Debt Free In 30

Gail Vaz-Oxlade is one of the most popular financial experts for a reason. Her no holds barred approach is based on one consistent message: You need to be the one to take action to take care of your debt problems. You may criticize the bank, the credit reporting agency or payday loan companies but at the end of the day you have to be able to identify that you are too deep in debt and need to do something about it. types of debts that most often trigger deep financial problems include credit card debt, high interest financing loans, payday loans and misused lines of credit. In our rebroadcast of one of our post popular podcasts, Gail calls these types of debt 'callable debt'.  She recommends you focus any debt repayment plan on this type of debt first, and for good reason. This is the type of credit that can be taken away at a moment’s notice. The bank can cancel your credit cards, your line of credit and demand immediate payment. If you don't have a good credit score this could leave you struggling and at ris

Heather Cudmore is a credit counsellor with Carizon Family and Community Services in Kitchener, Ontario, and on today's show we discuss credit counselling. Who does a credit counsellor work for?  Is it true that they are just a collection agency for the big banks?  What does it cost?  What are the fees? Isn't a debt settlement better and cheaper?  What about other options? Answers to those questions and a lot more on today's show.

For the month of August we are rebroadcasting (with updated information) our most popular shows. Dr. Lee Anne Davies, co-author of When Life Bites You in the Wallet, discusses the financial challenges faced by seniors and gives practical advice for over-coming "Bag Lady Fears". In an updated introduction to the podcast, we discuss some of the findings from our 2015 Joe Debtor study that revealed that seniors have the highest debt, and are also turning to payday loans.  We discuss the implications, and options for dealing with debt.

From now until Labour Day we are rebroadcasting (with updated information) our most popular shows. Today’s guest is Christi Posner, a credit counsellor and new mother.  Christ starts the show by telling us how, after graduating from university she had a lot of debt.  She got married, and she and her husband wanted to start a family, so they knew they needed to tackle their debt.  They did.  They paid off their debt, and were in good shape financially to start a family.   Even though Christi is an experienced credit counsellor, there were many expenses that surprised her when she went on maternity leave.  She shares her practical tips for preparing for the birth of your first child, and gives advice on how to save money while on maternity leave.

On today's show I talk with Adam Rauf, a trustee in bankruptcy and consumer proposal administrator at the Hoyes Michalos St. Catharines and Niagara Falls offices. Adam receives many questions from his clients and came in with a list of 20 concerns that people have when they come in to see him to get out of debt. We narrowed down his list to some questions about what type of debts can be eliminated in a bankruptcy:   Can I give back my financed vehicle and get out of my car lease if I file bankruptcy? Will my 407 debts be eliminated in a bankruptcy? If I pay off my consumer proposal early, will there be a penalty? Can a bankruptcy or consumer proposal stop a law suit or wage garnishment due to unpaid debts?

Trustee in Bankruptcy, Benny Mendlowitz answers the most pressing questions about paying down debt by filing bankruptcy. Benny is a trustee at Hoyes Michalos in charge of our Scarborough and North York offices and during the show he answers these frequently asked questions: What does it mean to go bankrupt? What does it cost to go bankrupt? What if I don't want to go bankrupt? Can I keep a credit card during bankruptcy and how will filing affect my credit score? How can I get rid of the stress caused by my overwhelming debt?   Benny points out that not everyone has to go bankrupt. However if you can't pay your bills, have credit card debt, struggle with your car payments you need to do something.  Meeting with a bankruptcy trustee is a start.

Today’s guest is Joel Sandwith, trustee in bankruptcy and consumer proposal administrator at Hoyes Michalos working out of our London and Sarnia offices. Normally we broadcast an FAQ show on the last Saturday of the month, but we receive so many questions that are worth taking the time to answer that we decided to run an FAQ series during July; starting with this one. To prepare for this show Joel made a list of the most frequently asked questions that he receives from clients. The burning questions on everyone's mind focuses on credit rebuilding, what happens to a house when you file bankruptcy and why clients should choose Hoyes Michalos.   Tune in for the answers to these questions.

