Tag: debt settlement program

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CONSUMER PROPOSAL CALCULATOR: CONSUMER PROPOSAL GREAT SECRETS REVEALED!

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: When should you think about a consumer proposal?

Debt can be a heavy burden, and it seems like there’s no end in sight. If you’re having a hard time making ends meet and debt is taking over your life, you may be asking yourself if a consumer proposal is right for you.

If you’re finding it impossible to pay off your financial debt, a consumer proposal could be a perfect choice for you. As soon as approved by your creditors and also authorized by the court, a consumer proposal is an enforceable deal between you and your creditors. You only need to pay off a part of your financial debt and in return, they write off the balance. This is an excellent method to pay off your debt as well as get your life back on course.

There are 2 main points to keep in mind when thinking of a consumer proposal. First, just an insolvency trustee (Trustee) can carry out a consumer proposal. They will first evaluate your situation and determine if this is the very best choice for you.

Secondly, you need to be able to make the promised payments to the Trustee. If you cannot, then a consumer proposal may not be right for you. There are also several non-insolvency debt relief options for people when looking at their unsecured debt and I describe them below.

Knowing how much you may need to pay in a consumer proposal in order to extinguish all of your unsecured debt is an important part of the decision-making. That is why I created this consumer proposal calculator located down below in this Brandon’s Blog.

Consumer proposal calculator: Option 1 – Pay off your debt on your own

If you have adequate savings and are in a financial situation to pay your financial obligations in a timely manner, excellent. Yet that is not every person’s circumstance. It’s not unusual for individuals to find themselves in a state where they have financial obligations coming due for payment, but, they do not have the cash. If you’re in this situation, you might be unsure about exactly how you can repay the money you owe but do not have.

There are a couple of things you ought to remember if you’re seeking to pay off the financial debt by yourself. First, you need to ensure you have a clear plan for exactly how you’re likely to pay off the money. This means establishing a budget plan and staying with it.

Second, you ought to keep communication open with the individual or company you owe the money. By doing this, they’ll understand what you’re doing to pay back the debt and can provide support if needed.

Finally, it is very important to be patient. Settling a financial debt can take time, however as long as you’re sticking to your strategy and seeing progress, you’ll ultimately get there to financial freedom.

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: Option 2 – Debt consolidation

Combining your financial obligations, such as the total debt on all your credit cards, into one new debt consolidation loan can aid you to become debt-free faster and get your funds back on the right track. It can help you to repay your financial debts a lot faster and also right-size your finances. Before consolidating your financial debts and making debt consolidation payments, there are a couple of things you need to understand:

  1. Prior to you trying to settle your financial debts through debt consolidation, it’s important to recognize just how debt consolidation loan payments work as well as what type of impact it can have on your credit rating.
  2. See to it that you recognize what you’re getting into. Consolidating your financial debts through new loan funding to settle your existing financial obligations, ensure you recognize the terms of the new financing, including the rate of interest and how much the regular monthly payment will be.
  3. Search for the very best deal available. There are a variety of companies that provide financial debt consolidation funding. Shop around to find the best rates of interest as well as terms.
  4. Combining your debts will lead to a lower single monthly payment. Make sure it fits into your budget.
  5. Making your new loan monthly payments on time will work to improve your credit rating.

Consumer proposal calculator: Option 3 – Credit counselling

If you’re struggling with credit card debt, you’re not alone. It’s one of the most common types of debt in Canada. But there’s help available. Credit counselling can help you get your debts under control and develop a plan for you.

Credit counselling can be a very therapeutic process that assists people to address their debt obstacles as well as enhance their total financial health and wellness. Your best choice is to go for credit counselling offered by a nonprofit credit counselling agency.

Credit counselling commonly involves working with a credit counsellor to develop a spending plan, understand your economic alternatives, and produce a plan to settle your financial debts. More often than not the credit counsellor can get your creditors to agree to allow you to pay off the principal amount of your debt without adding any more interest charges.

Credit counselling can aid you to get out of debt, improve your credit score, and also teach you how to make better financial decisions in the future. If you’re seriously thinking about credit counselling as an option for you, it is very important to pick a reputable firm to deal with in order to produce a personalized plan to address your unique financial situation.

consumer proposal calculator
consumer proposal calculator

Consumer proposal calculator: Option 4 – Debt Settlement

If you’re struggling to make your financial debt settlements and are dealing with economic difficulty, financial debt settlement may be a great choice for you. This is where you work out with your creditors to resolve your debt for less than the amount of the individual debt amounts you owe.

  1. There are a couple of points to remember if you’re thinking about financial debt settlement:
    Your credit score will take a hit.
  2. Your creditors might send your debt to their lawyer to take legal action against you or they might send your debt to a collection agency to plague you with collection calls as soon as you divulge that you cannot settle them in full.

