Unfortunately, most of us are not credit savvy.  We don’t ask questions.  We don’t read the fine print.  We are too trusting.  We take for granted that the credit industry is looking out for our best interest when, in fact, their main motivation is profit.  

Most of the debtors I meet tell me the same story.  It feels good when you get approved for credit. You feel worthy.  The creditor has faith in you to repay the debt.  Unfortunately, due to unforeseen circumstances the debt often escalates beyond a manageable point and you may feel overwhelmed.  It’s never too late to attempt to fix the problem.  Think of the Nike slogan: “Just do it”!

#1 Recognize that your debt problem may be a symptom of a greater issue: poor money management, spending beyond your means, assisting others financially, buying to fill a void, keeping up with the “Jones”, supporting addiction issues such as gambling or drugs.  These issues must be addressed or you will just put a band-aid on the problem.        

#2 Create a plan (or budget) to pay down the debt EACH pay period.  If you can afford to do so, ALWAYS pay more than the minimum payment.  Paying only the minimum payment does NOT reduce the principal.

#3 Remove the credit card from your wallet.  If it’s not there, you can’t use it.

 For more information regarding the wise use of credit, visit our Counselling Resources section of this website.

30 Damascus Road, Suite 104 
Bedford, NS   B4A 1C0
(across from the new Wal-Mart; next to Summit Dentistry; next to the new Tim Hortons)

All phone numbers and other contact information will remain the same:
Phone: 865-5444
Toll-free: 1-877-216-5800
Information line: 865-5497
Fax: 865-2228
Website: www.mydebtsolution.net
Email: info@mydebtsolution.net

We look forward to seeing you at the new location in Bedford!

• Start early to get items on sale and to spread your spending out over the year.

• Make a list of who you want to buy for, and then cross off as many names as possible.  Send cards or small items when you can.

• Set an overall limit on holiday spending, taking into account shopping, parties, travel, charitable donations, office get-togethers and the other incidentals that seem to crop up at this time of year.  Stick to your budget!

• Make a list of ideas and set a budget for each person so you don’t end up spending your whole day browsing or making impulse purchases.

• Cross items and people off your list as you shop so you don’t buy for anyone twice.

• Plan to give gifts of your time to people who can use it (ie. free babysitting, car washes, offer to paint a room, cook dinner, etc.).

• Return to an “old-fashioned” Christmas:  Use your skills and make hand-made gifts for as many people as possible.

• Ask the store clerks whether a sale will be starting soon before you make a purchase.

• Watch the flyers for sales and take advantage of the tax-free incentives that merchants and shopping malls offer.

• Get together with friends and family to give group gifts, or draw names instead of gifting to everyone.

• Give a donation to a charity or sponsor a child in the name of several people.

• Challenge your spouse to keep to a smaller budget and see who can be the most creative! (example: try to spend no more than $50, but each must purchase at least 3 items).

• Save money on gift wrapping by using items around your house (ie. comic pages, brown butcher paper, re-used gift bags, baby blankets), or shop at “dollar” stores.

• Take advantage of levees, free holiday breakfasts, etc. to help your celebrations.

• Plan for next year by contributing monthly to a savings account or Canada Savings Bonds.

• Quit shopping when you’ve bought the last gift on your list.

• Make the holidays about the giving and not about the gift.

Search the internet for more great ideas. Use keywords such as, “gifts from your kitchen”, “cheap Christmas”, etc.

Consumer bankrupts: Discharges

• 9 month automatic discharge (release of debts) for first time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
• 21 month automatic discharge (or more at the court’s discretion) for first time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
• 24 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is not above standards established by the federal government.
• 36 month automatic discharge for second time bankrupts who fulfill all their duties and whose household income is in excess of standards established by the federal government.
• Individuals who file for bankruptcy for a third or subsequent time, or whose discharge is opposed for any reason, will still have to go through the Courts to be granted a discharge.

Consumer bankrupts: Tax Debt

• Bankrupt individuals with more than $200,000 in personal income tax debts representing 75% or more of their total unsecured liabilities will not be eligible for an automatic discharge. These individuals will have to seek a Court order to be discharged of their debts.

Consumer Proposals

• Under current law, a consumer debtor who is insolvent and whose debts are less than $75,000 excluding their home mortgage can file a consumer proposal as a debt solution. Under the new legislation, this threshold will be increased from $75,000 to $250,000.

As a result of these changes, keep in mind that the conversation you had with a Trustee before September 18th may be very different than a conversation on or after September 18th.

For a complete list of changes, refer to Industry Canada’s website.

Unfortunately, for some people, this effort is leading to actions that will hurt, rather than help, their financial future.

When considering financial advice, many individuals don’t know where to turn and who to ask for assistance. The term “trustee in bankruptcy” is often misunderstood as someone who can only suggest bankruptcy as an option. As a result of this fear, many seek the advice of a credit/debt counsellor who is so narrowly focused that consumers find themselves stuffed into the same mould as every other person. The benefit of meeting with a trustee is that they can offer many financial options. A trustee will provide you with solutions that exactly fit your individual needs.

A recent news release from the CAIRP Chair, Alan Spergel, reaffirms the benefits of meeting a trustee versus just a debt counsellor.

Link to article News Release June 2009 – financial healers