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AFTER BANKRUPTCY DISCHARGE CANADA: LIVE WELL AFTER A BANKRUPTCY DISCHARGE

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After bankruptcy discharge Canada: Introduction

The purpose of my blog is to provide ideas and suggestions on how a person can fulfill one of the aims of the Canadian insolvency system. That is to carry out successful financial rehabilitation and live profitably and happily after bankruptcy discharge Canada.

After bankruptcy discharge Canada: You are not alone

In 2017, 122,198 Canadians went for either bankruptcy or a restructuring proposal. The split was roughly even. These people and their families underwent significant financial and emotional pain. In January and February 2018 together, 19,082 Canadians went for either bankruptcy or a restructuring proposal. The split favoured restructuring proposals slightly.

After bankruptcy discharge Canada: Your financial slate is now clean

Your financial slate is wiped clean. However, your credit score has taken a beating. Now is the time to not squander the opportunity you have for financial rehabilitation. Notation of your bankruptcy stays on your credit report for 7 years after your bankruptcy discharge. In the case of a restructuring proposal, the notation remains on your credit report for 3 years after successful completion of your financial restructuring.

After bankruptcy discharge Canada: My 10 step program to live profitably after a bankruptcy discharge

So how can a discharged bankrupt hop on a rapid course to a bankruptcy rebound? Here are my suggestions:

  1. Use your bankruptcy experience to improve your financial education. Take a course on practical money management.
  2. You won’t have any credit cards so you have to rely more on cash. Use an envelope system so that every payday you segregate your cash into envelopes, each marked with an essential family expense. Make sure the cash is used only for those essential purposes and no cheating. No borrowing from the envelopes!
  3. Points 1 and 2 above lead naturally into the next point. Sit down with the entire family and work out a monthly budget. Your total expenses cannot be more than your total income, after income tax, for the month. If everyone is involved in setting it up, then they will all understand if you just can’t afford something in a certain month. Also, they will all be helping you stay on budget.
  4. You do need to find a way to start rebuilding credit. Obtain a secured credit card. Not the drug store variety, but the kind issued by a real credit card company. You have to deposit funds with the credit card issuer and then you get a credit limit equal to the funds deposited. Use that credit card each month, but pay off the FULL balance each month. The credit card company then reports to the credit reporting agencies that you are using credit wisely. Over time, this will improve your credit score.
  5. Always remember the behaviours that got you into financial trouble in the first place and don’t repeat them. If it was an event outside of your control like job loss or a medical emergency, it was not your behaviour that was the cause of your financial problems.
  6. Establish SMART goals. Specific, Measurable, Achievable, Realistic and Timely goals. Setting and reaching your goals will certainly make you an economic success.
  7. Begin building up savings. You need to be financially prepared for a life emergency. As a bare minimum, begin setting up a reserve so that you can withstand a 6 to 9 month emergency that increases your expenses or reduces your income.
  8. Start investing in an RRSP using an RRSP loan. Take out a small RRSP loan. Use your tax savings to pay it down, and work into your budget repaying the rest of the loan, with interest, during the year. Do the same thing the following years. Not only will you build up RRSP savings, the reported loan repayments will improve your credit rating because you are using credit wisely again.
  9. Purchase based only on your needs that are in your budget; never on your “wants”.
  10. Do not purchase anything on impulse. Research, research and research to make sure that you are getting the best deal possible.

After bankruptcy discharge Canada: The takeaway

The takeaway? It is not easy to recover after bankruptcy discharge Canada. It is a series of small steps using modified behaviour and healthy money management skills. But it is possible. I have seen many of my past clients do it. There is not a magic pill you can take. It is a matter of concentrating and working on moving on and learning from your past mistakes. Working at it one day at a time, you will regain your self-respect and feeling of self-worth by restoring your financial and credit report health and wellness.

After bankruptcy discharge Canada: What if you have too much debt?

I hope that you have found this information helpful. Bankruptcy is the last thing we try to do for a person in financial difficulty. If caught early enough, we can get involved in a debt settlement restructuring program for you.

The Ira Smith Team knows that you are worried because you are facing significant financial challenges. The stress placed upon you is enormous. We understand your pain points.

Contact the Ira Smith Team today. We know how to solve your financial challenges, remove your pain and put things back on a healthy path. Contact us today for your free consultation so that we can save your life, Starting Over Starting Now.

