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HIGH EARNERS LIVING PAYCHEQUE TO PAYCHEQUE

living paycheque to paycheque, living paycheck to paycheck, bankruptcy, alternatives to bankruptcy, credit counselling, debt consolidation, consumer proposals, starting over starting now, trustee, high earners, norma walton, ronauld waltonIt may surprise you to learn that high earners, earning a six figure salary is not a guarantee of financial stability or security. A big house, luxury cars and exotic vacations frequently don’t tell the real story. You may be looking at a lot of smoke and mirrors. Often these high earners become victims of their own success.

The costs of maintaining a high flying lifestyle eventually becomes too great and a debt spiral begins. No one is immune. Famous actors and actresses, lawyers, doctors and captains of industry file for bankruptcy just like the working poor living paycheque to paycheque. According to the Wall Street Journal “some high earners end up leading a lifestyle that they can barely afford, saving little or nothing for retirement and living paycheck to paycheck”.

This problem appears to be global, with no sign of letting up. In fact we reported on it last year in two blogs titled “Is Canada’s 1% Immune from Insolvency or Bankruptcy?” and Famous Celebrity Bankruptcies Happen Too. A recent study at Princeton University calls this phenomena “wealthy hand-to-mouth”. The study reports that the wealthy hand-to-mouth behave in many respects like households with little or no net worth. So, whether you’re a high earner or have little or no net worth, if you’re living paycheque to paycheque, you’re in the same boat and your options are the same.

If you are one of the high earners, or just a normal person, the time to end the spiral of debt is now. There is no time to waste. Debt doesn’t go away on its own. You need professional help and a sound plan for moving forward. Contact Ira Smith Trustee & Receiver Inc. 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.

There are alternatives to bankruptcy – credit counselling, debt consolidation and consumer proposals or ultimately bankruptcy may be the answer – for both high earners and normal people. Don’t make living paycheque to paycheque a lifestyle. Call us today and take the first step towards a debt free life.

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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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SENIOR FINANCIAL ABUSE; SENIOR CITIZEN MONEY SCAMS

senior financial abuse, senior abuse, elder abuse, financial fraud, Canadian Anti-Fraud Centre, Emergency - Grand Parent Scam, Prize Scam, Bank Inspector Scam, debt, trustee, senior abuse in Canada, elder financial abuse awareness, senior citizen money scams, scams on senior citizensSenior financial abuse has caused the golden years to not be golden for many of our retirees. Many of our elders have become victims of senior financial abuse, taken in by senior citizen money scams resulting in increased debt because they are viewed as easy prey. Typically they live alone, have disposable income and are generally quite trusting.

In case you don’t think this is a widespread and very serious problem, according to a 2011 study conducted by MetLife and the Center for Gerontology at Virginia Tech about elder financial abuse, the annual financial loss suffered by victims of senior citizen money scams of financial fraud is estimated to be $2.9 billion. In addition many seniors are facing serious debt as a result of family obligations, divorce, recession and lifestyle choices.

According to the Canadian Anti-Fraud Centre, senior abuse in Canada as a result of senior financial abuse are from 3 prominent scams on senior citizens:

  1. The “Emergency – Grand Parent Scam” which is aimed at persuading seniors to believe a family member or friend is in trouble and in need of financial aid.
  2. The “Prize Scam” which targets seniors into believing they have won a lottery/sweepstakes.
  3. The “Bank Inspector Scam” targets seniors into verifying a possible fraudulent cashier at a bank by withdrawing funds for a supposed investigator.

How can you protect yourself? Here’s some great advice from the Canadian Anti-Fraud Centre to assist in elder financial abuse awareness:

  • Never give cash to someone you don’t know or are meeting for the first time.
  • Financial institutions will never solicit assistance from you for internal investigation.
  • Contact police or the financial institution immediately to verify the telephone call you received.

If you think you or someone you know has been a victim of senior financial abuse fraud, please contact the Canadian Anti-Fraud Centre at 1-888-495-8501 or http://www.antifraudcentre.ca.

