Are you struggling with debt and feeling overwhelmed by financial stress? Consumer credit counseling might seem like the answer, but recent government investigations reveal that some debt advisory services may cost you more than they save.
As a Licensed Insolvency Trustee serving Toronto, Mississauga, Brampton, and Markham for decades, I’ve helped many people in the Greater Toronto Area navigate their debt challenges. In this comprehensive guide, I’ll explain what consumer credit counselling really offers, how to find legitimate help, and what alternatives might be better suited to your situation.
Financial difficulties affect millions of Canadians every year. The stress of mounting bills, collection calls, and uncertain futures can feel overwhelming. Consumer credit counseling presents itself as a solution, but understanding what it truly offers is crucial for making informed decisions about your financial future.
What is Consumer Credit Counseling?
Consumer credit counseling involves working with a certified credit counselor to address your debt problems. These services typically include:
Reviewing your complete financial situation
Creating personalized budgets and payment plans
Providing financial education and money management skills
Negotiating with creditors on your behalf
Offering ongoing support throughout your debt repayment journey
The goal is to help you regain control of your finances while avoiding more drastic measures like bankruptcy.
Who Can Benefit from Consumer Credit Counseling?
Consumer credit counseling can be helpful for people who:
Have steady income but struggle to manage multiple debts
Want to learn better budgeting and money management skills
Feel overwhelmed by financial decisions
Need help negotiating with creditors
Want to avoid bankruptcy or consumer proposals
However, consumer credit counseling isn’t right for everyone. If your debt is too high relative to your income, or if you’re facing immediate legal action from creditors, other debt relief options might be more appropriate.
The Empathetic Approach to Debt Relief and Financial Wellness
Legitimate consumer credit counseling recognizes that financial problems often involve more than just money. Good credit counselors understand the emotional stress of debt and provide compassionate, judgment-free support.
What empathetic counseling includes:
Active listening without blame or shame
Personalized solutions that fit your unique situation
Emotional support during difficult financial decisions
Education that empowers rather than overwhelms
Realistic timelines that consider your circumstances
The Foundation of Financial Recovery: What is Consumer Credit Counseling?
Understanding the fundamentals of consumer credit counseling helps you make informed decisions about whether it’s right for your situation.
Defining Consumer Credit Counseling
Consumer credit counseling is a service that helps people manage debt through education, budgeting assistance, and debt management plans. Legitimate consumer credit counseling agencies are typically non-profit organizations that charge minimal fees or offer free services.
Core components include:
Financial assessment and budget analysis
Debt management plan creation
Creditor communication and negotiation
Financial education and skill building
Ongoing support and monitoring
The Role of a Credit Counsellor: Your Trusted Financial Advisor
Initial Debt Evaluation: A Holistic Review of Your Financial Situation
The first step in consumer credit counseling involves a comprehensive review of your finances. This should include:
Complete debt inventory: All credit cards, loans, and other obligations
Income analysis: All sources of regular income
Expense review: Fixed and variable monthly expenses
Asset assessment: Property, investments, and valuable possessions
Credit report review: Understanding your credit history and score
This evaluation helps determine whether credit counseling is appropriate or if other debt relief options would work better.
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Why Choose Consumer Credit Counseling? Beyond Just Paying Off Debt
Credit counseling offers benefits that extend beyond simple debt repayment, addressing the root causes of financial stress.
Alleviating Financial Stress and Improving Mental Health
Financial problems create significant stress that affects your entire life. Quality credit counseling helps by:
Providing clarity about your financial situation
Creating realistic plans that reduce anxiety about the future
Offering emotional support during difficult times
Teaching coping strategies for financial stress
Restoring hope that your situation can improve
Studies show that people who complete credit counseling programs report significant improvements in their mental health and overall well-being.
Gaining Control Over Your Finances and Achieving Financial Freedom
Credit counseling helps you develop skills and habits that lead to long-term financial stability:
Better budgeting skills that prevent future debt problems
Improved money management through practical tools and techniques
Understanding of credit and how to use it responsibly
Emergency planning to handle unexpected expenses
Goal setting for future financial objectives
Receiving Personalized Financial Education and Budgeting Guidance
One of the most valuable aspects of consumer credit counseling is the education component. You’ll learn:
How to create and stick to realistic budgets
Strategies for reducing expenses without sacrificing quality of life
How to prioritize debt payments for maximum impact
Ways to increase income through career development
Long-term financial planning techniques
Stopping Collection Calls and Protecting Your Consumer Rights
When you enter a debt management plan through consumer credit counseling, creditors typically agree to stop collection activities. This provides immediate relief from:
Constant phone calls and letters
Threats of legal action
Stress and anxiety from creditor harassment
Confusion about your rights as a debtor
However, it’s important to understand that this protection isn’t automatic and depends on creditor cooperation.
