Debt Counselling Services Help Canadians Get Rid of Debt Problems

Canadians today are almost as immersed in debt as Americans. According to an article on Financial Post, Statistics Canada found that the national household debt to disposable income ratio reached 163.3% during the fourth quarter of 2014; a surge stemming from the general increase of 7.5% in household net worth. If some good news can be taken from this, however, it’s that the national household debt is still below the 165% consumer debt of the United States─ even after factoring the difference between how American and Canadian consumer debt ratios are calculated.

Whether debt rates are different or parallel to those of another country, indebtedness in Canada still begs to be resolved immediately. The most appropriate solution for debtors is to contact their creditors, explain their current financial situation and negotiate a consumer proposal under the Bankruptcy and Insolvency Act. Meanwhile, debt counselling services are available across Canada for those who need help with creating a budget for debt payments.

For the most suitable option to get rid of debts, experts like Blair Greenwood of 4 Pillars Debt Consolidation & Credit Rebuilding for Victoria, BC, offer debt restructuring services, wherein original payments are reduced through arrangements with creditors. Independent debt relief specialists work on behalf of the clients while giving them proper financial advice for better finance management in the future. With the right debt management strategy, their clients are able to make informed financial decisions that prevent the same debt woes from happening again.

Insolvent individuals or those who are unable to pay debts of more than $1,000 are advised to commit to a consumer proposal which would enable them to have the amount reduced, the payment period extended, or sometimes both. Under the bankruptcy provision mentioned earlier, no legal actions like asset seizures can be taken by the creditors against the debtors unless the consumer proposal is rejected or withdrawn. Only insolvent individuals with debts not exceeding $250,000 are eligible for a consumer proposal with authorization from appointed inspectors of the creditors. If debts exceed $250,000 a Division 1 proposal would be an option.

Taking advantage of debt counselling in BC would enable the average Canadian to improve his or her credit scores for succeeding financial endeavors, like applying for car and student loans. Trust consultants like Blair Greenwood to see you through and you’ll be on your way to a brighter debt-free future.

(Source: Canada household debt ratio hits new record of 163.3%. Business.financialpost.com. Mar. 12, 2015.)