Although Licensed Insolvency Trustees provide an important legal financial service, there is often a very emotional aspect to the process. As a proud industry leader with a team of dedicated professionals, Sands & Associates feels strongly about the importance of taking away the shame and stigma from debt problems and encouraging people to seek help with a debt (or other) challenge without delay.

Here are 9 key things Sands & Associates Licensed Insolvency Trustees want you to know about dealing with debt:

1. Financial Problems Do Not Define You.

If you are facing a debt problem, you should know that it’s not a reflection of you or your character – and it’s probably not your fault either.

“Financial difficulties are not a reflection of who you are as a person, they are only a symptom of something bigger that you may have no control over.” – Dana Timko, Sands & Associates Estate Manager & Qualified Insolvency Counsellor

Thinking that financial problems always stem from bad budgeting or constant overspending is generally far from the reality that our clients face. Some of the most common factors that lead people to eventually resolve their debts with legal solutions such as Consumer Proposals or bankruptcy are often completely beyond their control such as:

• Illness, injury, or health-related problems
• Overextension of credit due to costs of living outpacing income
• Marital or relationship breakdown
• Job-related / job loss

Very few of us are prepared to face scenarios that cause even a temporary disruption in income like sudden job loss, major costs such as re-establishing a household following a marital breakdown, or simultaneous financial impacts from a health problem. The result is often that debt escalates quickly and once the disruption is over, it can be extremely difficult to catch up with the quickly compounding interest charges.

2. You Deserve to Live with Dignity – and Without Debt and its Overwhelming Stress.

Being unable to manage a debt problem alone can cause many people to feel embarrassment, shame and self-blame. It can be very difficult to show ourselves kindness at times, but everyone is deserving of a financial fresh start, and you do deserve to be treated, and to live with, dignity and respect.

3. Life Goes On, You Can (and Will) Move Beyond this Current Challenge.

When you’re feeling overwhelmed with debt it may feel as though you’ll never be free of this burden. Despite how you may be feeling now, there is light at the end of the tunnel. Debt does not have to last forever.

Meet Real People Whose Lives Changed by Becoming Debt-Free

4. Debt is a Problem Like Many Others in That it Has a Solution!

Understanding that resources and support exist and then knowing where to turn to access this assistance is often the first step in moving towards a solution.

“Your financial fresh start begins the day you file for bankruptcy or file a Consumer Proposal. This is your opportunity to start moving forward…” – Darlene Mullen, Sans & Associates Estate Manager & Qualified Insolvency Counsellor

5. There’s a Lot to Know About Debt Management.

The rules and laws around consumer debt can be complex and are ever-changing; most people are understandably not aware of the many aspects that may impact them. Even within an hour’s consultation people are generally surprised to learn facts about:

• How common it is to have a debt problem, and how many people seek debt professional debt help.
  • According to the Government of Canada: “In 2019, there were 137,178 consumer insolvency filings… That year also had…4.6 out of every 1,000 adult Canadians filing for insolvency.”
• Many details of how credit, borrowing and credit reporting work, and how small a role a high credit score plays in overall financial health.
• Multiple debt solutions you can access and choose from, and how these processes work.
  • Over 80% of people previously polled said they would have acted on a legal debt solution sooner if they had been aware of the details of bankruptcy or Consumer Proposal processes.

6. We Don’t Hold Space for Judgment, Just Support and Solutions.

We believe that a debt problem can happen to anyone at any time, despite our best efforts to repay debts as intended. Even doing “all the right things” people can find themselves pushed into a situation where they are unable to meet their financial commitments, or where they feel they must choose between paying their debt and meeting basic living costs.

“We can’t control what happened in the past, but we can help you understand where you’re at today so you can move towards your goals and debt-free future.” – Raj Hara, Senior Vice-President of Sands & Associates, Licensed Insolvency Trustee

7. Licensed Insolvency Trustees Do Not Get Paid on Commission, and Receive Zero Funding From Your Creditors.

Whether you are seeking answers about specific debts, advice on how to manage your debt, solutions for consolidation or debt settlement options, Licensed Insolvency Trustees offer free confidential consultations and you do not need a referral to connect.

• If you decide you want to work together on a legal debt solution, there are set calculations and rules that all Licensed Insolvency Trustees must strictly follow when administering a personal bankruptcy or Consumer Proposal.
  • Trustee fees are calculated based on a government-set tariff and are drawn from the funds that have been paid into each individual bankruptcy proceeding or Consumer Proposal. Licensed Insolvency Trustees are not allowed to set their own fees and rates.

How Does a Licensed Insolvency Trustee Get Paid? Learn More

8. You Are Not “Just a Number” – and We Love to Celebrate Your Successes.

We are very privileged in our role as debt help professionals, to offer a safe space where people can talk about their financial challenges– and we feel even more gratified in having the ability to help people solve these issues.

Gratitude and responsibility are upon us each time someone chooses to place their trust in us, especially during what are often some of the most difficult moments of their life. Although we may be playing a small supporting role in empowering you with the knowledge, tools and resources to take charge, we are always proud to know you’ve achieved your debt-free goals.

9. You Are Not Alone.

Above all, please know that you are not alone. We are here to help you.

Get a Debt-Free Plan That’s Right for You – Book Your Free Confidential Debt Consultation Now

What is a Licensed Insolvency Trustee?

Licensed Insolvency Trustees are the professionals to call when you need a plan to deal with your debts. We are uniquely qualified professionals who provide free advice on how to deal with debt problems and are the only federally regulated professionals who can offer services to help you legally resolve your debts.

Licensed Insolvency Trustees have the authority to help individuals and businesses with legal debt solutions including Consumer Proposals and personal bankruptcy, and at Sands & Associates we also have highly skilled Insolvency Estate Managers and Qualified Insolvency Counsellors who play an integral role working with clients to achieve their debt-free goals.

Since our founding in 1990, Sands & Associates has grown to an extensive network of local offices throughout BC and we now serve residents across the entire province. We are proud to be an industry leader, an award-winning firm, and the province’s largest firm of Licensed Insolvency Trustees exclusively providing debt help services for individuals and small businesses.

Sands & Associates believes that money problems can happen to anyone at any time, and we take an approach to providing our services and expertise that focuses on empowering consumers with all the information they need to make fully informed decisions about their situation and emphasizing financial literacy.

“Through debt restructuring and financial counselling clients begin to feel empowered with knowledge of money management, and most importantly – hopeful about the future.” – Bethany Cann, Sands & Associates Estate Manager & Qualified Insolvency Counsellor

We aim to reach people across the province who need professional support, and our team is deeply committed to an approach of genuine care and empathy, treating people with respect and dignity – and understanding that there are much broader impacts in the financial burdens being addressed.

