by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
Wherever you may be in this world, borrowing money or purchasing items on credit and repaying the capital amount and the relevant interest component is a standard procedure. You would get into such a transaction with good faith but somewhere down the line during the course of the said transaction, you could encounter problems with repayment. When that happens your creditor would try to obtain the due monies from you.
Debt collection in Canada
This is the same procedure adopted in any country and not particular to any one of them. It is the same even in Canada and if you borrow you are liable to pay. If there is a repayment delay you could be called upon to pay some additional costs that fall due because you have failed to repay within the stipulated time limit.
Similar to laws everywhere creditors in Canada are also bound by certain legislations, it is true that you would be a defaulter but like the creditor, you too would have certain laws to protect you. Creditors in Canada or their representatives are bound and governed by the Collection Agencies Act. They need to strictly follow the laid down guidelines and ensure that they keep to the set parameters without deviating from the same.
Once you default on your credit line the creditor could use their own office to recover the due amounts or they could delegate the debt to a collection agency to recover the due amounts. The other alternative would be for the creditor to sell the debt to a collection agency.
Make a complaint if they break the law
Whatever your creditor would do they and the rest to whom they have passed on your debt are bound by certain laid down criteria, any deviation would allow you to file a complaint against those who deviate from procedures. There are some very pertinent issues that are laid down in the Collection Agencies Act which no debt collection agency could deviate from.
For instance, they are prevented from falling over at your workplace to collect a debt if they do they would be breaking laws laid down in the Collection Agencies Act. Similarly, collection agents cannot call you on any telephone that you have not provided to them at the time the transaction was initiated.
The Collection Agencies Acts specifies as to when and what times a collection agent could contact you. They are expressly forbidden to contact you on the phone on holidays. They could call you from Monday to Saturday between 7.00 AM and 9.00 PM. They could also call you on Sundays between 1.00 PM and 5.00 PM. If they deviate from these laid down guidelines you could make a complaint against them.
Hence when you are first contacted by a collection agent it is imperative that you note down the details of the debt, when you owed it, to whom, the caller’s name, the company he represents, and his telephone contact. He is obliged to disclose all such details to you. If he does not and continues to bother you, then you are at liberty to file a complaint under the Collection Agencies Act.
It is prudent to remember that you have statutory rights though you are a defaulter and have many avenues and recourse to law if your creditor or any of their appointed representatives break the law. It is imperative that you know all your rights stipulated under the Collection Agencies Act.
This is if you are to deal with a collection agency but it would be in your best interests to ensure that your debt is not transferred to a debt collection agency and when informed by your creditor that they would do so, to contact them and reschedule your debt.
If you are unable to do so then you would need to deal with a collection agency and an agent appointed by them. In any case it would need your total attention as you would not be able to refrain from paying up your debt as your creditor would pursue you till they are paid their dues.
If you are really pushed to a corner and are harassed by a collection agency the best avenue open to you would be to file a complaint. You would need to collate all information that is in your possession and file the complaint well or it could be thrown out without much of a hearing. It is how and what weight your complaint would hold that would matter hence having all the information in your hands is very important.
To do so you could follow the following steps and make a comprehensive complaint against a collection agency if you find that they are deviating from the parameters set to them within the Collection Agency Act.
- Draw up and file a complaint with all details in a set sequence with the Consumer Financial Protection Bureau.
- Do the same with the Federal Trade Commission by way of a filed complaint again written clearly and precisely.
- Get in touch with your domiciled State’s Attorney-General.
- You could also file a complaint with the Better Business Bureau
If you are being contacted by a collection agency it would be in your best interests to ensure that you keep all records of contact with you as they would come handy at a later date. If you pay up and the debt is settled then you would not have a problem but there are a majority of debts that go sour and when it does having information from the beginning would be in your best interests.
