overview of the Canadian insolvency process. Think of it as a bankruptcy and insolvency lesson 101.

What is the purpose of the Bankruptcy and Insolvency Act

Among the primary functions of this insolvency process, it is to release the individual from specific financial debts. It is to give a straightforward honest but unfortunate debtor a “new beginning.”. The debtor has no responsibility for discharged financial obligations.

A discharge is available to personal bankrupts, not to corporations. Although a personal case typically causes a discharge of financial debts, the right to a discharge is not absolute. Some sorts of debts may not be released. Section 178(1) of the Bankruptcy and Insolvency Act (Canada) (“BIA”) sets out the types of debts that are not released by the discharge of the bankrupt. The kinds of debts that are not released are:

1. child support and alimony;

2. fraud or near fraud;

3. debts arising from Court orders.

Where can I do some of my research?

You must initially do some of your own research to get an idea of exactly what your choices are. One place to start is our website to learn about:

  1. Personal Services
    1. Credit Counselling
    2. Consumer Proposals
    3. Bankruptcy Alternatives
    4. The Bankruptcy Process
    5. Why use a Licensed Insolvency Trustee?
    6. Rebuilding Credit
    7. Personal Bankruptcy
    8. TOP 20 PERSONAL BANKRUPTCY FAQs
  1. Corporate Services
  2. Creditor Services
  3. Our Blog titled Brandon’s Blog

Once you have a good handle on what to expect, speak to a LIT to begin discussing what actions you have to take next.

bankruptcy trustee in vaughan
bankruptcy trustee in vaughan

The BIA

The BIA allows for a procedure that permits people and companies to be released from all of their financial debts through either:

  1. a restructuring (Consumer Proposal, Division I Proposal or the Companies’ Creditors Arrangement Act) under secure arrangements of the federal insolvency statute; or
  2. through bankruptcy by turning over their property to a licensed insolvency trustee to realize upon it for the general benefit of creditors.

Either way, the funds available for distribution to the creditors are paid out by the licensed insolvency trustee. It is according to the scheme of priority laid out in the BIA.

The Court will consider approving a repayment plan that will repay the approved part of the financial obligations in no more than 5 years. When you use the restructuring provisions of the BIA (Consumer Proposal or Division I Proposal), you need to have a payback strategy to show your creditors just how you are going to pay back your debts. A successful restructuring plan is an alternative to bankruptcy and will allow a person or company to avoid bankruptcy.

There are various rules and ways that must be followed. Your licensed insolvency trustee can go over all the issues with you and is there to aid you through the process.

How does it all work?

Canada’s insolvency legislation is designed for debtors experiencing financial problems who cannot pay their present financial obligations and don’t have enough cash flow to offer a restructuring plan to avoid bankruptcy. The aim is to get a release from their existing debts.

The premise of the BIA is that the individual must deliver all of his or her non-exempt assets to the licensed insolvency trustee. The trustee will sell them for distribution to the creditors. In return, other than for either secured debts or the class of debts not released by a discharge from bankruptcy discussed above, the person’s debts will be erased. The person will be able to maintain any type of property that is categorized as exempt under provincial regulations. In this way, a discharge allows the individual to return to society as discharged bankrupt. This allows the person to start all over again.

Your credit score

Filing in an insolvency process could impact your financial resources and credit score for years. You should very carefully weigh all your options before choosing the bankruptcy option. That is a discussion a licensed insolvency trustee will be happy to have with you and will help you in first trying to find one of the possible bankruptcy alternatives. Hopefully, together you can see which one is best for you. Only if there is not an available alternative, will the trustee recommend bankruptcy?

A current bankruptcy filing may prevent you from acquiring a mortgage or other financing for years. Credit card businesses will instantly end your charge cards when you file for bankruptcy. Likewise, if you are trying to find a job or rent a place to live, some employers or property owners might look unfavourably on a current bankruptcy filing. If other applicants are as qualified as you and don’t have a bankruptcy on their record, you probably won’t be chosen.

Fresh start

Bankruptcy permits people or companies that are unable to pay their debts to settle their monetary difficulties and start restoring their credit. Declaring bankruptcy will trigger the “stay of proceedings”, preventing creditors from starting or continuing any legal action to collect their debts.

A bankruptcy filing will stay on your credit report for about 7 years. Since many financial debts can be discharged in bankruptcy with certain exceptions, people can take certain steps to begin boosting their credit rating after filing for bankruptcy and for sure after obtaining their discharge.

What to do if you are experiencing financial hardship

I hope this bankruptcy trustee in Vaughan Brandon’s Blog was helpful to you. People experience financial hardship for many reasons. If you’re experiencing financial hardship and are looking for a way out, contact Ira Smith Trustee & Receiver Inc. With immediate action and the right plan for moving forward, we can set you on a path to debt-free living Starting Over, Starting Now. All it takes is one phone call.