Today’s guest is Daniel Veinot, a lawyer and partner at Duncan Linton in Waterloo, and we discuss student loan debts and how they are handled by bankruptcy law. Daniel discusses whether student loans are automatically discharged in a bankruptcy or consumer proposal, when it's possible to go to court and how many years an individual needs to be out of school before they can discharge any outstanding student loan debts. Student loan debt is on the increase.  In May, 2015 we released our biennial Joe Debtor study assessing debt levels based on over 6000 client files from 2013-2014 and revealed that student loan debt is a growing problem in Canada. From that study we found that 13.4% of people who filed bankruptcy or a consumer proposal with us had student loan debt (up from 12.7 two years earlier).  What's more, average student loan debt increased 4.3% over the past two years to just under $14,000.   On today’s show we discuss the law, and your options for dealing with student loan debt.

Right now, interest rates are at record lows, benefiting those who have good credit. But what if  you don't have good credit or can't get credit at all? Today’s guest is Jim Dunbar, the Managing Partner and Chief Commercial Officer for Affirm Financial Services, a company that provides consumer loans, term loans and unsecured credit cards to individuals who have been turned down by the banks. Jim explains the type of credit card that they offer, who the card is intended for and how it could help to rebuild credit. Disclaimer: The guests that on this show offer a different perspective and many times a different one than my ours. We have people on this show not as a commercial for their product, but rather, to provide information and multiple points of view for my listeners. The guests on this show are not paying to be here and alternatively, they are not being paid to talk to us.  Nor are we endorsing their views or their product. What we are here for is to discuss options.  All financial decisions should be r

Richard Dunwoody has 30 years experiences providing consulting services to the financial services industry through AFO Venture Group. On today's show Richard offers his opinion on how credit counselling agencies in Canada operate and what this means to consumers. At our firm we work a lot with local, not-for-profit credit counselling agencies that meet face-to-face with clients using a "whole person" approach. I am a supporter of these kinds of organizations because they meet with people face-to-face, help people deal with the underlying causes of their financial difficulties and teach useful money management skills like creating a budget and finding ways to save money. In fact, I've had two local credit counsellors on this show: Heather Cudmore from Carizon in Kitchener and Sue Davey from Brant Family Counselling. Richard's disapproval does not lie with these local not-for-profit agencies, but rather, the systems in place in Canada for credit counsellors regarding aspects like qualification and accreditation

Before now, there really were no rules governing debt settlement companies in Ontario, which meant that they could charge large up-front fees, only to refer the client to a bankruptcy trustee once legal action was taken by a creditor.  The process has already started and on January 1st, 2015 the Collection Agency Act was renamed the Collection and Debt Settlement Services Act. On today’s show Ted Michalos talks about the new legislation and what it means for consumers.   We often hear that clients are afraid to seek help from a trustee in bankruptcy because of the stereotypes and misconceptions about the process. Debt settlement companies feed off this fear by placing ads claiming to be able to settle their debts for pennies on the dollar, while avoiding bankruptcy. Unfortunately, more often than not, these informal debt settlement companies fail, hurting the consumer both emotionally and financially. The new debt settlement legislation attempts to protect consumers from these abuses.

It's time for another FAQ podcast and today we talk about if and when you might be responsible for your spouse's debt and how one spouse filing bankruptcy might affect the other.    To answer these questions we talk with Hoyes Michalos Trustee in Bankruptcy Jason Quinney about joint debts and co-signed loans.  Jason explains what a joint debt is, what happens to a co-signer if a debt goes unpaid and clears up the misconception that joint debts settled in a bankruptcy or consumer proposal need to be filed individually.