With caring, non-judgmental debt experts serving residents across BC, Sands & Associates has the ‘debt smart with heart’ to help you move forward with a debt-free plan and financial fresh start. Connect today to get started with a free confidential debt consultation.

The post 9 Things Sands & Associates Licensed Insolvency Trustees Want You to Know About Dealing with a Debt Problem appeared first on Sands & Associates.

Personal Debt Assessments – Why & How

Just as it’s a good idea to have a regular check-up with your doctor and dentist, and routine maintenance done on your vehicle, checking in on your finances is key to keeping on top of money matters. Without a regular check-in it can be all too easy to simply navigate on financial “auto-pilot” and not recognize when things are headed for trouble, particularly when it comes to debt.

How Do you Feel About your Debt?

First and foremost, set aside “the numbers” – you are often the best gauge of your own financial health. If you’re feeling any of the following in relation to managing your debt or overall financial situation, it may be a clear sign that it’s time to seek professional debt advice:

• Overwhelming stress about your finances
  • This debt-stress often manifests with physical, emotional and/or psychological impacts
• Worry, anxiety or fear about money and debt
• Alienating yourself from family or friends due to embarrassment or stress about spending or debt
• Ongoing arguments with your spouse or partner about money
• Constantly thinking about your debt

Many people find themselves frustrated trying to get to debt-free, and often feel as though their best efforts just haven’t been enough to pay off all their debt. In our experience as Licensed Insolvency Trustees, a debt-cycle or money problem can happen to anyone and there are many factors and events outside of our control that can derail even the best laid plans.

Although it might initially feel defeating to ask for help, a Licensed Insolvency can be a great resource to you in clearing debt and meeting your debt-free goals. At Sands & Associates we take a non-judgmental and supportive approach to debt help services – you can even connect with one of our friendly debt help experts from the comfort of your home. Book your free debt consultation here.

When it comes to “on-paper” tactics, you can start your personal debt assessment with the following:

Check Your Credit History

Even though it’s generally recommended to review your credit report about once a year, this is a financial chore that often falls by the wayside. From inaccuracies and errors to fraud and other surprises, an unkempt credit history can be hiding a lot of financial hassle – don’t get caught unaware!

There are two main credit bureaus in Canada: Equifax and TransUnion. It is a good idea to check your reports with both since one may have different information than the other. There are a couple of ways you can access your credit report:

• Online: By visiting the website of Equifax you can complete a request to have your credit history reports mailed to you (recommended), or for a cost you can access your credit history reports online. For TransUnion, you can complete requests to obtain your Consumer Disclosure.
  • If you opt for this route, make sure you’re not inadvertently signing on for subscriptions or information that has a cost – different “packages” that contain additional information will be available for purchase. You only need to see the basic credit history report or Consumer Disclosure, which is free.
• By mail: You can fill out and submit forms to request a copy of each of your credit reports be mailed to you. You can obtain copies by mail for free once a year!
  • You’ll need to fill out the request forms in entirety, attach necessary identification documents and either mail or fax the request form to each credit bureau. Alternatively you can call either agency to request copies of your credit reports be mailed to you.

Though it may seem surprising at first read, one thing you DON’T need in evaluating your personal debts is your credit score, as outlined in further detail below.

Your Credit Score

A credit score alone is not an accurate rating of your financial health and cannot be relied on to gauge your finances on a daily basis. It’s also important to note that whatever credit score is calculated by the credit bureaus, each lender uses their own set of calculations to calculate a credit score for their purposes which could be quite different than the score you are able to access directly from Equifax and/or TransUnion. Also consider the following:

• Person A has what they would consider an optimal credit score and makes their minimum monthly payments on time, keeping their account in good standing – but they can’t afford to pay off their debt outright, nor will they be able to have the balance to zero even in the next 5 years.
• Person B has just finished a personal bankruptcy proceeding and, therefore, immediately following the personal bankruptcy, Person B’s credit score will be poor. However, they’re now debt-free and can start to rebuild and accumulate savings because of the “reset” the bankruptcy has provided.
• And then there’s Person C who has only one credit card, which they use only infrequently as they often pay cash for purchases and always pay any balance in full each month. Having a minimal credit history makes it difficult for lenders to assess their “lendability”, therefore they have a lower score than a person who may juggle multiple accounts.

Quite often despite good-standing credit, lenders determine that a person is essentially maxxed-out, meaning that “good” credit score may not provide much (if any) advantage when it comes to assessing your progress in paying off debt. It’s also important to know that a credit score can change rapidly.  People often go from very poor credit scores immediately following a bankruptcy to having rebuilt credit sufficiently to qualify for a mortgage if desired in as little as two to-three years following the conclusion of their insolvency proceeding.

Calculate Your Debt-to-Income Ratio

Your debt-to-income ratio is a personal finance ratio often used by lenders when you’re applying for credit, but it is also a measure that can be useful for you to see just how “affordable” your debt-load may be. Here’s how to find your ratio:

1. Add up your gross (before tax) monthly income
2. Add up your debt payments plus monthly rent or mortgage payment as well as child support you may pay
   • Rent/mortgage
   • Credit card payment
   • Student loan payment
   • Car payment
   • Other monthly debt payment
3. Divide the total of your monthly debts by your monthly gross income and multiply by 100. This percentage is your debt-to-income ratio.

Some experts suggest that your total debt payments (including a mortgage) should add up to no more than 35-40% your gross monthly income. If you’re not a home owner and are looking at this ratio with money owed on debts other than mortgage debt (but including credit card balances, vehicle loans etc.), then the recommended consumer debt payments are no more than 15-20% of your gross income.

• It’s important to remember many guidelines are primarily for lenders in gauging whether or not to issue you credit, with the thought that low debt-to-income ratios indicate a person is more likely to manage their monthly payments well and repay the debt over time.
• When it comes to the question of “how much debt is OK?”, the answer to that largely depends on your personal circumstances. An “ideal” debt-to-income ratio for you personally may be much lower than for a lender.

Consider how much of your income is going towards servicing your debt, as well as your housing costs. A high debt-ratio may be an early indicator that your debt load has the potential to become unmanageable – be wary if debt is taking a significant amount of your income as this can indicate a highly risky overall financial situation.

From records to credit scores – What You Need to Know After Making a Consumer Proposal

Do you truly know where all your money is going? Whether you are trying to achieve your debt-free goals, or are already there and wanting to maintain your financial health, having a balanced budget is key:

Check in With Your Budget

One of the biggest mistakes people make when it comes to budgeting is simply not comparing their estimates of what they will bring in and plan to spend with their actual incoming and outgoing funds.

• A successful budget should be tracked, checked and revisited regularly. For many people this will be part of an ongoing monthly plan.
• Though putting money aside for savings often comes last in terms of priorities, it’s important to know that savings can be a major advantage during a financial emergency. Consider the following:
  • Do your income, household expenses and debt payments leave you enough room for: emergency savings, retirement needs, other financial goals (vacation, large purchases, etc.)?
  • Set up automatic withdrawals to a savings account (even if it’s a small amount) each month so you’re saving something.