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8 TIPS TO BEAT HIGH BACK TO SCHOOL COSTS

back to school, financial stress of back to school, financial burden budget, credit card, debt professional, debt, ira smith trustee, hoyes, bdo, mnp, spergel, afarber, thatcher, consumer proposal, bankruptcy, gta, toronto, vaughan, richmond hill, woodbridge, thornhill, markham, newmarket, auroraBack to school is a gold mine for retailers

Back to school is the second busiest retail time of the year, second only to Christmas. We’ve all seen the commercials with happy families skipping up and down stores aisles filling up shopping carts with knapsacks, lunch boxes, note books, pencils, pens, etc. Unfortunately this happy picture is not indicative of many Canadian families for who back to school is a terrible financial burden.

What RetailMeNot.ca says about back to school

  • 92% of Canadians agree that purchasing back to school items can be a financial burden on families
  • 91% believe that back to school shopping is becoming more expensive year after year
  • This year, Canadian parents are expecting to spend an average of $472 on their child for back to school shopping, $143 more than what they expected to spend last year ($329)
  • University students are the most expensive to shop for with those parents expecting to spend $1,630, compared to $412 for high school students and $318 for elementary

8 Tips for beating the financial stress of back to school

  1. Only buy what you need. Reuse items when possible. If the knapsacks and lunch boxes are still good from last year, reuse them. The same goes for pens, pencils and other school supplies.
  2. Hand down clothing or do a clothing exchange with your friends. It’s a common sense way to save money.
  3. Create a budget and stick to it. We can’t stress enough the importance of a budget to maintain control of your finances.
  4. Search for the best prices: Don’t just walk into a store and pay full retail price. Search online, look for coupons and promo codes and wait for sales.
  5. Shop any time of year you find a sale and put the items away for back to school. Shop the Boxing Day sales or Thanksgiving Day sales and put away the clothes, shoes, knapsacks, etc. for back to school. It’s a great way to save money.
  6. Designer brands are not a necessity. Although many parents feel pressured into buying the latest designer brand for their kids, it’s not worth going into debt for.
  7. Go shopping with a friend and split bulk purchases. Buying in bulk is not always cost-effective for a single family but if you can split a bulk buy with a friend you may be able to save a considerable amount of money.
  8. Pay with cash. When you shop with a credit card it’s easy to lose track of your spending and then next month you’ll get a bill that you can’t pay.

What to do if you have too much debt and back to school costs will put you over the edge

If back to school is a financial burden, then you need help from a debt professional now before your situation becomes critical. The Ira Smith Team is here to help. Meet with us for a free consultation. We’ll evaluate your situation and come up with a solid financial plan so that Starting Over, Starting Now you can be well on your way to conquering debt.

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FINANCIAL DEBT COUNSELLING: THE #1 SECRET THAT ALWAYS SHOCKS PEOPLE

financial debt counselling, bankruptcy alternatives, starting over starting now, APY, Annual Percentage Yield, balloon payments, annual percentage rate, APR, compound interest, credit card, interest rate, trustee, bankruptcy, ira smith trustee, hoyes, a farber, david sklar

The #1 secret we have learned through financial debt counselling

When performing financial debt counselling, we discovered many people are confused by financial lingo. As a result people have been negatively affected financially.

As a result we started a series on confusing financial terms. We began with Balloon Payments Can Cost You More Than You Bargained For. Today we’re going to be discussing APY – Annual Percentage Yield. Interest rates play an important role in borrowing and investing. Understanding your APY can will give you a clear picture of what you owe or could maybe gain.

What is APY?

APY is the true annual rate of return taking into account the effect of compounding interest. If you have a credit card and carry a balance each month you’ll be paying interest on top of the previous principal and interest. The interest each month (in effect it’s interest on interest) calculates on a daily basis. It is an important aspect of financial debt counselling.

Why is APY important?

APY is a great tool for evaluating the true interest rate paid on a loan or the return on an investment. It takes compounding into consideration and thus is actually higher than the stated annual interest rate.

If you owe money on a credit card, your APY will almost always wind up being higher than your card’s listed APR (Annual Percentage Rate). Interest charges added to your balance for every month you fail to pay it off in full is the reason. This means that over time you’ll be paying interest not only on the principal amount you owe, but on the interest as well.

In our financial debt counselling sessions, we always expose the APY secret. We will now expose it for you. Say your credit card has a stated APR of 19.99%. If you carry a credit card balance from month to month, an APR of 19.99% compounded daily equals an APY of 22.1214%.

Are you unable to make your monthly payments? Were you not aware of APY?