Your Path to Financial Stability: The Step-by-Step Credit Counseling Process
Understanding what to expect from consumer credit counseling helps you prepare for success and identify quality services.
Step 1: The Confidential Debt Evaluation and Budget Counseling Session
Your first meeting with a credit counselor should be comprehensive and confidential. During this session:
Complete financial review: Every debt, income source, and expense
Credit report analysis: Understanding your current credit standing
Budget creation: Realistic monthly spending plan
Option exploration: All available debt relief strategies
Initial recommendations: Preliminary advice based on your situation
Important: This initial consultation should be free or very low cost (under $50).
Step 2: Crafting Your Personalized Debt Management Plan (DMP)
If a debt management plan is appropriate for your situation, your counselor will:
Calculate affordable payments based on your budget
Contact creditors to negotiate terms and interest rates
Consolidate payments into one monthly amount
Set realistic timelines for becoming debt-free
Explain all terms clearly before you commit
Key point: You should never feel pressured to sign up immediately. Take time to review and understand all terms.
Step 3: Communication and Advocacy with Creditors
Your credit counselor will serve as your advocate with creditors, working to:
Negotiate lower interest rates (often 0-10% instead of 18-25%)
Waive late fees and penalties that have accumulated
Stop collection activities during plan participation
Establish reasonable payment terms you can actually afford
Provide regular updates on your progress
Step 4: Ongoing Support, Financial Education, and Achieving Debt Free Status
Throughout your debt management plan, quality credit counseling includes:
Regular check-ins to monitor progress and address challenges
Continued education through workshops and resources
Budget adjustments when your circumstances change
Credit rebuilding guidance as you approach debt freedom
Graduation planning for maintaining financial health after completion
Most debt management plans take 3-5 years to complete, with many people becoming debt-free faster through improved financial habits.
consumer credit counseling
Debt Management Plans (DMPs) Explained: Key Benefits and Considerations
Debt management plans are the primary tool used in credit counseling, but they’re not right for everyone.
What Types of Debts are Included in a DMP?
Debt management plans typically include all unsecured debt:
Credit cards (all major issuers usually participate)
Store credit cards and retail financing
Personal loans from banks and credit unions
Medical debt and professional service bills
Some collection accounts (depending on the creditor)
Debts usually NOT included:
Secured debts (mortgages, car loans)
Government debts (taxes, student loans)
Court judgments and garnishments
Debt to family and friends
How DMPs Can Offer Interest Relief and Lower Monthly Payments
The primary benefits of debt management plans include:
Reduced interest rates: Often lowered to 0-10%
Waived fees: Late charges and over-limit fees eliminated
Single payment: One monthly payment instead of multiple bills
Fixed timeline: Clear end date for becoming debt-free
Example: Sarah owed $25,000 on five credit cards with an average interest rate of 22%. Through a DMP, her rate dropped to 8%, reducing her monthly payment from $890 to $520 and cutting three years off her repayment time.
The Impact of a DMP on Your Credit Score: Myth vs. Reality
There are many misconceptions about how debt management plans affect credit scores:
Myths:
“DMPs destroy your credit score”
“It’s as bad as bankruptcy on your credit report”
“You can’t get credit while on a DMP”
Reality:
DMPs may initially lower your score by 50-100 points
Your score typically recovers within 12-18 months
The impact is much less severe than bankruptcy or debt settlement
Many people see improved scores as they pay down debt
You can often qualify for new credit after 12 months of on-time payments
Comparing Your Options: Credit Counseling vs. Other Debt Relief Solutions
Understanding all your options helps you make the best choice for your specific situation.
Credit Counseling vs. Debt Consolidation Loans
Credit Counseling:
No new loan required
Works with existing creditors
Provides education and support
Minimal fees (usually under $100)
Available even with poor credit
Debt Consolidation Loans:
Requires qualifying for a new loan
May offer lower interest rates
No ongoing support or education
Higher fees (origination fees, interest)
Difficult to qualify with damaged credit
Best for: Credit counseling works better if you can’t qualify for a low-interest consolidation loan or need ongoing support.