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HOW CAN A GOOD CREDIT SCORE HELP YOU? WANT TO SAVE MONEY?

HOW CAN A GOOD CREDIT SCORE HELP YOU 0
how can a good credit score help you

How can a good credit score help you? Introduction

Many of you already know that you need a good credit score to borrow money, get a mortgage, lease a car, get insurance and in some cases, even get a job. But, how many of you know how can a good credit score help you? It can save you thousands of dollars.

How can a good credit score help you? What does your credit score say about you?

Your credit score tells prospective lenders how reliable or unreliable you are at repaying debt. Based upon your credit score you’ll be approved or denied when applying for a loan, credit card, mortgage, car lease…

How can a good credit score help you? How can your credit score save you money?

When applying for any type of loan, your credit score also determines what sort of terms you’re likely to get.

  • Insurance Rates: Insurers typically create an “insurance score”, which is largely based on your credit score. With a good credit score, you could qualify for a discount on your premiums. Conversely, a bad credit score can cost you a lot of money annually in higher premiums.
  • Loan Rates: With a good credit score you may get a better mortgage interest rate. Over the life of your mortgage this could save you thousands of dollars. The same applies for any type of loan – car loan, personal loan, etc. The more you’re borrowing and the longer the term of the loan, the more money you can save.
  • Internet, TV and Cell Phone Rates: Many providers do a credit check before giving you service. With a bad credit score you may be denied service altogether, or you may be required to leave a sizeable deposit as a guarantee of payment.

How can a good credit score help you? What is a good credit score?

An average credit score is around 600. A very good credit score is 700 and above.

How can a good credit score help you? Do you know your credit score?

If not you can find out by contacting either one of Canada’s two major credit reporting agencies – Equifax or TransUnion. Make a habit of checking your credit score annually. If your credit report has information that’s inaccurate or has items unfamiliar to you, it could be a sign that you’re a victim of identity theft.

If you’ve been turned down for loans due to a bad credit score, you need professional help to get back on track financially. A professional trustee can help you solve your debt problems with immediate action and a solid financial plan. Give Ira Smith Trustee & Receiver Inc. a call today to book a free, no obligation consultation and you’ll be well on your way to debt free living Starting Over, Starting Now.

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DEBT ACQUIRED BEFORE MARRIAGE: TALK ABOUT FIANCEE FINANCES BEFORE YOU GET MARRIED

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debt acquired before marriage

Debt acquired before marriage: Introduction

Last week we posted a video and blog about secret debt in marriage. It’s clear from various surveys and reports that many Canadians are not pleased with the way their loved ones handle their finances. The reality is that once you get married the proverbial horse is out of the barn. The time to have serious talks about your finances, your debt acquired before marriage and how to manage money, is before you get married.

Debt acquired before marriage: You need to discuss more than just wedding plans

Are you one of many couples that got engaged on Valentine’s Day? I’ll bet that right now you’re solely focused on wedding planning? I know it’s not romantic or fun, but sorting out money management issues should be right up there on your list of priorities. Love may have brought you together but finances can tear you apart.

Debt acquired before marriage: It’s all about trust

Managing finances as a couple means a lot more than deciding who’s paying for what, or opening a joint bank account to pay household bills. It’s all about trust, communication and transparency. Have you openly and honestly discussed pre-marital assets, debt, spending habits, saving goals and a budget?

  • How much do you really know about your fiancée’s finances?
  • How much do they earn?
  • Do they live within their means?
  • How much debt do they have?
  • What’s their credit score?
  • What are their assets?
  • How many credit cards do they have?
  • Do they pay their bills on time and in full each month?
  • Do they have a line of credit (and in what amount)?
  • Have they ever declared bankruptcy?

Debt acquired before marriage: Start on firm ground

If your soon-to-be spouse is not prepared to discuss these issues and agree on money management then you’ll be starting your marriage on shaky ground. According to a Citibank survey, 57% of divorced couples cited money problems as the primary reason for the demise of their marriage.

Debt acquired before marriage: We can help solve your debt problems

The time to deal with serious debt issues is prior to marriage. Contact the Ira Smith Team. We’re not marriage experts, but if you give us a call today you can be well on your way to starting your marriage without serious money problems Starting Over, Starting Now.

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CREDIT CARD DEBT PROBLEMS: ARE YOUR LOYALTY REWARDS CREDIT CARDS GETTING YOU INTO DEBT?