The Collection Agency Act has ample protection for the creditor and the debtor hence it is necessary that both parties conduct themselves with decorum and proper discipline. It is when one side deviates from the norm that things would get out of hand and issues crop up that would end ultimately in legislation. There is protection for you under the Collection Agency Act hence if found wanting to use it for your benefit. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
We all need to save money for a rainy day and if we do not we could be in trouble when an unforeseen disaster strikes. The lifestyle in Canada could be quite fast with everything that you would do taking a few dollars from your pocket. If you continue in that trend you would be with an empty pocket at the end of the day or when you step into old age. Financial stability is needed and that could be achieved only if you are in the habit of saving wherever it is possible. It may not necessarily be that you save physically those additional few dollars but by cutting a few corners where a few dollars would remain in your pocket.
Hence it is imperative that you save a few dollars every month and stash it away safely so that you have access to it when you really are in need of money in an emergency. We know that it is little grains of sand that make a mighty land and little drops of water that make a mighty ocean. Keeping this in mind and trying to save a few dollars wherever possible would ensure that you could lay back and be contended that you have a financial backup when you need it.
It is not only by putting away money that you could save but you could do so by ensuring you control your day to day expenses where a few dollars would be drained out without your knowledge. It is these few dollars that we are interested in which if calculated would run into a few hundreds or even thousands of dollars over a period of one year. We have compiled a list of just TEN easy ways that would be easy to follow and also ensure you save a few dollars on a regular basis for which of course you would need to commit yourself very intelligently.
#1. Join or create a carpool with friends or neighbors
Research done by Statistics Canada has enlightened that an average Canadian worker commutes about 25 kilometers to work and back every day. Covering such a distance annually would cost you around $1,800 on gas alone every year. This is not taking into consideration other factors like wear and tear which the car would undergo during that time.
If you carpool and travel only one day per week with friends or neighbors you could be dropping this figure down substantially which could be about half that. If you save that amount of $900 it would be a small amount but would add up in your kitty.
#2. Pay bills on time
Pay your bills on time. If you do so you would not be paying surcharges, interest, or any other unnecessary additional costs. Over a period of time depending on your financial status, you could be saving quite a substantial amount. Paying such unnecessary charges should be avoided. These are savings that would accrue to your saving kitty over a period of time.
#3. Shop with prudence
Many vegetables, fruits, canned items, fish, and other stuff we like to eat are seasonal and if you know what is available in abundance and in which time of the year you could be buying fresh foodstuffs whilst also paying less. You don’t need to be an expert on the matter but when you live a year or so in any particular area you could jot these down on the calendar and then make some prudent changes to ensure that you eat the freshest and at a lesser price too.
#4. Manage the heating and cooling systems
Ensure that you adjust your thermostat according to your needs and don’t just keep the air-conditioning or heating system running when you are away from home. Research by Energy experts has found that you could be saving up to $400 annually if you use your cooling and heating system prudently.
#5. Negotiate your insurance premiums
Negotiate all your insurance premiums, your home, car, and all other insurance would cost a tidy sum annually, but if you could negotiate with your insurance agent you may end up paying much less than they would quote. If you are not satisfied try another agent and they would offer you a better premium than the former. The savings that you would make would be quite a sum when calculated annually.
#6. Check your vehicle every winter
Get ready for the winter and ensure that you do a tune-up to your vehicle every winter before it begins and this way you would not be spending unnecessarily with avoidable breakdowns. Your regular mechanic or the vehicle center would help you out which could save you a good tidy sum annually.
#7. Look for bargains regularly
Bargains are galore in supermarkets and departmental stores and to pick up what you would need, make a list of everything beforehand. When you are out shopping inside any shop look at the bargains you may just find what you wanted and buying at bargain prices would save you a lot especially when spread out over a year.
#8. Check vehicle air pressure regularly
Driving with low tire pressure wastes gas and doing it on a regular basis would burn gas unnecessarily. Ensure that you check your tire pressure on a regular basis and reduce the consumption of gas. This could be a tidy sum saved on gas annually.