If you’re looking at this kind of financial debt negotiation, it is very important to evaluate the pros and cons and speak with a professional advisor to see if it’s the right option for you.

WARNING:

A for-profit debt settlement company charges fees, just like any other business. Before any of your money is used to settle your personal debts, you must pay their fees upfront. No fees are charged by the non-profit credit counsellor.

When you cannot pay anymore, the for-profit debt settlement company walks you over to their friendly Trustee for you to file either a consumer proposal or an assignment in bankruptcy.

Please stay away from for-profit debt settlement companies. I do not recommend for-profit debt settlement arrangements or debt settlement programs. These types of debt counsellors are not the debt-help professionals you should go to see.

Consumer proposal calculator: Option 5 – About consumer proposals

If you’re battling with a mountain of debt, do not worry, there is help and it avoids bankruptcy. A consumer proposal is a legal process that is the only federally-approved debt settlement process. A consumer proposal can only be carried out by a Trustee.

If you’re thinking about a consumer proposal, it is very important to understand just how the process works and also what it will indicate for your financial future. I have actually written several of Brandon’s Blogs giving a comprehensive on what consumer proposals are and how they work.

If you’re insolvent and owe $250,000 or less to your creditors (excluding any secured creditor debt like mortgages or lines of credit that are secured by registration against your personal residence), you can qualify for this government-sanctioned debt settlement plan.

This could be a good option for people who are employed and can budget their money to make the required monthly payments under this plan to the Trustee. It helps to avoid personal bankruptcy, and not have to deal with collection calls from agencies anymore. This is the best alternative to bankruptcy.

For more information, check out either one of the following Brandon’s Blogs:

consumer proposal calculator
consumer proposal calculator

Consumer Proposal Calculator: What will my monthly payments be in a consumer proposal?

Here is how a debt calculator calculates your total debt and estimates what your monthly payments will be in a consumer proposal debt management plan. Below you will be asked for all your unsecured debts, including any government debt or income tax debts.

Consumer proposal calculator$
What is the total of your credit card debt?
What is your income tax debt?
What is the total of any online loan?
How much is your other government debt?
Total of other unsecured debt?
What is your payday loan debt?
Total unsecured personal loan debt?
Your total unsecured debt
# of months you wish to take to pay (max 60 months)60
Monthly payment = (Your total unsecured debt
divided by # of months) X20%

Use this consumer proposal calculator method to compare what a monthly payment would be for you under a consumer proposal as compared to what your monthly debt payments are now. Keep in mind that in a consumer proposal, you are getting rid of all your debt if successfully completed. Right now, you may only be paying the interest charges and not making any dent in the principal reduction.

To figure out your exact monthly payment, give us a call.

Consumer Proposal Calculator: We can help you with a consumer proposal

I hope you enjoyed this consumer proposal calculator on Brandon’s Blog.

Income and cash flow shortages are critical issues facing Canadians, be they employees, entrepreneurs or companies and businesses. Are you now worried about just how you or your business are going to survive? Those concerns are obviously on your mind. Coming out of the pandemic, we are now worried about its economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

We understand that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

consumer proposal calculator
consumer proposal calculator
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CONSUMER PROPOSAL ONTARIO: AMAZING GOVERNMENT PLAN TO REDUCE CONSUMER DEBT

 


Consumer proposal Ontario: Introduction

I am finding that more people are calling me to ask about a consumer proposal Ontario. This is a Canadian federal government authorized program for people to lower their consumer debt.

What is triggering the boost in these queries?

Consumer proposal Ontario: New Ipsos Canadian consumer debt survey

A brand-new study by Ipsos might assist. It paints an unpleasant scene of just how much debt some Canadians are holding on to. Of those asked 31% claim they do not make an adequate amount to pay their costs monthly. More state they are having a hard time to merely to survive. Ontario residents in this predicament are candidates for consumer proposal Ontario.

The study discovers many people are sorry for the sort of spending they’ve done to find themselves with such debt. Peoples’ incomes aren’t maintaining pace with the increase in their costs. I am not just talking about extras; I am also talking about the basics of life such as food and shelter.

Consumer proposal Ontario: Bank of Canada benchmark interest rate hike

At the very same time, on October 24, 2018, Stephen Poloz, the Governor of the Bank of Canada (BOC) announced the Bank of Canada interest rate hike by a quarter-point to 1.75%. This increases the cost of borrowing for Canadians. This is the 5th bump since the summertime of 2017.

The Bank of Canada states that the Canadian economic situation remains running near capacity and is reasonably broad-based. The rising cost of living is close to target so what stands apart is that the current rate at 1.75% is still negative in actual terms adjusting for inflation.