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Credit card debt problems: Introduction

Canadians obsess over loyalty programs, which contributes to credit card debt problems. The only way to get more points and rewards, is to keep buying things with the loyalty program credit card.

It’s no surprise since we’re constantly bombarded with advertisements telling us that we can get FREE trips, movies, discounts, merchandise; who could resist such tempting offers? From airlines to fast food chains, it seems that new loyalty programs are cropping up faster than weeds in your garden.

Credit card debt problems: Would you like 10% off your purchase today?

How many times have you gone to make a cash or debit purchase and be told, “If you sign up for our credit card today, we’ll take 10% off your purchase”? Pretty soon you’ll be signed up to a stack of loyalty credit cards trying to accumulate enough points for all of those wonderful things that you’re planning to get free.

Credit card debt problems: How obsessed are Canadians with loyalty credit cards?

  • There are 130 million loyalty memberships in Canada. This averages out to more than four memberships per person (2015 study from Colloquy Loyalty Census Canada).
  • Canadians are currently hoarding $16 billion worth of points. This is an average of $629 per person (Bond Brand Loyalty).
  • The number of loyalty memberships per Canadian has grown 25% since 2013 (Bond Brand Loyalty).

Credit card debt problems: Here are our top 3 risks associated with loyalty credit cards

  1. The more credit cards you apply for the worse your credit score can become. Every time you apply for credit the lender requests a credit score. Each inquiry places a record on your credit report. Too many inquiries is often associated with higher rates of default.
  2. You may get sucked into the cycle of buying things because of the amount of points you’ll get. Have a good look at your credit card statement and be honest about how many items you bought because of the points.
  3. Are you paying your balance in full every month? If not, the high interest you’re paying will more than wipe out any benefit you’re getting. These discounts may be costing you a lot of money and the free stuff could actually be quite expensive.

Credit card debt problems: Are you caught in the loyalty credit card trap?

Is your obsession with accumulating points getting you into credit card debt problems? If so, you need professional help and you need it now. Contact the Ira Smith Team. We can help you get out of credit card debt problems, or any other kind of debt problem. We will put you back on track to debt and stress free living Starting Over, Starting Now. Book an appointment for a free, no obligation consultation today and take the first step to ending the cycle of debt.

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CREDIT SCORE IMPROVEMENT: HOW TO HANDLE EVERY CREDIT SCORES CHALLENGE WITH EASE USING THESE TIPS

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credit score improvement

Credit score improvement: Introduction

It seems that we’ve become obsessed with credit score improvement and credit scores. Traditionally the singular purpose for credit scores was to find how much of a risk you would present to a lender if you were applying for a credit card, insurance, loan, mortgage, rental unit, etc.

Now we even use credit scores to decide if your new date is worthy of becoming your new mate and employers use credit scores to screen job applicants. Somehow from determining credit worthiness, credit scores are now being used as a quasi-personality test to find out your character and level of honesty.

Credit score improvement: Should credit checks be used to screen job applicants?

“Credit reports were not designed as an employment screening tool,” says non-profit group Demos. “Employment credit checks are an illegitimate barrier to employment, often for the very job applicants who need work the most.” In a survey of job-seekers, Demos found that one in seven people with blemished credit said that they’d been denied a job as a result.

On the other side of this issue is credit reporting agency, TransUnion. They stand firm on the use of its reports when determining a person’s employability. “One study found a job applicant with a troubled financial history was almost twice as likely to engage in theft as an applicant who lacked any financial history issues,” company spokesperson Clifton O’Neal said in an email.

Credit score improvement: How is your credit score determined?

There are several factors that go into determining your credit score:

  • Debt history
  • Payment history
  • Amounts owed
  • How long you’ve been in debt
  • Type of debt
  • Length of credit history
  • Credit inquiries

Credit score improvement: What does your credit score really say about you?

Your credit score means that you’re making your payments on time but it doesn’t tell the story. Many people find themselves in financial difficulty as a result of illness, job loss, divorce or many other factors and that doesn’t make them “undesirables”.

Credit score improvement: Do you really need debt repair?

Are you in financial difficulty and looking for someone to help you get back on track? Call Ira Smith Trustee & Receiver Inc. We’re here to help, not judge. Make an appointment for a free, no obligation consultation and take your first step to debt free living Starting Over, Starting Now.