Unfortunately, not all debt advisory services have your best interests in mind. Recent government investigations have revealed serious problems in Canada’s debt advisory marketplace.
Government Investigation Reveals Serious Issues
In December 2023, Canada’s Office of the Superintendent of Bankruptcy (OSB) released a position paper on The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System. This position paper detailed the environment of problematic debt advisory practices. Since then, over 100 complaints have been filed against debt advisors.
Major problems identified:
Charging fees for services that should be free
Misrepresenting themselves as government officials
Requiring upfront payments before providing help
Threatening to cancel debt solutions if clients stop paying
The Hidden Costs of Questionable Debt Advisors
The financial impact has been significant. Between December 2023 and April 2025:
Debt advisor involvement in bankruptcy cases dropped 59%
Monthly fees paid to advisors fell from $2.1 million to $1.2 million
This represents nearly $1 million monthly in unnecessary fees paid by struggling Canadians
Real example: One client was instructed to put debt advisor fees on credit cards, then include that new debt in their bankruptcy filing – a practice that may violate Canadian criminal law.
Red Flags to Watch For
Immediate warning signs:
Demands for large upfront payments
Claims they work “with the government”
Promises to “eliminate your debt” quickly
High-pressure sales tactics
Won’t provide clear fee information
Prevents direct communication with Licensed Insolvency Trustees
Common misleading tactics:
“You must pay us first” – False. You can contact Licensed Insolvency Trustees directly.
“We can get better deals than trustees” – Trustees have legal authority that debt advisors don’t have.
“Pay us or your proposal will fail” – Often a scare tactic without legal basis.
Finding Legitimate Consumer Credit Counseling Help
How to Identify Quality Credit Counseling Services
Look for these characteristics:
Non-profit status or transparent fee structure
Accreditation from recognized organizations
Free or low-cost initial consultations
Educational focus, not just debt management
Clear explanations of all options, not just their services
Willingness to refer you elsewhere if appropriate
Questions to Ask Any Credit Counseling Agency
Before committing to any service, ask:
“What are all your fees, and when do I pay them?”
“Are you accredited, and by whom?”
“What happens if I can’t make my payments?”
“How will this affect my credit score?”
“Can you provide references from past clients?”
“What other debt relief options should I consider?”
Maintain strict professional and ethical standards
Provide legal protection through bankruptcy and consumer proposal processes
Full Disclosure: Ira Smith Trustee & Receiver Inc. operates independently and has no relationships with unregulated debt advisory services.
consumer credit counseling
My Professional Experience and Qualifications
As a Licensed Insolvency Trustee serving the Greater Toronto Area for decades, I’ve helped thousands of individuals and families overcome financial challenges. My approach combines legal expertise with a genuine understanding of the emotional stress that debt creates.
Former senior banker with extensive credit and lending experience
Regular community education contributor on financial topics
Maintaining my continuing education in debt advisory and financial restructuring matters
My commitment: Every client receives honest, transparent advice tailored to their unique situation. I believe in empowering people with knowledge and supporting them through the recovery process.
Frequently Asked Questions About Consumer Credit Counseling
Q: Will consumer credit counseling hurt my credit score?
A: Quality credit counseling may initially lower your score by 50-100 points, but this recovers within 12-18 months as you pay down debt. The impact is much less severe than bankruptcy, debt settlement, or continuing to miss payments.
Q: How much does legitimate consumer credit counseling cost?
A: Non-profit credit counseling typically charges $20-50 for initial setup and $20-40 monthly for debt management plans. Be very wary of services charging hundreds or thousands of dollars upfront.
Q: Can I get out of a debt management plan if my situation changes?
A: Yes, you can exit a DMP at any time. However, creditors may reinstate original interest rates and fees. Discuss exit strategies with your counsellor, before starting.
Q: Will my creditors definitely agree to a debt management plan?
A: Most major credit card companies participate in DMPs, but participation is voluntary. Your counselor should be upfront about which creditors typically cooperate.
Q: Is consumer credit counseling better than bankruptcy?