Although any type of debt be difficult to manage if you find yourself in a position where you can’t make your payments, not all debts are created equal in terms of urgency if you are struggling to maintain payments. As outlined below, certain debts have a much higher risk of compounding into an ongoing problem if they go unpaid.

Types of Debt You Carry

When you assess your debt consider and categorize with some of the following in mind:

• Provided they are affordable, debts you incur with the expectation of a future benefit such as a mortgage on your home or a student loan to pursue a career.
• Debt you incur for something that loses value or benefit quickly. A common example would be non-essential credit card purchases where you will carry a balance.
• Many debt management professionals caution that two types of debt that could be considered “urgent debt” and potentially a sign that you may be headed towards financial trouble:
  • Payday loans (and/or instalment loans through “payday loan lenders”)
  • Government debt (taxes, outstanding student loans, etc.)

What Can You Do About Government Debts? Here’s what you need to know.

As well as how much and the types of debt you have also consider your:

Payment Habits

Are you able to make all your payments on time, every time – or has your personal financial situation left you falling into (or near) warning-sign habits such as:

• Shuffling money from one credit account to another (ie., Taking from one credit card to make a payment on another).
• Trying to ignore your debt, or avoiding account balances (or hiding them from your partner).
• Accumulating more debt:
  • Relying on credit to meet day-to-day living expenses.
  • Considering (or already) using payday loans.
  • Taking on more/new debt while you are working on paying off a consolidation loan.

One payment distinction that should NOT be taken as a measure of success:

Only Making Minimum Payments

As a direct result of high interest charges and fees, only making your minimum monthly payments on credit card or line of credit debts often means you’re stuck in a debt repayment cycle that can last for many years and stop you from truly making progress towards being debt-free. Even a small $1,000 balance on a credit card that charges 18% interest could take up to 10 years to pay off making just the minimum monthly payments due!

Try doing the “Rule of 60” math:

• Divide your total non-mortgage debts by 60 – does the number look like a monthly payment you could afford in order to pay your debts off in 5 years?
• If that 5-year figure barely fits your budget (or not at all) then you may benefit from restructuring your debt working with a Licensed Insolvency Trustee to put together a debt payment plan.

Whether your debt-free goals feel within reach or seem too far away to imagine, know that you are not alone – Sands & Associates is here for you if you need professional debt advice at any point. BC residents can access qualified government-endorsed debt help services by connecting with a Licensed Insolvency Trustee (no referral is needed) and confidential debt consultations are always free. Our caring debt management specialists across the province are here to help with non-judgmental advice and solutions.

Get professional help assessing your debt and explore all your options for becoming debt-free – knowing is not owing! Book your free confidential debt consultation with a friendly debt expert today.

The post Personal Debt Check-Up: What to Look for (and What to Ignore) appeared first on Sands & Associates.

Budgeting Best Practices & Tips

Having a balanced household budget that’s working for your personal situation is a major foundation of having control over your finances. No matter what your level of income, without a monthly budget it’s next to impossible to meet your financial goals, let alone keep debts in check.

How to create and live within a budget is not something that anyone automatically knows, but it is a key financial skill with which everyone should get comfortable and confident. Money management concepts take time to learn and develop, and since finances are often a topic that people feel uncomfortable discussing (or feel they aren’t fluent enough in to teach) – many people simply don’t have detailed financial conversations growing up, resulting in a lot of trial and error in adulthood, often translating into financial stress.

The following tips are aimed at helping you implement some general budgeting “best practices” – whether you’re struggling to make your budget work or already have a personal budget that you want to take to the next level in paying off debt.

1. Leave Room for Flexibility

It’s important to be realistic with your budget. While you should have a basic spending plan structure, your budget should also be flexible enough to let you have some room for a general spending allowance to cover a reasonable amount of unforeseen, but often inevitable, costs each month.

• Much like a too-strict diet, telling yourself you can’t have any room for things like general entertainment or “fun spending” is likely setting yourself up for failure. Leave yourself some slack in your budget but commit to staying within the spending limit you’re allocating to this category.
• If this is an area you find challenging you may want to try using cash for more discretionary categories such as ‘dining out’ or ‘entertainment’. It can be much easier to make discerning decisions when you can physically see how much money you have left.
• Although staying on track will inevitably mean saying no from time to time, budgeting is intended to be a tool, not a punishment or restriction – use it to your benefit and allocate your funds where they will be to your advantage.

2. Spend Windfalls Only Once (and Well)

Whether an extra injection of cash into your bank account may or may not be anticipated, many people often don’t have a clear plan on how best to use money from things like an employment bonus, working overtime, or credits like a tax refund – any funds that fall outside your “usual” income. Without having a clear plan, it’s possible to ‘over commit’ on these funds and even spend more than the windfall received, leaving you in a worse financial situation.

While you might decide to make a large purchase or perhaps use some of the money as a reward, it’s a good idea to at least allocate a portion of those unplanned funds for some type of long-term benefit (not to mention the fact that you’re more likely to avoid feeling regretful).

Be sure to carefully consider how to use these types of funds, remembering that this is generally not just “free money”, but rather funds you’ve earned. Avoid feeling guilty by spending smart – and above all, only spending it once!

• Could you use this money to bulk up your emergency savings account, make extra progress on one of your financial goals, get prepared for an annual expense that’s coming up?
• How about starting an RESP, making an extra debt payment or investing in yourself by taking a course or learning a new skill? 

3. Break Down Annual Costs

Has holiday spending snuck up on you before? What about annual insurance renewals or semi-regular medical or dental costs? Vehicle maintenance or vet check-ups? Professional dues or other memberships?

Your monthly budget should incorporate setting aside funds for irregular expenses, helping to keep big yearly (or even semi-annual) costs a manageable expense away from your credit card.

Revisit your past spending patterns and, once you’ve got a clear handle on those annual recurring costs, simply break them into a monthly expense and set up an automatic savings transfer so that what you need to set aside is done without you feeling inconvenienced or being left short when the expense comes due.

Learn About Borrowing and Non-Borrowing Debt Consolidation Options in BC

4. Have Separate Savings Accounts (and Goals)

From the financial stress reduction of knowing you’ve got some cushion in case of emergency to the excitement of planning for big-ticket items like a vacation or new vehicle – there are countless reasons why saving money is beneficial. Take some time to come up with a few savings goals for yourself!

