debt counseling Archives - Ira SmithTrustee & Receiver Inc.

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:

I 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.

A debt settlement company is not debt counseling Toronto

Many реорlе thіnk trying a debt settlement company is all about debt counseling. Many people certainly will choose this bеfоrе they іnvеѕtіgаtе bаnkruрtсу. I’m hеrе to tell you that many of thеѕе companies are not асtіng in уоur best interest.

Many are paid—and in ѕоmе cases mаnаgеd—bу сrеdіt саrd companies.

According to a аrtісlе by fіnаnсіаl guru Dаvе Ramsey:

“Some of the thеѕе ‘counseling’ соmраnіеѕ wіthhоld credit саrd рауmеntѕ untіl the account іѕ thrее to ѕіx mоnthѕ past duе. Then, thеу соntасt the lender and nеgоtіаtе to ѕеttlе the bad debt….That’s hоw thеу get nеgоtіаtеd dіѕсоuntѕ on сrеdіt саrd debt. Card companies don’t ѕеttlе on your debts when уоur рауmеntѕ are on time. These ѕеrvісеѕ are аlwауѕ a bad іdеа, and ѕоmеtіmеѕ thеу’rе a complete ѕсаm.”

Dаvе Rаmѕеу isn’t the only one lееrу of these settlement companies. Gail Vaz-Oxlade writes:

“One of the big drawbacks of ….. 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.”

The provincial governments have their own opinion. Most provinces have enacted legislation to try to thwart many of their shady practices. Stay away from debt settlement companies. Don’t be afraid to go to a LIT for a free consultation at the first sign of financial trouble.

Why credit counseling?

If done properly, credit advisory services take a holistic approach. It looks at your specific situation, your family, your personal financial objectives and you a person, not just another money spending machine. It takes all of your needs (as opposed to your desires) into account. It also looks into the future as to where you and your family want to be, in order to provide a clear road map to assist you to achieve your goals.

Does a Licensed Insolvency Trustee perform such services?

If you are experiencing financial problems, do not be afraid to consult with a Licensed Insolvency Trustee. By statute, the Licensed Insolvency Trustee is required to do an assessment of your entire asset and liability situation. If the assessment results in a finding that your best option is to work with a qualified counsellor with ongoing follow up, then you will be referred to an appropriate service and you will stay away from any bankruptcy proceeding.

On the other hand, if the Licensed Insolvency Trustee feels that you won’t be able to settle your debts on your own, but it is still early enough for settling with your creditors as an alternative to bankruptcy, then the Licensed Insolvency Trustee will recommend that you settle your debts (if less than $250,000) through a consumer proposal, or (if your debts are $250,000 or greater) through the other proposal provisions of the Bankruptcy and Insolvency Act (Canada). The earlier you recognize that you have debt problems, the more options there will be available to you to avoid bankruptcy.

The next step

As seen in the video, even people with a good profession and high income can experience a bump in the road. If you’re trapped in high household debt, you need a professional trustee to help you manage the situation before it reaches a critical stage where bankruptcy is your only option.

We have provided debt counseling services to many people. This has led us to help them carry out a successful debt settlement program. It all began with debt counseling. 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.

If you’re like many Canadians on the brink of a financial crisis, you need the help of a professional trustee today while you have options. The Ira Smith Team can help before disaster strikes. There is a way to manage debt Starting Over, Starting Now. Contact us today.