JUDGENT WARNING – “People Who Get Into Debt Trouble Are Irresponsible With Their Money” – True or False?
Let’s dispel some common negative myths about people who are in debt:
We often get comments on our Facebook feed and find blogs written by people who say things like:
“People who gets in trouble with debt are irresponsible. They should be made to pay their debts because I pay my debts off….”
I have even seen some very uninformed people say things like:
“People go Bankrupt or do Debt Relief/Reduction programs cost the rest of us money because it causes interest rates to go up and we all pay for their poor financial management.…”.
I can tell you with great certainty that none of these statements are true and, since these types of misguided comments are so common on social media, I would like to take the opportunity to dispel these two incorrect lines of thought. (more…)
When seeking advice on how to deal with financial matters it is very important for consumers to consider an advisor who can be unbiased and impartial. If that is not possible then it is important to at least understand when a conflict of interest or bias lies, and how it may affect the advice given to you from and advisor. As long as a consumer understands this they can ask better questions and make more informed decision when taking advice from a financial advisor.
When it comes to debt relief companies not all services are created equal. It is very confusing for consumers trying to research debt relief companies online as most of the companies advertise using very similar advertisements. They appear and sound the same on the various websites, yet their services vary substantially in how they get paid and from who, and what bias or conflicts of interest they may have. So how is a consumer to tell them apart? To start with they could at least understand the advisors (or company’s) underling motivation. (more…)
Here is a new article by CBC considering some of the aggressive sales tactics of big Banks in Canada, and how they may be giving skewed advice that benefits themselves but hurts their clients!
I like the fact that some of the branch managers are finally starting to speak up about what banks want out of their customers and how they make money. Most of us in the financial industry have always known that banks make a large part of their profits by giving out more and more loans to clients. What the public often believes, is that ‘the bank is trustworthy and has their best interest in mind’, but this may not always be the case. I think its very important to understand how any business makes money and how they get paid and “what is in it for them” if you take their advice. (more…)
There is exciting news about Student Loans for anyone struggling to repay their student loan from the Federal Government. The Government of Canada announced in late October that people with student loans will not have to make payments on their student loan if they are earning less than $25,000.00 per year.
From our understanding, a student will still need to apply for this program by going on the student loan website and applying for Premium Assistance.
There are also changes to the Student Grant program that now give more money to students on low income.
This is all very exciting news as we meet many people on a regular basis who are struggling with large Student Loans. (more…)
For many years we have been helping people deal with their debt and we have noticed repeating patterns of financial problems that people encounter. One consistent problem is the accumulation of a lot of extra consumer debt around holidays and especially Christmas. Year after year in late January we are flooded with calls for help with Christmas debt caused by overspending. Based on what we have learned, we want to share with you a few tips and tools to help you avoid this situation.
First of all, if this recently happened to you and you find yourself stuck in a mess of high interest credit card debt, please contact us for a free consultation explaining your options for reducing the interest or consolidating the debt. The details are covered in our many other blogs and info pages, so we will not go into them here. This blog is more about how to permanently fix the problem. (more…)
It was great to be a guest on this great financial show the wealthy life with Sybil Verch. Thank you, Sybil, for this great opportunity. It was an honour.
I also want to say a huge thank you to Andrea Paquette from https://www.facebook.com/stigmafreezone for coming on the show as well. She is a true example of leadership and bravery in our community by her willingness to speak publicly about her struggles with debt and Bipolar Disorder to empower others and help them get the right resources to get help and healing.
Here is the episode called- The Wealthy Life – Season 2 – Episode 9
Watch Benjy from Debt Victoria Explain debt relief live with Sybil Verch
We are excited to announce that our office 4 Pillars Victoria (DebtVictoria) are again Finalists for the BBB Torch Awards.
The Torch Award is given by the Better Business Bureau (BBB) and is designed to name businesses who display excellence in a community. It is presented in recognition of their commitment to the BBB standards of Trust to benefit their customers, employees, and community in general.
Businesses are nominated by their clients who fill out a nomination form based on their experience in working with a business. (more…)
Funny video about Credit Reports. While credit is not usually a funny subject John Oliver does a good job of shedding some light on some facts about credit with his humorous twist.
Most of it is relevant but remember he is in the USA, and they have 3 credit reporting agencies there but in Canada we only have 2 (Equifax & Transunion). We do not have the credit reporting agency called Experian here in Canada. (more…)
There are many challenges facing recent college and university graduates. On top of the competitive job market, lower paying jobs, and the increased expenses of starting a family and a new chapter in ones life, comes one big obstacle – student loan debt. For recent grads searching for some debt relief or looking for a plan to manage this heavy burden there are some solutions to the many challenges.
If you are one of these people we have discussed some of the many student loan challenges here!
Doing noting about your debt is burning up your retirement savings $ – literally
Here is a very SCARY FACT:
If you are only making the minimum payments on your credit cards and lines of credit right now, it could take you more than a lifetime to get out of debt!
Minimum payments are essentially ‘interest only’ payments. This means that by making the minimum payments, the ‘principal’ (amount owing) of the loan stays the same; it does not get reduced over time. Your Creditors win by getting you to pay interest forever (this is how they make money) and you are stuck in debt forever*. Well, not forever, but a VERY long time. Look at your credit card statement to see the section that says “Time to Pay” – it will shock you)
If this is you, and you have been making only the minimum payments for a while, then perhaps it’s time to consider a debt plan to deal with this problem once and for all!
The Cost of Doing Nothing:
Not quite ready to deal with the debt? At least take a moment to calculate the cost of doing nothing:
Here is how: Take your current Minimum Payments on all of your unsecured debt (unsecured debt means debt not including car loans, mortgages and home equity lines of credit as they are connected to an asset) and multiply it by 60. That is the cost of carrying your debts for 5 years.
Example: Debt Load -$45,000 (Credit Cards and Lines of credit etc), Minimum payments on all debts $900/month. Calculate $900 x 60months = $54,000.00
This means it will cost you $54,000.00 to pay your minimums for 5 years while you “put off” making a decision on dealing with your debt.
Now that is a high cost of doing nothing! Worse than this, is the fact that the person still owes the $45,000!
Calculate $45,000 + $54,000 = $99,000.00
This is the real total cost of doing nothing over 5 years and then paying off your debts. Think about the impact on personal net worth and future retirement!
Alternatively, if this same person came to see us for help, we could likely help them get them out of debt for a grand total of only $14,000! Their debts would be reduced from $45,000 (principal) down to only $14,000 with ZERO % interest. Compare that to the total cost of doing nothing.
Calculate $99,000.00 – $14,000 and we have essentially helped save this person over $85,000.00!
Take a moment to calculate your own cost of doing nothing by following the example above. If you know what you’re dealing with, then it makes it easier to make decisions about how to deal with it.We would love to help you with your debt so you can move on. Get debt free now!
Give us a call, we would love to help.
Living Debt Free Feels Amazing!