Consumer Proposal Archives - Page 18 of 64

Credit Questions for Credit Counsellors

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

Credit Questions for Credit Counsellors

Many people who are in financial difficulty are seeking help from credit counselors and debt management companies. Some of these companies are not-for-profit, others are for-profit. As a person in trouble how do you know who you are dealing with- more important- are they properly trained and is their primary purpose to help you or just charge you a fee. Notwithstanding your mental state before you sign their papers ask as many of the following questions as possible and make sure you are comfortable with the answers.

The Counsellor

– Are the persons you are talking with properly trained?

– Are they a certified credit counselor?

– Are they designated as having completed Accredited Financial Counselor Canada (A.F.C.C.) course of study?

– Have they completed the Insolvency Counselors Qualification Course from the Canadian Association of Insolvency and Restructuring Professionals and the Office of the Superintendent of Bankruptcy (Industry Canada)?

The Company

1. Is the company the credit counsellor works for a not-for-profit company or a for-profit company?

2. Is the company licensed by either the Federal or Provincial government to provide service to you? Do not confuse being licensed with a voluntary membership in an association such as the Better Business Bureau.

3. Does the company have an initial “no charge’ counselling policy or do you feel intimidated to “sign up” by their counsellor?

4. Is the company paid in full or in part by your creditors for any service they provide to you?

5. Are you expected to pay any fees to the company in addition to the settlement reached with your creditors? If so, ask how much are you required to pay and when do you have to pay the fees?

Assuming you sign up with the company:

-When do they notify your creditors that you are in their “debt program”?

– When does interest stop on your debts?

– What is the effect on your credit rating?

– Does the company notify Equifax Canada and/or Trans Union of Canada at the start and on the completion of your proposal to you creditors?

– Will the company immediately stop all lawsuits and pay garnishees against you? Some companies wait until your fee to the company is paid.

– Do you get copies of all documents?

– If money is paid to the debt management company for distribution to your creditors is the money held in a trust and bonded account?

– Are you entitled to receive a copy of the accounting of fees to the company and payments made to your creditors?

– Is the company licensed? If so –by who?

– Will the company put all of their answers to you in writing (before you sign up with them) and allow you to go home and decide what is in your best interest to do?

After the Debts Are Paid

Will the company and the credit counsellor work with you to reestablish yourself financially? Do they provide any scheduled financial counselling meetings while you are in their program? Will they assist in obtaining a credit card or improving your credit rating?

You are trusting yourself to someone you have only just met. Trust your instincts that you are dealing with the right persons at the best company for you.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Shopaholic Goes Bust

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

Shopaholic Goes Bankrupt

My Partner is a Shopaholic: What Do I Do Now?

If you make lots of money or if your partner is a high income earner and only spends their own money chance are there is nothing for you to do. However, for the vast majority of the population this can create a problem if you do not deal with the spending over the long term. If someone goes out and treats themselves to something slightly extravagant once or twice a year (and can afford to do so) there is no problem. In fact I believe it is healthy to do so – if you work hard and earn a decent salary, you should treat yourself once in a while with something special. It becomes a problem when the shopping is frequent and the spending is beyond the ability to pay for it. The key indicator being that the purchases are put on credit cards which cannot be paid in full each month. Over time the interest charges mount up, the credit card balance increase, credit scores start dropping. This will result in the credit card companies increasing the interest rates on your credit cards. Eventually cards are maxed out, new cards impossible to obtain and the personal problems start. I have seen many people with emotional mental stress wind up having physical problems as a result of their mental problems. On top of this is the strain that will put on their (non-spending) partner, the family arguments and the inevitable effects on children.

The first step in recovery is to admit that there is a problem. It is very difficult to talk about money issues, but it must be done. If there are children who are old and mature enough to help, you might consider bringing them into the discussion. Treat the shopping/spending habit as an addiction. Perhaps not as bad as drugs or alcohol, but an addiction none the less. There are many self help groups which can be of great assistance in recovering from the addiction. Information to assist you can be obtained from most credit/debt/financial counsellors, trustees in bankruptcies, community organizations or by referral from the Province of Ontario (www.MentalHealthHelpline.ca)

There is an old Chinese proverb “the longest journey begins with the first step.” You must be strong enough to take that first step.

Money Problems? Get Financial Advice

Posted on March 1, 2015April 16, 2016 by Jordan Rumanek

Money Problems? Get Financial Advice

Budget advisors will show you how to limit your spending, and give you financial advice. Working through your spending with a budget advisor will give you a better understanding of where your money is going and what you can and cannot afford. Budget advisors will also help you with tips and ideas on how to save money, cut out unnecessary costs, and reduce your other expenses.

– Ask an advisor for suggestions on how you could refinance your debts (for example by consolidating them, or by paying a lower rate of interest). If you have a mortgage you may also wish to speak to a mortgage broker to see if you can get a better mortgage deal.

If you have a gambling problem, get help from the Ontario Problem Gambling Helpline by calling toll free 1-888-230-3505

Personal Debt

Posted on March 1, 2015April 16, 2016 by Jordan Rumanek

Personal Debt

Your first steps: Entering into an insolvency procedure is not a decision that you should take lightly. For every decision you make, there will inevitably be consequences. It is important you explore every option to benefit you and the people you owe money to.

It is important to remember…

– If you are facing financial difficulties, take action. Simply ignoring your financial problems or hoping they will somehow go away will not solve anything and is likely to make things worse.

– There are a number of organizations that can help and much of this help is free.

– Sharing your problems will relieve the stress on you. Speak to friends and family about your situation. Consider also your church group, community organization or any clubs you may belong to. These organizations may be able to help.

– There are alternatives to formal insolvency procedure.

– Always get a second opinion from a professional before you make any major changes or financial arrangements. For example, a deal offered to you may have some consequences you may not be fully aware of. This applies particularly to deals involving debt consolidation or changes to your mortgage.

Category: Consumer Proposal

Credit Questions for Credit Counsellors

Credit Questions for Credit Counsellors

Shopaholic Goes Bust

Shopaholic Goes Bankrupt

Money Problems? Get Financial Advice

Money Problems? Get Financial Advice

Personal Debt

Personal Debt

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