Thursday, August 31, 2017

Best Types of Loans for Consolidation


Personal loans for consolidation are often considered by many people who are struggling with bills they can’t pay as a viable option for debt relief. It can help make your debt payments easier by allowing you to combine all your high interest rate debts into one loan with a lower interest rate. The better terms lower your monthly payment and make it affordable to pay off your monthly bills.


There are several kinds of loans you can take to consolidate debt. Every option carries its own price tag and it’s best that you understand the risks involved for each one before you choose the method that works best for you.


Unsecured or Secured Loans


When you make a secured loan, the lender will require you to provide some asset as collateral on the loan. This can be your car or home or another property or other valuable possessions that the lender can easily convert to cash in the event that you fail to make payments on the loan. Unsecured loans do not require any collateral, but they typically have higher interest rates and come with hefty penalties if you default on payments.


Credit Card Balance Transfers


Many credit card companies offer promotional rates with zero or low-percent interest on balance transfers. If you decide to avail of a balance transfer offer to repay credit card debt, you would transfer several or all your outstanding credit card balances onto a single credit card that has a low interest rate. There are some things you must make sure you do to make this option work for you:


  1. Be aware of the expiry date. The low interest rate is only offered for a certain period of time, and once the date lapses the regular interest rate will immediately go into effect.
  2. Use a credit card with a large enough credit limit to hold all your high-interest credit card debt.
  3. Take into account any additional charges, such as a transfer fee which can usually be around 3% of the total balance.


Personal Debt Consolidation Loans


The one advantage of taking out a personal loan is that you can arrange to make fixed payments over a fixed period of time. If you are not sure that you can pay up all your debts using a credit card balance transfer before the expiry date of the promotional late-interest rate, then it is better to make a personal loan to pay off your debt than do a balance transfer. If you avail of a personal loan, make sure you get a low interest rate than what you are paying on your existing debt and that you pay the loan out in the shortest time possible.


Home Equity Loans


Another way to consolidate your debt is to use the equity in your home as collateral. If you have a high credit score and enough equity in your home, you can avail of a home equity loan with one of the lowest interest rates possible. The biggest drawback is that you put your home on the line and in the event that you stop making payments on the loan, you can face the risk of foreclosure on your home.

For some people, taking on these types of loans for consolidation may be the best way to get out of a severe debt problem. Whether it will work for you really depends on your financial situation. Consult with a debt professional such as a credit counselor or a licensed insolvency trustee to help you figure out if any of these strategies is a suitable option you can take to pay off your debts.

Tuesday, August 22, 2017

Two Criteria for Choosing the Right Credit Counselor in Oshawa

What many people don’t realize is that not everyone is equipped with the knowledge and discipline to get out of debt by themselves.  For these people, they need someone who can guide them and show them the way to financial freedom. Talking to an experienced credit counselor in Oshawa is one way to get this kind of help.

There are many ways that an experienced credit counselor can help you with. These can include:

  • Taking a close look at your income and spending, and helping you determine where your money is spent each month.
  • Helping you identify opportunities to cut costs and save more of what you earn.
  • Creating a monthly budget to categorize and set limits for all of your expenses.
  • Creating an action plan to help you stick to the budget so you can regain financial stability as soon as possible.
  • Helping you determine how much you owe, how much you’re paying in interest, and finding out where you stand with your creditors.
  • Recommending that you enroll in a debt management plan or a debt consolidation service to combine your debt into one lower monthly payment.
  • Providing tips about how to manage your credit in the future.


Teaming up with the right counselor is critical to your success. So, here are some tips to help you choose a trustworthy credit counselor so you can stay away from the less reputable individuals whose only aim is to profit at your expense.

Check the qualifications

In Canada, all credit counselors should have the following requirements at the very least:

  • Complete both the AFCC and Insolvency Counsellor's Qualification Course (ICQC) in order to obtain Certified Credit Counsellor designation granted exclusively by the Ontario Association of Credit Counselling Services
  • Fulfill an extensive work experience requirement, including counselling experience and consumer financial industry experience
  • Provide satisfactory references
  • Agree to comply with the code of ethics specific to certified credit counselors
  • Accredited counselors are obliged to fulfill continuing education to keep current with developments in the financial counselling industry.  

Choosing a certified professional will give some assurance that you are working with someone who has sufficient training and a vast experience in this field.

