Tag: financial plan

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PAYDAY LOAN COMPANIES: THERE ARE OPTIONS

payday loan, payday loans, payday loan companies, living paycheque to paycheque, interest rate, interest rates, trustee, bankruptcy, debt, financial institution, financial institutions, financial plan, the Cash Store, VanCity, starting over starting nowFinally a financial institution has stepped up to the plate and is offering a viable alternative to payday loan companies. Sadly, people who typically turn to payday loan companies are low income earners who are barely surviving and living paycheque to paycheque. Payday loan companies are not helping them; they are creating higher debt loads and holding them hostage with insane interest rates.

The Cash Store, a payday loan company, offers a $300 loan for 14 days for $69, which is an annual interest rate 599.64% on their payday loans product. Vancity, Canada’s largest community credit union with branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish, launched a new financial product to combat payday loans, called Vancity Fair & Fast Loan. If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19% annual percentage rate.

The Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. There has been a lot of talk about “cleaning up the payday loan industry” but if more financial institutions follow Vancity’s lead, payday loan companies would disappear from our landscape without further government regulations.

Don’t wait for payday loans to disappear before searching out more permanent solutions. Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. 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. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

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Brandon Blog Post

PERSONAL LOANS FOR BAD CREDIT: INTERESTED?

personal loans for bad credit, personal loans, bad credit, trustee, bankruptcy, personal bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, financial plan, debt, high cost debt, starting over starting nowPersonal loans for bad credit commercials and advertisements are very seductive. It seems so easy – money in your bank account in no time and they can be arranged online 24/7. Serious debt can be debilitating, leaving you feeling helpless, out of control and not knowing where to turn. The answer to your problems is personal loans for bad credit, but is it really?

Personal loans for bad credit are not the same as a loan you’d get from your bank or credit union. The interest rates are much higher because the risk to the lender is much greater. As a professional trustee I can tell you that the last thing you need is more high cost debt. What you need is a solid financial plan to get you out of debt, not personal loans for bad credit.

How can you get out of debt without resorting to high cost personal loans for bad credit? There is no instant or quick fix for serious debt issues. What you need are answers, options and realistic plan for recovery. Firstly, make an appointment with a professional trustee as soon as possible. Relying on advertising for financial advice is never a good idea. Trustees are professional, licensed, federally regulated financial services professionals who are uniquely positioned to provide long term, sensible solutions on reducing debt. Personal bankruptcy is not your only choice. There are bankruptcy alternatives such as credit counselling, debt consolidation or consumer proposals.

Don’t fall prey to high cost personal loans for bad credit. For sound financial advice you can depend on, contact Ira Smith Trustee & Receiver Inc. today. Starting Over, Starting Now you can be well on your way to a debt free future.

 

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Brandon Blog Post

NEGOTIATING DEBT VS BANKRUPTCY

negotiating debt vs bankruptcy, bankruptcy, bankruptcy faqs, debt, trustee, professional trustee, licensed trustee, debt settlement companies, financial plan, consumer proposals, consumer bankruptcies, bankruptcy alternatives, alternatives to bankruptcy, credit counselling, debt consolidation, Bankruptcy and Insolvency Act, BIA, Office of the Superintendent of Bankruptcy CanadaNegotiating debt vs bankruptcy. Of course you would not pick bankruptcy as your first choice. If you are considering the options of negotiating debt vs bankruptcy, you must be mired in serious financial difficulty and have few options available to you.

You need the help of a professional, licensed trustee now! Don’t be seduced by the bogus claims of debt settlement companies who promise to negotiate with your creditors for pennies on the dollar and get you out of debt in no time flat. Although you are being bombarded with messages like this on radio, television and online, don’t fall prey to these scam artists.

Debt settlement companies have already been banned in the United States and now several Canadian provinces have introduced strict regulations in the debt settlement industry. A professional trustee will evaluate your individual situation fairly and in an even-handed manner, and present you with a solid financial plan for moving forward and getting out of debt, including all of the advantages and disadvantages of negotiating debt vs bankruptcy.

According to the Office of the Superintendent of Bankruptcy Canada, consumers continue to opt in large numbers for negotiating debt vs bankruptcy.