Today’s guest is Ian Penney, President of Janes & Noseworthy in Newfoundland and Labrador.  Recently, oil prices have declined, affecting the finances of those who work and/or live in a boom-bust economy.  Alberta is a prime example of this type of economy, but the sting is also being felt in Newfoundland and Labrador.  As lay-offs continue and people are forced to find alternatives, Ian has noticed that personal finances are taking a hard hit, and that as a result, people are turning to bankruptcies and consumer proposals to eliminate debt. When oil prices were lucrative and the industry was booming, many Canadians joined the ranks to cash in; including a high volume of workers from the east coast. Oil companies would often fly workers home on their off days and set them up in a hotel or a camp while in Alberta - life was good.   But now that oil prices have fallen, how are workers coping?  That’s the topic of discussion on today’s podcast, and Ian gives some practical advice for managing debt in a boom

So you’ve got a bunch of debts.  You owe money on three different credit cards, and a payday loan, and you still owe some money on an old cellphone bill.  You’ve got a job, and you’ve got money coming in every month, but it’s hard to juggle five different debt payments every month, all on different days, in addition to all of your regular bills. Wouldn’t it be great to consolidate all of your debts into one monthly payment?  No more juggling your paycheque to make a bunch of payments every month; you would just have one easy monthly payment. Sounds great, right?   Debt consolidation does sound great, and in some cases it is a good idea.  Other times, not so much.   On today’s show Mark Moreau explains how you can use the equity in your home to consolidate your debts, and he explains why it may or may not be a good idea.

On today’s show Ted Michalos and Doug Hoyes discuss the just released Hoyes Michalos study: Joe Debtor: Marginalized by Debt. Canadians do not appear to be worried about high debt levels.  Interest rates are at record lows, and bankruptcy rates have declined for the last five years. Unfortunately that obscures the fact that at risk groups, including seniors, single parents and people with student loans, don’t qualify for traditional low cost borrowing options, so they turn to payday loans, quick cash installment loans, and other high interest crippling forms of debt.   Doug and Ted discuss the results, and explain how to recognize the warning signs of excessive debt.

Today’s guest is Mark Silverthorn, who was once the most prominent collection agency lawyer in Canada, sending out 10,000 collection letters every month.  Today he’s a consultant for debtors, and is the author of The Wolf at the Door, a book about “What to do when collection agents come calling”.   Mark Silverthorn says on the show that collection agents have every right to collect money that is legitimately owed, but he believes they should follow the rules and behave in a professional manner.  He surveyed his contacts in the collection industry and gives us the five dirtiest tricks used by collection agents, and gives advice on how to avoid or stop collection calls.

On today’s show Ted Michalos explains that bankruptcy isn’t free.  Even though you may have limited resources, it does cost money to go bankrupt.   Ted explains why it costs money, and how the concept of surplus income impacts on the cost of your bankruptcy.  Ted also explains how a consumer proposal is an effective solution for avoiding the excessive monthly cost of bankruptcy.

On today’s show Leigh Taylor, a bankruptcy trustee with LC Taylor and Associates in Winnipeg, gives his opinion on how to deal with debt.   He explains why cashing in your RRSP to pay off debt may not be a good decision.  He also explains why you should avoid co-signing a loan, how debt consolidation works, and whether or not you are a good person if you have debt.

On today’s show Vikram Barhat, a finance writer whose work has appeared in The Globe & Mail, BBC, and Morningstar Canada, answers a common question: If I save up $1,000, should I use it to pay off debt, or should I contribute it to my RRSP? It’s a difficult question.  Paying down debt saves future interest, but contributing to an RRSP generates a significant tax saving for many people.  Vikram provides his thought process for helping make that decision.   In  the Let’s Get Started segment gives his thoughts (and not surprisingly he is not a big fan of debt).

On today’s show we talk with mortgage agents Michael Smele and Bev Gay about whether it's possible to get a mortgage to buy a house after, or even during, a personal bankruptcy or consumer proposal.  They each give their opinion about who can qualify for a mortgage and what options are available to individuals with poor credit.  The biggest take-away from our conversation is that when considering buying a house, saving up the biggest down payment possible will not only reduce your monthly payments, but it could also mean that CMHC insurnace fees will not be included in those monthly payments.