Are you a senior who is suffering financially for any reason? Don’t be ashamed; contact Ira Smith Trustee & Receiver Inc. Debt won’t go away on its own. You need professional help Starting Over, Starting Now so that you can regain your dignity and start back on a path to debt free living.

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GEN Y TRAPPED: MILLENNIALS IN DEBT

debt, Millennials, Generation Y, Gen Y, Baby Boomers in debt, seniors in debt, student debt, student loans, credit card debt, bankruptcy, trustee, financial plan, gen y debt, starting over starting now, trustee, millennials in debt, gen y in debtMillennials in debt is an important issue. There’s been a considerable amount of press surrounding the problems facing Baby Boomers in debt and seniors in debt and we’ve devoted quite a few blogs to these very serious issues:

However, the Millennials (children born between 1982 and 2002), also known as Generation Y or Gen Y, feel trapped as millennials in debt. Only now are we realizing how dire their situation is. BMO recently did a survey of Millennials in debt and discovered that:

  • 56% are so anxious about their debt they think about it multiple times a day.
  • 50% said debt has made them lose sleep.
  • Their household debt is $73,305.
  • 50% feel ashamed at the level of debt they’ve accumulated.
  • 50% of Millennials in debt have had arguments with family, friends and partners over debt.
  • 51% have borrowed money from friends or family to manage household debt levels.
  • Nearly 60% viewed their debt as a major personal problem.

In addition Millennials in debt are more burdened by student debt than their elders, according to David Coletto, chief executive officer of Abacus Data. He goes on to say, “People are maxing out their student loans and getting loans from family to supplement.”

The reality is that debt is increasing across all demographics and the issues facing Millennials in debt should not be ignored. Whether their debt originated with student loans, credit card debt or some other issue, it needs to be managed as quickly as possible by a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for professional advice and a solid financial plan so that you can live a debt free life Starting Over, Starting Now.

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BEWARE OF PHISHING AND SPEAR PHISHING SCAMS

phishing, phishing email messages, phishing scams, spear phishing, spear phishing scams, phishing and spear phishing scams, trustee, financial plan, debt, bankruptcy trustee, starting over starting nowBeware – phishing and spear phishing scams can rob you of your identity and your money, and can lead you into debt if you fall victim to such scams. Here’s how to recognize phishing and spear phishing scams and what do if you’ve received a suspect email.

What is a phishing scam? Phishing email messages are designed to steal your identity which is ultimately used to commit fraud. They ask for personal data, or direct you to websites or phone numbers to call where they ask you to provide personal data. The messages may appear to be from organizations you do business with – banks, insurance companies and even the CRA. They might even threaten to close your account or take other action if you don’t respond.

How can you recognize a phishing email message? Unfortunately many of us receive several phishing emails per day and they can appear to be perfectly legitimate. Here are some examples of phishing messages. (OnGuardOnline.gov)

  • “We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click the link below and confirm your identity.”
  • “During our regular verification of accounts, we couldn’t verify your information. Please click here to update and verify your information.”
  • “Our records indicate that your account was overcharged. You must call us within 7 days to receive your refund.”

Banks, insurance companies and the CRA will NEVER send you an email asking for personal information or asking you to confirm your identity. Legitimate businesses NEVER ask you to send sensitive information through insecure channels. The only reason for phishing emails to gather personal information for the sake of committing fraud.

How can you protect yourself from phishing scams?

  • Delete emails, texts, and pop-up messages that ask for your personal or financial information.
  • Don’t call phone numbers provided in the phishing message.
  • Don’t click on links in the suspect email even if the message seems to be from an organization you do business with and trust.
  • Install anti-virus software, spyware filters, email filters and firewall programs.

What should you do if you’ve received a phishing email? Contact the financial institution, government office or company immediately with your suspicions and report it to the Canadian Anti-Fraud Centre at 1-888-495-8501 or info@antifraudcentre.ca.

