by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
Canadian homeowners have more negotiating skills than they think when we talk about the Canada Revenue Agency. That’s until the CRA has placed your property and placed a lien on it. Utilizing your home to deal with CRA all comes down to the right timing. If you have some equity in your home and you the CRA money, here are the steps to take.
Everyone knows that tax debt could be alarming; alarming because owing to the CRA money if you cannot pay will likely result in collection activities. Further, tax debt is one of the major reasons why people get behind filing as the money to pay isn’t there and they fear that once the returns are filed, CRA is going to come searching for the money. If you are aware that you have a tax debt, do not wait until the CRA catches up with you. Remember that you can beat them and get a plan, which will effectively deal with your CRA tax debt.
What Are the Options?
In case you didn’t know yet, you more options to deal with CRA tax debt when it has not started enforcement action. A good example of this is homeowners who have tax debt. Let’s say you have or you own a home, have a tax debt, at the same time the CRA puts a lien on the home, this will greatly lessen your options if you really can’t repay them on a monthly basis given that the CRA will become a secured creditor.
The challenge here is your probabilities of being able to make the consumer proposal are extremely lessened once the CRA has taken enforcement action, secured with a lien on your home for instance. The same goes for bankruptcy. If you’re holding the bankruptcy card in your pocket or hoping that filing for bankruptcy may seem like a means to get out of the tax debt, this as well would no longer be a viable option when the CRA becomes secured on the asset such as real estate.
The Faster You Deal with CRA Tax Debt, the Better
Don’t mind problems like financial planning and enforcement action. The presence of tax debt and the CRA collection action against you can lead to damage to your relationship with your family or along with lenders like your mortgage holder or bank, embarrassment at work, and even health issues if you become stressed and have some difficulty coping with the stress.
There’s no need to put yourself through this kind of situation. You will find companies, which can help you with your financial CAR tax debt problem. Selecting the right solution for you could be easier said than done; however, but not if you are aware of your options. Collaborating with a financial consultant employed by you to represent your interest is one great way to assess and check your options and develop your plan.
Remember, dealing with your tax debt before CRA catches up with you will allow you to have relief and move forward on a new footing. Any problem with CRA debt call GTA CREDIT at 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
We all know that payday loans are meant to help us cover all of the unexpected and sudden costs. While they are readily available loans, the main concern for many people is to get rid of this liability in a best possible manner. However, not many people are able to repay the loan. Besides, they end up fixing debt problems and creating more difficulties for themselves than the actual benefit sought out of it.
The basics of a payday loan
Not many of us fully realize the importance of returning such payday loans in time. That is because not all of us do the required planning for repayment of the loan before we actually take a loan. For you to plan a payday loan you must be aware of the basic terms of it as follows;
- A person can cancel a payday loan two days after signing an agreement
- You must return the complete amount of loan except for the borrowing cost
- A person is not required to pay any money unless the loan comes due
- A person may repay the loan before the due date without paying any excess charges to the lender
Once you know these above-mentioned basics (and others), only then you will be able to plan a loan in a way that would not leave you worse off in the end or creating more debt problems for you than proving to be any good. Hence, you must always deal with a payday loan with some sound strategy.
Dealing with a payday loan
There are several strategies to deal with a payday loan and get out of this vicious cycle, however, whichever strategy you choose to apply totally depends on your current financial situation. Let us have a look at some of the steps that might help you in getting rid of the payday loan.
- Don’t Panic – While payday loans are advertised to settle uncertain expenses, the majority of people use it for essentials like food or petrol. Therefore, stop panicking as you are not alone in this. Also, this would allow you to use other credit options wisely
- Stop borrowing more – Usually, people make the mistake of borrowing more loans in the hope of repaying the previous one. This cycle, however, needs to be stopped to avoid falling deep into the debts.
- Free up some funds in the budget – In order to repay a payday loan you must cut down on your expenses by reviewing your monthly budget. For this, you may need to cut expenses such as shopping, travel or dining etc
- Discuss with other lenders – No matter if you choose to consult a credit counselor or repay a payday loan on your own, another option is that you may seek the help of an alternative lender.
By following these tips, you can help yourself in repaying the payday loan in the quickest and most reasonable manner. That is, without taking more loans; however, planning ahead of time or before taking a loan is a factor that should not be ignored at any cost.
by Ajay Oberoi | Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
While many people think that a credit score is just a buzz these days, the credit score, however, holds a significant value for many reasons.
A credit score tells a lot about a person to the most important individuals and institutions like;
- Insurance companies
- Banks
- Potential Employers
- Retailers and credit lenders
Hence, this simple score has the power to either make or break your credit reliability.
The power of a credit score
Many of us, if not all, must have had shared our credit scores with at least one of the above-mentioned parties. A credit score has the power to determine if you may or not get;
- Approved for mortgage
- A job offer
- Approved for a car loan
- Competitive rates of insurance
- A cell phone contract
- Line of credit, bank loan or a credit card
That’s right; a credit score tells interested people, how dependable you are in terms of finance. That is, a credit score is basically a true reflection of how properly you manage your finances and if you pay your bills in a timely manner or not. Therefore, these three digits from 300 to 900 may determine the options that you hold for the items, most valuable to your everyday life.
Good habits bring good credit score
The most important factor to make a good credit score is the repayment habits. Simply think where do you fall on the 1-9 scale when it comes to your debt repayments? The answer to this question will tell a lot about your current credit score.
It is important to review your credit score at least annually to know your financial standings. Moreover, do consider the power that your credit score has for the major events of life such as your child’s education, buying a car etc
Credit score comes with a number
No matter what kind of credit you have, the thing that matters is the number attached to that. This number, however, tells the people, who review your credit report, about your timely repayment structure. Mostly lenders rate an account by using number scale to know if you are paying to items as agreed to. This may include, repossession, collections, bad debt, payment made regularly via restructured plan of repayment and others.
How to calculate a credit score?
No matter what type of credit you have there is no exact formula to calculate it. There is no exact criteria that would determine accurately how much your score may increase or reduce, depending on your actions. However, with some general budgeting, money management, and debt repayment habits, you may help yourself to get a good credit score.
Following that, a credit score is important to build your trustworthiness and to open credit options for you in the future. A person with a bad credit score not only suffers from the current financial positioning but also closes the options for future as no lender would like to invest in doubtful circumstances. Therefore, follow the above-discussed steps to maintain a good credit score and to build more reliability amongst lenders.