What are the alternatives to bankruptcy? There are 3 Formal Bankruptcy Alternatives:

  1. Credit Counselling
    Credit counselling is in reality debt counselling. Professionals provide assistance with a host of issues related to debt including budgeting, finding debt solutions, working with your creditors and rebuilding credit.
  2. Debt Consolidation
    Debt consolidation is a single loan that allows you to repay your debts to several or all of your creditors at once, leaving you with only one outstanding loan.
  3. Consumer Proposals
    Consumer proposals are formal offers made to your creditors under the Bankruptcy and Insolvency Act (BIA) to modify your payments. e.g. paying a lesser amount each month for a longer period of time and paying a total lesser amount than you owe. In a consumer proposal you are choosing not to go bankrupt so this is actually negotiating debt vs bankruptcy.

Ira Smith Trustee & Receiver Inc. is a professional, licensed trustee who can help you get back on the road to financial health Starting Over, Starting Now. A licensed trustee can properly advise you on negotiating debt vs bankruptcy. If you wish to do some self-study, please review our bankruptcy FAQS. But don’t delay. Contact us today.

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BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?

BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?Baby boomers debt crisis. The subject of inheritance is always highly charged – especially if you are in a Baby Boomers debt crisis. Parents seem to be divided into several camps. There are those who are self made and who believe that their kids will learn more from making it on their own than by receiving it on a silver platter. Others have spoiled their kids with a lavish lifestyle that only an equally lavish inheritance will be able to support. And there are those like billionaire Bill Gates who fall somewhere in the middle. This is his take on his wealth and inheritance for his children.

“It will be a minuscule portion of my wealth. It will mean they have to find their own way. They will be given an unbelievable education and that will all be paid for. And certainly anything related to health issues we will take care of. But in terms of their income, they will have to pick a job they like and go to work. They are normal kids now. They do chores, they get pocket money”.

Sadly there are many people who are living well beyond their means and waiting for an inheritance to bail them out of serious debt issues. They are living the life they believe is their right and as a result have an enormous mortgage, leased cars, maxed out credit cards and nothing but a mountain of debt to call their own.

  • An HSBC Bank report released in September, 2013, found 39% of working people are banking on some type of inheritance with the median value expected to be $77,213.
  • A report by Moneyville calculates that baby boomers are poised to inherit about $1 trillion over the next two decades as their parents and other close old relatives die.
  • According to MoneySense, 36% of the wealthiest families have received an inheritance; the average amount of that inheritance was $136,000.

However a BMO report shows that what many Canadians expect and what they may receive are quite different:

  • About 1.5 million Canadians are relying on their inheritance as the primary source of capital to fund their retirement.
  • On average, Canadians expect to receive a total of $150,600 in cash or cash equivalents, and $151,200 in non-cash inheritance.
  • In reality, inheritance sums received were significantly less – the average inheritance received was $56,000; certainly not enough to provide a solution to the question – Will I ever be able to retire?

Waiting for an inheritance to bail you out of a baby boomers debt crisis or other serious financial problems is clearly not a sound plan. If you have serious debt issues you need a professional. Contact Ira Smith Trustee & Receiver Inc. today. As professional trustees we can offer a sound financial plan and a way out of your baby boomers debt crisis for Starting Over, Starting Now. Take the first stop towards living a debt free life.

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Brandon Blog Post

IS CANADA’S 1% IMMUNE FROM INSOLVENCY OR BANKRUPTCY?

bankrupt, bankruptcy, insolvent, insolvency, financial plan, 1 percenters, trustee, canadian bankruptcyThere has been quite a bit of buzz recently about Canada’s high income earners, affectionately referred to as the “1% or 1 percenters”. According to a National House Survey in 2011, to be considered in such illustrious company you have to earn a minimum of $191,100. However, the average income among the top 1% was $381,300 while the average Canadian earns $38,700. The typical member of the 1% club is male, married or living common-law, between the ages of 45 and 64 and lives in Toronto, Montreal, Calgary or Vancouver.

Earning $191,100+ may sound rich to the average Canadian but they would probably be shocked to know that many 1 percenters have ZERO savings or investments and are living paycheque to paycheque. Many are living lifestyles far beyond their means with sky-high mortgages, luxury vehicles, wining, dining, exotic travel, personal grooming, household staff… They are candidates for Canadian bankruptcy. There is no correlation between money earned and money saved. Living a high flying lifestyle can be intoxicating and very difficult to give up. Sadly, those seeking luxury are younger than ever. American Express Cardmember and merchant data reports that Canada’s Generation Y (born from 1983 onwards) as the biggest spenders on fine dining, luxury and travel. Living on a financial high wire is risky business. It equates to flirting with disaster. These 1 percenters are no different from the celebrities who blow through millions in earnings per year and declare bankruptcy. Few are super rich enough to become immune from insolvency and bankruptcy.