A: It depends on your situation. Credit counseling works well if you have steady income and manageable debt levels. Bankruptcy might be better if your debt is too high relative to income or you’re facing immediate legal action.
consumer credit counseling
Taking Action: Your Next Steps Toward Financial Recovery
If You’re Considering Consumer Credit Counseling
Research thoroughly – Look for accredited, non-profit agencies
Get multiple consultations – Compare approaches and fees
Ask detailed questions – Understand exactly what you’re paying for
Review alternatives – Make sure counsellingcounsellor is your best option
Start with free resources – Many educational materials are available at no cost
If You Think You Need More Comprehensive Help
Sometimes consumer credit counseling isn’t enough. You might benefit from legal debt relief options like consumer proposals or bankruptcy if:
Your debt exceeds 40% of your gross annual income
You’re only making minimum payments with no progress
Creditors are threatening legal action
You’re using credit to pay for necessities
Financial stress is severely impacting your health or relationships
Free Consultation Available
If you’re dealing with overwhelming debt in the Greater Toronto Area, I invite you to book a free, no-obligation consultation with me. During our meeting, we’ll:
Complete review of your debt and financial situation
Explanation of how different solutions might affect your credit
Discussion of immediate steps you can take
Honest assessment of whether consumer credit counseling or other options are best for you
Clear answers to all your questions in a counselling language you understand
What makes my approach different:
We have years of experience with Canadian debt relief
Legal authority to implement solutions that debt advisors cannot
Regulated fees with no hidden costs
Genuine commitment to your long-term financial health
Comprehensive support throughout your recovery process
Conclusion: Making Informed Decisions About Consumer Credit Counseling
Consumer credit counseling can be a valuable tool for debt relief, but only when you choose the right service provider and understand all your options. The key is distinguishing between legitimate, educational counselling services and expensive programs that duplicate services available elsewhere for free.
Remember these crucial points:
Quality consumer credit counseling focuses on education and empowerment
Non-profit agencies typically offer the most trustworthy services
Be extremely cautious of high upfront fees or pressure tactics
Your current financial situation doesn’t define your future possibilities
Whether you choose credit counseling, work with a Licensed Insolvency Trustee, or pursue other debt relief options, the most important step is taking action. Financial problems rarely improve on their own, but with the right guidance and commitment, you can overcome debt challenges and build lasting financial stability.
The path to financial freedom in Canada’s current economic climate may be challenging, but it is not impossible. With the right information, a clear plan, and professional guidance, you can overcome your cost of living and debt challenges and move towards a more secure and hopeful financial future.
You’re not alone in this. There’s a path forward, and it starts with reaching out for the right kind of help. Take that step—you deserve it. If you’re a GTA resident dealing with overwhelming debt, don’t wait for your credit situation to get worse. As a licensed insolvency trustee serving Toronto, Mississauga, Brampton, Vaughan, Markham, and surrounding areas, I’m here to help you understand your options.
Remember: Your current financial situation doesn’t define your future. With the right help and information, you can overcome both debt challenges and credit score problems.
As a licensed insolvency trustee serving the Greater Toronto Area, I encourage consumers and business owners to view financial difficulties not as failures but as challenges that can be addressed with proper guidance. By understanding the warning signs of insolvency and seeking professional advice early, many people and businesses can find a path forward – whether through restructuring, strategic changes, or in some cases, an orderly wind-down that protects their future opportunities.
Remember: The earlier you seek help for company insolvency concerns, the more options you’ll have.
If you or someone you know is struggling with too much debt, remember that the financial restructuring process, while complex, offers viable solutions with the right guidance. As a licensed insolvency trustee serving the Greater Toronto Area, I help entrepreneurs understand their options and find a path forward during financial challenges.
At the Ira Smith Team, we understand the financial and emotional components of debt struggles. We’ve seen how traditional approaches often fall short in today’s economic environment, so we focus on modern debt relief options that can help you avoid bankruptcy while still achieving financial freedom.
The stress of financial challenges can be overwhelming. We take the time to understand your unique situation and develop customized strategies that address both your financial needs and emotional well-being. There’s no “one-size-fits-all” approach here—your financial solution should be as unique as the challenges you’re facing.
If any of this sounds familiar and you’re serious about finding a solution, reach out to the Ira Smith Trustee & Receiver Inc. team today for a free consultation. Ira Smith Trustee & Receiver Inc. is a Licensed Insolvency Trustee serving Toronto, Vaughan, Mississauga, Brampton, Markham, and the entire Greater Toronto Area. We’re committed to helping you or your company get back on the road to healthy, stress-free operations and recover from financial difficulties. Starting Over, Starting Now.
The information provided in this blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc., and any contributors do not assume any liability for any loss or damage.
We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.
Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.
