Category Archives: Debt

Personal Loans Improve Credit and Might Pay Off Debt

Why take out a personal loan when you’re not sure if it will benefit you? The answer is simple–there are programs that just might and it doesn’t hurt to try ones that have no impact on your credit score. There are bad personal loans for those with damaged credit. If you use these wisely (and choose the right ones) you can repair your credit and begin paying off debt. This can help you get back on the right financial path, but you must be willing to make sacrifices. We never recommend taking out a personal loan just to have extra funds available. But, we do recommend going this route when you need to pay off debt and begin shining up your credit report. Installment loans work best and often have the lower fees and most flexible repayment options.

For consumers who have maxed out credit cards–this can be an excellent option. But remember–not just to increase cash flow. It should be vice versa. Also, if you want to consolidate debt this is a viable choice. This works well if you hope to do away with credit cards and other loans that have unreal interest rates. You do want to weigh all the pros and cons before you sign on to a short term loan like one we are describing here.

The Pros and Cons of a Short-Term Personal Loan

What you might not know is that short term loans can help you repay debt and pay off other loans that might have higher interest rates. Now, when it comes to the repayment of the loan, depending on what type you took out determines the duration of repayment. However, short-term loans almost always have feasible options that work for anyone. You can choose an option that will be the easiest for you when it comes to repayment ability and/or any personal circumstances you have. A loan officer will work with you on these circumstances.

So a short term loan approval offers easier approval for most, and gives you a short period of time to pay back without higher interest costs.  Some variations of short term loan repayments are normally 6 months to 1 year.  Now, long-term is quite different, and offers other options that might provide more flexibility too.  We do want to point out that there is a difference between a payday loan and a short term loan.  Remember, it offers more flexibility.

Just remember, simply because you need funding fast doesn’t mean it is wise to jump on just any short term loan or payday loan.  You need to weigh your options and understand them clearly.  Talking to the right people makes all the difference and can save on repayment penalties and other service charges.


Tips To Overcome Poor Credit

It would be amazing if we could pay for everything we want and need with cash, right? We could avoid credit disputes and poor decision making. Unfortunately, we can’t always pay with cash. But, when you have poor credit this makes things far worse. When you’re short on cash, and have poor credit you’re placed into a burdening financial dilemma, because you have nothing you can lean on when something unpredictable comes up. This is bad. However, you don’t need to let your poor credit control your life. You can overcome it and recover.

Mistakes are made by everyone–no one is perfect and very few have perfect credit. If you’re recovering from a credit catastrophe, wait for the dust to settle before you panic. And if you’re still dealing with outstanding delinquencies, set up a payment plan and stick to it. Consider ways you can begin growing your credit worthiness again once you begin credit recovery.

Overcoming a History of Poor Credit


Don’t let poor credit hold you back when there are ways to overcome it. Of course, it’s not the healthiest situation, but this can happen to anyone. Don’t beat yourself up and don’t feel like it is the end of the world. While it takes a great deal of time and determination to overcome a poor credit history–building a positive financial history can begin to help. There are a number of ways to push past these circumstances. If you have held a full-time job for a long while and have consistently paid utility bills on time–this looks good to creditors. Here we are going to give you some strategic advice and tips to put into play to get back on your feet again. Poor credit isn’t the end of the world, but if you keep making the same decisions that led you into it, you’ll never get out from under it.

Many Canadians with poor credit turn to a secured credit card as a means to begin turning things around, but it takes time. Just because it’s your own money your putting on the card and spending doesn’t mean you don’t have to follow traditional credit card requirements. For instance, you don’t want to spend more than 30% of your available balance and you do want to pay off the balance every month if possible. Over time this can begin to improve your credit and get you back on the right track. There are several other ways you can improve your credit profile!