#9. Avoid traffic fines
Canadians pay millions of dollars on traffic fines and these are unnecessary payments that could be easily avoided. Ensure that you drive carefully and don’t speed as it is not worth the trouble and could be life-threatening too. If you do not pay traffic fines you would not be contributing to the Canadian police unnecessarily.
#10. Avoid shopping with credit cards
Credit cards generally buy things that we don’t need. Hence avoid flashing your credit card when you buy because by doing so you would not be buying what you don’t need. It would save you loads over a year. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling
All of us love to take a break from our busy schedules and go on a vacation. To get the best vacation experience, you will need to save money. However, it is not something difficult as you think. That’s because a variety of methods are available for you to save money for your vacation and take your experiences to the next level.
Below mentioned are some of the most effective methods, which you will be able to follow in order to save money for your next vacation.
- Open a bank account and save
Apart from the bank account that you have, it is possible for you to go ahead and start another dedicated bank account. Then you will be able to save your money in that bank account for the vacation. It is possible for you to set up automatic money transfers to that account as well. Then you don’t need to worry too much about saving money for the vacation. That’s because you will be saving money automatically to spend an unforgettable vacation in the future. It is better if you can open up an interest-bearing account. Then the money you save for your vacation would grow along with time.
- Do a side job
If you don’t get enough money from your job to save for the vacations, you can go ahead and select a side job. The extra hassle that you put in order to engage with a side job is totally worth it when compared to the fun and excitement that you will be able to get during the vacation. Both online, as well as offline side jobs, are available for you to do when you are trying to save money for your vacation. It is up to you to take a look at those side jobs and select a one that you can easily do.
- Use your car to make some money
If you have a car, you can easily use it in order to make some money. For example, you will be able to become a Lyft or an Uber driver and give rides for the people in need. Or else, it is even possible for you to rent out your car. By renting out your car for one month, you will be able to save enough money to enjoy a complete vacation. Hence, you can think about giving it a try.
- Reduce the money that you spend on your food
You must be spending a lot of money on your monthly budget on food. If you want to save enough money for traveling, you are strongly encouraged to reduce the money that you are spending on food. You will be able to save a lot of money by purchasing food in bulk. Or else, you can think about shopping for food you want from the farmer’s markets. If you have enough space, you can start your own garden as well. All these methods can help you to save a considerable amount of money that is being spent on food.
- Start a travel blog
By starting a travel blog, you will get paid for taking your vacations. However, you need to keep in mind that this is not a direct method of saving money for a vacation. Instead, you will be spending your money to go on vacation. But you can get that back with the assistance of a travel blog. You can easily start a blog for free, without any technical expertise. Then you will be able to put up advertisements on the travel blog. You will be paid for the visitors who come and go through the posts that you have shared on the travel blog.
- Look for the deals on outdoor equipment
From recent studies, it has been identified that the families are spending a considerable amount of money to purchase outdoor equipment. There is a possibility for you to save a lot of money on it as well. All you have to do is to start looking for the amazing deals that are available on outdoor equipment. For example, you can take a look at garage sales. Or else, you can even purchase used rental equipment as they can offer the same experience to you at the end of the day. You can think about buying and re-selling outdoor gear as well.
- Reduce the money that you spend on workouts
You can also go ahead and reduce the money that is being spent on the workouts. You don’t always need to go to the gym in order to workout. For example, if you are a person who only engages with cardio workouts in the gym, you can simply do that at the comfort of your home. Or else, you can think about hitting one of the local jogging tracks. You can also learn alternative workouts, which you can do at the comfort of your home, without spending any money out of your pocket. Yoga can be considered as a perfect example to prove the above-mentioned fact.
- Save money on the credit card
If you are having a credit card, there is a high possibility for you to save a considerable amount of money on it as well. For example, you can look for the amazing deals that are available for your credit card from the merchants. If you have a credit card that accumulates airline miles, you must go for it as well. Then you will be able to fly for free in the upcoming vacations.
