Conquering Debt Without Fear

It is very easy to fall into debt; one more drink, another piece of clothing, an Uber ride instead of walking. Getting out of debt requires a little more work. The first step to conquering your debt is to create a list of all your debts, balances, interest rates and minimum payments and total them up to find out what you owe. This key piece of information allows you to effectively plan the next steps. If you are eligible, try to make 0% balance transfers and get your APR lowered or refinance your debt. This helps to ensure that you aren’t increasing your debt bit by bit due to interest while simultaneously trying to pay it off. Start tracking your spending. There are many apps that provide this service simply by linking your cards. After you have been tracking your spending for about a month, take a first pass at a budget. See if any of your spending can be cut back to allow for increased debt repayment and savings. Now that there is an outline of each month’s spending, you can draft a repayment plan for your debt. There are services that will help you with repayment plans.

debt problems

There’s a unique Canadian option called a “consumer debt proposal.” A consumer debt proposal is negotiated with your creditors through a administrator. It is an alternative to personal bankruptcy. This places a legally agreement that provides protection from debt collectors and arranges partial repayment of your total debt. Consumer debt proposals require filing in the province of your residence. Consumer proposals in Ontario, for instance, are a good method of debt consolidation if you do not have the ability to pay all the debt you owe, do not have consistent income, or would not be able to be approved for a debt collection loan. However, consumer proposals in Ontario are public record. Creditors can reject your consumer debt proposal, and if they do, you may have to increase your funding to have your proposal continue. Additionally, consumer debt proposals are more expensive than declaring bankruptcy.

Weigh the pros and cons of drafting a consumer debt proposal as a personal solution to your debt. There are methods to repay debt – even slowly – without a consumer debt proposal.

For more information on this great Canadian resource you can visit one of the many Hoyes offices around town.

Debt Problems Faced By Business Owners for These 5-6 Reasons


As medium and small enterprises are much less sensitive to some rise in the worth of the loonie, they can be in the same way insensitive to Canadian dollar weakness,” says Benjamin Tall -wrote the report.

But despite an edge over larger companies in this regard, small businesses confront several challenges that go past even tax and the money market. Among these concerns are greater susceptibility to internal power struggles, concerns over succession preparation, cash flow problems, inability to correctly valuate one’s company, and problem managing excessive regulations.

1. Family-run encounter more clash at work. It’s not always as a result of a larger amount of friction, but instead, because it’s more easy to criticize your supervisor when she or he is uncle, brother or your mom.

Paul MacDonald, executive director of The Canadian Association of Family Enterprise’s (CAFÉ), claims that, despite private problems, family-run companies have an edge over publicly held companies.

Findings from this study demonstrate that family businesses are given a long-term by possession construction inclination unmatched by competing companies that are public.signing for more debt

2. Small business owners aren’t able to market. Many owners will necessarily determine that cashing in will offer the most effective return on their investment. And though, for reasons uknown, as it pertains to independently-owned companies, most are perfectly content not realizing the value of the company. A partner at Grant Thornton LLP, Lou Celli, needs to learn why. “The issue,” says Mr. Celli, “is that company owners cannot call when the day they have to sell their company will come.”

3. Sequence planning is grappled with by small businesses.

Whether it’s an ill-fated health problem that drives an owner to make an untimely choice or a world-wide competition knocking on your own own door asking ‘how much does one would like, the future is unclear.

If you’re getting ready to offer a house, first thing you do is put in a layer of fresh paint to the kitchen as well as toilet and fix up the landscaping. Also, if you are preparing to market a company you’ll wish as a way to increase the value you receive for all to boost the look of your background you’ve invested on recent years.

4. Small businesses lack access to capital for increase. As among their most formidable concerns facing the future of these companies, year owners recorded accessibility to capital. While it’s not the authorities’s obligation to produce jobs, or even to present companies with success, it’s the their duty to be certain that progressive, growing companies have entry to capital along with sufficient infrastructure to hasten their growth.

Numerous small business grants and loans programs exist to assist companies grow, subsidize hiring, and let companies to be a part of actions and projects proven to increase international competitiveness. Companies ought to be using funds as a cashflow preparation tool. By leveraging government grants and loans for company, they get use of improved cash, so improving their company increase abilities and hastening the performance of tactical plans.

5. Small businesses shy away from international growth. Moreover concerning is that, of Canadian manufacturing companies, three quarters of the overall sales of service or their best selling good came from within Canada, while only half of Canada’s big manufacturing companies relied throughout the period of the survey on local markets. Small and medium-sized companies mention quite a few concerns when rationalizing their favouritism toward the Canadian marketplace, from language and culture barriers to risk aversion and firm size limitations. As it pertains to international trade wisdom and expertise, companies can turn to professionals that are seasoned through internal hiring and consulting firms, or else they are able to elect to prepare their team and themselves through courses held offline and also online . And when danger is what’s holding your business back, Export Development Canada (EDC) offers options offering risk management services, insurance, financing, bonding and guarantees, and much more. One way to grow quickly internationally from an inbound play is multi-location search marketing.

