Posts by Topic: Personal Finance
Quick Sands Tip of the Week: Automatic Savings
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s financial tip is about automatic savings. Contributing to your savings should be a top priority and therefore should be automatic. Simple yet effective – give it a try!
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!
“Debt relief dilemma” – CHCH News Reports
Debt settlement companies are becoming a hot media topic lately – and for good reason…
As many Canadians are reaching new levels of consumer debt, the demand for debt resolution assistance is sure to follow. Individuals pressed for debt relief may find themselves at the door of companies promising to slash their debts – some even with the help of familiar-faced celebrity spokesmen. Unfortunately, many of these claims are proven to be false – it’s not unfair to say that the debt settlement industry in Canada is going through significant ‘Growing Pains’.
In part due to lack of provincial legislation overseeing such companies, countless debtors have found out too late that the enticing results boasted by the “programs” are more fiction than fact. Trusting debt-relief seekers may lose large sums of money to up front and unclear contractual fees and many will continue to endure tireless collection efforts in attempt to dig themselves out of debt using such services.
A recent interview with Toronto’s Doug Hoyes, co-founder of Hoyes, Michalos & Associates and Laurie Campbell, CEO of Credit Canada Debt Solutions sheds further light on a growing trend.
To watch the CHCH interview please click here.
Consumer Alert on Debt Settlement Issued by the Ministry of Consumer Services
Less than four months after the Financial Consumer Agency of Canada (FCAC) warning to consumers regarding companies offering debt negotiation options, last week the Ministry of Consumer Services (Ontario) issued a similar alert cautioning individuals considering debt settlement contracts.
The warning from this Government Ministry states that complaints against debt settlement companies are rising; the majority of the complaints are regarding excessive fees, misleading contracts as well as the failure to live up to their promise of reducing debts.
Advertisements may read as “debt reduction”; “debt consolidation”; “debt management” or “debt settlement” (to name a few).
As debt solution options banned in the US continue to market themselves to Canadians, consumers are urged to be on the look-out for red flags such as: pushy sales tactics, exaggerated claims, large up-front fees and service contracts that are difficult to understand.
Businesses may also claim to offer “programs” similar to that of a Consumer Proposal, an increasingly popular option for individuals looking to resolve their debts. In reality ONLY a Trustee in Bankruptcy is licensed to file a Consumer Proposal; a real debt resolution option that is regulated and supervised by Industry Canada.
To read the full Ministry of Consumer Services alert please click here.
To read the full Financial Consumer Agency of Canada alert please click here.
If you would like to discuss your debt resolution options with a licensed Consumer Proposal Administrator please feel free to contact us for a free, confidential in-person consultation.
Quick Sands Tip of the Week: Stick to the Budget
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s tip is about how to stick to your budget. When you’re trying to get out of debt it’s important to know how to budget…and then to stick to it! At the beginning of each week take out your weekly budget in cash and leave your credit cards and debit cards at home. Using only cash for your expenses will help you to stick to your budget and consider purchases before you make them.
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!
Sands & Associates’ Blake Elyea featured in The Globe and Mail
Our very own Blake Elyea was recently featured in The Globe and Mail, sharing his insights into a growing trend in the consumer credit world – “Grandpa Debtor”.
Click here to read The Globe and Mail article.
Quick Sands Tip of the Week: The Daily Check-In
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s financial tip is all about the daily check-in. Some people just don’t realize how much debt they actually have. Add your financial institution to your browsers list of favorites and check it once a day. This will help you focus on your budget and hold you accountable for your purchases - which in turn puts YOU in control of your financial well being!
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!
Quick Sands Tip of the Week: Needs vs Wants
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s tip focuses on Needs vs Wants. When you are trying to get out of debt or bankruptcy it’s important to know when you are purchasing a Need vs a Want. Stop and ask yourself before every purchase! This will help you to stick to your budget and get out of debt faster.
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!
