Saturday, May 2, 2015

Debt Counselling Services Help Canadians Get Rid of Debt Problems


Canadians today are almost as immersed in debt as Americans. According to an article on Financial Post, Statistics Canada found that the national household debt to disposable income ratio reached 163.3% during the fourth quarter of 2014; a surge stemming from the general increase of 7.5% in household net worth. If some good news can be taken from this, however, it’s that the national household debt is still below the 165% consumer debt of the United States─ even after factoring the difference between how American and Canadian consumer debt ratios are calculated. Whether debt rates are different or parallel to those of another country, indebtedness in Canada still begs to be resolved immediately. The most appropriate solution for debtors is to contact their creditors, explain their current financial situation and negotiate a consumer proposal under the Bankruptcy and Insolvency Act.
http://www.4pillarsvi.ca/debt-counselling-services-help-canadians-get-rid-of-debt-problems/

Friday, May 1, 2015

Dealing with Debt Relief in Canada: A Quick Look at Consumer Proposals


Being knee-deep in debt payments can be very bothersome, especially if you are a senior. This is the case with June and Todd, a couple in their mid-60s who are trying their best to get out of debt so that they can finally retire fully. The couple owe more than $45,000, and most of their debt carries interest rates of higher than 11 per cent. Due to this, their retirement income is not enough for their debts and for their living expenses. The silver lining here is that June and Todd are good candidates for debt relief in Canada called a consumer proposal. This is ideal for people whose debts do not exceed $250,000. It is a formal process that is legally binding where the bankruptcy trustee will work with a person to develop a “proposal”. This is basically a proposition to pay creditors a percentage of what is due them or increase the amount of time to pay off the debts. In some cases, both can be done. A consumer proposal’s term cannot go beyond five years.
http://www.4pillarsvi.ca/dealing-with-debt-relief-in-canada-a-quick-look-at-consumer-proposals/