Tag: student loan debt

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ECONOMIC DOWNTURN CAUSES MORE PEOPLE TO CONSIDER BANKRUPTCY OR PERSONAL BANKRUPTCY ALTERNATIVES

bankruptcy, alternative to bankruptcy, personal bankruptcy alternatives, alternatives to personal bankruptcy, Bankruptcy and Insolvency Act , BIA, bankruptcy solutions, lines of credit, credit card debt, credit counselling, debt consolidation, consumer proposals, budget, student loan debt, trustee, economic downturn, starting over starting now, information about bankruptcy, Toronto bankruptcy trusteeWhen do people generally want information about personal bankruptcy alternatives?

Personal bankruptcy alternatives are always sought after an economic downturn. The economic downturn is causing more people to rely on credit to supplement their income and/or their lifestyle. This mountain of debt will ultimately result in bankruptcy or hopefully, an alternative to bankruptcy.

What Bank of Montreal and Statistics Canada say about Canadian household debt

In BMO’s Annual Debt Report, the average household debt of those surveyed is $92,699, more than $4,000 higher than the four-year average dating back to 2012. And servicing that debt, which includes mortgages, lines of credit and credit card debt, is costing $1,165 a month.

According to Statistics Canada:

  • The debt-to-income ratio of Canadian households is 163.3% which means for every dollar Canadians earn, they owe $1.63 in debt
  • Canadian households now owe $1.841 trillion in various forms of debt
  • More than $1.1 trillion is from mortgages
  • $519 billion is consumer debt, like credit cards

Debt + More Debt = a Solution?

Adding debt to more debt is not a solution to the problem; it compounds the problem. If you are using credit cards to supplement your income or your lifestyle, you have a serious problem that needs professional help. Don’t wait until bankruptcy is your only option. You should be learning about personal bankruptcy alternatives before it is too late.

Is there such a thing as bankruptcy solutions?

We are asked this question all the time. Before even considering bankruptcy, I always want to discuss 3 formal alternatives to personal bankruptcy:

  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, all on an interest-free basis!

In addition there are informal personal bankruptcy alternatives including budget review, contacting your creditors (including your mortgage lender), selling an asset and contacting the Federal Government’s Repayment Assistance Plan (if you’re having difficulty repaying your student loan debt).

Just ask your Toronto bankruptcy trustee

A professional trustee can open up a world of possibilities for you. Contact Ira Smith Trustee & Receiver Inc. for help with your financial problems. With just one phone call you can be well on your way to a debt free life Starting Over, Starting Now.

 

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Brandon Blog Post

MILLENNIALS DEBT; A PLAN FOR ESCAPE

I recently read an article on millmillennials, millennials debt, Gen Y, Boomers, Baby Boomers, bankruptcy alternatives, debt, student loan debt, trustee, bankruptcy, credit, counselling, debt consolidation, consumer proposals, restructuring and turnaroundennials debt that actually referred to Millennials as “The Generation of Debt”. We recently reported on this very serious problem in our blog “Gen Y Trapped: Millennials in Debt”. Pew Research reports that Millennials are more distrustful of people than ever, less likely to belong to a party or religion, more in debt, and say they are unable to marry because they lack a solid economic foundation. In addition Millennials are also the first in the modern era to have higher levels of student loan debt, poverty and unemployment, and lower levels of wealth and personal income than their two immediate predecessor generations (Gen Xers and Boomers) had at the same stage of their life cycles.

I found this millennials debt issue particularly interesting because just a few days ago I had a conversation with a Millennial who said that her friends felt disenfranchised and angry with the Baby Boomers who have enjoyed benefits that they expected and will never have like company defined pension plans and old age security benefits at age 65.

Clearly one of the major issues is that Millennials had expectations but no financial plan and many are now trapped in a debt cycle that they don’t know how to escape. Millennials debt is a problem that needs to be dealt with as soon as possible. And dealing with debt is not a DYI project. If you’re a Millennial facing serious debt issues and an uncertain financial future, contact a professional trustee. Contact Ira Smith Trustee & Receiver Inc. There are many ways to deal with debt as well as bankruptcy which include credit counselling, debt consolidation and consumer proposals.