The reality is that you could be paying a much higher amount than you bargained for. It also may be a much higher amount than you can afford. Most people we counsel are not aware of or didn’t understand APY. In our financial debt counselling sessions, this is everyone’s “AHA” moment.

If you’re dealing with insurmountable debt for any reason contact Ira Smith Trustee & Receiver Inc. today. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Give us a call today.

We can help. Maybe all you need is some financial debt counselling. Perhaps you need to explore one of the many bankruptcy alternatives. Either way we can devised a plan that allows you to carry on a debt free, stress free life.

Watch for future blogs when we’ll be discussing other confusing terms that can impact you financially.

 

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CREDIT REPAIR TORONTO: HOW TO USE IT TO NOT RUIN YOUR LIFE

Credit Repair Toronto: Why Not?

Many people think it’s best to try a credit repair Toronto company before they investigate the Canadian insolvency process. I’m here to tell you that many of these companies are not acting in your best interest.

What do Dave Ramsey and Gail Vaz-Oxlade have to say?

Many are paid – and in some cases managed – by credit card companies. According to an article by financial guru Dave Ramsey:

“Some of these ‘counselling’ companies withhold credit card payments until the account is three to six months past due. Then, they contact the lender and negotiate to settle the bad debt…That’s how they get negotiated discounts on credit card debt. Card companies don’t settle on your debts when your payments are on time. These services are always a bad idea, and sometimes they’re a complete scam.”

Dave Ramsey isn’t the only one leery of credit repair Toronto companies. Gail Vaz-Oxlade writes:

“One of the big drawbacks of using a debt counselling or debt management company is that they don’t come with any serious advice, so people often fulfill their commitment and then go right back out and rack up their debt again.”

Does the Ontario government like credit repair Toronto companies?

The provincial governments have their own opinion. Most provinces have enacted legislation to try to thwart many of their shady practices. Stay away from credit repair Toronto companies. Do not be afraid to go to a Licensed Insolvency Trustee for a free consultation at the first sign of financial trouble. (See the picture at the bottom of this page for a special offer).

We have previously written blogs on the credit repair Toronto industry who have been preying on consumers for far too long. We’ve warned you about them in previous blogs:

In 2010, after a decade of massive growth in the U.S. debt settlement industry, the FTC brought in new regulations that effectively banned debt settlement companies and forced many of them to migrate north of the border. This resulted in 18 companies and 34 credit counselling providers offering debt settlement services in Ontario.

With ever-mounting numbers of complaints about unsuspecting consumers being taken advantage of by unscrupulous credit repair companies, the Ontario government has finally taken action and passed Bill 55.

What will Bill 55 do? It creates new standards of conduct for credit repair Toronto companies by:

  • Banning them from charging upfront fees
  • Limiting the number of fees consumers are charged and prohibiting the payment of fees before services are provided
  • Requiring clear, transparent, and detailed contracts that include information about the effect of the contract on the consumer’s credit rating
  • Requiring credit counsellors to disclose information to the consumer about how the organization is funded
  • Establishing a 0-day cooling-off period, providing consumers more time to consider their agreements with companies
  • Allowing the licenses of non-compliant companies to be revoked

If not credit repair Toronto companies, then what should YOU do?

Please stay away from credit repair Toronto companies! Rather, obtain a free consultation from a licensed insolvency trustee to understand the options available to you either as an alternative to bankruptcy or of bankruptcy itself. We are professionals, federally regulated, licensed and subject to a strict code of ethics. Our fees are regulated by the Federal Government and are usually much less than credit repair companies who make unsubstantiated claims. We can help; Starting Over, Starting Now you can live a debt-free life.

We have been able to help many individuals carry out a successful debt settlement program. It all began with debt counselling. The first step is a realistic household budget.
Successful completion of such a program will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

Call us today so you can get on the road to financial recovery immediately.

The first part of this vlog is from our newly released book:

Toronto,Vaughan,credit repair toronto,credit fix toronto,credit counseling toronto,tips on how to repair bad credit,canada credit fix reviews,how to improve your credit score canada,credit repair loans canada,canada credit fix inc toronto on,credit repair,credit repair how to,how to improve credit score,how to repair your credit,fix credit score,credit repair lawyers,credit repair letters,sample credit repair letters,fast credit repair,debt,ira smith trustee, personal bankruptcy toronto, bankruptcy, consumer proposal, toronto, vaughanI said above that there would be a special offer and here it is. If you would like to receive a complimentary, totally free copy of our eBook, please sign up as a subscriber to our blog. You can do so by filling in the subscription pop-up box on this page. If you are already a subscriber, thank you, and just shoot me an email asking for your complimentary copy.

If the subscription box on this page has gone away, you can click on the picture of our eBook in this article which will take you to our main blog page, and you should soon see the pop-up subscription box again. As a side bonus, you will also receive notice of all of our new blogs and vlogs, with a link directly to them.