If you would prefer to listen to this Brandon Blog’s audio version, please scroll to the very bottom of this page and click play on the podcast.
What Is Financial Wellness?
Financial wellness is the state of being free from financial stress or worry. By managing your financial health you can avoid the feelings of anxiety and despair that come from worrying about money. When you are financially well you have the ability to focus your energy on the things that really matter to you.
The phrase is everywhere these days. It’s a buzzword that’s getting a lot of attention. But what does it actually mean? When you boil it down, financial wellness is simply about being responsible with money. It’s about paying attention to how you spend, saving for the future, and making sure you can take care of yourself and your family.
Why is financial wellness important?
Financial wellness is important because it’s the first step to planning and achieving your goals. If you don’t know where your money goes, how can you ever be sure that there is enough for the things you want and need? Your ability to pay bills and avoid debt can determine whether or not you have a good credit score, and whether or not you can apply for a mortgage or a loan for a house or a car. This creates unnecessary financial stress.
In this Brandon Blog, I discuss the aspects of financial wellness and what it means for your overall enjoyment of life.
It’s difficult to remember a time when the word “debt” didn’t have a negative connotation. Whether you’re talking about consumer debt, medical debt, or debt related to other services, the ominous word is never far from its less than attractive cousins “recession” and “bankruptcy“.
Yet even in the midst of a pandemic, in September 2020, credit reporting firm Equifax Canada stated increasing mortgage balances pressed average financial debt per Canadian consumer up to $73,532. This is up 2.2% from the prior year and despite the financial impact of the COVID-19 pandemic.
Financial health can be part of an overall health wellness program which will certainly aid in decreasing any kind of stigma. The Financial Consumer Agency of Canada stated that “mental, physical and financial wellness are three pillars of good health”. They say this with great certainty as almost fifty percent of Canadians have financial tension in their lives. Virtually as many, according to a 2018 survey carried out by the Canadian Payroll Association, would certainly have economic pressure and financial shock if a paycheque came late.
financial wellness
Financial wellness & productivity
The number one reason people will credit with helping them make and save money and make proper financial decisions is their parents. So why not make the home for your entire family the number one place to learn about money and manage it? Look for personal finance articles, books and courses that can teach you everything from general money management to specific techniques for saving money on groceries to investing. This is also known as improving your financial literacy.
Also, look for advice on your overall well-being so you can have a healthy relationship with money and your family that will last all of you a lifetime. Overall good health, taking the stressors out of your life as much as possible and financial well-being will lead to increased productivity and overall enjoyment of life.
The principles of physical health are well promoted through health institutions. It consists of a well-balanced diet regimen, exercise, and healthy life selections. The importance of psychological well-being in the form of self-care and mindfulness is obtaining awareness through networks beyond medical care specialists. Its value has been highlighted a lot more throughout the pandemic.
In my experience as a Licensed Insolvency Trustee (“Trustee”), the principles of financial well-being and financial wellness still challenge Canadians. I never see it included as a component of overall health in discussions over awareness of physical and mental health wellness. Perhaps because in our consumption-driven world, saving cash through excellent money management abilities isn’t as “awesome” a subject to brag about or to become a social media influencer in!
Nonetheless, establishing monetary objectives and achieving them is extremely rewarding. Self-control today will certainly pay dividends in the future. So just how do we get there to a nirvana state of financial well-being? The same way as we do with a physical health and wellness goal – with self-control and good habits, forming new behaviours.
I recommend that as a first step, draw up a checklist of financial planning objectives and a timeline. Take stock of your financial obligations, rates of interest you are paying, monthly payment amounts and days of the month that payments are due. Understand your assets, liabilities, income and all of your expenses.
Goals: Financial wellness programs need realistic goals
The biggest mistake people make when trying to establish financial wellness is setting financial goals they have no realistic chance of achieving. This is not an achievable goal if it is too high, or too grand. If necessary, break a larger objective into smaller-sized objectives that can be attained in a reasonable period of time to stay clear of discouragement. If you set out to lose 100 pounds, you might be scared off because of how much time that would certainly take. Going for a few pounds a week or month would certainly help keep you motivated.
If all you do is have the idea of being debt-free or have $100,000 in your bank account, that goal is probably unattainable. There is no roadmap of steps to take to get there and there is no timeline attached to such a goal. However, aiming to pay all your monthly bills on time, conserving 5% of every paycheque to have some emergency funds on hand or paying off your highest interest rate financial debts at the rate of $50 a week is reasonable and measurable.
