Monthly Archives: July 2012

Who Should You Refer to Not-for-Profit Credit Counselling?

Thousands of Canadians suffer from debt, and often don’t know where to turn for help. If your clients find themselves in a tough financial situation, not-for-profit credit counselling may be an option they can consider.

Credit counselling is a service that helps many Canadians deal with financial challenges. Like any other financial solution, it does have its pros and cons. While credit counselling can help Canadians with any amount of debt, it is best suited to those individuals who owe $7,000 or less in total debt. For those clients with more debt, a consumer proposal or other solution may be a better option.

The credit counselling agency will make a proposal to creditors to create a reduced, fixed monthly payment. This proposal is not a consumer proposal and it will not reduce the overall debt. It simply provides for a reduced monthly payment.

The main benefit with credit counselling is that it allows your clients to manage their monthly payments.

There are also some cons, including:

  • Damage to credit – although this has likely already occurred
  • Overall amount of debt isn’t reduced
  • Repayment plan can extend over many years

Generally speaking, it is advisable to encourage your clients to seek financial guidance from an independent financial professional who can help them make the best financial decision and who does not work for the company that is providing the services, rather than going directly to the source.

If you would like to get informed about the differences between credit counselling and other debt solutions and which one is best for you clients, please call 416-907-2582 ext 2587 or email me at kgoldenberg@debtcare.ca.

When People Divorce Credit Card Debt Can Become Difficult to Manage

When people divorce many different financial problems can emerge. Both spouses will find themselves dealing with their finances on a single income. If one spouse wasn’t previously managing the household finances, she will now have to learn how to manage bills. Individuals may find it difficult to manage debt, such as credit card debt, on their own. One spouse may end up with the responsibility of paying the marital credit card debt on his own.

Divorce is one of the leading causes of bankruptcies and consumer proposals in Canada. Those who don’t end up in bankruptcy or in a consumer proposal still may be struggling with debt and may have damaged their credit as a result.

If you help people who are going through a divorce, a conversation about their debt and how they are managing their finances should take place. Even if you don’t deal with the financial aspects of a divorce it is important to know if your client is struggling with divorce related financial problems because your client’s financial problems could be fuelling mental health issues, damaging her quality of life,  disrupting his  employment or ability to gain employment and more.

Helping your client address her financial problems could be the key to a fresh start after a divorce. At DebtCare Canada we are committed to education in this regard. Check out the article we released last month “How to Make a Credit Card Debt Settlement” and feel free to share it with any clients you feel may find it helpful. http://www.debtcare.ca/articles/how-to-make-a-credit-card-debt-settlement/

Also, if you help people who are going through a divorce we can help you to help them address financial problems. Please reach out and I can send you more information about our WeCare Canada initiative and also about a new program for recently divorced individuals, “Budgeting in Transition.” I can be reached at 416-907-2582 ext 2587, by email at kgoldenberg@debtcare.ca and you can find more information about our business to business services at www.debtcareservices.ca

Helping Clients Who Have Tax Problems

Tax problems impact thousands of Canadians each year. Those who are self-employed, newly divorced, or who struggle to maintain their books are often among the first to be impacted by tax problems.

If you are an accountant, divorce lawyer, or work with self-employed individuals, then you likely encounter people who have tax problems. Once it is determined that an individual has a tax debt that they can’t pay, the real trouble starts. The Canada Revenue Agency wields incredible power and if your client is targeted, there will be little that you can do to help them.

If your client has a tax debt that they can’t pay, it is crucial that he or she comes up with a plan before the Canada Revenue Agency comes after them. This is where we come in.

We understand CRA enforcement practices, policies and procedures and we have the resources to be able to help individuals with the financial aspect of his or her tax problem.

Here is an article released by DebtCare Canada that educates individuals about the implications of missing the income tax deadline that you may want to share with your clients. http://www.debtcare.ca/articles/the-canada-revenue-agency-consequences-of-missing-the-income-tax-deadline/

Education plays a major role in helping people to avoid tax problems and also to face them if they come up.  At DebtCare Canada we take financial education very seriously and often work with organizations that help people who have tax debt. If you have clients facing unmanageable tax debt, please reach out to me. I can be reached at 416-907-2582 ext 2587, by email at kgoldenberg@debtcare.ca and you can find more information about our business to business services at www.debtcareservices.ca