Early next week,you will receive an email with an invitation to download a complimentary copy of our new eBook – PERSONAL BANKRUPTCY CANADA: Not Because You Are A Dummy, Because You Need To Get Your Life Back On Track.

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WANT TO STEP UP YOUR NEW YEAR’S CREDIT CARD DEBT SETTLEMENT? YOU NEED TO READ THIS FIRST

credit card debt settlement, credit card, credit cards, living paycheque to paycheque, budget, low Canadian dollar, bankrupt, declaring bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposalsIs credit card debt settlement relief now one of your New Year’s resolutions?

You had a great time over the holidays and everyone loved their gifts. You even bought a few goodies for yourself. After all, there’s nothing wrong with a little self-indulgence, is there? How did you feel when you opened your credit card statement? How long did it take you to start breathing again? Now, can you pay your credit card bills, or are you in need of a credit card debt settlement program?

Budgeting will also be part of a credit card debt settlement

If you’re like most Canadians, you’re already dealing with an enormous debt load and you don’t have anything put aside for a rainy day. You may already be living paycheque to paycheque. The Canadian dollar is very low which means that your grocery bills are higher. And there will be other items affected by the low dollar as well. If you’ve planned a vacation outside of Canada, I hope you’ve budgeted for the low dollar. In fact, are you budgeting at all? As we’ve stressed:

A Balanced Budget is to Financial Health What a Balanced Diet is to Physical Health – Part 1

A Balanced Budget is to Financial Health What a Balanced Diet is to Physical Health – Part 2

It seemed like a good idea to use the credit cards, but now I need credit card debt settlement

Using credit cards may seem like a good idea because they’re convenient and you probably get some type of reward for using them. However, if you’re not paying your bill in full each month, the high interest rates could be your financial undoing. It’s easy to get stuck in the trap of high interest debt and then taking out more high interest debt to pay off the high interest debt. Alternatively, you could face up to the fact that you will never be able to pay off your credit cards, and rather than taking on more debt you will be unable to repay, consider a credit card debt settlement program.

So how can I obtain credit card debt settlement – NOW!

If you’re trapped in a high interest debt cycle, I could tell you that you need to pay off high interest debt, but how would you do it? You need a professional trustee to help you manage debt before it reaches a critical stage where bankruptcy is your only option. We have been able to help many individuals carry out a successful credit card debt settlement program. Successful completion of such a program, will free you from the burden of your financial challenges to go on to live a productive, stress-free, financially sound life.

Contact the Ira Smith Team today. Before considering declaring bankruptcy, there are other bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals. We can help and Starting Over, Starting Now you can be restored to financial health.

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CONSUMER CREDIT PROPOSAL: HOW OUR CASHLESS SOCIETY CAN LEAVE YOU PENNILESS

cashless society, credit, credit card, debit, mobile apps, Apple Pay, consumer credit proposalGoing cashless may drive you to a consumer credit proposal

The good news is that Canadian consumers have more credit, debit and app options than ever before. The bad news is that going cashless makes it easier to overspend and as a result, before you know it, you could be in serious financial trouble.

A recent online survey by processing payments firm Moneris found that:

  • 77% of respondents preferred to pay for purchases by debit or credit card
  • 65% said they rarely buy anything with cash
  • There is a 162% increase in tap transactions for the third quarter of 2015 compared to the same period in 2014

Easy credit may drive you to a consumer credit proposal

The reality is that we really don’t need to carry cash anymore. Almost everything can be transacted by credit or an app tied into your credit card now. It does seem like we’re moving towards the end of cash; not today, but eventually. Mobile apps like Apple Pay are the future. PayPal, allowing you to charge purchases to your credit card has been available for years.

The problem with all of these modes of payment is that the control of paying with cash is gone. In days gone by the amount of cash on hand dictated how much you could spend. Sure, some stores offered layaway plans but by and large if you had no cash, you couldn’t make a purchase. Even with the lay-away plans, until you paid for the item in full, you didn’t get to bring it home.

According to Jeff Schwartz, executive director of Consolidated Credit Counseling Services of Canada, “Without the physical attribute of taking cash out of your wallet and paying for something, we’re missing one of the senses that allow us that brake on some of the decisions that we make. This disconnect is a concern because with the average Canadian over $20,000 in debt on the unsecured side, it’s a challenge. So we’re already having trouble paying what we owe. Do we really need to make it easier to part with our money?”

Take action now with a consumer credit proposal

If you’re having serious financial problems due to cashless spending, or for any other reason, the Ira Smith Team is here to help. With just one phone call you can be well on your way to living a debt free life Starting Over, Starting Now. Contact us today.

Call a Trustee Now!