Don’t overlook the red flags

Credit counselors with a good reputation share these common qualities:

  • Will never ask you to pay any upfront fees before providing you with any service
  • Will always offer a free initial visit or consultation
  • Will provide you with very detailed company information and staff credentials
  • Will not refuse to offer their services even when you are unable to pay
  • Will not offer you any guarantee that they can negotiate deals to reduce debt amounts
  • Will not force you to enroll in a debt management program
  • Will explain to you all debt relief options available to you
  • Will not hesitate to provide in-person meetings, even though virtual sessions via online chat, Skype or telephone are readily available

It is highly recommended that you meet with potential credit counselors in-person so you can look them in the eye and talk to them face to face so you can determine whether or not they really have your best interest at heart.

Having financial problems can make you very vulnerable and stressed and unable to make sensible decisions. Make sure you are on your right mind when you are contacting a credit counselor in Oshawa for help so you can be sure that any prospect has the credibility, expertise and reliability to help people become debt free.

Friday, August 18, 2017

Four Ways Consumer Proposals in Toronto can Help You

For many Canadians who are deep in debt and think that there’s no way out, consumer proposals in Toronto offer a much welcome relief that can alleviate a great deal of stress. Consumer proposals provide an option to consolidate debts and allow them to make repayments largely based upon only what they can afford.


A consumer proposal is a debt relief program under the Bankruptcy and Insolvency Act that is administered only by a Licensed Insolvency Trustee. It is basically a formal agreement between you and your creditors wherein they agree to reduce your debts for a certain amount with no interest charges and no additional fees and that they will not take any legal action against you, and in turn, you agree to pay off all your debts following a payment schedule within the agreed period of time.


Many people choose consumer proposals as a viable alternative to filing for personal bankruptcy for many reasons.


1. It allows you to pay what you can afford.


One of the biggest advantage that a consumer proposal offers is the ability it gives consumers to make affordable debt payments. Before filing a consumer proposal, you and your trustee will work together to come up with  a monthly amount you can afford to pay and which your creditors will consider fair to ensure that they will accept your proposal. Your trustee will then negotiate with your creditors in your behalf to lower the total amount of debt that you owe them and to stop the payment of interest charges and other additional fees. Once your creditors accept the proposal, you would start making payments on the new amount in one equal payment every month for a period of three to five years. Your payments won’t increase even if your income does and you’ll never pay more than the agreed upon amount. If you do not default, all your debts are paid off after three to five years.


2. It will stop creditors from calling.


Once you fall behind on paying your debts, creditors will start calling right away, and they won’t stop harassing you until you resume making payments. In Toronto, there are only two ways to legally make your creditors stop calling you -- through a bankruptcy or a consumer proposal.


Once you decide to file for a consumer proposal, your trustee will contact your creditors as soon as possible. Once they know about your filing, they are required by law to immediately stop all collection activities against you, which can include phone calls, wage garnishment, collection letters, and more. Once collection calls stop, you will instantly feel huge relief from a great deal of stress.


3. It can help you rebuild credit faster


Consumer proposals will have a negative impact on your credit score, although the damage will not be as severe as when you have to declare bankruptcy. Generally, you will be given an R7 rating which will stay on your record for up to three years after you have satisfied all of the terms of your consumer proposal. From this point, you can start to rebuild your credit. In contrast, a personal bankruptcy will give you an R9 rating, which is the lowest rating,  and it will stay on your credit report for six years after your discharge. And so, it will basically take you three times longer to start rebuilding your credit in a bankruptcy than in a consumer proposal.


4. Avoid declaring personal bankruptcy


Many people choose to file for a consumer proposal as a way to avoid bankruptcy. It offers more flexibility, no need to report your income or make surplus income payments. If your financial circumstances turn around and you can afford to pay off your proposal earlier, you can start to repair your credit faster. Most of all, it allows you to keep your assets and other possessions.

In Toronto, consumer proposals are used by thousands of people to help them get out of debt. But keep in mind, although it is one of the options you can take for debt relief when you become insolvent, it may not be the right choice for your situation. It is best to talk to a Licensed Insolvency Trustee who is legally obligated to discuss all your legal options to help you get out of debt.

Wednesday, August 16, 2017

Toronto Business Bankruptcy Services



Due to the natural complexity of the bankruptcy laws, an average person would have great difficulty in comprehending them, which is why finding the right Toronto business bankruptcy services is crucial. They become even more complicated when the courts deem it is necessary to make and implement some amendments in the future. In times like this, hiring a good and experienced bankruptcy lawyer would be necessary.