What is spear phishing? Spear phishing is a targeted email scam with the sole purpose of obtaining unauthorized access to sensitive data. Unlike phishing scams, which cast broad, scatter-shot attacks, spear phishing hones in on a specific group or organization. The intent is to steal intellectual property, financial data, trade or military secrets and other confidential data. (Kaspersky Lab)

The Canadian Anti-Fraud Centre reports that currently, Canadian Financial Institutions and Investment brokers are receiving fraudulent email requests from existing clients requesting that money be transferred from their account usually to a foreign account. This scam is having a severe financial impact on the Canadian financial system.

We hope that this information will prevent you from falling victim to phishing and spear phishing scams. Unfortunately many have been taken in and are paying dearly for their mistake. If you find yourself in financial difficulties contact Ira Smith Trustee & Receiver Inc. With a solid financial plan for dealing with your debts we can help you get back on track to living a debt free life Starting Over, Starting Now.

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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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DEBT COLLECTORS: WHAT TO DO IF THEY ARE CALLING YOU

debt collectorsDebt collectors.

Their job is to make you so miserable that you will pay off the amount they are attempting to collect. Last week we discussed debt issues that become so serious they’re referred to collection agencies. For many Canadians living paycheque to paycheque, any unexpected expense that comes up can disturb a very delicate balance and before you know it, you’ve missed a payment or defaulted on a loan. This triggers an unfortunate series of events and now in addition to the serious debt, you are being pursued by debt collectors from the collection agency. Some of them can make your life very unpleasant but you do have rights.

What are your rights? Collection agencies are regulated and each province has its own rules and regulations. In Ontario, the Ministry of Consumer Services regulates collection agencies through the administration of the “Collection Agencies Act”. If a collection agency behaves inappropriately, file a complaint with the Ministry. You have rights:

  • You must be notified in writing through the mail (not email) that your file has been given to a collection agency before they can start calling
  • The notice must include the name of the creditor (the person or business that says you owe them money), the amount the creditor says you owe, and the name of the collection agency and its authority to demand payment on behalf of the creditor
  • After sending the notice, the agency must wait 6 days before they can contact you in person or by phone.

The collection agency cannot:

  • Contact you on Sunday, except between the hours of 1 PM and 5 PM
  • Contact you on any other day of the week between the hours of 9 PM and 7 AM
  • Contact you on a statutory holiday
  • Use threatening, profane, intimidating or coercive language
  • Use undue, excessive or unreasonable pressure

The collection agency cannot continue to contact you if:

  • You send a registered letter to the agency saying that you dispute the debt and suggest the matter be taken to court.
  • You (or your lawyer) send a registered letter to the agency providing your lawyer’s contact information and notifying the collection agency to communicate only with your lawyer.
  • You have told them that you are not the person they are looking for unless they take reasonable precautions to ensure you are that person.

What should you do? The best thing to do about a collection agency and its debt collectors calling you is to deal with not only the people from the collection agency are trying to collect, but all of your debts. The best time to deal with them ideally is once you sense there is a problem and before they are referred to a collection agency.

If the debt collectors are calling you, it’s not too late to call a trustee. Ira Smith Trustee & Receiver Inc. is 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. Contact us today for a solid plan for dealing with your debts so that you can get back on track to living a debt free life.

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PAYDAY LOANS TORONTO NO CREDIT CHECK

payday loans toronto no credit check, bankruptcy, debt, financial institution, financial institutions, financial plan, interest rate, interest rates, living paycheque to paycheque, payday loan, payday loan companies, payday loans, starting over starting now, the cash store, trusteeHere is a very funny bit from “Last Week Tonight with John Oliver” on HBO regarding the predatory lending practices of payday loan companies. It is very sad, but true. It is well worth watching this video because among the humour, are some very good lessons as to why not to get involved with payday loan companies and their related very high cost of lending.

Although it applies to the US payday loan industry, it is equally applicable to Payday Loans Toronto No Credit Check also. We also have written other blogs on the dangers of the Payday Loan Industry, including:

And now, click on the video to listen to this very funny bit by John Oliver.

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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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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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.

Call a Trustee Now!