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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%.

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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.

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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.

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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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ECONOMIC INDICATORS: WHAT DO THEY ACTUALLY INDICATE?

economic indicatorsEconomic indicators: Introduction

Statistics Canada in March reported that the country’s average household debt-to-income ratio hit a record-high 167.3%. Economic indicators like this drive the Canadian news cycle. It puts fear into the public but doesn’t seem to concern esteemed economists. Are these economic indicators painting an exact picture of the financial state of Canadians or creating unnecessary fear?

Economic indicators: What is the debt-to-income ratio?

Debt-to-income ratio provides a snapshot of what the average Canadian family owes, versus household income. Statistics Canada determines the total value of Canadian household debt and then divides this number by the total amount of disposable income. A debt-to-income ratio of 167.3% means that households owe $167 for each dollar they generate in disposable income. If you look at this economic indicator alone you can’t help but believe that Canadians are living way beyond their means. The conclusion reached is that Canadians are walking a financial tightrope.

Economic indicators: Does the debt-to-income ratio have any value as an economic indicator?

This is true for many Canadians. However, the reality is that debt-to-income ratio doesn’t paint an exact picture of the financial state of Canadians. Although it compares debt with disposable income, not all debt creation is equal. Debt can be long-term debt like a mortgage while other debt can be for a short-term. Therefore comparing disposable income with debt can’t be exact. Debt-to-income ratio doesn’t tell the story. It is only one small piece of detailed financial situations.

The debt-to-income ratio in Canada is definitely a concern. It is also increasing, confirms Carl Lamoureux, Senior Manager, Credit Risk at National Bank of Canada. “But sometimes the media focuses on controversial measurements, without looking at the asset side of the equation for a wider view of what is going on.”3bestaward

From an individual consumer perspective, calculations such as your Total Debt Servicing (TDS) ratio may be more beneficial. “When you are looking for a new loan, credit bureau information comes first and your debt-to-income ratio is only one of the things they look at,” explains Lamoureux. “Each part of a credit score provides insight into a predictability of something happening in the future, and your TDS is a solid indicator of your borrowing capacity.”

Benjamin Tal, deputy chief economist at CIBC World Markets Inc. has an even stronger opinion about debt-to-income ratio. “It’s probably the most useless economic indicator out there. You’re comparing two different things. That doesn’t make much sense. I’m not asking you to pay off your mortgage in one day or in one year.”

Are you concerned about the amount of debt that you’re carrying?

Although the debt-to-income ratio doesn’t tell the story, it is a stress indicator. What financial shape would you be in if:

  • you lost your job?
  • interest rates began to rise?
  • the hot housing market began to cool?

If any of these scenarios would spell financial disaster for you, now is the time to seek out the advice of a professional trustee. Contact Ira Smith Trustee & Receiver Inc. Our commitment to you is to bring value added solutions that fit your unique issues and circumstances. Clients appreciate our knowledge and our ingenuity, the value we deliver, and our speed in responding and taking action.

Make an appointment for a free, no obligation consultation today. You’ll be on your way to conquering debt Starting Over, Starting Now.

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NO CREDIT HISTORY CAN BE AS DAMAGING AS A BAD CREDIT HISTORY

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No credit history: Introduction

Like it or not, our lives are ruled by our ability to get credit (and hopefully use credit wisely). We need credit to buy a house or lease a property, buy or lease a car, have a credit card, get a line of credit and in many cases, get a job. Yes, ladies and gentlemen, many companies check your credit score before offering you a job. There are even online dating sites who match you according to your credit score. And, as we move towards becoming a cashless society, our ability to get access to credit will become even more important. So, having no credit history can hurt you in many ways.

No credit history: Unless you use credit you may not get credit

It’s a Catch 22, isn’t it? In order to set up even a limited credit history and get a credit score you have to use credit. Your credit worthiness is established by your ability to repay. If you pay for most things with cash or by cheque, you aren’t demonstrating your ability to repay. Therefore, if you apply for any type of loan and a credit check is done to decide credit worthiness, you won’t score well if you haven’t been using and repaying credit. Believe it or not, this may put you in the same boat as someone with a poor credit history or even a delinquent credit history.

No credit history: What is your credit score used for?