Financial wellness: Nutrition
Barring any serious medical concerns, conventional weight loss wisdom focuses on calories. If you burn more calories than you ingest, you will certainly slim down. Budgeting takes the same approach. As long as your monthly spending is less than your monthly income, you will achieve your financial well-being monthly goals. In tracking your monthly spending you need to look at all the ways you spend in any month: cash, cheque, debit card and credit cards.
Don’t make the mistake that many people do in forgetting that the only amount you have to spend is your net monthly income, net of the income tax you need to pay to the Canada Revenue Agency. You need to look at your last year’s income tax return to see the total amount of income tax you paid, not just the amount deducted at source. If you received a refund, then you should not have to save extra to pay that income tax bill in April. If you had to pay more than what was deducted at source, you better plan to save that amount of money during the year so you will have it the following April.
Analyze every expenditure and determine just how well it aligns with your financial health goals for a better financial life. What is more important? The expenditure or the sensation of financial wellness that will be accomplished if you had that much more cash to put in the direction of paying down debt, building up an emergency savings fund or starting or adding to a retirement savings plan.
Financial wellness: Exercising
Running on a treadmill is excellent for your physical health and wellness. Yet unless that treadmill is powering your home, when it comes to your financial well-being you will require a different type of exercise. That is an exercise in discipline. Understanding just how a “need” is different from a “want”.
After covering the requirements of life, you need to focus on what spending will certainly get you closer to attaining your goals, and which do the opposite. I am not recommending that you lead a reclusive life yet search for financial savings and effectiveness to get you closer to the financial well-being you are striving for. Is there a less costly cafe? Can I get that same fashion look for much less? Don’t deny yourself, but at the same time do not overreach.
My grandfather’s depression-era wisdom is still appropriate today: if you pinch pennies hard, you will get nickels.
Financial wellness in the workplace
Most people have financial stress in their lives, whether they realize it or not. For some, the stress may be simply a question of meeting their bills. For others, it may be more complex such as how to:
reduce the stress of dealing with creditors;
set up a savings account to handle an unexpected financial blow; or
achieve financial security.
Regardless of the type of financial stress people face, a financial wellness program can help them find solutions and create a plan to reduce their stress over money. Employees that have their stress reduced will be more productive. So it is in the employer’s best interests to institute a financial wellness program in the workplace.
It all starts with a financial wellness assessment
The idea of a financial wellness assessment might seem a bit like financial group therapy. A professional looks at your situation, from your income to your debts, and asks questions about your financial goals. It can be stressful to open up about your financial situation, but it’s an important step toward taking control of your money. It’s also an opportunity to learn about products and services that may help you achieve your financial goals.
The result of the financial wellness survey will be written up in a financial wellness report. A financial wellness report is a tool that helps you identify the state of your finances, your level of financial distress and the main source of stress. It is a tool that you can use, which provides you with objective information about your financial situation and what steps you can take to improve it.
financial wellness
Measure the success of your financial wellness program
If you’re a company concerned about the financial wellness of your employees, don’t just rely on gut feeling to measure your program’s effectiveness. Instead, use a quantitative approach to measuring the success of your financial wellness program, as this will help you better understand where your employees are at financially and what works and what doesn’t in your program.
If you’re seeking a successful financial wellness program, you need to assess yours. You may feel as if your program is successful, but have you measured it to be sure? Any employee financial wellness program aims to improve each employee’s financial position and to reduce the amount of financial stress in their lives. The best way to measure your financial wellness program’s success would be to measure how your employees have advanced in achieving their financial goals established in the financial wellness assessment.
After an appropriate length of time, depending on each unique set of goals, another financial wellness assessment should be conducted and the results of the newer one compared to the prior one. What an employee has achieved and how they feel about it is an extremely important measure. New goals can be set, old goals can continue to be worked on or recalibrated. All this is intending to keep your employees on track to achieve their financial goals, improve the level of financial wellness peers experience and reduce the stress in their lives.
Financial wellness guide information for employees
This listing is not meant to be exhaustive. Some of the things that your employees might need to learn about in financial wellness workshops to improve their every day finances might be how to:
Track your finances
best manage assets, liabilities, income and expenses
Improve your relationship with money
Create, track and adjust your personal budget
Money management skills
Have control over day to day spending
Set up and maintain positive money habits to reduce your money worries
Understand the key elements behind your spending habits and how to fix what needs fixing
Know how much life insurance you may need and how to choose the best for you from the different types of insurance
Maintain a good credit score
Fix your credit
Deal with Canada Revenue Agency and income taxes
Create goals for when you have extra money
Deal with unexpected expenses
Create the financial resources to meet your household’s needs
What are the financial consequences of debt?
