{"id":2534,"date":"2016-08-03T21:00:29","date_gmt":"2016-08-04T01:00:29","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=2534"},"modified":"2021-05-28T14:50:16","modified_gmt":"2021-05-28T18:50:16","slug":"debt-management-programs","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/debt-management-programs\/","title":{"rendered":"#VIDEO-DEBT MANAGEMENT PROGRAMS REVIEW#"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/60Yl2duGyL0\" width=\"860\" height=\"484\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2 id='not-all-debt-management-programs-are-created-equal'  id=\"boomdevs_1\">Not all debt management programs are created equal<\/h2>\n<p>I have written previous blogs and made vlogs in the past about debt management programs, including:<\/p>\n<ul>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/beware-of-debt-settlement-companies-read-this-blog-to-find-out-why\/\">BEWARE OF DEBT SETTLEMENT COMPANIES \u2013 Read this blog to find out why<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/the-latest-on-debt-settlement-companies\/\">THE LATEST ON DEBT SETTLEMENT COMPANIES<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/debt-settlement-companies-finally-taken-to-task-in-ontario\/\">DEBT SETTLEMENT COMPANIES FINALLY TAKEN TO TASK IN ONTARIO<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/how-advantages-of-consumer-proposals-saves-you-from-debt-settlement-companies\/\">HOW ADVANTAGES OF CONSUMER PROPOSALS SAVES YOU FROM DEBT SETTLEMENT COMPANIES<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposals-vs-debt-settlement-video\/\">#CONSUMER PROPOSALS VS. DEBT SETTLEMENT VIDEO#<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/consumer-proposal-faqs-secrets-for-fending-off-bankruptcy-and-achieving-complete-debt-settlement\/\">#VIDEO \u2013 CONSUMER PROPOSAL FAQs: SECRETS FOR FENDING OFF BANKRUPTCY AND ACHIEVING COMPLETE DEBT SETTLEMENT #<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/credit-card-debt-settlement\/\">WANT TO STEP UP YOUR NEW YEAR\u2019S CREDIT CARD DEBT SETTLEMENT? YOU NEED TO READ THIS FIRST<\/a><\/li>\n<li><a href=\"http:\/\/www.irasmithinc.com\/blog\/debt-counselling-on\/\">#VIDEO \u2013 DEBT COUNSELLING ON: OUR KILLER 6 STEPS TO IMPROVE YOUR FINANCIAL SITUATION #<\/a><\/li>\n<\/ul>\n<p>Non-profit credit counselors are the good guys in the debt relief industry, which is otherwise full of players that are bursting with lies, scams and sketchy practices.<\/p>\n<p>We have done the <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_consumer-proposal.html\">consumer proposal<\/a> or <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_the-bankruptcy-process.html\">bankruptcy<\/a> of many people who first paid upwards of $2,500 to for profit \u201ccounselors\u201d who ultimately did no more than pass the people on to a <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_the-bankruptcy-process.html\">licensed insolvency trustee<\/a>.\u00a0 They could have received a better service just going straight to a trustee for a free consultation.<\/p>\n<p>Contrary to popular belief, a licensed insolvency trustee by law must first evaluate to see if the person can <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_bankruptcy-alternatives.html\">AVOID bankruptcy<\/a>.\u00a0 So as you can see, not all debt management programs and companies are equal.<\/p>\n<h2 id='do-debt-management-programs-work-for-everyone'  id=\"boomdevs_2\">Do debt management programs work for everyone?<\/h2>\n<p>Debt management <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_credit_counselling.html\">credit counselors<\/a> need to acknowledge that their signature offering \u2014 the debt management plan \u2014 doesn&#8217;t work for everyone.<\/p>\n<p><a href=\"http:\/\/www.irasmithinc.com\/blog\/debt-management-in-ontario\/\"><em>Debt management programs<\/em><\/a> are promoted as the best bankruptcy alternative and an affordable way to pay back credit card debt. Borrowers make payments to the counseling agency, which then pays the creditors. Thanks to standing agreements that counselors have with credit card companies, the plans typically cut the interest rates, fees and payments that borrowers need to make. Full repayment of the debt often takes four to five years.<\/p>\n<p>If borrowers make all the payments and repay the principal completely, debt management programs have much less impact on their <a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_your-credit-rating.html\">credit scores<\/a> than other types of debt relief.<\/p>\n<h2 id='debt-management-programs-were-rampant-in-the-united-states'  id=\"boomdevs_3\">Debt management programs were rampant in the United States<\/h2>\n<p>During the financial crisis in 2007-2009, debt management programs could be found on infomercials day and night.\u00a0 There were so many shady characters in the industry, the States ultimately had to enact laws to reign the shady operators in.<\/p>\n<p>Needless to say, the shady operators did not give any worthwhile service for the fees they charged.\u00a0 But even the legitimate and well-meaning credit counselors mistakenly believed that their debt management programs were good for everyone.\u00a0 What I have found in my experience as a licensed insolvency trustee, is that no two people\u2019s situations are the same, and one size does not fit all.<\/p>\n<h2 id='the-story-of-francine-bostick'  id=\"boomdevs_4\">The story of Francine Bostick<\/h2>\n<p>Francine Bostick, a woman who lives in Kansas and paid off more than $120,000 in credit card debt in 2012, says she emerged with credit scores good enough to buy her first-ever new car.\u00a0 &#8220;It was exciting and made me a little nervous when they did the credit check,&#8221; says Mrs. Bostick, 66. &#8220;We got 0 percent interest for the life of the loan.