Spring-Clean your Monthly Expenses
As the days get lighter and the weather (hopefully) improves, there’s less and less doubt about it – spring is here! Like most people, you’ve probably accumulated a list of springtime to-do’s around the house throughout the winter. But don’t forget, as you shake out the rugs and wash the windows, that your budget could probably use a tidy too!
Spring is a great time to look at trimming a budget: you’ve had all four seasons of varying expenses to track, and the gift-giving season is well behind. So put down that mop and bucket to read along for some thoughts on spring-cleaning those expenses of yours.
Utilize your Utilities: How many different utility companies are you currently dealing with? If you have separate providers for your phone, internet and cable, chances are there’s a money-saving opportunity to be had by bundling. Check out which companies can meet your needs and what sort of offers they can give you. If you can get an introductory offer be sure to consider what the regular cost will be once your welcome price with the new company has expired. In short, shop around, but always with a keen eye.
End the Extras: Find you’re paying for something you don’t use? Now is the time to put a stop to it. Examine your ongoing costs and see if you’re actually using all you pay for. For example, if you find that extra caller-ID or the fancy cable package going to waste, there are dollars to be had regardless of whether it’s a short- or long-term trimming. The same approach applies to oft-disregarded insurance plans – if things have changed at all in the past year, be sure to find out if your premiums reflect your current situation.
Nix the Impulse Buying: Now this is something that can be tossed from your costs no matter what time of year! Unplanned purchases can range anywhere from last-minute deals (that you don’t really need) at your grocery store check-out to big-ticket items such as trips and furniture. Regardless of their volume and price, they add up over time and can throw the best-laid budget out of balance. If you know you’re prone, take a step back before putting your money towards these purchases and, if in doubt, wait a few extra days and revisit the item to see if your “need” for it has changed.
Forgo the Fees: Scrutinizing your statements for late payment fees, overage charges or a banking plan that isn’t quite right can help reduce your incidental costs. If you find you’re always paying the extras, talk to your provider(s) and see if there isn’t a plan that’s better tailored to your needs. Even something as simple as opting for paperless statements may save you a buck or two. If you have a credit card with an annual service or membership charge, consider whether or not you really need that card in your wallet.
Springtime: no longer just a time to pack away winter gear, throw open the windows and watch your garden grow. Since most of us will be busying ourselves with the home turf, why not extend the sparkle and polish to our financial greenhouse too!
If you feel that your debts and finances need freshening up, please contact Sands & Associates for a free consultation.
Credentials: Part III of “Debt Reduction Program or Just Another Scam?”
If you’ve been following this particular series of our blog, chances are you have an inkling of where we’re heading with a title such as “Credentials”. In the event that this is your first read-along, you may wish to review our Parts I and II to better acquaint yourself with the unfolding story at hand.
After my interaction with Mr. Senior Debt Specialist I decide I need to further scrutinize the initial email received. Admittedly, I am impressed at the display of charitable organizations allied with his company. Everyone has to make a living one way or another, but at the same time it’s nice to know that potentially using one company to help my own situation may also contribute to someone else’s by way of a compassionate affiliation. Since Canadian tax-filers reported making charitable donations of just under $8.3 billion dollars in 2010, it would seem conceivable that this may be a deciding factor in using one company’s comparable services over another’s (karma and all of that).
My interest piqued, I pick up the phone to call these charities and inquire as to the relationship. Uh-oh… the organizations I speak with are unimpressed. As it turns out, none of them were aware that they were listed on this debt reduction company’s website. It would appear that possibly making a prior donation to these charities does not garner the Debt Consultant grounds to advertise themselves in such a manner as was presented, as partners. I was further advised by more than one of the charities that this issue had been broached between them and the Consultant before! If a company is going to twist the appearance of charity involvement for its benefit – what ELSE is it willing to contort?!
