Credit & Debt Resources & Information

Canada Debt Settlements Inc. has compiled information regarding all aspects of credit and debt in Canada. We are constantly adding more information to this section, and we hope that you find these resources useful.

You will find information in this section that discusses the Credit System in Canada, different debt-reduction options, and information about your credit report and the information it contains.

Please start by selecting one of the below categories to get started learning about how credit and debt works for Canadian consumers. If you have any suggestions for new content please do not hesitate to contact us and we would be happy to provide you with the information that you are looking for.

We have licensed and bonded agents standing by to answer your direct questions about credit and debt in Canada.

Canada's Credit System

Canadian owned and operatedCredit reporting agencies or credit bureaus, collect information about consumers' financial affairs and sell that information to their business members, such as credit grantors, employers and insurance companies. The credit bureaus charge annual fees as well as a fee for each credit report requested by members.

In Canada, there are three major credit bureaus: Equifax Canada, NCB Inc. and TransUnion Canada

Most national and international creditors, such as banks and department stores, are registered with all bureaus, so the chances are good that whatever shows up on one credit report will also appear on the others. This makes it simple for you to check your history.

Debt Consolidation - Will It Reduce My Monthly Payments?

Qualify for Consolidation loans in Canada - make your loan go further to pay down more debtsIn the right situation, a debt-consolidation loan could be the best way to control consumer debt interest levels and maintain or repair credit history.

But what exactly is a consolidation loan?

In its most basic form, a consolidation loan is one where a bank (or another lending institution) provides you with a loan specifically to pay-out other credit debt. Often, the debts being paid-out, or "consolidated", are usually high-interest credit balances, accounts in the arrears or both. The monthly minimum payments are also consolidated in one monthly payment.

Total Debt Servicing Ratio (TDSR)

The total debt-servicing ratio (TDSR) is used by most financial institutions (creditors) to determine if a client should qualify for new credit. Most likely you wonder how it is calculated and how you can demonstrate your credit worthiness to a bank during the application process.

The first thing you need to do is calculate your monthly income as a household. Banks are always looking at a gross numbers for income. In the case of business owners or self-employed individuals they have the ability to 'back-out' business expenses from their gross income prior to listing it (things like cell phone charges, advertising costs, office space rental, etc.)

The second step is to calculate your monthly expenses as the financial institution will see them. Only certain expenses qualify for the calculation including Rent/Mortgage payments, heating bills, debt payments (according to their calculations), Vehicle expenses, and spousal or child support payments.

About Note about Foreign Debt Settlement Companies

Consumer Alert for Canadians researching Debt Settlement companies:

Recently, changes in U.S. consumer protection policy has forced many "debt-reduction" companies to close their doors. Unfortunately, many of these "debt-reduction" elements have begun targeting and marketing to Canadian consumers seeking help with their debt. Canada Debt Settlements Inc. encourages all Canadian consumers to be vigilant when exploring their debt-reduction options.Some helpful, key questions will allow the consumer to better understand with whom they are dealing:

  1. Are you licensed to work in Canada?
  2. Is you company incorporated in Canada?
  3. Are you licensed by the respective consumer protection branch in my province?
    • If so, what is your license number?
  4. Where is your office located?
  5. Is there a refund policy, and which Ministry governs you?
  6. Can I see some testimonials?
    • look at source location if testimonial(s) available

When seeking relief from debt, it can be very tempting to engage with an organization that has all of the answers. However, ensuring that you are dealing with a provincially-licensed and bonded company will provide you with recourse, should any problems arise.

5 Simple Common Sense Ways to Improve Your Credit

5 steps to Repair Your Credit - Where to Start?

No matter what your credit situation may be, there are several steps that you can follow to improve your credit worthiness in the eyes of lenders, banks, or other financial institutions:

  1. Pay Yourself First!
    Saving Money! This is the most important place that you can start when trying to improve your credit. You need to make the decision that improving your credit is important enough that you will cut your spending by 5% to even 10% per paycheque. If you follow the simple rule of transferring (or arranging for your bank to do it automatically for you) a small percentage of all deposits that you make to the bank you will begin to accumulate funds to improve your credit.

Consumer Proposal - What is it? Is it an option for me?

A dynamic and effective alternative to bankruptcy, but still with many of the restrictions of an R7 Orderly Payment of Debt prgram.

A Consumer Proposal is, essentially, a request to the client's creditors to reduce to total amount of all unsecured debt to an interest free amount. The request for the reduction would also include a term which would specify in how many months the reduced amount will be repaid. Once the consumer proposal has been submitted to the creditors through the office of a registered trustee, the creditors will review the request and vote on the matter. The creditors have up to 45 days to review the consumer proposal plus up to an additional 15 days in courts administration. During the time of the vote, there is a stay on all of the client's accounts.

Credit Counseling - How it works

There are no shortages of companies and even "not-for-profit charities" offering their versions of "credit counselling". Generally, the idea of credit counseling is based on the credit-counseling agency taking control of the client's credit accounts and arranging for a new debt repayment plan. The credit counselor would request of the creditors, that based on the financial hardship of the client, they should freeze the interest (or at least reduce it) so that the re-payment of the debts may be accelerated.

The greatest benefit of credit counseling is that the client may no longer have to deal directly with the creditors or their collection agencies.

Bankruptcy - Sometimes it's your only option

The Truth About Bankruptcy and Debt Consolidation

Often we are faced with towering debts that may appear unconquerable. And often times still, the challenge may be just that. Circumstances for financial hardships are as plentiful as the individuals who face them. It is not always a matter of blame. The need for a fresh start may be overwhelming.

Consumer Disclosure - Your FREE Credit Report in Canada

The Canadian consumer is responsible for the information contained in their credit report. This information is your complete financial history in the eyes of banks, lenders, and other financial and credit institutions.

As a consumer it is your right under the law to review your credit report and check the entries for accuracy.

There are may ways to obtain your credit report and often times we find that our clients are under the impression that they have to pay to obtain a copy of their credit report and the information it contains. We have news for you! The Government of Canada made a free credit report available to every consumer in Canada, in addition you can review your credit report from any or all 3 credit bureaus in Canada once per year at ABSOLUTELY NO COST to you.

Payday Loans - Pros and Cons

There are many different reasons why someone would consider a payday loan when they are in need of emergency funds for living or other unexpected expenses. Payday loans are generally considered 'high-risk' loans as they have a high percentage of clients defaulting on the payments for various reasons. The following outlines some of the main pros and cons of payday loans, when and how they should be used and how they can repair or damage your credit:

Pros of Payday Loans

Fast Access to Funds
The main advantage to using a Payday Loan is to access the funds from your paycheque before payday. They will allow you access to a portion of your pending paycheque amount once you have generally provided them a proof of income (by showing them previous paycheques that you have received.)
Provides a grace period to obtain better financing

For a list of all our services please see our Services Page or Contact Us.

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Canada Debt Settlements stands by the commitment and service guarantee that no client will be charged unless we can achieve a debt reduction. As our customer testimonials will demonstrate - we have a unique solution that allows a licensed agency to advocate with your creditors on your behalf. We work for YOU... not the creditor. Call now to speak with an experienced and licensed debt professional. What do you have to lose?

Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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