- Sell your stuff
If you have stuff that you are not using, you can simply sell them. This method can also help you to save a considerable amount of money for the vacation. You can take a look at your home and see what items you don’t really use. Then you can advertise them online and sell them. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling
As an earner in Canada, you are legally bound to making the tax payments to the Canada Revenue Agency. In fact, you need to focus on making your tax payments on time. Failing to make these tax payments on time can lead you towards a variety of negative consequences in the long run. That’s because you will be charged for penalties and interest.
Interest
In case if you have any owing balance for 2017, you need to be concerned about the penalties that you will have to face. All people who have owing balances will need to make a daily compound interest payment. This has started on the 1st of May. This would be applicable for all the unpaid amounts of debt, which is owned for 2017.
The outstanding amount includes all the balance payments, assuming that the Canada Revenue Agency assesses your returns again. Moreover, the Canada Revenue Agency will charge interest from the people on their penalties as well. This would start from the immediate date, following the due date of filing. The specific rate of interest that you have to pay will change in every three months as well. You can do your own research on the internet to get a clear understanding of the prescribed interest rates.
If you are having money that you owe from years before 2017, the Canada Revenue Agency would continue charging the daily interest on those amounts as well. Hence, the payments that you make will be applied against the amounts of debt that you have from the previous years. If there is no previous debt, the amount you pay will be applied against debt that you have in 2017.
Late filing penalties
Most of the people in Canada end up spending a considerable amount of money on the late filing penalties. Lack of knowledge can be considered as the main reason behind the above-mentioned fact. If you are yet to make a tax payment for 2017 and if you go ahead and file for the tax return for the year 2017 after the due date, Canada Revenue Agency will charge a late filing penalty for you. As per 2017, this late filing penalty is 5% of the outstanding balance that you owe. In addition, 1% of the balance amount that you owe for every single month of the late tax return will also have to be paid. This would be counted for a duration of 12 months.
As mentioned earlier, the Canada Revenue Agency would charge for your late filing fees for the tax returns on years before 2017 as well. If the Canada Revenue Agency charges for years 2014, 2015, or 2016, the late filing penalty that you have to pay in 2017 will become 10%. In addition, you will need to make a 2% additional payment for every complete month, where your tax return is late. This is applicable for a period of 20 months.
Failing repeatedly to report the income
If you fail to report your income to the Canada Revenue Agency repeatedly, you will be asked to make a penalty payment as well. This is applicable for the individuals who failed to report in 2014, 2015, 2016, and 2017. In such a situation, you will be asked to make a territorial, provincial, or federal income penalty. However, you will be accused of this penalty only if you fail to report when the amount of income is over $500 for a given tax year.
The territorial or provincial and federal penalties that you will have to make are equivalent to the reduced amount of:
- 10% of the total amount that you failed to report on the tax return for the year 2017.
- 50% of the different amount that exists in between your understated taxes, which are related to the specific amount that you couldn’t report and the specific amount that is being withheld with related to the specific amount that you failed to go ahead and report.
But still, you are provided with the ability to go ahead and inform about a specific amount that you failed to report. You can do this voluntarily. If you do that, the Canada Revenue Agency has got the ability to waive off the penalty amounts that you have to pay.
Penalty for providing false statements
When you submit false statements, you will be asked to make a penalty by the Canada Revenue Agency. Therefore, you should always stick to true and credible statements when you are filing for your taxes. The penalty that you will have to pay for the submission of false documents will either be $100 or 50% of the total understated tax amount that is related to the omission or the false statement. You will need to make a payment equivalent to whatever the higher value calculated by the above two parameters.
Waive or cancel penalties
If the taxpayers in Canada are not in a position to meet the tax obligations, the Canada Revenue Agency would waive or cancel the penalties. This happens when the taxpayers fail to make their payments due to conditions that are beyond their control. However, it is important to keep in mind that grant reliefs offered by the Canada Revenue Agency is limited to a specific period of time. It usually ends within a period of 10 years, where you have made the request.