&#8221;<\/p>\n<p>This sounds great, but, yet Mrs. Bostick is also an example of what may be wrong with credit counseling because:<\/p>\n<ol>\n<li>Her husband Jim Bostick had Alzheimer&#8217;s disease and she was his caregiver<\/li>\n<li>Francine worked 12-hour days to earn the money to make debt payments while also caring for her increasingly incapacitated husband, who died in May<\/li>\n<li>She had to do this when others her age were retiring<\/li>\n<li>She never got to spend quality time with Jim before his death<\/li>\n<\/ol>\n<h2 id='if-she-lived-in-toronto-or-vaughan-what-would-i-have-advised'  id=\"boomdevs_5\">If she lived in Toronto or Vaughan, what would I have advised?<\/h2>\n<p>Francine had never been bankrupt before and she did not have any significant assets.\u00a0 She and Jim rented \u2013 they did not own a home.\u00a0 In Francine\u2019s case, she would not have had to make any <a href=\"http:\/\/www.irasmithinc.com\/blog\/surplus-income-limits-for-2015\/\">surplus income<\/a> payments in a bankruptcy.\u00a0 Although a consumer proposal is a great alternative to bankruptcy, Francine could not afford to complete one by only working one job in an 8-hour day, but she and Jim would be able to live on those earnings and their pensions.<\/p>\n<p>In this case, I would have advised Francine that bankruptcy was a better alternative because:<\/p>\n<ol>\n<li>Francine could have spent more time with her dying husband \u2013 that she can never get back now<\/li>\n<li>She would received an automatic discharge after 9 months, and not worked so hard for several years<\/li>\n<li>Just like in bankruptcy, she had no access to credit while in her debt repayment program<\/li>\n<li>She could have begun rebuilding her credit faster after the bankruptcy<\/li>\n<li>There is little leeway for missing a payment in debt management programs \u2013 many times if you miss 1 payment the entire program ends<\/li>\n<li>Some people find that they simply can&#8217;t afford the payments on debt management programs, while others drop out because of setbacks such as job loss, unexpected expenses or illness<\/li>\n<li>If you cannot fully complete the debt management programs, creditors can resume collection efforts, and borrowers also have flushed thousands of dollars down the drain and might not have enough money left to live on<\/li>\n<\/ol>\n<h2 id='what-should-you-do-if-you-have-too-much-debt-and-are-considering-one-of-the-debt-management-programs'  id=\"boomdevs_6\">What should you do if you have too much debt and are considering one of the debt management programs?<\/h2>\n<p>So, those thinking about debt management programs should book an appointment with an experienced licensed insolvency trustee first. (The first consultation is free.) That way, they will be able to understand the choice they make.<\/p>\n<p><a href=\"http:\/\/irasmithinc.com\/index.html\">Ira Smith Trustee &amp; Receiver Inc.<\/a> brings a cumulative 50+ years of experience dealing with diverse issues and complex files and we deliver the highest quality of professional service. <a href=\"http:\/\/irasmithinc.com\/contact_us.html\">Contact us<\/a> today and <a href=\"http:\/\/www.irasmithinc.com\/index.html\">Starting Over, Starting Now<\/a> you\u2019ll be well on your way to overcoming your financial difficulties.<\/p>\n<h3 id='this-vlog-was-inspired-in-part-by-our-ebook-personal-bankruptcy-canada-not-because-you-are-a-dummy-because-you-need-to-get-your-life-back-on-track'  id=\"boomdevs_7\" style=\"text-align: center;\">THIS VLOG WAS INSPIRED IN PART BY OUR eBOOK &#8211; PERSONAL BANKRUPTCY CANADA: Not because you are a dummy, because you need to get your life back on track<\/h3>\n<p><iframe loading=\"lazy\" style=\"max-width: 100%;\" src=\"https:\/\/read.amazon.com\/kp\/card?asin=B01CN8KI62&amp;preview=inline&amp;linkCode=kpe&amp;ref_=cm_sw_r_kb_dp_c-pcxb0TPE6PG\" width=\"336\" height=\"550\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><a href=\"http:\/\/torontobankruptcy.g-t-t.net.\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2538\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs.jpg\" alt=\"young finances, personal finance, easy investing, budget, invest, achieve success, millennial, millennial money, Debt Management Plan, dump debt, debt, credit counseling, finance, clearpoint, Credit, Finance (Industry), Credit (Industry), debt management programs, consumer proposal, bankruptcy, ira smith trustee, licensed insolvency trustee, surplus income, starting over starting now, credit counselor, Toronto, Vaughan; \" width=\"1920\" height=\"1364\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs.jpg 1920w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs-300x213.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs-768x546.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs-1024x727.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs-422x300.jpg 422w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2016\/08\/debt-management-programs-1200x853.jpg 1200w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not all debt management programs are created equal I have written previous blogs and made vlogs in the past about debt management programs, including: BEWARE OF DEBT SETTLEMENT COMPANIES \u2013 Read this blog to find out why THE LATEST ON DEBT SETTLEMENT COMPANIES DEBT SETTLEMENT COMPANIES FINALLY TAKEN TO TASK IN ONTARIO HOW ADVANTAGES OF [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5,6,1199,1198,863,990,133,79,32,47],"class_list":["post-2534","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-bankruptcy","tag-consumer-proposal","tag-credit-counselor","tag-debt-management-programs","tag-ira-smith-trustee","tag-licensed-insolvency-trustee","tag-starting-over-starting-now","tag-surplus-income","tag-toronto","tag-vaughan"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/2534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=2534"}],"version-history":[{"count":5,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/2534\/revisions"}],"predecessor-version":[{"id":10808,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/2534\/revisions\/10808"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=2534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=2534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=2534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}