6. Small businesses and regulations battle. Government regulations bother one third of company owners that they insist they’d earlier haven’t gone into company in the very first place. This is according to some survey ran by the CFIB, which gives owners coping with barriers to running their companies in Canada with council, and lobbies to the authorities on their behalf. Lately, in part on account of lobbying by the CFIB on behalf of Canadian companies, the government enacted a “one in, one out rule” that finds one regulation removed for every single regulation added. “It’s a great beginning,” says Laura Jones, executive vice-president of CFIB. Along with such problems, the corporation can also be lobbying contrary to the planned pension increases in Ontario, too as in the interest of removing obstacles to trade across territories and states.

Consumer Proposals: What The Heck Is That?

I may have jumped the gun with my first post about consumer proposals. While I’m here to tell my story about bankruptcy, insolvency and so much more, there is a lot of information that feels so commonplace to me, but not necessarily to everyone that has yet to go through it. So I wanted to take a minute and discuss some core definitions.

help with debt

Number 1: What is a consumer proposal? Before anyone can talk about frequently asked questions for a subject, one must first understand or at least know something about that subject. Well, it’s essentially a vote by your creditors whether or not they agree with your proposal (which may be to pay 70% of the debts over two years and then be done with it). If more than 50% (votes based on how much you owe each creditor) agree, then it is legally binding. For a list of consumer proposal faq you can click here. There’s a lot of information, but it is broken down very clearly, so you don’t need to worry about digging for details or specifics.

If you’re looking for more specifics instead into bankruptcy questions then you can find that out too! There are a lot of similarities, obviously the solution / end goal to get out of debt, but you need specific advice to know what’s best for your situation.

For a straightforward list of bankruptcy definitions you can visit pretty much any insolvency firm for help.

Here’s a video for even more clarity on consumer proposals, to clear up the myths involved with consumer proposals:

The Role Of A Bankruptcy Trustee

Before diving too far into my experience with bankruptcy and sharing all sorts of information on working with trustees, I wanted to explain what a bankruptcy trustee is and what they even do. Do you need one? Can you do it on your own? In short: no, any legally binding bankruptcy-related product requires a bankruptcy trustee (now Licensed Insolvency Trustee I guess) to file it for you.

When struggling with debt, consumers usually consider filing bankruptcy (note this article does not cover corporate insolvency or business bankruptcy). This is a legal debt management option available to individual consumers, businesses, charities and learning institutions among other types of organizations. Bankruptcy gives consumers relief from the burden of debt. It will also bar creditors and collection agencies from making threatening phone calls to the debtor in a bid to recover their funds.

Legal trustees in Canada

The Role of Bankruptcy Trustee

Before you file bankruptcy, you must decide which bankruptcy chapter is suitable for you. A Chapter 7 involves liquidation of assets belonging to the debtor. However, the debtor must not have a significant source of income. If the debtor has a stable job, Chapter 13 bankruptcy should be considered. In case of a business entity with a considerable monthly income, Chapter 11 bankruptcy should be considered. It is the responsibility of the bankruptcy trustee to decide which chapter is best suited for each debtor. On top of all of this there are also things called a consumer proposal in Ontario that can be an alternative to bankruptcy! More on that later when I dive into more details on consumer proposals and the difference with them.

Since there are people who may want to take advantage of bankruptcy to avoid paying their debts, even when they are able to, the bankruptcy trustee must be able to distinguish between legitimate applications from fraudulent applications and take the necessary action. For this reason, bankruptcy trustees must be experts in finance, business or law among other related fields. Typically they have business backgrounds and an accounting designation.

For more information on what a bankruptcy trustee is and most importantly who they work for (what’s their end game and why are they involved), check out the below YouTube video I saw the other day. It’s open and honest and speaks to the question well.

How A Consumer Proposal Saved Me From Bankruptcy

I want to take a minute and talk about just how crucial a consumer proposal was for me.

When I was faced with more debt than I could ever thought possible that needed to be paid within only one month, I thought the end was near and I would need to go bankrupt. Little did I know there was a completely different option. There was a consumer proposal. I had never even heard of one of these before, likely because I hadn’t needed it up to that point. But they are a fair bit different than a bankruptcy and I want to outline how and why they were a good option for me – in case you find yourself in a similar stance.


More soon!