• Make it easy to “pay yourself first” with automatic savings transfers arranged through your bank and be sure to keep your savings money separate from your day-to-day chequing account. Good intentions to put “leftover” money into savings can easily become overshadowed by other costs.
• You don’t have to be restricted to just one savings goal or single type of savings account either. Depending on your goals you may find it advantageous to have multiple savings accounts to keep your earmarked funds separate.
  • Be sure to find a bank and account that’s working for you (and not the other way around) and that your accounts are suitable (and convenient) for how you bank. Unnecessary bank fees can really add up and free banking options are easy to find with a little research!

Even if you’re working on getting out of debt, you should still aim to have some money saved. Having savings can make a big difference both short and long-term if you can cover an emergency instead of needing to rely on credit.

5. Keep Track and Check In

Be sure to track your income and expenses and measure these “actual” results against what you had “projected” in your budget. Mapping out a spending plan is an important step in keeping control of finances, but not every month will be exactly the same, and you need to know where your money is going. No matter how long you’ve been working with a particular budget, periodically check-in to see how everything is working for you – you can also anticipate needing to make adjustments from time to time.

For example, you might realize you spend more on transportation costs than you initially thought or find out that every month part of your grocery allowance is actually going to dining out. Remember, you’re the boss here, so modify allocations and categories as needed to keep your budget as accurate as possible. Evaluate areas such as:

• Are there gaps in what you anticipated for income?
• Are the expenses you’re paying on par with what you budgeted?
• Is an expense you previously considered irregular coming up more often than you thought?
  • Do you need to add something to your list of “annual costs” to plan for?
• What larger costs are coming up in the next 6-12 months?
• Are your saving account balances where they should be?

There’s no right or wrong way to track your expenses, so long as you’re holding yourself accountable. You might keep it “old school” with pencil and paper, use a cash/envelope system, update a spreadsheet or opt for an app – whatever works best for you!

Particularly in the beginning, don’t beat yourself up or allow financial anxiety to take over if you’re off-budget. It could take a month or three to adjust to a new budget, especially if you’re looking at some major money changes or trying to change some long-entrenched spending habits.

If you have a spouse or partner be sure they’re involved in the household spending plan too. It’s easy for one person to become overburdened juggling the household’s financial affairs and paperwork alone.

My Spouse is Filing for Bankruptcy – Now What?

Budgeting Trouble Paying Off Debt

Debt payments can be a difficult (and frustrating) part of any household budget. If clearing credit card or other debt tops your financial goals, here are some key areas to watch out for when it comes to paying off debt and kicking debt-stress for good:

• Only Making Minimum Payments

Getting comfortable only making minimum payments each month is risky. Although your accounts are being paid up to date it’s easy to fall into the false sense of achieving progress on paying off debts because you are making monthly payments. In reality, you might be on a 50/80/100 year payment plan without even knowing it. Do not mistake minimum payments for substantial progress in paying down debt.

• Your minimum payments on a credit card could be contributing very little per month to reducing your debt load, with the rest of your payment going to (ongoing) interest charges and fees.
• If you can, start paying more than the minimum monthly payment required each month ASAP.
  • You may want to start by adding the extra you can afford to the highest interest card, then once that is paid move the additional funds to the next, and so on.
• Always avoid taking cash advances on your credit cards – immediate (often higher) interest and convenience charges make this some of the most expensive borrowing available.
• Check your monthly credit card statement for a “minimum payment warning” section that provides information on how long it will take you to fully repay your balance if only minimum payments are made every month.
  • If you bank online you may need to download your official monthly statement to see this. Even relatively small amounts of debts can trigger decades long repayment schedules if only minimum payments are made each month.

You should always pay more than the minimum where possible but be careful that your budget is realistic about how much you truly can (and will) put towards these payments each month.

Did my Debt Expire? Learn about BC’s Statute of Limitations on Debt

• Do the “Rule of 60” Math

If debt payments are part of your budget, try adding the “Rule of 60” math to your check-in process. This can help you gauge your progress and be an early indicator if debts start becoming unmanageable:

• Divide your total non-mortgage debts by 60 – is the number a monthly payment you can afford in order to pay off your debts in the next 5 years?
• If that 5-year figure seems impossible or would create a financial strain you can likely assume that assessing a professional debt solution that will consolidate and cut your debt is advisable.

If this is the case, your best plan is to connect with a Licensed Insolvency Trustee to explore your options for getting out of debt.  A Licensed Insolvency Trustee can help you access remedies that can help you get back on track and there is no cost to talk about your situation and get impartial confidential professional debt advice.

• Expenses Outpace Income

Unfortunately, struggling to manage expenses can be a challenge many people experience. In fact, more than 1 in 10 people polled in a BC Consumer Debt Study said that problem debts that eventually led them to consolidate debt with a Consumer Proposal or file bankruptcy accumulated due to their costs of living outpacing their income.

When facing more costs than income, if you haven’t already done so, the first thing to try is to scale back on expenses as much as possible and evaluate whether it’s possible to increase your income. Spend time considering the below questions:

• Which expenses are causing the most damage?
  • Interest rates often have one of the biggest impacts on how “affordable” a debt may be.
• Is there any way to mitigate the effect?
  • Example: If one of your debts has a high interest rate consider asking the lender for a better rate or investigate whether it makes sense to move the balance elsewhere.
  • Compare how interest rates impact common monthly debt repayment options.
  • If you’re considering consolidation options a Consumer Proposal often has the most affordable monthly payments.
• Do I have options to increase my income?

For many people debt needs to be addressed as a stand-alone issue to gain breathing room and stop an ongoing borrowing cycle. Debts can have serious consequences for more than our budgets – debt-stress can be one of the largest impacts on our emotional well-being, physical and mental health. If you are experiencing the burden of a debt problem don’t hesitate to connect with a Licensed Insolvency Trustee for professional guidance and debt advice.

No room in your budget for debt repayment? Connect with a caring Sands & Associates debt help specialist today and get started with a debt-free plan. Your confidential free debt consultation will take less than an hour and can even be done online from the comfort and privacy of your own home, book yours now.

The post How to Balance Your Budget to Pay Off Debt and Cut Money Stress appeared first on Sands & Associates.

Many of these same people have later said that they wish they hadn’t waited so long to get support, or how the first time they spoke with a debt expert they felt the weight of their debt lifted from their shoulders. If you need a reason to stop procrastinating, to get motivated to move forward financially and to be excited about your future, this post is for you.

Here are some key reasons why you should connect with a Sands & Associates Licensed Insolvency Trustee to get started with a plan to be debt-free:

1. Stop Your Debt-Stress and Worry

Debt-stress can affect your emotional and physical self and anxiety about your debts and finances can feel paralyzing and all-consuming. We know that prior to finding a debt solution and working with a Licensed Insolvency Trustee many of our clients felt debt-stress in virtually every aspect of their daily life, and the majority felt constant worry about their debts.