Tips to Help You Recover from a Poor Credit History



Canadians are probably more than aware of the importance of credit counseling to raise their credit score. You have to be wary here though because there are always scam artists just waiting to take advantage of someone. But, many people with burdening debt try to clean this up on their own and make mistakes doing so. Only a credit counselor can tell you what to work on, what to wait on and what to ignore. Too many Canadians work hard to improve their credit. They shouldn’t have to worry about doing it the wrong way, and they definitely shouldn’t have to worry about scam artists either.

The best advice to be given here is to do the best you can. Show creditors you’re trying to get on top of your debts and you’re working as much as possible to pay off debt too! From this moment on, always:

  • set up a plan and stick to it
  • pay bills on time
  • don’t overwhelm yourself
  • don’t make arrangements you can’t stick to
  • keep working to improving your credit worthiness despite possible slip ups
  • don’t have a higher debt to income ratio


Surviving Bankruptcy: Everything You Need to Know

Educate yourself and plan to avoid making the same mistakes again

 You might feel some relief once you file bankruptcy and your debts are consolidated into that one monthly payment, but do you realize how long this stays on your credit report? While the slate is clean, you still must deal with the crushing blow on your character. Not only can this impact your ability to buy what you want, it can hurt your chances of employment too. However, sometimes Chapter 7 is the only way Canadian families can get on their feet again. If you proceed wisely it can help you, but if not—this could be a big mistake. Let’s look at some steps that will ensure filing bankruptcy will get your debt to income ration in a balance. It’s important to understand what you can and cannot do when you take a step like this.

What You Can and Cannot Do When Filing Bankruptcy

Bankruptcy law

Understanding what debts bankruptcy will do away with and which will still be required for you to pay is extremely important. So, let’s be clear here. Not all debt is erased when you file bankruptcy.  Unfortunately, there are some creditors who can attempt to influence the court not to place a specific debt under bankruptcy protection. While it doesn’t seem fair, it happens more often than not. When you file for bankruptcy (whether Chapter 7 or Chapter 13) your debts are consolidated and separated into categories. Some debts will receive priority over others, and these happen to be the ones that can cause the most problems for those in debt. However, if you are hoping to get rid of medical debt and not be plagued by it—this is removed.

Medical bills are classified as unsecured debts, much like credit card debt. When you file bankruptcy they are gone forever and you can begin recovering from that overwhelming stress and anxiety you’ve been under. However, something such as an automobile loan is not as simple. This can still be repossessed if the loan company pursues it in court. Mortgages can be saved and no one can take your home when you file bankruptcy! Let’s learn how you can avoid ever filing bankruptcy again and getting your life stable and on track.

Don’t File Multiple Bankruptcies: Not Good for the Long-Term


You really don’t want to have to go back and ever file another bankruptcy again, not after the first one. So, it is critical to understand what you’re getting into and what is going to happen. Too many are in the dark concerning what Chapter 13 does and what it really covers. To make it easy, filing bankruptcy can be a powerful option used correctly. It can:

  • Removes credit card debt and other unsecured debt
  • Eliminates very specific lien agreements
  • Stops collection activity and prevents harassing phone calls

But Bankruptcy cannot:

  • Secured creditors can repossess property, even with a bankruptcy in place
  • Bankruptcy cannot remove child support payments or alimony
  • Can’t eliminate most tax debt, but some is possible
  • Traffic tickets and other fines cannot be eliminated

While bankruptcy can help with a great deal make sure you’re filing it for the right reasons.  More importantly, make certain the debt you have can be taken care of when you file bankruptcy.  Know what it can and can’t do!



7 New Ways to Pay off Your Debt Faster

Yes, you can pay off your debt faster and smarter! It might feel stifling initially, but with patience and determination you can find a way to stay above water again. Now, the very first thing a smart financial advisor will tell you is you have to create a savvy budget, and you absolutely have to stick to it. If you can’t do that you’re not going to make any kind of decent progress. We know, for those individuals who have never managed a budget well, this can definitely be a challenge. However, there are many free financial planning services which can help. Let’s go ahead and look at some other interesting ways you can pay off your debt faster and start building a strong financial foundation for yourself.

