Struggling to pay off debt?
At Crowe MacKay & Company, we understand that dealing with your debt can seem impossible. The good news is that there are solutions, and our trusted Licensed Insolvency Trustees can help guide you, creating a tailored relief plan to fit your needs.
Our Licensed Debt Management Team
When you work with our personal debt management and debt restructuring team, we will review your debt, budget, and credit to become informed on your situation. From there, we will create a debt relief plan personalized to your goals, helping to reduce the amount of debt you will be required to pay to meet your financial obligations.
There are many options available to restructure your debt. When working with our debt restructuring and credit debt relief team, we will provide you with strategic options to manage your debt, sharing with you which option fits best with your situation.
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Your credit report and credit scores are like your personal financial report card. This is what most financial institutions will look at before deciding to lend you money – if you have no credit history or poor history, it could be more difficult for you to get a credit card, loan or mortgage. On the flip side, if you have good credit history, you may be able to get a lower interest rate on loans, saving you money over time.
What impacts my credit score the most?
Simply put, your payment history, credit checks and types of credit impact your credit score most. Our team of Licensed Insolvency Trustees share tips on how to improve your overall credit score.
What are some ways to improve my payment history?
Here are nine easy ways:
- Always make your payments on time.
- Always make the minimum payment if you cannot pay the total amount you owe.
- Contact the lender right away if you think you will have trouble making a payment.
- Don’t skip a payment even if a bill is in dispute.
- Do not go over your credit limit! (Borrowing more than the authorized limit on a credit card can lower your credit score)
- Use less than 25% of your available credit limit – It’s better to have a higher credit limit and use less of it each month. (If you use most of your available credit, lenders see you as a greater risk – even if you pay your balance in full by the due date)
- The longer you have a credit account open and in use, the better it is for your score. If you transfer an older account to a new account, the new account is considered new credit. (Your credit score may be lower if you have relatively new credit accounts)
- Consider keeping an older account open even if you don’t need it and use it from time to time to keep it active. (Make sure there is no fee if the account is open but not used)
- Be cautious of how many credit checks are on your credit report. If there are too many, lenders may think you are living beyond your means. (It is not unexpected that you will apply for credit from time to time. When lenders ask a credit bureau for your credit report, it is recorded as an inquiry – inquiries are also known as credit checks.)
How to control the number of credit checks?
You can control the number of credit checks on your credit report by doing the following:
- Limit the number of times you apply for credit.
- Get quotes from different lenders within two weeks when shopping around for a car or a mortgage – your inquiries will be combined and treated as a single inquiry for your credit score.
- Apply for credit only when you really need it.
How to create a variety of credit on your credit report?
A mix of credit products may improve your credit score. Make sure you can pay back any money you borrow. Otherwise, you could hurt your score by taking on too much debt.
Types of credit include:
- A credit card
- A car loan
- A line of credit
Your score may be lower if you only have one type of credit product, such as a credit card.
To learn more about credit debt relief in Vancouver and Surrey make an appointment with us today.
A consolidation loan may let you pay off your creditors if you’re struggling with debt, leaving you with just one monthly payment. There are different types of debt consolidation. Some require you to borrow more money and use it to pay off your debts, and others use your income to create a debt management program.
When consolidating your debts, it’s essential not to rely on credit cards. Try to live on a cash-only basis to protect yourself from further debt.
Shop around! Financial institutions offer different interest rates. Take the time to do your research and find the best interest rate. Depending on your circumstances, you may find that you can’t get a consolidation loan through conventional channels.
A proposal is an agreement between you and your creditors allowing you to forgo some of your debts. How is this possible? Our Licensed Insolvency Trustees will negotiate with your creditor(s) on a repayment that would be more than they would receive if you claimed bankruptcy, but less than what you currently owe. After filing, your creditors will vote on whether to accept your proposal. Learn more about the two types of proposals available to you: Consumer Proposals and Ordinary Proposals.
If you are still unable to repay a portion of your debt after exploring all your options, you can consider bankruptcy. Most people treat bankruptcy as a last resort. If you’ve declared bankruptcy before, you should try to avoid going bankrupt again. The consequences can include:
- Serious harm to your credit
- Loss of your professional accreditation
- Loss of some of your assets
Although bankruptcy should be avoided if possible, there are times it is impossible to reach an agreement with creditors. In these cases, bankruptcy may be the best option. Learn more on how our Licensed Insolvency Trustees can support you through your bankruptcy claim in Vancouver and Surrey.
Having tax debt is unlike other situations where you may owe money. You cannot enter into debt negotiations or provide a debt management plan to the Canada Revenue Agency (CRA). The CRA will waive or reduce your interest charges or penalties in very few situations (such as the CRA making a mistake while processing your payment, natural disasters, serious illnesses, or extreme financial hardship). Our team of trusted Licensed Insolvency Trustees will work with you to explore the options of submitting a consumer proposal or claiming personal bankruptcy to reduce the overall amount you owe the CRA.
What Are Your Options for Clearing Your Debt?
What Are the Alternative Debt Solutions?
How Does Bankruptcy or a Consumer Proposal Affect Student Loans?
What is a Consumer Proposal?
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