Some of the other debt-stress impacts our clients commonly experience before getting a plan to deal with their debts included:

• Self-esteem suffering
• Feeling alienated and alone
• Health impacts including:
  • Anxiety and/or depression
  • Sleeping poorly
  • Heart problems and/or high blood pressure
• Family and relationship strains

Removing debt-stress and financial worries can completely change your life. According to one BC Consumer Debt Study:

• After filing a Consumer Proposal or personal bankruptcy, 92% of people said that the debt option they chose allowed them to feel good about the demands of their daily financial life.
• 89% of people polled said they felt extremely satisfied or mostly happy with the outcome of the choice they made to deal with their debts – and 82% said they would have taken action sooner if they’d been aware of the process details.
• Only about 33% of people who had a debt problem but had not filed a Consumer Proposal or personal bankruptcy said they felt very positive or optimistic about their financial situation and future, whereas nearly 75% of people who had filed said they now felt positive or very positive.

At Sands & Associates we believe that everyone is entitled to live with dignity and without the overwhelming stress and negative impacts of debt.

Meet Some of the People Whose Lives Have Changed by Becoming Debt-Free

Carrying debt simply isn’t affordable long-term for most people. Debt-free plans like consolidating with a Consumer Proposal or even getting full debt forgiveness with a personal bankruptcy serve to:

2. Make Monthly Debt Payments Affordable

Consumer Proposals in particular offer substantial benefits when it comes to making debt payments affordable, especially compared to traditional consolidation loans that require you to take on borrowing with interest, and even credit counselling programs that only stop future interest charges but require full payment of amounts outstanding.

• A Consumer Proposal consolidation plan allows you to reduce your debt repayment down to what you can afford, in full settlement. Any portion of the debt that you’re unable to repay is simply written-off and forgiven by your creditors at the end of your Consumer Proposal.
• Interest charges are automatically halted as part of the proposal, with no negotiation required.
• There is no service cost on top of what you’re repaying on the debt as part of your Consumer Proposal – essentially your creditors will pay the administrative cost of your proposal which is deducted from the money they receive.

Here’s an example of the potential financial savings you might find with a Consumer Proposal:

You have debts totalling $10,000 at an 18% interest rate that you’re aiming to repay without consolidation over a 3-year period, so you will need to pay approximately $360 per month for 3 years to pay this debt off.

If you were able to access a debt consolidation loan to pay off that debt instead, with an interest rate of 12% you would pay around $330 per month for 3 years. That’s not much of a difference on a monthly basis is it?

The cost-saving benefits that come with a Consumer Proposal’s “automatic no interest provision” are considerable for your day-to-day cashflow. Using that same example, a Consumer Proposal could potentially:

Reduce total debts of $10,000 down to 60% repayment (to settle in full) over a 3-year period, which would require monthly payments of around $165. What could you do with that extra $165 a month?

Not only are you freeing up money that can be used to improve your cash-flow on a monthly basis, you also avoid an overwhelming long-term cost of borrowing – compounding interest charges. For many people that we help, particularly those who have been struggling to manage all their financial obligations, having an affordable monthly payment is life changing.

Compare Debt Options with our Online Debt Options Calculator

Cutting your payments down to what you can afford helps you move towards another great reason to get a debt-free plan:

3. Start Financially Fresh

Sometimes a person just does not have the ability to repay their debts, despite careful planning (and of course intention). Carrying burdensome debt long-term or facing monthly payments that are seemingly never-ending can be overwhelming emotionally – and financially.

Delaying dealing with debts usually means that the debts grow, whether through interest accruing, or by continuing to take on more debt. It’s not uncommon for someone to have a budget that will allow them to make sizable regular payments towards their debt, but not see the principle balance being reduced – even for years at a time. Many people are surprised to learn that at ‘normal’ credit card interest rates of approximately 19.9%, their debts will double on their own in just 3.6 years, even if no further purchases are made.

Choosing a legislated debt solution like a Consumer Proposal or personal bankruptcy allows you to get a clear “debt free” date and move forward with a financial fresh start.

Many people our Licensed Insolvency Trustees assist worry about the potential long-term impact to their credit history. A “reset” on your credit history may actually help you build up a favourable high credit score faster than if you kept trying to repay the debt on your own. It’s also important to understand that:

• Credit scores are not accurate measures of “financial health”.
• Credit scores can change dramatically in just a few short years.
• Consumer Proposal consolidation and even bankruptcy are not permanently indicated on your credit history.

Still not sure about asking seeking professional debt solutions? Try doing the “Rule of 60” math:

• Add up your total non-mortgage debts, then divide the number by 60. Does the number you get look like an affordable monthly payment you could make consistently to payoff your debt in the next 5 years?

If that 5-year monthly payment doesn’t seem realistic or would leave your budget strained, take some time to find out about debt options that can help you become debt-free with an affordable monthly payment.

Many people feel that carrying debt hindered them from achieving “life event” milestones such as starting a family or purchasing a home. Get your financial fresh start now with help from a local BC debt expert. 

4. Put Yourself in the Driver’s Seat

If you’re overwhelmed by your financial situation you may feel like you are living at the mercy of your debts – as though you don’t have much control over your life because your money problem has taken over pretty well everything. Making the decision to work with a Licensed Insolvency Trustee and get a plan to be debt-free puts you back in charge.

• Stop juggling debts, trying to manage creditor payments and deal with difficult collection agents – you can streamline your debts into one manageable process with a clear debt-free date.
  • You can even get there early if you choose – with options like a Consumer Proposal you can pay off your consolidation settlement early at any time, without penalty.
• Instead of feeling alone and not knowing what might happen, or how you can address your financial challenges – access professional support and resources.

Licensed Insolvency Trustees are the only debt help professional endorsed and authorized by the government of Canada to help individuals with their debts. Knowing this you can feel confident that you’ll be backed by transparent processes and reputable professional help.

Although all Licensed Insolvency Trustees can offer you the same resources and solutions, it’s important to feel comfortable and confident with the professional you chose to work with. Consumer Proposals and personal bankruptcies are legislated processes, but kindness, respect and empathy are equally important. Supporting you using an approach of “Debt Smart with Heart” is important to Sands & Associates – it is our goal for you to get all the information you need to make an informed decision about your situation and the possible solutions, so you can move forward towards personal success.

Whether you want to stop debt-stress, cut your monthly debt payments, or simply take charge of your financial future with a fresh start, we’re here to help you. You have options that can help you reach your financial goals and it could take less than an hour to work with a Trustee on a plan that can allow you to become debt-free for good.

Get started with your plan to be debt-free today. Book your free confidential debt consultation with a friendly non-judgmental BC debt expert from Sands & Associates.

The post 4 Reasons to Get a Debt-Free Plan Today appeared first on Sands & Associates.

As Licensed Insolvency Trustees we often help individuals in BC who have either recently finished school and are looking for advice on how to manage student debt, as well as individuals who have been struggling to deal with student loans for some time. Read on for general tips to help you pay off your student debts, as well as an overview of legal options for Canadians to consolidate and write-off student loans and other debts.