The specialization of a bankruptcy lawyer is centered upon the rules and laws that are related to bankruptcy. Nevertheless, one should bear in mind that it is not good to assume to assume that all lawyers are indeed experienced in some specific laws of a state. Hence, the reason to enlist the services of a local bankruptcy lawyer with a relevant background in bankruptcy laws would be very important. The implementing laws in one particular state may not be the same with the implementing bankruptcy laws in another, therefore they are varying from region to region or state to state. This implies that prior to hiring a local bankruptcy lawyer, it is important to know that he has more than enough experience and exposure in your area.

To many people, filing a bankruptcy can be considered as a life defining moment and coming along with that are a gamut of emotions, too. For this reason, it is highly important that you consider hiring a lawyer who understands where you are coming from or how you are feeling due to your circumstance. He also respects your feelings and recognizes exactly what you are going through. You will know that you have just come across a good and dependable bankruptcy lawyer if he knows how to identify and handle the fears and anxiousness that his clients may be having.

One key element you need to consider when filing for a bankruptcy is your budget. Naturally, a client will be necessitated to settle or pay for the bankruptcy itself. The amount of which would greatly depend upon the particular type of bankruptcy that you are in.It can’t be denied though that there are a few bankruptcy lawyers who will charge you high for their rendered services.


The successful outcome of your bankruptcy case will greatly depend upon your careful choosing of a reputable lawyer. Randomly selecting your bankruptcy lawyer is very risky. Leaving things to chance may have undesirable repercussions on your bankruptcy case.


It is also unwise to hire a bankruptcy lawyer at the very last minute. It will be in your best interest if you searched in advance or conducted a quick background check on your prospective bankruptcy lawyer first prior to making any decision to hire. It is important that you only enlist the help of a bankruptcy lawyer who has specialization in the type of bankruptcy you are in. In order for you to have a wider range of available options, you may seek recommendations from your circle of friends, colleagues and even relatives so you may find the right law firm offering the right kind of Toronto business bankruptcy services.

Thursday, August 3, 2017

What Are Your Options for Debt Assistance in Oshawa?


Struggling with overwhelming debt does not have to be your way of life forever. You can get on top of all your debt if you consider getting the right help. However, finding debt assistance in Oshawa can be hard with so many programs and options to choose from.

Residents of Oshawa, Ontario who are going through money troubles have a number of options to choose from to help them get the relief they need. Deciding what option for debt relief is best for you and your unique financial situation requires a detailed understanding of the differences between each of these options to help you be better equipped to make the right choice for you and your family.

Let’s take a look at the four most common debt assistance programs in Oshawa:

Debt Consolidation Loans

This option can be great for people with multiple credit cards who are struggling to make more than the minimum monthly payments to their creditors. For this option to work, you have to get a new loan with a low interest rate and with an amount enough to cover all your other current debts.

You can avail of two kinds of debt consolidation loans:

  • Unsecured debt consolidation loan - This type of loan does not require you to put up any type of collateral. It is basically extended to you in good faith that you will repay what you have borrowed. Lenders look at your credit score and overall credit profile as the basis for getting approved for this type of financing. if you’ve never used credit before or don’t have a good credit score then you may not be able to get approved for an unsecured loan.

  • Secured debt consolidation loan – This type of loan requires  some kind of asset (house, car, piece of property) to be used as collateral in the event that you default on your loan. Because there is collateral as security, it is easier to obtain from a lender and is typically approved with a higher borrowing amount allotted.

Debt Management or Debt Settlement Programs

With this option, you’ll have the support of a trained counsellor who will help you through the process of paying off your debts until you become debt free and who will also help you learn to handle your finances so that you won’t become overwhelmed with debt again.

Consumer Proposal

Another debt solution is to file a consumer proposal. If you have a debt load greater than $5,000 but less than $250,000, have the means to repay a portion or your debts and just need more time to pay your creditors,  are facing escalating interest charges, wage garnishments and threats of legal action and don’t want to give up your house or any of your belongings to pay off debt, then this arrangement can be for you.

Bankruptcy

Personal bankruptcy is mostly considered an extreme solution for debt relief because of its long-lasting and far-reaching consequences. It is a legal proceeding that gives people who have gotten into extreme financial difficulty a fresh start by ending the legal actions of their creditors and a court order that says they don’t have to repay certain debts after the bankruptcy is discharged. However, the bankruptcy stays on your your credit record for 7 years, making it difficult to get credit, buy a home, get life insurance, or sometimes get a job.

Thousands of Canadians struggle with financial challenges due to many reasons, such as job loss, medical concerns, divorce or separation. The first step towards getting back on track is to get the help you need. All these options for debt assistance in Oshawa are available to help those in financially challenging situations to overcome their debt by providing professional support, guidance, and responsible solutions.