Canada Debt Relief Center

12/06/2023

12/05/2023

12/04/2023

CDRCL can assist you in creating a household budget that works for you, your family, and your income, including setting aside money for your debts and for your future. We’ll talk about your goals in life, as well as your priorities for the future, and we’ll show you how your current income can support those goals with a little planning and strategizing.

You’ll also learn how to encourage yourself to keep moving forward, even when it’s difficult. There's immense reward for doing so, and our job is to help you keep your eye on the prize so you can enjoy a debt-free, fulfilling life.

12/03/2023

When you're in a consumer proposal in Canada, it means you've entered a formal arrangement to settle your debts with your creditors. During this period, it's crucial to manage your finances wisely and look for opportunities to save money where possible. Here are some small savings strategies that can add up over time and contribute to building wealth:
1.Budgeting
2.Expense Tracking
3.Negotiate Bills
4.Grocery Shopping
5.Transportation
6.Entertainment
7.Debt Repayment Strategy
8.Emergency Fund
9.Educational Resources
10.Side Hustle or Part-Time Work

Remember, the key is to be disciplined with your spending and savings habits. Small changes can add up over time, and by consistently making informed financial decisions, you can improve your financial situation, even during a consumer proposal. It's also advisable to seek advice from a financial counselor or advisor who can provide personalized guidance based on your specific circumstances.

12/01/2023

One of the most common misconceptions we hear from tax debtors is that tax debt cannot be included in bankruptcy or a Consumer Proposal. The good news is that most tax debt is included in bankruptcy or a Consumer Proposal and has no greater priority than any other debt.

A Consumer Proposal is one option available to tax debtors. An immediate benefit of filing a Consumer Proposal is that a “stay of proceedings” happens, which means collection action by creditors is stopped. In other words, if your wages are being garnished by the CRA or if your bank account has been frozen, filing a Consumer Proposal will stop this action and provide you with relief.

Once a Consumer Proposal is filed, creditors have 45 days to consider the proposal. Generally speaking, a Consumer Proposal will be accepted by the creditors provided that a majority in dollar value of the creditors agree. If the CRA is a majority creditor, you will need their support for a successful outcome.

11/30/2023

This debt-repayment method (which excludes your mortgage) focuses on paying off your smallest debt balances first while making minimum payments on all other debts.

Once a balance is paid off, you take the funds you had previously allocated to your smallest debt and put them toward the next-smallest balance, essentially building, or “snowballing,” your repayment toward the next balance. This cycle repeats until all of your debt is repaid.

Each balance payoff is a win. It’s a debt-repayment method that may not save you money on interest but could be a great motivator to keep paying off your debt.

11/29/2023

11/29/2023

Each individual creditor will report that the account was ‘included in a proposal’. The debt will be coded as an R7 which means you have entered into an arrangement to settle your debts with your creditors. A perfect credit rating is an R1, and bankruptcy is an R9, so a proposal is sometimes viewed as slightly better than a bankruptcy. Account information is generally purged from your credit report six years after the last activity date. That may be the last date of payment or the date of filing, depending on the creditor. Occasionally, creditors will incorrectly report your account as ‘included in a bankruptcy’. The proper legal proceeding will appear in the public records or legal section.

11/29/2023

Preparing for a recession when you have debt in Canada involves a combination of financial planning, budgeting, and strategic decision-making. Here are some steps you can consider:
1. Assess Your Financial Situation
2. Emergency Fund
3. Prioritize High-Interest Debt
4. Review and Adjust Your Budget
5. Increase Income
6. Communicate with Creditors
7. Explore Government Assistance Programs
8. Diversify Income Streams
9. Seek Professional Advice
10. Protect Your Investments
11. Stay Informed
12. Health Insurance
13. Education and Training
14. Legal Advice
15. Mindset and Well-being

Remember, everyone's financial situation is unique. It's essential to tailor these general strategies to fit your specific circumstances. Seeking advice from financial professionals can provide guidance based on your individual needs and goals.

11/28/2023

Carrying debt into retirement is risky. An early retirement due to illness or job loss can derail your repayment plans. Making debt payments on a fixed income is difficult.
The closer you are to retirement, the higher priority you should place on paying off your debts. Here are some tips that can help:

Prioritize your debts. Pay off the most expensive first – the highest interest rate debts. Eliminate revolving debt (credit cards, lines of credit) – they are difficult to pay off on a fixed income.
Be careful of offering financial assistance to adult children. Avoid co-signing loans that will jeopardize your own retirement.

11/28/2023