Tips for Repaying Student Debt

If you’ve recently finished your post-secondary studies or are preparing to start a post-secondary area of study, consider these strategies to help you manage your student debt repayments, now and later:

• Make a budget. Before committing to student loans (or any other type of debt), map out how much money you’ll really need.
  • Factor in tuition, books, rent, groceries and any other costs of living.
  • Consider whether you can earn some of these funds through a part-time or summer job and have a back-up plan for emergencies or a deficit in what student loans may extend to you.
  • If you’re granted more than you think you need, don’t be tempted to spend it all – avoid taking on more debt than necessary!
• Use all the resources available to you. Extra resources can add up to great savings later, so be sure to explore all the potential benefits and sources of assistance.
  • Do you have an RESP?
  • Are there grants, scholarships or bursaries you can apply for?
  • Will your parents be contributing to your education or costs (or housing you in general)?
• Build a post-grad plan. Know your loans, grace periods and payment due dates.
  • Keep in touch with your lenders if you move or your contact information changes.
  • Figure out a realistic plan to pay down your debts and avoid relying on more credit.
• Know when to ask for help – whether or not your payments are behind.
  • If your income is falling short of allowing you to make your student loan payments and you’re concerned your payments are going to fall behind, contact a student financial assistance office. The government has procedures in place that may be able to provide some student loan relief for you, such as reducing your monthly payment.
  • If you need more than temporary relief, connect with a Licensed Insolvency Trustee as soon as possible. They are the only debt help professional endorsed by the Canadian government to help you manage your debts – including student loans.

Legal Options to Deal with Student Loans in Canada

Contrary to what many people may believe, in BC (as well as the rest of Canada) there are two options that allow you to have student loans forgiven. Both solutions are only available by working with a Licensed Insolvency Trustee and can also be used to stop collection actions, including wage garnishments from Canada Revenue Agency collecting on student loans.

Consolidate Student Loans in a Consumer Proposal

A Consumer Proposal may be a suitable option for debt relief and a financial fresh start if you want to consolidate your student loans with other debts and have the financial ability to make some repayment towards the overall balance of your total debts.

Consumer Proposals are a unique type of legal debt consolidation that allow a person to consolidate virtually all their debts (such as student loans with credit card debt and other common debts) into one settlement offer, reducing the amount you need to repay, with the unpaid portion of your overall debt and accumulated interest being forgiven by your creditors.

• Most people will repay only a portion of their total debt, in full settlement – ranges of debt repayment of 30-70% of the total balance are common, with the remainder being forgiven or “written off” by the lender.
• Consumer Proposal offers are tailored to your specific situation and can last for as little as a few months, but cannot extend past 5 years.
• Consumer Proposals require no borrowing and there are no added interest charges or costs to be paid by you.

Compare Consolidation Options with our Debt Options Calculator

Discharge Student Loans in Bankruptcy

A personal bankruptcy can be used to discharge (write-off) student loans, as well as to get debt forgiveness from other common debts such as credit cards, overdrafts, lines of credit, payday loans and more. Not only is bankruptcy quite a private and unobtrusive process – for most people, personal bankruptcy in BC generally:

• Lasts for 9 months.
• Allows you to keep virtually all your assets.
• Costs as little as $2,700, paid through manageable monthly payments with a Licensed Insolvency Trustee.

Types of Student Loan Debt in Canada

In Canada there are 3 main types of student loans available:

• Federal student loans
• Provincial student loans
• Private student loans
  • In addition to bank-funded student loans, many major financial institutions will also offer specialized lines of credit and student credit card products.

Regardless of which type of student loan you have, a Licensed Insolvency Trustee can help you manage these student debts. Private (bank-funded) student loans will be treated as any other consumer debt (like a credit card), with no special exception. Government student loans may also be treated the same way, depending on when your studies ended.

Timing for Student Loan Debt Forgiveness in Canada

A key factor in dealing with government student loans is how long it has been since your studies ended:

• If it has been 7 years or more since you finished school, both a Consumer Proposal or a bankruptcy can eliminate in full your unpaid student loans, as well as accumulated interest.
• If it has been less than 7 years since you went to school and you are starting a Consumer Proposal or bankruptcy, you will still include your student loans in either process, but the unpaid amounts will ‘survive’ and need to be repaid after your Consumer Proposal or bankruptcy has been completed.
• If it has been more than 5 years but less than 7 since you last attended school and started bankruptcy or a Consumer Proposal, the court may grant an order that would discharge your otherwise remaining student loans under a special financial hardship clause.

Even if your Consumer Proposal or personal bankruptcy does not completely write-off your government student loans, dealing with other debts you have (such as credit cards, lines of credit, etc.) can greatly improve your budget and allow you to be in a better position to repay any surviving student loans.

A Licensed Insolvency Trustee will help you determine what amounts, if any, would survive your Consumer Proposal or bankruptcy before you commit to a process and will help you weigh the pros and cons of all debt options available to you. We believe that making informed decisions about available debt management strategies is key to our clients moving forward with success and from a position of confidence.

For more information on options for student and government debts, consumer debts and business debts, book your free debt consultation with a local Sands & Associates debt help professional today.

The post What to do When You Can’t Pay a Student Loan in Canada appeared first on Sands & Associates.

Watch the clip here, and read more below:

Financial Professionals for Debt Help and Beyond

When it comes to money matters, resources and help, here are the top four financial professionals that every financially successful person should know!

1. A Financial Planner

As Licensed Insolvency Trustees we meet with people daily who struggle to bridge the gap between their retirement income and their daily living expenses. No matter if your finances are big or small, the future will be here before you know it. When you have a solid financial plan, it’s easier to make good decisions and meet your goals, short and long-term.

Working with a qualified financial planner can help you:

• Manage your current income and savings;
• Ensure an acceptable standard of living upon retirement;
• Assess and implement appropriate insurances for your lifestyle;
• Provide for your family’s financial security.

2. An Accountant

As the expression goes, “only two things in life are certain”…  Because Licensed Insolvency Trustees offer virtually the only legal debt solutions to outstanding government debts, we regularly help people who are in serious financial trouble with Canada Revenue Agency, often because they were unaware of their income tax obligations and liabilities.

Even if you have straight-forward finances, a periodic check-in can help keep you up-to-date on tax changes. For those starting or already self-employed, a knowledgeable accountant can save many headaches down the road.

In addition to the potential savings of your valuable time (and money), some benefits of engaging a reputable accountant include:

• Their experience and current/up-to-date knowledge of income tax changes:
  • New/changing credits or benefits;
  • Filing requirements and set up.
• You avoid having outstanding income tax returns or GST returns.