We’re here to help. We can discuss with you the various bankruptcy alternatives for the restructuring and turnaround of millennials debt and your entire financial life leading to your overall well-being. We can put you back on the path to lead a healthy and productive life so that you can escape the millennials debt trap. Make an appointment with the Ira Smith team today so that Starting Over, Starting Now you can live a happy, productive, debt free life.

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Brandon Blog Post

CANADA STUDENT LOAN REPAYMENT: WHAT CAN YOU DO IF YOU CAN’T REPAY?

student loans, student loan, student loan debt, debt, collection agency, credit bureau, trustee, lines of credit, repayment assistance plan, RAP, Canada student loan repayment, starting over starting nowCanada student loan repayment is and will continue to be a large issue. Student loan debt can be an enormous burden. Between 2012 and 2013, more than 400,000 students borrowed money to help pay for more post secondary education. (The Canadian Federation of Students). Accumulated federal student loan debt in Canada is now more than $15-billion. That doesn’t include obligations on lines of credit, credit cards or provincial loan programs – a total estimated to be as much as $8-billion. (Globe & Mail). This amount of debt affects our entire economy. Unfortunately many students can’t pay back their loans causing Canada student loan repayment to be a huge issue for both recent graduates and our economy. After trying unsuccessfully to collect for more than six years, the government writes off the loans. In total, $540 million worth of student loans has been written off over the last three years. (Human Resources and Skills Development Canada).

What happens if you don’t make your student loan payments? Your student loan will not be erased until you have paid it in full. If you don’t make your loan payments, you will be in default. Your Canada student loan repayment obligation continues, notwithstanding the above-noted government loan reserve and write-off policy.

What happens if I’m in default on my student loans? If you are in default of your Canada student loan repayment obligations:

  • Your debt will be turned over to a collection agency.
  • You will be reported to a credit bureau.
  • You could be ineligible for further loans until the default is cleared.
  • It can affect your ability to get a car loan, mortgage or credit card.
  • Your income tax refund and HST rebate can be withheld.
  • Interest will continue to build up on the unpaid balance of your loan.

Will bankruptcy erase my student loans? Bankruptcy will not discharge your student loans until you’ve been out of school for seven years. There are cases when student loans have been discharged after five years, but the borrower has to prove before a court that they would undergo extreme hardship if required to wait seven years. So depending on how long it has been since you were last a full or part-time student for which you received a student loan, bankruptcy may not clear you of your Canada student loan repayment obligations.

What can I do if I can’t meet my Canada student loan repayment obligations? One of your options is the federal government’s program called the Repayment Assistance Plan (RAP). There are eligibility requirements and your loan must not be in default. If you qualify:

  • You can make affordable payments based on your gross family income and family size. Your loan payments would never exceed 20% of your gross family income.
  • Your monthly student loan payments will either be reduced, or you will not have to make any payments.
  • You have a maximum repayment period of 15 years (or 10 years for qualified borrowers with a permanent disability).
  • Enrolment is not automatic and you would have to re-apply for this plan every 6 months.

Don’t wait for your Canada student loan repayment debt to become critical and don’t ignore any of your debt. It will not go away on its own. You need professional help from a trustee. Contact Ira Smith Trustee & Receiver Inc. and make an appointment today. We approach every file with the attitude that financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now you can get back on the road to financial health.

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Brandon Blog Post

DEBT COLLECTORS CALLING: COLLECTION AGENCY AFTER YOU?

debt, debt collector, debt collectors, collection agencies, collection agency, credit record, student loan debt, credit card debt, bankruptcy, trustee, debt collectors calling, starting over starting nowAre debt collectors calling? I recently read an article where the headline was 35% In US Facing Debt Collectors and it’s based on a study by the Urban Institute. This astonished me. How is it possible that 35% of Americans have debts and unpaid bills that have been reported to collection agencies? This means that one in three people in America is being hounded by a collection agency having their debt collectors calling for unpaid bills.