While I realize that digging so far into a company’s claims may seem extremely tiresome, consider the amount of personal information, not to mention trust, that is put into a company’s hands when you’re seeking debt relief. Chances are that you’re already stressed, losing sleep or just plain exhausted from juggling the bills – so why not take the extra time to ensure that when you’re ready to embark on getting the relief you need you also know that it’s a sound solution, one that won’t further aggravate your financial circumstances. Unfortunately for those of us looking for help, the tip of this experience’s iceberg has shown that sales slogans such as “Government Approved” and “New Canadian Debt Program” aren’t worth the pixels they’re flashed in.
If you’re going to fix what’s broke (pun intended!) then it should be done right. There are stacks of companies willing to provide services to you, but know that many of them will take care of their own needs first. If someone is claiming they can settle your debts in a Consumer Proposal and they are NOT a licensed trustee, then right off the bat you’ll know your spidey-senses have been proved correct. When in doubt, check it out!
If you would like to discuss your debt resolution options with a Proposal Administrator or Trustee in Bankruptcy please contact Sands & Associates for a free consultation.
When the Debt Consultant Calls…and Calls and Calls! Part II of “Debt Reduction Program or Just Another Scam?”
This is the second part of a three-part series entailing one Administrator’s experience with a debt consultant advertised online – to read the first post in this series please click here:
I’ve finally done it, bitten the proverbial bullet and requested that a debt consultant call me for some debt resolution options. Feelings of apprehension are starting to build as I’m unsure what to expect from such a company (you may wish to read our previous post to this series). An email appears in my inbox with a generic looking form requesting some of my personal information – nothing really raising any red flags just yet. Before I can even finish my perusal of the initial email I receive a call from the “Senior Debt Specialist” who has been assigned my lead.
Right off the bat I’m hesitant; his manner is rather abrasive as he questions me on my debt-load and I’m not detecting much caring or calm in his approach either. For most people, chances are it was a bit scary to apply for some of that debt in the first place, perhaps for fear of rejection or even judgment on the lender’s part (who hasn’t felt like a bug on a pin in a financial advisor’s office?) so it’s understandable that the idea of further financial disclosure and exposure is very daunting when you think you’re in over your head! The least this guy could do is realize that and attempt to soothe my worries. Shouldn’t that compassion, however feigned, be part of the job description? I might be in a bit of a financial mess, but I’m not sure I want to unburden my financial soul on a remote someone who sounds like their wage is based on the commission reward of undertaking my debt restructuring? The tone of voice and sales tactics I’m bombarded with make me wonder: Am I attempting to responsibly review the policies of a business that I may entrust my finances to, or am I buying a used car?!
After divulging my particulars, Mr. Senior Debt Specialist offers his solution. The idea, as far as I can surmise, is that payments from me will accumulate in an account and this particular company will, one by one, “settle” my debts. Once negotiations are finalized I will then send out the appropriate payments to my creditors. I explain to my would-be saviour that I am looking into my debt resolution options and have a few questions about how their program works and what the fees are. Admittedly, I shut the interview down rather quickly when I’m told that their fees are – ready for this? – 15% of my debt.
Another kicker to this is that this company won’t necessarily work with debts such as student loans, taxes or wage garnishees. Furthermore, enrolment in their program DOES NOT STOP phone calls/collection action, accrual of interest rates, fees or charges OR legal action! So…where’s the benefit or reassurance in going ahead with all this?!
I realize I sound like a broken record here but the only individuals permitted to administer consumer proposals are licensed trustees. Their fees are set by tariff and are not over and above the amount of the consumer proposal amount you are making (ie. if you are making a consumer proposal totalling $5,000 to your creditors, their fees will be drawn from that $5,000). A proposal also allows for full protection under the Bankruptcy and Insolvency Act, legislation which serves as a stay of proceedings, meaning ALL collection action ceases immediately. If you find yourself reaching out for assistance with your debts, please – do your homework. The amount of time, stress or sanity it may save is priceless.
To learn more about available debt resolution options a Proposal Administrator or Trustee in Bankruptcy can offer please contact Sands & Associates for a free consultation.
Stay Tuned for Part III: Credentials