3. A Lawyer

Arguably the professionals everyone “loves to hate” – but they can really save the day when you need one! Laws can be complex and we often hear from people facing major financial liabilities because they were not aware of the legal consequences of their decisions or actions.

Different areas of law require different lawyers, but in general it is a good idea to consult with a lawyer when you’re facing legal disputes or challenges. Some other common situations when talking with a lawyer can be very beneficial:

• Beginning of marriage or cohabitation;
• Separation or divorce;
• Business start-ups;
• Wills and estate planning;
• An accident or injury is involved.

4. A Licensed Insolvency Trustee (LIT)

The last professional is (let’s be honest) one that no one really wants to have in their contacts, but as we often say – “knowing is not owing”.  No matter where you are at financially, “life happens” and knowing where your resources are in the event life takes an unexpected turn can be crucial.  Debt continues to be a big challenge for Canadians and you need to know which professional to contact for guidance should you find yourself in need of debt help or advice.

Licensed Insolvency Trustees are the only professionals that the government of Canada empowers and endorses to help Canadians with debt. Some of the questions or situations a Licensed Insolvency Trustee can help you or your business with include:

• Explaining your legal rights and remedies when it comes to debt;
• Whether a debt is collectable;
• What to do when you can’t pay a debt;
• Providing knowledge of and debt solutions for virtually all types of debts;
• Free, impartial advice.

When it comes to finances, there is an expert professional with resources for each unique component – it’s important to take your financial advice from the right source at every step.

Feeling debt-stressed or have questions about how to manage, consolidate or write-off your debts? Book your free confidential debt consultation with a caring professional at Sands & Associates today – we’re here to help.

The post 4 Financial Professionals Everyone Should Know appeared first on Sands & Associates.

BC’s Provincial Government recently announced that it would eliminate interest charges on BC student loans, over-awards, risk-sharing and guaranteed loans effective February 19, 2019. This change benefits current borrowers in repayment, as well as future recipients of BC student loans.

The 2019 BC Budget suggests that the average graduate will save $2,300 in interest over a 10-year repayment period, based on combined federal and provincial student loans totalling $28,000, while Federal Budget 2019’s proposed interest rate cuts and grace period (six months) before interest begins to accrue are estimated to save student loan borrowers around $2,000.

$4,300 average savings on interest / 120 months (ten years) = $35.83 per month actual impact

While the savings in provincial and federal student loan interest are a welcome benefit, broken down on a monthly basis they may be negligible for many students who often struggle with low earnings after graduation.

Due to costs of living and the province’s continued housing crisis, students may still find themselves facing a mass of debt accumulated during their post-secondary studies. Furthermore, parents funding education may continue to feel the financial pressures of supporting their dependents.

The 2018 BC Consumer Debt Study conducted by Sands & Associates found that 4.7% of respondents polled claimed that the primary cause of their debt was student loans or student lines of credit.

The student debt crisis isn’t exclusive to BC, Ontario-based Licensed Insolvency Trustee firm Hoyes Michalos also provides significant findings around the prevalence of student debt among insolvent Canadians. The 2018 Bankruptcy Study discovered that the fastest growing cohort filing bankruptcy were millennials, with more than three in ten carrying student debt.

Sands & Associates proprietary research: 22% of students polled said they use credit cards for the majority of their daily purchases. ¹

How much do students expect to earn five years after graduation?

Nearly three-quarters of all students surveyed (73%) anticipated they would be earning a salary greater than $50,000. ¹

Reality

• $27,500 – Median employment income of British Columbian (not in census families) in 2016 ²
• $68,690 – Median employment income of British Columbian families in 2016 ²

^{1 Source: 2013 BC Student Finances Study
2 Source: Statistics Canada}

Too Little Too Late?

Mantin notes that it’s not uncommon for his firm to provide debt help to people who have been out of school for over a decade who are still carrying big student loans; sometimes even related to degrees they are unable to use for their current profession, or worse still, individuals who have found themselves unable to work at all due to health problems.

Student Debt Help

Contrary to what many believe, Canadians who find themselves no longer able to repay their debt do have options to negotiate and write off student loans besides the debt repayment programs offered through the lenders themselves. The Federal Government provides exclusive legal standing to Licensed Insolvency Trustees to offer debt help solutions that can restructure and even eliminate an individual’s student (and other) debts entirely.

• Privately held (bank) student loans will be cleared through a Consumer Proposal or bankruptcy, like any other type of basic unsecured debt.

Provincial and/or Federal student loans and interest may be managed by filing either:

A Consumer Proposal: This legal debt consolidation works to effectively combine and reduce virtually all consumer debts, even student loans and other debts owing to the Government. Debts may be reduced by up to 70-80% or more, with no interest.

A Personal Bankruptcy: Where a person is no longer able to make meaningful partial repayments on their debts, a personal bankruptcy filing will result in forgiveness of essentially all debts.

Timing is important to note with government student loans in these options:

• If it has been seven years or more since you were last a student, your government student loans and interest will be fully settled upon completion of your Consumer Proposal or bankruptcy.
• If it has been less than seven years since you were last a student, your unpaid government student loan and interest balances will need to be repaid following your Consumer Proposal or bankruptcy.
  • You may however be granted relief from making payments while either option is in progress, although interest will accrue.
  • Amounts your creditors receive through your proposal or bankruptcy go towards reducing the surviving balance.
• If you were a student five or more, but less than seven years ago, you can file a court application to have the student loans released (forgiven) under a special hardship clause.

Compare options to eliminate debt using our Free Online Debt Options Calculator

For those who have been to school within the last seven years, or would not qualify for the special discharge order, a Consumer Proposal or personal bankruptcy may still be advantageous options to consider. Many people find that once their other consumer debts (such as credit cards, lines of credit etc.) are eliminated, they are then in a better position to pay off their remaining student loans.

Learn more about legal debt solutions that can consolidate, reduce and write-off student and consumer debt. Book your confidential free debt consultation today!

The post Cutting Interest on Student Loans – Is It Enough? appeared first on Sands & Associates.

Vice-President at Sands & Associates and Vancouver Licensed Insolvency Trustee Blair Mantin visited Breakfast Television Vancouver to share four key tips to help you keep your tax time as stress-free as possible.

Watch the clip here, and read more below:

Tips to Have a Stress-Free Tax Time

Know the Rules

Every year Canada Revenue Agency (CRA) makes changes to tax brackets and tax credits. Before you get filing, spend a few minutes finding out what’s changed – knowing the ins and outs could get you some extra money!

• This is especially worthwhile if you’ve had a financial change (like a new job where you need to supply your own tools, or if you’ve had a change in dependents).
• Don’t try to “outsmart” the system by making claims that are wishy-washy, or that you don’t have proof of. Audits can and do happen!
• Avoid falling for tax scams! Every year Canadians get caught up in “too good to be true” deduction scams and don’t realize what’s happened until it’s too late.