Imagine that one in three of your friends and coworkers are facing serious financial challenges and you probably don’t even know it. According to the study 35.1% of people with credit records had been reported to collections for debt that averaged $5,178, based on September 2013 records. The Association of Credit and Collection Professionals reports that healthcare related bills account for 37.9% of the debts collected. Student loan debt represents another 25.2% and credit card debt make up 10.1%. Other collections are monies owed to the government, retailers, telecoms and utilities. That is giving this industry a lot of work for their debt collectors calling one third of the American population!

This is not just an American problem although in Canada we are extremely fortunate that we don’t incur the amount of healthcare related debt that plagues the U.S. But that doesn’t make us immune from serious debt and debt collectors calling. According to an RBC poll which only measures non-mortgage debt such as credit cards, lines of credit and loans:

  • The average level of personal debt in Canada rose 21% per cent this year to $15,910
  • Albertans were the hardest hit with a 63% jump to $24,271 in debt
  • British Columbian personal debt loads went up by 38% to $15,549
  • Manitoba and Saskatchewan went up 32% to $16,145
  • Average debt in Ontario was up 13% to $17,416
  • Average debt in Quebec was up 3% to $10,458
  • Average debt was up in Atlantic Canada by 12% to $15,243

Before you get to the stage that the collection agencies are after you with their debt collectors calling, make an appointment with a professional trustee and deal with your debt; don’t hide from it. Contact Ira Smith Trustee & Receiver Inc. We help people everyday who are facing a financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t wait, especially if the collection agencies are hounding you with their debt collectors calling, call us today.

Watch for our next blog when we’ll be discussing what to do if the collection agencies are after you with their debt collectors calling.

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Brandon Blog Post

LOANS TORONTO NO CREDIT CHECK: A DEBT SOLUTION?

loans toronto no credit checkI never realized that loans Toronto no credit check was such a popular topic. I want to tell you about three experiences that I had in the past few days. They are all separate, yet all related.

Revelation #1 – You can’t even buy beer with bad credit!

Last Friday, we were having the whole family over for dinner. The weather was so warm and pleasant, that we were going to have a BBQ and eat outdoors on the back deck. I went to The Beer Store to pick up some additional beverages and when I went to check out, I had my first revelation. At the front of the line was a fellow paying for his beer by cheque. I never even realized that you could do that. The clerk inspected the cheque and then asked the gent for identification, and he produced his drivers licence. The clerk ran his information through The Beer Store’s electronic system and politely advised the gentleman that he has been declined to pay by ordinary cheque, and that he could only pay by cash, certified cheque or credit card. The man could not pay for his beer because of his bad credit and had to leave without his favourite brew. This man obviously has financial problems and has to solve them. How he wished he was able to get at that moment one or more loans Toronto no credit check so that he could enjoy his beer last weekend!

Revelation #2 – This man obviously was not alone needing loans Toronto no credit check

On the weekend I was looking at some analytics to see which of our blogs have been accessed the most over the last 30 days. To my shock (yes, notwithstanding our Firm has been helping people who have trouble living paycheque to paycheque and corporations in need of restructuring and turnarounds, I can still be shocked) the 4 most read blogs in the last month were::

  1. BAD CREDIT LOANS TORONTO: LEGIT COMPANIES DON’T GUARANTEE THEM
  2. STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?
  3. PAYDAY LOANS: ONTARIO CRACKS DOWN ON THE CASH STORE
  4. THE CASH STORE ONTARIO: THIS PAYDAY LOAN OUTFIT NEEDED HELP AND CALLED A TRUSTEE!

There are obviously a lot of people concerned about their debt levels and looking for information on bad credit loans, payday loans, loans Toronto no credit check and how to tackle student loan debt. These blogs were not only the most viewed in the last 30 days, but our blogs on the topic of payday loans and bad credit loans are the most read. Obviously, there is a large demand in the Greater Toronto area for loans Toronto no credit check.

