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I meet with many clients who, when I ask them what brings them to see me, respond "I was once young and foolish". At the root of most of the client's stories seems to be a common theme: Getting all kinds of credit, letting time pass without paying it, and then hoping that it will simply just go away. In many cases, it does seem to go away; we change telephone numbers, we move and our creditors seemingly "forget about us". This notion very much reflects the "young" in us; however our creditors soon catch up with our "foolish" side. How? At some point in our lives, we settle down; we get married, or live with someone, have children, and need credit. Perhaps we want to purchase a house, or some furniture for our apartment; we may wish to lease or buy a car. Or we may simply want a credit card to be able to reserve concert tickets or rent a car. These are the kinds of events that bring our past crashing back to reality. How? Because most often, it is only us who "forget" about the bill we didn't pay. The company we owe it to most often does not. Instead, they report our failure to pay them with the same credit reporting agency that the mortgage company, leasing company or credit card company looks to for information that will reassure them that we have good credit. I've talked to many clients who have sat across from a lender, only to suffer the humiliation of having their pasts come back to haunt them. In some cases, clients have not told their spouses about their past credit history. At that point, dealing with the lender becomes the least of their problems; now they have an angry spouse to account to.
So, please beware of the debts that you think have simply disappeared from your "Young and Foolish Days". If you are one of the people who find out the hard way that their debts have not been forgotten, or if you simply want to get things fixed up before it gets you into trouble, give us a call at 310-PLAN, or visit us on our website to learn more about your creditors, how they can affect your future and the options you have to deal with them.
I've now had a couple of clients refer to their use of cash advance stores as an "addiction". In each case, the clients borrowed $200 in order to pay their rent on time. The following week, interest had accumulated making it impossible for them to cover the entire debt to the cash store with their pay cheque, so they ended up going to another cash store in order to pay the first cash store. They borrowed enough money from the second cash store to pay the first, but by the time the monies were received, more interest had accumulated on the first. By the time they called me, they were now borrowing from the 3rd and 4th cash stores to pay for the previous debts incurred, and their combined monthly payments to all of them exceeded $600. The term "Addiction" probably is a good way to describe this state of affairs, and as long as the cash advance stores are willing to lend us the money, the cycle or addiction continues. In some ways I suppose, the cash stores can be viewed as being the enablers. In one of the cases, the client had fallen so far behind with the 1st cash store, that his wages were being garnished. His rent had fallen so far behind that he was being evicted, and what started as a loan intended to help him out, ended up as a source of great worry and stress for him. Cash stores may be able to help us with the occasional payment, but it is important that you pay the debt back in full as quickly as possible, but more importantly that you know when to stop. If you don't, you could very well end up addicted like the 2 clients I've talked about here. The good news is that we were able to help these clients find a solution that was affordable, and fit in with their financial goals and objectives.
If you or anyone else you know is struggling with cash store debt or any other kind of financial burden, help is just a phone call away. Call us at 310-PLAN to discuss your options or e-mail us if you have any questions.
I just got off the phone with someone who called me because she is struggling to pay her debts. She had a good job, but was laid off. In spite of spending 5 hours a day looking for another job, she has been unsuccessful. Now on Ontario Works, her income has dropped to the extent that she barely has enough money to pay for her rent and a few groceries each month. She did some research and thought that maybe bankruptcy might be an option for her. However, a friend of hers told her that she wouldn't be able to file bankruptcy if she is on Ontario Works. She called us to find out if this is true, and I thought that I would share what I told her with you, our readers.
The source of income does not determine if one can file bankruptcy or not. In this case, being on Ontario Works does not preclude the client who called me from filing personal bankruptcy. Having said that, income from Ontario Works cannot be garnished; this means that even if a creditor sued her, they would not be able to garnish (or take a part of) this source of income. So, the client I spoke to has the option of postponing making any decision about dealing with her debt. Knowing this brought a great deal of relief to her; this meant that she had some time to try and find another job and then resume making payments. On the other hand, if she can't find a job and the payments pile up to the point where she knows that even if she got a job, she wouldn't be able to get caught up, she could explore bankruptcy as an option.
If you, or someone you know is struggling with debt, and need some clarification about the options available, please call us at 310-PLAN.
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This site is sponsored by Hoyes Michalos & Associates Inc.
If you're having financial difficulties and live in the Hamilton area, call (905) 777-0770 today to meet with one of our experts, or complete the ask a question form to send us a message and we'll get in contact with you. |
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