If you don’t have an accountant doing your tax return, you can brush up on changes by visiting the CRA website. Some notable changes for 2018 tax returns:

• A medical expense tax credit for service animals: In some circumstances, the cost of caring for a service animal can now be claimed as a medical expense.
• Accelerated Investment Incentive: This temporary new measure impacts self-employed individuals and their capital cost allowances rates.

Get It Filed

CRA doesn’t take kindly to Canadians who don’t file their tax returns. It’s actually worse in CRA’s eyes to not file a return than to owe them money! CRA has been known to issue ‘arbitrary’ assessments with big balances owing to prompt ‘non-filers’ into getting their tax returns done.

This is still true even if you’re already carrying an old CRA balance. Not filing your tax return isn’t a good strategy to avoid adding to your bill – you’ll likely just aggravate your stress-levels!

• For most Canadians the deadline to file your 2018 tax return is April 30th.
• If you owe money, you’ll also need to pay your balance by this time.
• If you’re self-employed, the date you need to file your return by is June 15th – but you still need to pay by April 30th.

Late-Filing Penalties

If you owe money for 2018 income taxes and your return is filed late, CRA charges a late-filing penalty of 5% of the balance owing, plus 1% of your balance owing for each full month the return is late (to a maximum of 12 months).

If you habitually file late, the penalties can increase. If you were charged a late-filing penalty on your 2015, 2016 or 2017 returns then your 2018 late-filing penalty may be 10% of your 2018 balance owing, plus 2% of your 2018 balance owing for each full month the return is late (to a maximum of 20 months).

Even if you’re unable to pay the balance you owe by April 30^th, you can avoid these penalties by filing your tax return on time.

Be Balance Smart (If You’re Getting a Refund)

Plan to use your tax refund well if you’re getting money back. Remember, it’s not really free money – it means the government was “holding” money from your income that you overpaid to them throughout the year.

• Consider how the refund could benefit you the most:
  • An extra payment towards your debts;
  • Savings or RRSP contributions;
  • If you’re going to splurge with the cash be sure you only do it once!

Pay What You Owe (and Plan Ahead)

When you owe money for taxes make sure you pay your balance owing in full ON TIME. Interest for tax debt compounds daily, so even a “reasonable” amount can snowball very quickly.

Tax Balance Interest

If you owe money for your 2018 income taxes, CRA will charge compound daily interest starting May 1^st on unpaid amounts. Compound daily interest will also continue to be charged on outstanding amounts owing from prior tax years. CRA will additionally charge interest on late-filing penalties, starting the day after your return should have been filed.

The interest rate charged by CRA can change every 3 months, the rate in effect from January 1 to March 31 (2019) for overdue taxes, CPP contributions and EI premiums is 6%.

To avoid owing next tax time, understand what caused the balance; some common causes may include:

• Working more than one job
  • Your combined income may require more tax to be paid. Consider asking one employer to withhold extra tax going forward.
• Receiving EI benefits in the same year as receiving employment income
  • EI benefits frequently don’t have sufficient tax withheld. Try to stay ahead by asking an employer to take a bit more tax off your paycheques or making an instalment payment to CRA during the year.
• Self-employment income
  • Being your own boss can have a few drawbacks, one of which is that you need to pay your own CPP and tax! Get into the habit of making regular instalments throughout the year to avoid a big tax bill hitting all at once. You can use free online calculators to estimate how much you should be putting aside.
• If what you owe is beyond your ability to pay, or your balance has accumulated to an unmanageable amount, speak with a Licensed Insolvency Trustee.
  • A Consumer Proposal can negotiate, reduce and write-off your consumer and business debts – even debts for income taxes, GST or payroll remittances;
  • Filing bankruptcy can also give you forgiveness for consumer and government debts.

Get a financial fresh start today – book your free debt consultation to meet confidentially with a local Sands & Associates debt expert. We’re here to help you understand your options and choose your best debt solution.

The post 4 Tips for a Stress-Free Tax Time appeared first on Sands & Associates.

Balance that budget:

One major perk (or downfall, depending on how you operate) is that when you’re single, there is no one else to tell you how to budget your money.  A balanced budget is crucial to anyone’s financial health but is even more so when you’re single!  Here’s some key tactics for budget success:

• To get started with a budget, keep track of all your incoming and outgoing funds for a month, then you’ll have a realistic idea as to what you have to work with.
• If your expenses are outweighing your income, don’t rely on credit to bridge that gap – look at what you could cut, or look for ways to boost your income. Be realistic about your expenses, it IS important to include some room for fun stuff!
• You may need to get creative when looking at trimming your expenses, consider: Amping up your cooking skills if you’re eating out a lot; look at whether getting a roommate makes sense; consider how much you really need a vehicle (could you get by on car sharing or transit?).

Be honest about your finances – there’s no shame in trying to reduce costs to stay financially healthy:

Don’t get us wrong here – social events are great, but if you wind up regularly overspending or putting the costs on credit, this behaviour could add up to a debt problem over time.

• If your funds don’t allow you to participate in every function that’s presented, it’s totally OK to let your friends and family know that you’re being financially responsible and sticking to your spending limits – even if that means passing up bits and pieces of, or events altogether.
• Expect that sometimes you will need to decline events and remember that anyone wanting to genuinely spend time with you, would not want you doing so if it creates a financial problem or strain.

File your taxes:

Be sure your tax filings are always done – and filed on time!

• Government benefits for GST credits and potential MSP premium assistance can be beneficial to your budget. These small perks do add up!
• If you find yourself with a debt to Canada Revenue Agency, you’ll need to evaluate why this happened and make adjustments to how much tax is withheld from your income at source – to ensure you don’t have future surprises at tax time.
• For singles with children, there are additional government programs or benefits for you to take advantage of – it’s critical you file taxes each year to ensure you receive what you are entitled to.

Create savings:

A recent study found that singles approaching retirement face an average $30,000 savings deficit, whereas couples had a huge savings surplus.

• To help avoid becoming dependent on credit in retirement years, or being unable to retire – think about the ‘long game’ and make sure you’re saving something for long-term goals.
• It’s also important to allocate some money towards an emergency savings fund. If you’re on your own there won’t be a partner’s income to stretch across any unplanned periods of unemployment, or illness.  Reliance on credit is often due to the unexpected!

Our most recent BC Consumer Debt Study found that 55% of respondents were without a partner – either because they were divorced or separated, widowed or single.  It is common for those who are newly single to find themselves faced with paying off debt while managing new financial circumstances.

If you’re concerned about how to get out of debt, meet with a Licensed Insolvency Trustee today.  We can help with several debt options, including Consumer Proposals and personal bankruptcy – and consultations are always free and confidential!

Book your free debt consultation with Sands & Associates today.

The post The Cost of Being Single… appeared first on Sands & Associates.