Revelation #3 – Our top searches are from people looking for loans Toronto no credit check

Yesterday I look at our analytics to see what were the top search terms that brought people to our blog and Firm website in the last 30 days. There were 221 visits to our website using the following search terms:

  1. no upfront fee loans;
  2. $5000 bad credit personal loan;
  3. $5000 loan Canada; and
  4. $5000 loan no credit check.

You don’t need me to tell you what this means. There are a lot of people with bad credit who are feeling pain in our society and believe that more loans Toronto no credit check is their solution. The amazing thing though is that rather than looking for bankruptcy alternatives such as consumer proposals, or if required, bankruptcy itself, these people are looking to borrow more money (apparently $5000 is a popular number) from high cost lenders.

These people are misguided in that they think that further high cost loans Toronto no credit check will solve their problem. I understand the way these people think. It is hard for us to face our challenges. Whether it is about our health, our family or our financial situation, it is difficult and painful to look at our problems straight in the face, especially if we are the one who created the problem. These people mistakenly think that taking on more debt is the solution.

Well, it is not. These people need to recognize that their credit score is so poor because of choices they have made in the past, and their behaviour has to change. Taking on more debt through loans Toronto no credit check is just more of the “same old same old”. They need to look at ways to budget so that their expenses are less than their income. They need to start saving to pay down debt. If they can’t do it on their own, then they must consult a licensed professional trustee who can discuss options with them: budgeting, bankruptcy alternatives such as debt consolidation or a consumer proposal or perhaps even bankruptcy.

There also needs to be a discussion regarding life after implementing the solution and working on improving their credit score. If any of this sounds like a situation you are in, taking on more debt through payday loans or loans Toronto no credit check is not your answer.

You need to contact Ira Smith Trustee & Receiver Inc. right away for a no charge consultation. You can even check out our bankruptcy faqs now online here. We will go over all of your options, and encourage and help you to implement the one that is right for you so that together we can solve your problems with immediate action and the right plan so that Starting Over, Starting Now will become your reality.

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STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?

STUDENT LOAN DEBT, DOES IT AFFECT THE ECONOMY?Student loan debt is not just a problem for students and their families to deal with. It’s a serious problem that has invaded all facets of our society and has significantly impacted our economy. According to the Canadian Federation of Students:

  • The average student loan debt is $27,000
  • Between 2012 and 2013 more than 400,000 students borrowed money to help pay for more schooling
  • The CSLP (Canada Student Loans Program) expected to lend approximately $2.46 billion during the 2013-14 academic year

Statistics Canada’s Survey of Financial Security reports that student debt grew 44.1% from 1999 to 2012, or 24.4% between 2005 and 2012. And, one in eight Canadian families is carrying student debt. The average student is having a great deal of difficulty paying off their student loans and according to the Canada Student Loans Program, most students take nearly 10 years to pay off their loans – with some taking the maximum 14.5 years. In September 2010 the amount of student loans owed to the Government of Canada was more than $15 billion dollars, which is greater than the debt of some provinces. The federal government has written off another $231 million in unpaid student loans this year from more than 44,000 cases, after exhausting all avenues attempting to collect.

A study last year from TD Bank found that students are increasingly delaying major life milestones due to the rising costs of education. How can someone who is still paying off student loans assume a mortgage or car loan? Students are shackled by their student loan debt and there is no relief. Student loans can only be discharged by bankruptcy if you have been out of school entirely (full time or part time) for 7 years or more. Student loan debt has significantly impacted our economy because university graduates lack the disposable income to create a buoyant housing market, brisk car sales and restricts the purchase of high ticket items which all fuel the economy. The CSLP does not have a program for student loan debt forgiveness or student loan debt relief.

If you’re facing financial crisis or bankruptcy, you need a plan for Starting Over, Starting Now. Ira Smith Trustee & Receiver Inc. can solve your problems with immediate action and the right plan. Contact us today.

Call a Trustee Now!