Time to Pay off Debt and Move Forward With Life

Once you can remove substantial debt from your life you’ll remove that heavy weight on your shoulders. There is no better feeling than freeing up your money. If you follow the below tips and stay determined, you’ll shed financial debt faster than you could have thought possible. The goal is to not go in debt again!


Tip 1: Stop your credit card spending NOW. It’s okay to use one credit card, but you have to be able to pay it off in full the end of every month in order for it to really be beneficial. Lowering your credit card debt makes a huge impact in your financial picture.

Tip 2: When you get those work bonuses apply them to your debt before you do anything else at all. This is the smart thing to do, even if it makes you cringe inside. Think of how beneficial it is going to be when you minimize all that heavy debt on your back!

Tip 3: Keep a running tally of your daily expenses. If you find you’re visiting Starbucks to often, well cut it out! Knowing where your money is going can help you see why it is taking you longer to reduce your debt burden.

Tip 4: Focus on paying off the most expensive debt first because these are the ones that dent your credit the most. Speak to a financial adviser to know what to pay and what not to pay. Sometimes, some debt is better left alone.

Tip 5: Always pay more than the minimum balance on your bills. When you only pay the minimum you cause more fees to rack up against you–leading to a longer time to pay off debt. Think smart and pay attention.

Tip 6: Have patience and stay focused. Keep on track, and stay organized. The more organization the more likely you’ll stay on the right path.

Tip 7: Don’t store payment information online. Don’t have credit card information at your favorite retail outlets as this makes it more likely you’ll spend unwisely. The more time you have to put into a purchase the less likely you are of going through with it.

Woman Cutting Her Credit Card

All of these tips are useful, but it takes you, the individual to really stay on track and knock debt out of the ball park! Don’t give up and imagine how much better your life will be after.



7 Ways You Can Rent Even With Bad Credit


Renting that first apartment can be an exciting experience, but dealing with bad credit is a trying one. It is extremely difficult dealing with bad credit when you’re looking for an apartment, or home for rent. We will tell you that finding approval for a home rental can vary depending on what part of Canada you’re within. If you have strong rental references and a good steady income, renting won’t be as daunting a task. We will tell you that some debt works differently than others and some doesn’t carry as much weight as others either, which can be a good thing.  Take for instance, medical debt. While this lowers your FICO score, it won’t make it necessarily harder to rent an apartment either.  However, if you’ve been evicted from a previous apartment or home, you will definitely have some barriers to contend with.  Let’s take a look at some potential remedies or alternatives to this problem now.

Tips To Make Renting With Bad Credit Easier


Don’t forget it’s good to weigh all of your options when renting. Also, for those with bad credit–looking for properties for rent owned by an individual is smart. Credit checks are standard procedures at apartment properties, but for the individual with bad credit–privately owned rental property might be more of an option because there is more flexibility. Below are some other tips and strategies that might prove very worthwhile.

  • Having a cosigner might be a life saver for you!  This can override any bad credit you have and help you get that rental you really want–as long as your income shows you can pay for it!
  • Provide a landlord with a verifiable way to view your income off and on during your lease period.
  • Be prepared to pay more at signing your lease than others with good credit would.  This will help you have more of a chance of getting approval.
  • You can request a month to month arrangement just to prove you’re trustworthy and will pay your rent on time every month.  Once you’ve established this, a landlord will be more willing to sign a years lease with you.
  • You can also agree to sign a lease that allows a landlord to automatically deduct rent from your bank account.  This is almost like a security policy.  The landlord won’t be at such risk of facing a loss in a circumstance such as failure to pay rent.

Confident female realtor consulting young couple

These tips can really be beneficial for those who have been struggling to find a nice place to live. We all make mistakes, and no one’s financial portfolio is perfect. Discover what landlords are on the lookout for today and begin the proper search. It might take a little extra time, but your efforts will pay off in the long run.