Debt Reduction Programs

Debt Consultants Referring People to file Consumer Proposals



Debt consultants advertise that they can settle your debts for a fraction of what you owe, all while promising to stop collection calls and wage garnishments. What they don’t say is that they are advertising the exact same service that only a Licensed Insolvency Trustee can administer: a consumer proposal. A consumer proposal is a legal arrangement between you and your creditors where you agree to repay a portion of your debt. Although, the amount offered to…


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DMP or Consumer Proposal? Compare The Payments.



Two very popular debt reduction programs available to Canadians include a debt management plan and a consumer proposal. While both involve negotiation with your creditors with the assistance of a third party (a trustee in the case of a consumer proposal and an accredited credit counselling agency for a debt management plan), a consumer proposal can provide more relief in terms of lower monthly payments in most situations. To help you compare the potential cost…


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Five Tips For Negotiating With Creditors



Credit is when someone loans you money with the expectation that you’ll pay it back, and with interest. That’s an agreement that you make with your creditor when you sign up. The end goal for a creditor is to get paid. For the most part they’ll take full or partial payments depending on your situation. You can negotiate with your creditors, but it’s important to know the proper steps to do so. 1. Communication Communicate your…


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Beware Ads Advertising Government Debt Relief Programs



Have you seen any of the ads touting “Government of Canada Debt Relief Programs with promises to reduce your debt by 60, 70, even 80%?”  The businesses running these ads are trying to sell you “consulting services” – they’ve “been there before,” they know the “tricks of the trade,” they “know a guy…”  Please tell me you are not falling for any of this. The Government of Canada is not in the debt reduction business….


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How Are Canadians Getting Out of Debt



While the rate varies by province and year, more than 4 in every 1,000 Canadians get out of debt by filing insolvency each year in Canada. In 2013 alone, almost 123,000 people utilized the protection provided in the Bankruptcy & Insolvency Act to eliminate their debt and gain a new start. For many however, bankruptcy is not the final solution. In 2013 42% of insolvent debtors chose a consumer proposal as their debt relief solution….


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Who Talks to My Creditors?



The main reason most people consider filing a consumer proposal is that they want to stop the companies they owe money to (their creditors) from calling. Unfortunately many “debt consultants” take your money, but don’t actually talk to your creditors! Why? Because their strategy is for you to avoid your creditors for as long as possible in the hopes that by avoiding them they will be more agreeable to making a deal on your debts….


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What to do When You Can’t Pay Your Credit Card Bills



Do you try and avoid the mail when the credit card bills are due? Do you leave them unopened hoping they will disappear? Do you keep paying and paying and watching the balances go higher and higher? There are solutions to your credit card debts. Credit Card Solution #1: Consolidation Loan Especially if the interest rate is high on your credit card bills, talk to your banker about a consolidation loan. You may have to…


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How Long To Pay Credit Card If Paying Only Minimum Payment



If you only make minimum payments, how long will it take to pay off a credit card?  That’s a question too many Canadians don’t often consider.  The Financial Consumer Agency of Canada has a handy credit card payment calculator tool, so I used it to punch in some numbers.  Here’s an example: If you owe $30,000 on credit cards at an 18% interest rate, if you only make the minimum payment it will take almost…


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How is a Proposal Better than a National Debt Relief Program?



I was listening to the radio this morning and I heard a commercial for a National Debt Relief Program available to people that owed more than $10,000 to their creditors. The first thing that I asked myself is why do you have to owe at least $10,000 in order to qualify?  The second thing I asked myself was is this a government sponsored program? So I did some searching on the internet and just as…


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What is this Government Program to Reduce Debt?



We have all heard the radio ads, seen the TV commercials or the internet ad about a new government program available for a limited time to help Canadians reduce their debt. Remember that old saying “if it sounds too good to be true it probably is”? Well, you guessed it, there is no such government program. If there is, don’t you think the Canadian government would be promoting it and wouldn’t everyone be enrolled? After…


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