In fact it doesn’t take much for some 1 percenters to become insolvent or bankrupt – a downturn in the market, an illness, job loss, bad investment… If you’re walking a financial high wire, it’s time to come down to safety. Contact Ira Smith Trustee & Receiver Inc. We’ll evaluate your situation and come up with a realistic financial plan so that Starting Over, Starting Now you can live a happy, productive life without the fear of falling off a financial high wire.

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WILL I EVER BE ABLE TO RETIRE?

will i ever be able to retireWill I ever be able to retire?” is a common question amongst the Boomers generation. Last week we discussed the problem of living paycheque to paycheque. This week we’ll be addressing whether or not you will ever be able to retire. That’s right; there is a distinct possibility that many of you may never be able to retire. A new HSBC study reports that 17% of Canadians believe that they will never be able to retire, while a growing number of Canadians believe that retirement is getting further and further away and therefore the answer to their will I ever be able to retire question is NO.

  • 40% say they did not prepare well enough and of that group that doesn’t have enough money, 40% only came to the realization after they retired
  • 72% of retirees experienced a fall in income, yet only 48% had a similar drop in spending
  • 14% of people were funding a dependent in retirement while 32% of people not fully retired made the same claim

A BMO study reports that Baby Boomers are about $400,000 short of their retirement goals. Another reason why the answer to their will I ever be able to retire question is no. The money has to come from somewhere and as a result the BMO survey reports that:

  • 71% of Boomers plan to work in retirement and therefore feel that the answer to the will I ever be able to retire question will never be yes
  • 44% will sell off their valuable goods such as antiques or possessions they don’t use in order to raise funds otherwise the answer to their will I ever be able to retire question will never be yes
  • 33% plan to sell their home to help make ends meet otherwise the answer to their will I ever be able to retire question will always be no

According to Sun Life Financial’s annual Unretirement Index poll:

  • Only 27% of respondents believe they’ll retire by 66, a nearly 50% decline from the previous year
  • Economic uncertainty and poor financial planning are being cited as key reasons why a majority of Canadians surveyed say plans to retire by age 66 are more of a fantasy than a reality and their answer to the will I ever be able to retire question is no

Are you one of the many Canadians who haven’t been able to save for retirement? Is life a financial struggle to pay the monthly bills? Are you relying on credit to maintain your lifestyle? Are you forced to use expensive credit, such as an online bad credit loan or a bad credit line of credit? Do you feel that it is no longer worth spending your time thinking about the will I ever be able to retire question because your reality is too depressing?

If so, you are living in a financial danger zone. Consult a professional Trustee as soon as possible. Contact Ira Smith Trustee & Receiver Inc. for sound advice and a realistic financial plan to turn your life around. Starting Over, Starting Now we can solve your financial problems and put you back on track to living a debt free life. We want to help you answer a resounding YES to your will I ever be able to retire question.

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ARE YOU LIVING PAYCHEQUE TO PAYCHEQUE?

starting over, staring nowWe’ve been discussing the serious issue of seniors in debt, but seniors are not the only ones experiencing serious financial challenges. Those of us still working are facing different, but equally daunting challenges.

You have a job and you work hard. You pay all of your bills on time and you pay your taxes. What could be wrong with this picture? You could be one missed paycheque from financial disaster. A recent report shows that Ontario has the second highest percentage of people living paycheque to paycheque in the country.

A Canadian Payroll Association (CPA) survey found that the majority of Canadian workers continue to live paycheque to paycheque, with 57%saying they would be in financial difficulty if their pay was delayed by even one week. Although a financial planner will generally recommend that people have approximately three months of expenses as an emergency fund, if you are living paycheque to paycheque, survival is on your mind; not saving. And, the reality is that retirement may be just a dream – 43% of Ontarians expect to postpone their retirements.

How did so many people end up living from paycheque to paycheque?

  • Rising cost of living expenses
  • Living expenses now include Internet, cable, cellphone/Smartphone, wireless data…
  • Increasing educational costs
  • Unstable economy
  • Easy access to credit contributes to overspending

What can you do now to end the “living paycheque to paycheque” cycle? Don’t wait for financial disaster to strike! Contact a professional Trustee today. Ira Smith Trustee & Receiver Inc. will evaluate your situation and come up with a solid financial plan so that Starting Over, Starting Now you can get your life back on track. You won’t ever have to experience the stress of living paycheque to paycheque again.

Watch for our next blog when we’ll be discussing if you’ll ever be able to retire.

Call a Trustee Now!