Browse Month by January 2020

How to hold a debt conversation with your family?

Regardless of the composition of your family, ignoring family finances or accumulating debts can have an impact on each member. Launch an annual family reunion this month for Financial Literacy Month. This meeting brings together all family members to discuss topics such as spending behavior, household budget and debts, if any. It offers the opportunity to present the situation to the whole family and to discuss plans and objectives for the future. For families who have debts, this annual meeting also makes it possible to discuss debt solutions, from strategies to be implemented yourself to official solutions such as the consumer proposal.

The meeting makes it possible to approach debt in an open environment. According to a 2015 CCO survey, only half of Canadians are honest with their families, friends and co-workers about their finances. The reason: they don’t want to worry those they love.

Here’s a way to have open and honest discussions about finance in two different family contexts.


Families with some adult children living at home

More than millennials live in family homes these days. An annual family reunion may provide an opportunity to discuss the possibility that the adult child living in the home may pay rent, time he intends to stay and other household contributions he may make. The two parties will be able to discuss the debt and the financial pressures they face. If you or your child are worried about your accumulated debts, it would be good to schedule another meeting, but this time with a Licensed Insolvency Trustee (SAI) to discuss debt solutions. An SAI can explain all of your options, from budgeting to formal solutions like consumer proposal or bankruptcy to debt consolidation.


Couples with children

Couples with children

Newly married couples, in particular, should take the time to establish some basic rules and goals for spending, budgeting, emergency funds, and retirement.

Talking about your debts as a couple is also important. Even if the subject is unpleasant, quickly exploring debt solutions can avoid having to file a consumer proposal or declare bankruptcy afterwards. Do some research online or schedule a meeting with an SAI to explore debt relief strategies. The role of a trustee is not only to administer consumer proposals and declarations of bankruptcy. He will explain all debt solutions to you, including debt consolidation, debt management plans and credit counseling.

Although money is sometimes an emotional subject to discuss with the family, it is important to keep the conversation going. Open and honest discussions about things like spending, saving, and debt can help ensure that your family members are all working towards the same financial goals.


How To Restore Credit After Bankruptcy

What Happens When You Have Declared Bankruptcy in Rubic and Want to Restore Your Finances and Credit? What resources are available to you to improve your financial knowledge? How can you get back on track? Below we will discuss your options for restoring your credit after a declaration of insolvency and how to avoid financial problems later.


You have eliminated your debts. What to do now?

You have eliminated your debts. What to do now?

An official solution to debt, whether bankruptcy or consumer proposal, can offer you relief from your debts and financial stress. In addition, even if bankruptcy is not an optimal outcome for any family, it offers you a fresh start and the opportunity to restore your financial situation. Restoring your situation will take time and patience, but here are a few tips to get you started:

1. Open a savings account

1. Open a savings account

The best thing to do for your finances now and in the future is to regularly spend money on your savings. Take the “pay yourself first” approach by setting aside a specific amount of money from each paycheck or by setting up a direct transfer to your savings account. Start with small amounts, then set up an emergency fund equivalent to all of your household expenses for 3 months, then start spending money on your long-term savings, such as retirement savings. The Financial Goals Calculator: Scoreboard from the Financial Consumer Agency of Canada can help you set your savings goals.


2. Stick to your budget

Savings and budgeting go hand in hand. If you don’t know where your money goes each month, you will be hard pressed to progress. Use a budget to anticipate future expenses and allocate money to specific categories to avoid excessive spending and achieve your savings goals. Learn how to build a balanced budget using a budget worksheet or budget calculator.


3. Pay your bills in full and on time

3. Pay your bills in full and on time

Whether it’s your rent or mortgage, insurance, car loan, utility or telephone bills, you have to pay it all on time. Otherwise, the cycle will continue and you will still need to catch up. The best way to keep track of multiple bill payments is to automate them from your account so that everything is always paid in full and on time.


4. Ask for a guaranteed credit card

When you feel you are in control of your budget and savings, you may want to apply for a secured credit card. To obtain such a card, a deposit is required as collateral to ensure that high-risk borrowers are less likely to find themselves in default. You can use the card as a regular credit card to make purchases. However, it’s best to start off slowly by making small, easy monthly payments, like a Netflix subscription, and adding small, manageable purchases.


5. Improve your financial knowledge

4. Ask for a guaranteed credit card

Look for money management workshops offered online or in your community. Otherwise, visit FCAC for free budgeting, savings and planning resources that will help you regain control of your finances. Manage Your Money Better can also help you save for the darker days, estimate the amount of money you will need to withdraw, and stay on top of your budget using online calculators. .

Learn more about what happens if you file for bankruptcy and how to restore your credit by following us on Twitter and Facebook.


Understand everything about credit consolidation

Sometimes criticized, the grouping of credits can be scary. However, in some cases, it has financial and administrative advantages. We present these advantages to you, as well as the points to be careful about before choosing this solution


What is credit consolidation?

Some people sometimes have to repay several credits at the same time: a loan to finance a car, personal projects, a credit card with a reserve of money, a credit card taken out in supermarkets …

Credit consolidation is an installment loan which consists of consolidating your loans (excluding mortgage credit) into a single credit. The duration, the rate and the monthly payment are fixed and determined from the opening of the contract.


Who is concerned?

Who is concerned?

Anyone who has used consumer loans (personal loans, home improvement loans, car loans, store credit cards or credit reserves linked to a payment card) can make a request for credit consolidation.


Why make a credit grouping?

credit grouping?

The main reason for pooling loans is to decrease your debt ratio:

  • by adjusting and extending the total duration of the credit, one single monthly payment is paid which is smaller than the sum of all the monthly payments currently due each month. There is however a maximum duration depending on the amount, the financial body can inform you about this.
  • in some cases, by obtaining a more advantageous interest rate.

At the same time, the grouping of credits allows administrative simplification. There is only one payment per month and only one direct debit date, one contact company, and we know the one and only date on which the reimbursement will be finished. Less risk of errors therefore.


What should you watch out for?

credit consolidation

If the repayment of outstanding credits is almost finished, it is generally not advantageous to carry out a consolidation.

Likewise, if you combine credits that originally had fairly low interest rates, it is possible that the consolidation rate will be higher and that it will ultimately cost more.

It is therefore important to fully integrate all the parameters and do your calculations with your financial institution before making a decision.


How to proceed?

credit loan

Generally, the organization that offers to group all the credits takes care of everything. We often benefit from an expert who is entirely dedicated to us. He will therefore know our file directly with each contact: this can be very practical. This person will take care of the administrative procedures and regulate the formalities for termination and reimbursement. Which can also make our lives easier.