I hope you enjoyed this financial wellness Brandon Blog post. Sometimes financial literacy and financial education have to take a back seat to fix an immediate financial problem. Education can come both as part of the solution as well as continuing after debt problems have been solved. Student debt, bad debt, Canada Revenue Agency income tax debt, other personal debt and corporate debt, credit card debt and an unmanageable debt load are all examples of financial problems we have solved for other individuals and entrepreneurs and their companies.
If you are concerned because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option, call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.
The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.
The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.
We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.
That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today
Call us now for a no-cost consultation. We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.
We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.
Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.
The Ira Smith Team is totally operational and both Ira and Brandon Smith are here for a telephone consultation, conference calls, and virtual meetings.
Keep healthy and safe everybody.
If you would prefer to listen to the audio version of this Brandon’s Blog, please scroll to the very bottom and click on the podcast.
What is financial literacy in Canada
Financial literacy in Canada is having the skills and expertise to make informed decisions concerning managing your money. Recognizing basic financial ideas allows people to understand just how to navigate the financial system. People with financial literacy skills make better monetary decisions and handle cash much better than those without these skills.
We remain in uncharted waters currently in Canada. The COVID-19 pandemic has actually called for the Canadian government to give economic support programs to both individuals as well as businesses. Canadians’ 2019 personal income tax obligation payment due date has been extended and is due September 30, 2020. The Canada Emergency Response Benefit (CERB) payments are ending soon. The Canada Emergency Wage Subsidy (CEWS) will end in December 2020.
Where will Canadians end up when government subsidies end? LendingArch has reported that there has been a 1000 percent increase in demand for debt relief and loan refinancing among Canadians. So I thought it would be an opportune time to discuss the state of financial literacy in Canada.
Why is financial literacy in Canada important?
Financial literacy in Canada requires to begin with student education. It will aid students to:
Thoroughly consider their money options. This can relate to daily decisions, like acquiring groceries to bigger investments, like spending for tuition or getting a vehicle.
Understand fundamental money management.
Create their very own point of view on financial issues, such as rates of interest, home mortgage guidelines, or the Canadian or worldwide economy.
Financial literacy in Canada and money management go hand in hand
Establishing excellent finance practices like budgeting at an early stage in life is essential to financial wellness in the long term. Without fundamental financial literacy abilities, individuals are a lot more quickly tempted right into financial debts: utilizing credit cards, extending lines of credit, and also taking out high-interest predatory loans, without totally comprehending the ramifications of paying back those financial debts.
Many individuals have a difficult time talking about money at home too. The research I talk about below shows that typically, Canadians’ financial literacy in Canada is above average. Nonetheless, at the very least one study reveals Canadian moms and dads prefer to speak to their youngsters regarding sex than money matters. Not comprehending the fundamentals of finance could send their children into a financial freefall. The topic of this blog is not sufficiently wide to talk about the ramifications of children not understanding the concepts of responsible and safe sex!
The Programme for International Student Assessment (PISA) is an international survey that intends to assess education systems around the world by evaluating the abilities and also understanding of 15-year-old pupils in topics like science, math, reading, joint problem resolving, and financial literacy.
In the 2015 PISA survey, Canada took part in it for the very first time. PISA does not measure academic success in relation to each institution’s curricula. It does examine pupils’ capacity to apply understanding and abilities as well as to examine, reason, and also connect effectively as they examine, assess, and resolve problems. The results supply a crucial standard step for financial literacy in Canada.
The Council of Ministers of Education, Canada (CMEC) reported that in 2015, Canadian 15-year-old students attained an above-average score. Amongst the 15 countries and economies that joined the 2015 PISA financial literacy study, only one, China, outmatched Canada.
A different 2015 research revealed that overall Canadians stack up well on financial literacy contrasted to their peers in other places of the world. For example, the 2015 Organisation for Economic Co-operation and Development (OECD) Survey on Measuring Financial Literacy and Financial Inclusion measured respondents’ financial knowledge, attitudes, and behaviours. It ranked Canadians’ overall financial literacy third out of 29 countries.