Now you are aware of how much money Canada Revenue Agency will charge from you in the form of penalties and interest. If you want to stay away from these penalties and interests, you are strongly encouraged to pay special attention to your tax payments. Then you will be able to keep peace of mind and continue making the tax payments. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
When you are looking for a home to live, you have two major options available to consider. Either you can rent a home, or else, you can spend your money and buy a new home. Most of the people tend to get stuck when making a choice out of these two options. That’s where you need to analyze the pros and cons associated with renting a home and buying a one. With that, you will be able to make an appropriate decision.
Pros of buying a home
When you purchase a home, you will be provided with the opportunity to build up equity along with time. The renters will not be able to experience it. You can buy a home with a home loan. Every month, you will need to make a payment against it. A portion of this payment would go as interest. However, the remaining amount will be used to settle the capital. As a result, it can be considered as a long-term investment.
People who purchase homes will be able to experience a large number of tax benefits as well. For example, you will be eligible for federal tax deductions. On the other hand, you will be able to make yourself eligible to receive homestead exemption as well.
After purchasing a home, you will be able to get a sense of belonging. That’s because you know that you have a place to call on your own. This can cultivate creative freedom as well. You will be able to go ahead and decorate the home according to the specific preferences that you have in mind. A large number of DIY project ideas are also available for you to consider. Hence, you will love that unique experience offered to you.
Cons of buying a home
You will have to spend a considerable amount of money out of your pocket to buy a home. This can be considered as the biggest drawback associated with it. It is true that homeownership has got the ability to help you build equity along with time. But equity is not related to automatic profit. If the prices of homes in your area reduce along with time, you will end up making a bad investment.
When you purchase a home, you will be provided with the responsibility of maintaining it. Maintaining a home cannot be considered as an easy thing to do. You will have to spend a lot of money on the repairs as well. For example, if your house is worth around $100,000, you will need to spend at least $10,000 for the repairs of your house throughout a period of 10 years.
Most of the houses are not sold furnished. Hence, you will need to spend additional amounts of money out of your pocket to furnish the house that you purchase as well. In addition, you will have to spend a lot of energy and time on it as well.
Pros of renting a home
Now let’s take a look at the reasons available for you to go ahead and rent a home.
When you rent a home, you will not be provided with the responsibility of maintaining it. You don’t even have to worry about the repairs. If a pipe bursts or if the toilet backs up, you don’t need to spend money out of your pocket to get that fixed. All you have to do is to get in touch with the landlord. The landlord would take appropriate steps to help you overcome the frustration that you are going through.
If you are a person who doesn’t prefer to stick to one location, renting a home would be the best option available for you to consider. For example, you might have to travel a lot because of your work commitments. In such a situation, purchasing a home would be a waste of money. Instead, you can simply rent out a home. Whenever you need to move to another location, all you have to do is to find a new home for rent in the new destination. The process is simple as that and you will be able to minimize the frustration.
After renting the home, you don’t need to worry about the changes that are taking place in the real state market. The home value fluctuates along with time. It can even go down under certain instances. But you don’t need to worry about it because you are just renting the house.
Cons of renting a house
The biggest disadvantage associated with renting a house is that there will be no equity building up. Hence, you will be just spending your money in the long run and you will not be able to gain anything in return from it. But there is a possibility for you to go ahead and sign up a rent to own agreement with the property owner. But you cannot confirm whether the property owner would agree to come into this kind of agreement.
People who rent out property will not be able to experience any federal tax benefits as well. The homeowners are being provided with the opportunity to go ahead and reduce the mortgage interest and property taxes from the federal income tax returns. But if you have just rented out the property, you will not be eligible for it.
When you rent out a home, you will not be able to do any customizations to it and call it a place of your own. That’s because you have agreed to a contract along with the property owner. This can make you feel like you are living in a place that is not owned by you.