Your credit score is used to figure many things including:

  • Whether to extend credit
  • How much credit to approve
  • Whether to increase or decrease a customer’s credit limit
  • Determine the interest rate charged on a loan

There are now two ways you can get your credit score online free. One site is Credit Karma Canada and the other Borrowell.

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No credit history: The moral of the story is the best time to use credit is when you don’t need it

Many retirees think they don’t need credit anymore so they tend to pay by cash and cheque instead of credit. Then a situation arises where they need credit and they don’t have a credit history to show their credit worthiness. It’s never too late to set up a credit history. The easiest way is to have a credit card and use it (wisely). Even a secured credit card will work.

No credit history: Use credit wisely!

Using a credit card and paying off the monthly balance in full is not the same as accumulating credit card debt that you can’t afford. Using credit cards wisely can be convenient and beneficial. Credit card debt can ruin you financially.

If you’re dealing with credit card debt, or any debt that you can’t afford, you can count on The Ira Smith Team to set you on a path to a healthy financial future Starting Over, Starting Now. With our cumulative 50+ years of experience dealing with diverse issues and complex files, we deliver the highest quality of professional service. Contact us 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 – CAUTION REQUIRED WHEN SEEKING HELP ON HOW TO PAY OFF DEBT IN TORONTO OR HOW TO IMPROVE CREDIT SCORE IN TORONTO ONTARIO

How to improve credit score: The Financial Consumer Agency of Canada alert

The Financial Consumer Agency of Canada (FCAC) is alerting people who could no longer stay current with their debt payments to be mindful when looking how to improve credit score.

Some businesses are misleading consumers by guaranteeing quick and easy solutions to help settle their financial debt or improve credit score. In many cases, consumers could wind up in a worse economic scenario compared to before they got aid.

How to improve credit score: Beware of credit repair firms

It’s crucial to understand that these firms:

  • cannot make sure they will solve your debt problems
  • could not swiftly and quickly repair your credit rating
  • need to not motivate you to get a high-interest loan as a service until other loan alternatives are available

How to improve credit score: What you should do before starting to repair your credit

Before registering for help to repay debt or repair or improve credit score, customers need to:

  • get suggestions from various reputable sources such as an accredited financial consultant, an approved credit counsellor or a licensed insolvency trustee
  • do inquiries and compare options
  • never be pressured to register right away
  • check out the small print and recognize the conditions before authorizing a contract or an arrangement
  • when seeking information on insolvency options, ask “Are you a licensed insolvency trustee?” Only a licensed insolvency trustee can administer options such as consumer proposals and bankruptcies.

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How to improve credit score: What the FCAC financial literacy leader warns

Jane Rooney, Financial Literacy Leader, FCAC warns:

“It’s important for consumers to understand what companies can and can’t do when offering services to help with debt repayment or credit repair. The Financial Consumer Agency of Canada has information to help consumers better understand the types of services available to them and where to get help. Having the necessary information is the first step to empowering consumers to make informed decisions and meet their financial challenges head on.”

How to improve credit score: Beware of credit repair firm tricks of the trade

Some firms or agencies declare that they can swiftly fix your credit report. It’s difficult to change or erase info that’s part of your credit rating, unless a detail is incorrect. Improving your credit history will take some time. You need to prove that your credit practices have enhanced by repaying your financial obligations on time.

Some firms could likewise offer you a loan suggesting it will certainly aid in fixing your credit history. The firm could assert that making timely payments on this loan will repair your credit report. When you sign up for this type of loan, you never in fact receive any cash because the company will tell you the financing will cover its services or programs. Rather, you make normal payments to the company to pay off the loan.

Be aware; this type of loan generally has a high rate of interest. This solution does not help cut any of your other financial obligations. You are required to keep making your payments on any other financial debts you owe. You could only be left with even more debt and no change to your credit rating.

How to improve credit score: What the Canadian government advises you to do

The Canadian government recommends that you speak to a licensed insolvency trustee. Although the challenges are enormous, they are not insurmountable. If you and your spouse have too much debt because of financial infidelity or for any other reason, you need to contact a licensed insolvency trustee (LIT) now. Through financial counselling, a LIT can aid in getting the resources you need to fix the root causes of the financial infidelity and to deal with the debt that you and your spouse cannot repay.

You need the Ira Smith Team. We’re experts in dealing with debt. No matter how you got into difficulty we can help return you to financial well-being. Contact us today and free yourself of debt Starting Over, Starting Now

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