The results were that only 61% of Canadians could correctly answer five of seven financial knowledge questions. That is what gave Canadians’ overall the financial literacy standing of 3rd place.
So it appears based on these 2015 studies, that Canadian youth on average as a group score better than Canadians as a whole, although overall financial literacy in Canada is above average. Presumably, it is the Canadian school system teaching financial literacy that might account for the overall better performance of 15-year-old Canadians versus a mixed age group.
How is financial literacy in Canada taught in Ontario schools?
The Ontario government has recently overhauled its financial literacy education and learning program. Pupils in grades 4-12 learn about financial literacy so they can comprehend just how to make enlightened financial choices.
Financial literacy belongs to the elementary and secondary schools’ educational programs in many different subjects such as mathematics, social studies, Canadian and world studies and also business studies. In some subjects, pupils may be learning details of and abilities for understanding money and money management, consumer education, savings and budgeting. This will certainly help them create financial literacy in Canada abilities. In various other subjects, financial literacy connections may be made as pupils learn more about their place in the world, as a responsible and caring person or when they examine different economic systems.
What resources are available to teachers for classroom use to teach financial literacy in Canada?
Via the educational program, pupils are creating abilities in critical reasoning, decision-making as well as solving problems that can be applied for both education and also to real-life circumstances. Resources have been created for teachers to help them connect financial literacy topics across the curriculum to grow the students’ discovering and making financial literacy in Canada much more meaningful to them.
Teacher videos, guides and lesson plans are developed to supply financial literacy teaching are developed to assist.
What resources are available for teachers to help parents support their children’s financial literacy in Canada?
Moms and dads have an essential duty to play in supporting their children to create the skills, knowledge, and behaviours to navigate today’s significantly complicated economic world. Parent resources have been established to highlight the Ministry of Education’s financial literacy in Canada methodology and to direct parents in engaging their youngsters in financial literacy matters. These sources can be made use of to support discussions at parent-teacher evenings, student fairs, and various other parent-child learning situations.
The Financial Consumer Agency of Canadahas actually developed an outline based on best practices in assessment methodology and what it has discovered in assessing its very own financial literacy sources and program. The provincial Ministries of Education have developed their very own programs as mentioned above with this guidance.
Financial literacy in Canada: Canadians share what they wish they learned about money
Even though on average Canadians score above average in a financial literacy test, Canadians still don’t feel confident they know everything they can about financial planning.
Huffington Post Canada reported that over half of Canadians are only $200 away from insolvency, and 31 percent don’t make enough to cover their bills, according to a recent poll of 1,500 Canadians.
Alison Carson, Oakville, Ont. high school teacher wished she found out the most effective method to invest her money. As a teacher, a large part of her paycheque goes into her pension plan. She says she relies upon her employer to invest her money in such a way that will offer her the very best retirement possible. However, she doesn’t know enough regarding exactly how it all works to keep track of it.
“I just trusted that if there was a problem … that someone more financially literate than me would’ve figured that out, and there would be some article written about it, and I would read the article,” she said.
Ontario Securities Commission Investor Education Fund (IEF) supports financial literacy in Canada
Started by the Ontario Securities Commission, the IEF site offers individual finance advice for consumers in various life situations as well as resources for instructors and students. It supplies an excellent introduction of the major types of investments – stocks, bonds, mutual funds, RRSPs – as well as uses a range of calculators, worksheets and tests.
This website, which combines the instructional resources of all 12 U.S. Federal Reserve Banks and the Board of Governors of the Federal Reserve, offers public and class resources on business economics, personal finance, banking, and money management. It also offers interactive tools and games for grades K to 12; as well as web links to various other sites of financial education and learning (within and outside the U.S. Federal Reserve system).
This is their contribution to financial literacy in Canada.
Financial literacy in Canada summary
I hope you enjoyed this financial literacy in Canada Brandon’s Blog. November is Financial Literacy Month in Canada. Throughout November, organizations and individuals from across the country are encouraged to host and participate in events and share resources aimed at helping Canadians learn how to manage their personal finances successfully. But we don’t have to wait until then to begin learning.
The Ira Smith Team family hopes you and your family are staying safe, healthy and well-balanced. Our hearts go out to every person who has been affected either through inconvenience or personal family tragedy.
We are all citizens of Canada and we have to coordinate our efforts to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Family members are literally separated from each other. We look forward to the time when things can return to something close to normal and we can all be together again physically.
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