Conclusion
As you can see, there are pros and cons associated with both options. Hence, you need to take a look at your personal preferences and then go ahead with the best option that is available to consider. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
When you are not in a position to settle your debts, you simply go ahead and file for bankruptcy. However, all the types of debts are not being covered when you file for bankruptcy. Hence, it is important for you to have a clear understanding of what debts are covered and what debts are not covered at the time of filing for bankruptcy.
It is also possible for you to go ahead and file for bankruptcy without seeking the assistance of a legal professional. If you are going to do that, you need to be well-informed about the process. That’s why you need to take a look at the debts mentioned below and understand that they are not being covered in bankruptcy within Canada. As a result, you will be able to stay away from filing for bankruptcy unnecessarily within the country.
In Canada, student loans will not be covered in bankruptcy, as long as they less the 7 years old. It has been identified that most of the students living in Canada go ahead and obtain student loans. That’s mainly because education is so expensive in Canada and the students find it as a difficult task to cover up their expenses. However, you need to keep in mind that student loans are not covered in the case of bankruptcy. If you are not in a position to settle your student loan, you shouldn’t go ahead and file for bankruptcy. It will not be able to provide any assistance to you. Student loans in Canada can further be divided into several categories. They include privately lent student loans, federal student loans, and loans that are directly offered by the colleges. All these types of student loans will not be covered during a case of bankruptcy.
However, there is one exception, which you need to keep in mind. If you can prove that you are not in a position to work after your college or again in your life, due to a permanent or complete disability, you will be able to include your student loan in the bankruptcy and file for it. But in general, people are not allowed to go for it.
There are individuals who purchase valuable items, such as cars, merchandise, or jewelry. After purchasing these items, they go ahead and file for bankruptcy. This can be considered as another major mistake that they do. That’s because you will not be able to file for bankruptcy because of the items that you have purchased. If you are filing for bankruptcy, you will either have to continue making your payments for the lender or to give up the items that you have purchased.
You need to keep in mind that the lender of the loan has got a security interest against the item that you have purchased. In other words, you have come into an agreement with the lender in order to pay for the product in return for the item. In case if you fail to work according to that agreement, the right that you have to continue with using the item would be removed. Hence, you need to think about this factor at the time of filing for bankruptcy.
There is an exception in this situation as well. You will be able to surrender the merchandise, jewelry, or vehicle you bought back to the lender. Then you will be able to get rid of the obligation that you have in order to make a payment back. You will not be allowed to keep an item along with you. The security interest of the lender can be considered as the main reason behind the above-mentioned fact. Therefore, you will not be able to retain the item and stay away from making a payment to it.
Luckily, you will not be asked to remove the legal obligations that you have to pay for your child as a support at the time of bankruptcy. If you have an outstanding balance, which you are willing to use as this payment, you will be provided with the ability to keep it after the case.
- Credit card debt and legal payments made to the ex-spouse
If you take a look at the divorce cases, the spouse usually agrees to make a payment for the legal expenses. Or else, the spouse will agree to make a payment against the outstanding debts that are owed by the partner. These debts are in a position to provide tremendous assistance to you with surviving your bankruptcy.
You can go ahead and come up with an agreement in order to pay the credit card balance that is against your name. Then you can nominate your spouse as the person who makes that payment. Then you will not be able to turn around then proceed with filing for bankruptcy. That’s because filing for bankruptcy will not be able to help you settle those agreements to make the payments or the debts. Your spouse is still in a position to force you and to tempt you in order to make the payments.
The process of rebuilding your credit can be a long and frustrating one. If you go blind in this process, you will have to deal with a series of negative consequences. Therefore, you should stay informed and start rebuilding your credit slowly.
- Court-ordered restitution
Last but not least, you must understand that court-ordered restitution is not covered when you file for bankruptcy in Canada. If you don’t know, restitution is the amount of money that the court will ask you to pay, because of a personal injury or a financial loss that you have done for another party. Since you are guilty in this case, you will not be provided with any relief when you are filing for bankruptcy. Any help for financial problems contact gtacredit.com or call 416 650 1100