Since the old Free Trade Agreement, the new USMCA appears to be resolved, several think with this 800-pound gorilla out of the room, it’s most likely to unlock the Bank of Canada’s ability to continue with rate hikes.

Consumer proposal Ontario: How will higher interest rates affect you?

If you stay in a variable price home mortgage or credit line, your rate of interest has risen. What that indicates for your capital is that your month-to-month repayment has actually risen. If your home mortgage is half a million bucks, your month-to-month repayment has actually increased by sixty-five dollars.

It does not feel like a great deal. Nevertheless, if your loan(s) rate of interest rises during the rest of the year and right into 2019, that will certainly maintain raising your repayments.

It isn’t simply your variable price home mortgage. Canadians additionally lug debt with credit lines, automobile financings as well as bank cards. Each rate of interest rise will certainly increase the price of borrowing on those variable price financings.

The raised repayments will certainly maintain consumption in your capital. So for those battling to make ends meet, rates of interest boosts will just make life harder. A consumer proposal Ontario won’t help with secured debt, but it will help eliminate unsecured debt

Consumer proposal Ontario: Higher interest costs lead to belt-tightening

To regulate debt, Canadians need to be aggressive with their budgeting. Individuals need to take ways to boost their monetary scenario, such as:

When talking to a LIT, ask about how a consumer proposal Ontario can help you.

Consumer proposal Ontario: Nonetheless, many Canadians are still seeking help

Many Canadians continue to be haunted by debt. They experience remorse towards their existing and future debt scenario. Fifty percent are not certain that they will not have any kind of debt in retired life, while 44% are not certain they will have the ability to cover all living expenditures in the next year, without taking on additional debt.

Some Canadians are thinking about bankruptcy. Their first step must be to go to a Trustee. A Trustee is an expert that is certified by the Office of the Superintendent of Bankruptcy Canada (OSB). The OSB is the government organization that controls the insolvency system in Canada.

Consumer proposal Ontario: A government-approved strategy to end consumer debt

To most of our potential clients’ shock, I have told many that bankruptcy might not be essential for them. Sometimes I suggest that it is possible to remove their debt via a government-approved strategy to decrease consumer debt called a consumer proposal Ontario.

Your government authorized debt settlement program is an offer made to your creditors. The offer is to repay only a percentage of what you owe, over a duration of no more than 5 years.ira smith trustee

Consumer proposal Ontario: The benefits to you

There are benefits for you to file such a debt settlement plan. First, you keep your assets. Next off, an approved proposal binds all creditors to the arrangement.

We begin with having the individual complete the standard intake form that we call, the Debt Relief Worksheet. When totally filled in, it gives us a listing of the individual’s assets as well as what they owe. It additionally aids them to budget their income and expenses. Utilizing that info, I am able to formulate a proposal based on your capacity to pay.

The proposal is submitted to the OSB. Once submitted, you can quit paying your unsecured creditors. If creditors are garnishing your income or suing you, those activities are stopped. As soon as the proper documents are submitted with the OSB, I then send out the proposal to every one of your creditors.

The creditors then have 45 days to approve or decline the deal. If creditors are unhappy with the proposal, as the Trustee I can work out changes such as greater payments. However, it all is based on what you can still manage to safely pay.

I tell people that if the proposal is turned down, the individual will certainly need to consider various other alternatives to resolve their monetary troubles. This might include bankruptcy.

Once we get approval, you are then in charge of making routine payments to the LIT as the proposal administrator. The LIT will certainly use that cash to pay your creditors.

As part of the consumer proposal process, you will need to go to 2 counseling sessions in the LIT’s office. This will aid you to get back on your feet monetarily. If you fully complete your plan, you will certainly be legitimately released from your unsecured financial obligations.

Consumer proposal Ontario: There are 2 consumer proposal FAQs everybody asks me

What this affect my credit score?

Yes, it will certainly be influenced, I tell every person. Once the regards to the proposal are fulfilled, people can begin reconstructing their credit history and their economic future.

Just how much does it cost?

The cost is established by the Federal government. How much an individual pays in for an effective consumer proposal is totally unrelated to the allowable government authorized to charge. The Trustee earns the fee from the amount you pay into your debt settlement restructuring plan. So, that means, the cost is FREE!

Consumer proposal Ontario: That freedom feeling

Our clients who complete their consumer proposal are so pleased to get that letter from us enclosing their Certificate of Full Performance. That is the document that confirms they have become debt-free.

The Ira Smith Team has years of experience of negotiating with creditors for debtors. If you owe less than $250,000, other than for any mortgages against your home, you can enter into a consumer proposal debt settlement plan. If you owe more or are a corporation, we can still negotiate with your creditors and restructure you with a restructuring proposal debt settlement plan.

