Resources

Resources relating to credit and debt

What Information Is Contained In My Credit Report?

Information on your credit report in Canada falls into the following general categories:

  • Identifying Information - Your full legal name, address, and date of birth
  • Credit History (Trade Lines) - comprehensive history about your credit utilization
  • Public Records - Judgments, bankruptcy, consumer proposal
  • Inquiries - Are you applying for credit often?
  • "Other Information" - Bank account overdraft, Collection Activity

Read about the information the credit bureaus collect about you, how it is used and interpreted by your creditors when considering applications for credit, and how you can control and update incorrect information.

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.

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.

Debt Snowball Method of Debt Repayment

The debt snowball method of debt repayment is a way for households to eliminate their debt while providing quick results and motivation to continue with the debt reduction plan. The basic strategy is to put any extra debt payments into your lowest balance account first. Although it is commonly recommended to pay your highest interest accounts first, this method may help you stay focused on your debt management plan due to the fact that within a short period of time your smallest balances are generally paid out and less monthly bills are coming into the household.

A few things to note before we go too far into this debt reduction solution...

  • This solution will not work for everyone, and is not recommended if you are struggling to make your minimum payments. If you are struggling with making your minimum payments every month please contact us for a free no-obligation consultation
  • Debt Repayment should not be put ahead of retirement savings

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.

What Are the 3 Benefits of Canada Debt Settlement you Must Know?

If you are knee deep in debt and want to get rid of this situation, you must get help from a Canada debt settlement company. When you desperately want to get out of your debts, Canada debt settlement may help you to settle your debts in a systematic way. Your Canada debt settlement company helps you reduce your debts by negotiating with your creditors. Debt settlement is an approach to debt reduction in which both the debtor and the creditor decides upon a reduced balance. Thus, going for Canada debt settlement will mean that your company will help you reduce your overall debts. This reduced balance when paid is regarded as payment in full. This article provides you with benefits you may receive when you get help from a Canada debt settlement company.

Benefits of Canada Debt Settlement

Here are some of the benefits you may receive when you get help from a Canada debt settlement company:

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

Consumer Proposal - How can it lower my monthly payments?

Consumer proposals can be highly effective in reducing overall monthly payments and easing the pressure of the regular monthly payments. They also reduce the overall debt. Consumer proposals are a type of light at the end of long tunnel. But homework must be done prior to filing as it is an R7 or R9 Orderly Repayment and will reflect so for the term the proposal and there years thereafter. As discussed, even a decline will be registered against the credit bureau as the same rating.

Risks of Secured Consolidation Loans

Where the applicant has accepted a secured consolidation loan (secured against equity or other assets), the lender may reposses or liquidate in the event that the loan payments fall behind. There is very little "gray area" with respect to these types of loans.

Where the applicant has attained a co-signer to strengthen the application, the co-signer will be as susceptible to the same credit & legal risk as the primary applicant as they take on the same amount of liability to ultimately pay back the low-interest consolidation loan.

Will a Consolidation loan reduce my debt?

There is NO principal debt reduction in a consolidation loan.

The fact remains that every application for credit affects your beacon score negatively, moreso when the application is declined. If the applicant is a property owner with sufficient equity or holds other assets (i.e. GICs, RRSPs, bonds, etc...), the bank may offer to secure the loan against these assets, and essentially hold them as collateral until the consoldation loan is paid. These are known as Secured Consolidation Loans, where in exchange for a low-interest loan, the lender will secure that amount against an asset of the loans value.

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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+

Call now for your free no obligation consultation 1-877-475-3939