Our approach for each file is to create an end result where Starting Over, Starting Now takes place. This starts the minute you are at our door. You’re simply one phone call away from taking the necessary steps to get back to leading a healthy, balanced hassle-free life, recover your money and move on to the next investment opportunity.

Call us today for your free consultation.consumer proposal ontario

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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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DO YOU NEED A HOUSEHOLD BUDGET? MOST CANADIANS DO!

household budget, household debt, canadian household debt, G7 nations, debt-to-income, debt service, debt service obligations, binge borrowing, hot housing market, low interest rates, trustee, debt, debt settlement program, ira smith trustee, starting over starting nowMany Canadians must not follow a household budget. Canada has a lot to be proud of, but not the dubious honour of being a world leader in household debt among G7 nations. The G7 nations are Canada, United States, United Kingdom, France, Germany, Italy and Japan and together the gross domestic product of these seven member nations makes up approximately 50% of the global economy. Unfortunately we are leading our member nations in household debt.

Canada’s household budget watchdog says household debt continues to reach new highs!

According to the Parliamentary Budget Office (PBO), Canada’s budget watchdog, Canadian households could soon be carrying the heaviest debt-to-income loads in history, reaching 174% later this year. Who is the household budget watchdog in your home? If you are the average Canadian, the answer is nobody!

Any sudden economic change can spell financial disaster for your household budget.

The danger is not so much the level of the debt relative to income, but whether we can meet our debt service obligations. Do we have enough disposable income to pay our debts? In increasing numbers Canadians do not have enough disposable income to pay their debts. And, even if they do now, many Canadians are in an extremely vulnerable state.

Any sudden economic changes like a job loss or higher interest rates can spell economic disaster. According to the PBO, our household debt servicing capacity will become stretched further as interest rates rise to normal levels over the next five years. Canadians have been binge borrowing as a result of historically low interest rates and these low interest rates are in large part responsible for the hot housing market.

If you are following a household budget, have you left any room in it for an increase in interest rates, and therefore debt service costs? Canadians are getting in over their heads and could face financial crises when the housing market cools down or interest rates rise.

What will you do if the housing market cools down and/or the interest rates rise? What will it do to your household budget?

The economic warning signs are out there. 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 been able to help many individuals carry out a successful debt settlement program. 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.

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SENIOR CITIZEN DEBT RELIEF: DO CANADIANS BELIEVE CPP/QPP WILL BE ENOUGH?

senior citizen debt relief

Introduction

Believe it or not, when it comes to senior citizen debt relief, many Canadians believe that they can comfortably retire on Canada Pension Plan (CPP) and Old Age Security (OAS) benefits alone. According to a 2014 Bank of Montreal study:

  • 89% of Canadians said they expected CPP or the Quebec Pension Plan to fund part of their retirement
  • 31% said they expected to rely heavily on their CPP/QPP

Is expecting the government to fund your retirement realistic?

No! Paul Shelestowsky, a senior wealth adviser with Meridian Credit Union in Niagara-on-the-Lake, Ontario believes that Canadians are playing a dangerous game with their future by expecting the benefits of making up for meagre savings. “CPP and OAS were never meant to form somebody’s retirement plan. They were meant to augment it and help as one of the pieces of the puzzle,” Mr. Shelestowsky says.

Do you know how much you’d earn if CPP and OAS were your only sources of income in 2015?

Your net income would be $17,883/year or $1,490/month. Could you possibly live out your golden years in the manner you had imagined with such a scant income? How would you ever obtain senior citizen debt relief?

If you’re like many Canadians you’re in a total state of shock right now. In 2013, a Leger Marketing survey for H&R Block found that 7 out of 10 non-retired Canadians were unaware of how much money CPP pays out monthly. The maximum in 2015 was $1,065 a month, but this is the maximum. The average CPP payment is only about $550.

What about senior citizen debt relief?

How many of you could maintain close to your current lifestyle on $1,490/month? It would be hard enough to pay your monthly bills, let along pay down your liabilities. Yet seniors are adding to their financial load even faster than the general population, with the average Canadian senior owing approximately $15,000. This is a serious issue and as a result, we’ve done a series of blogs/vlog about this issue:

Your solution

If you’re in need of senior citizen financial relief, you need a professional trustee to help you manage your financial problems before it reaches a critical stage where bankruptcy is your only option. We have been able to help many seniors carry out a successful 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.

You should never take liabilities into retirement. NOW is the time to deal with financial problems; not once you’re on a seriously limited income and barely making ends meet. Sit down with a professional trustee and discuss your options. We’re experts on dealing with senior citizen debt relief and not so senior citizen financial issues. With immediate action and the right financial plan in place, you can be well on your way to a debt-free life Starting Over, Starting Now. Contact Ira Smith Trustee & Receiver Inc. today. Help is only a phone call away.

 

Call a Trustee Now!