by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
By far the smartest way to avoid going bankrupt is to save. It is sad, that most people do not realize the importance of savings. It is an art that not only helps you maintain a healthy financial position but also aids you when the situation resembles more of a crisis. For most of you, saving becomes a hassle as you do not have a direction or guideline as to what and where you can save your money. If that is the case with you, follow the simple tips listed below that will allow you to save effectively and efficiently.
1. Set Goals for Saving
Like every other thing, saving also needs motivation. Decide what you are saving for; whether it’s that sports car you have always wanted, or the homely diner you always wanted to own, it could even be a dream vacation or simply buying a house in five years time. Set a target and then work out how much you need to save every month to achieve it.
2. Set Aside Your Savings First
As soon as you receive your paycheck, set your intended savings aside no matter how big or small the amount is. If you fear you would sway at it if given an option, set up an auto debit from your pay account to your savings account. That way you would not cheat yourself out of a good long term savings.
3. Create an Interest-Bearing Account
Keeping your savings and checking accounts separate reduces the chances of you borrowing out of your savings from time to time. For long term savings, explore options of investing into products that will yield higher returns for you.
4. Save on Utilities
Save on your utility bills where you can. Lowering down your water heater thermostat can help you lower down your monthly energy costs. Opt for tankless water heaters instead of the conventional storage tank water heaters to further reduce your utility spending.
5. ‘Staycation’ Instead of Vacation
Everybody needs a vacation. It’s only fair that you take a break every now and then fly off to your dream destination spending a fortune. The idea is to take a break and while you are saving, a better option would be to look for fun vacation spots close to your home-it will cost you far less than an overseas vacation.
6. Take Home Packed Lunch
One of the most convenient ways to save is to save a little every day. If you buy lunch at work every day, it surely costs more than it would to take home-made lunch along. For example, if you save $4 on an average, you can create a good fund amounting to $1000 by the end of the year.
Simply put you can end up saving a valuable amount given you implement these basic habits into your life and making an effort to save.
by admin | Consumer Proposal, Credit Counseling, Uncategorized
A credit score matters a bit too much when it is your financial standing that is being evaluated. Thus it is important for you to know where you stand, and what can be done about improving your position. For this purpose alone, you should know how to obtain and evaluate your credit report and calculate your credit score.
An excellent credit score can land you financial products and services with the best terms and conditions-whether it is insurance policies or mortgage loans. The mere difference of a fair and good credit can either save or cost you thousands of dollars. Therefore, it is always a good idea to improve your credit score. Here’s how you can do that.
Don’t Apply For Credit That You Do Not Need
First things first, do not apply for unnecessary loans and credit. A large number of credit applications on your recent credit history make you look hungry for money. Greed never did anyone good, and neither will it do you any. More credit means lower credit score.
Do Not Delay Your Bills
Your payment history for monthly and utility bills counts. It is a major aspect in determining your credit score. Make sure you do not delay the payment of bills, because doing so will only take toll on your already fast declining credit score.
Keep a Long Credit History
A well maintained, responsibly paid off, long credit history is a plus point for you. When you show an impressive credit history when applying for a loan, it will boost your score and help you attain the best possible terms for acquiring your desired financial product or service.
Maintain Low Debt Balances
This is important. No matter how much you are tempted to spend, do not exhaust the limits of your credit cards. When you reach closer to the credit limit available to you, it alerts authorities and results in deteriorated credit score. Aim at keeping your debt balances lower than 50% of your credit limit. Even better, if you can manage it, try and keep it below 30% of your credit limit.
Have a Variety of Credit
Keep revolving your credit resources. It is not wise to keep all your credit in the same category. Mixing up different types of debts like mortgages, car loans, credit cards and RRSP loans can strengthen your credit history. It helps by giving off the impression that you are capable of managing various credit conditions efficiently.
Following the simple steps mentioned above can bring drastic improvements to your credit score. It may take a while though before results start to materialize. Remember, the key to better financial products and services is to improve your credit score and maintain it. If you feel your credit score is way too out of hands, visit the experts at GTA Credit Solutions Services Ltd. for expert counsel.
by admin | Consumer Proposal, Credit Counseling, Uncategorized
An increasing number of people are ending up deep in debt nowadays; most of them do not realize that it is possible to actually improve their financial standing and debt payment schedule. Simply put, some effective planning and modest lifestyle changes can help avoid you having to declare bankruptcy.
One of these minor lifestyle changes includes living on a creative budget. Now the word budget might appear daunting for most, but it can help you out of your debts and get back on your feet. It is aimed at making you learn how to save more and spend less. Listed down below are money-saving tricks that will enable you to reverse your debt problem.
Spend Less on Entertainment
Living on a budget requires sacrifices, the first of them would have to be the entertainment. Most people tend to spend a lot on eating out, movies, spa treatments, personal grooming, etc.
While personal grooming is something we do not want to discourage you from, most of these can be worked out using simpler, less expensive alternatives. For example, instead of going out for movies, you can rent one from online library; for a spa treatment that you have once every four weeks, try delaying it to once every six weeks; instead of eating out too often, stay home for dinner or choose less expensive meals if you do have to eat out.
Avoid Unnecessary Spending
Save on gas wherever you can. Plan your routes and errands well and cut down on the use of gas by avoiding multiple trips. Also, you can walk or cycle for short distances wherever possible.
If you have a skill, trade it for the services you require instead of a monetary value. Offer to babysit your hairstylist friend’s children in return for a nice haircut. Walk or hike instead of signing up for pricey gym or Pilate sessions, you can also stay fit using the instructional workout routine videos available online.
Cut Down on Monthly Bills
Monthly bills and payments can add up to a significant amount; look for the best insurance plans, services and utilities to make sure you are not spending more than you should be for a particular service. Cut down or downgrade the services you do not need in order to save further money.
Sell Off What You Don’t Need
Clothing, furniture, home décor – look around your house and you will find various things that you neither use nor need. Such stuff sitting in your house useless means you have cash tied up in unnecessary things. Sell them. Not only will it earn you cash that could be used to pay off your next debt installment, but will also help de-clutter your home.
Incorporating these simple, yet creative habits in your life can help you adopt a debt-free lifestyle and enable you to maintain it too. If however you wish to get expert advice for your debt situation, get in touch with the personnel at GTA Credit Solution Services Ltd.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
Bankruptcy, like everything else, has its consequences- both good and bad. If you plan to declare bankruptcy in order to get out of the sea of debt, you might want to know how bankruptcy will affect you and your life. Following are both sides of the coin to help you make the right decision.
The Negatives
- Temporarily destabilized credit: A bankruptcy appears as a negative mark on your credit report, and once the bankruptcy is filed, it stays on your credit report for about 7 years or more. However, with time, the effect of bankruptcy on the whole ebbs away and your recent actions begin to highlight your credit report.
- Problems in getting loans approved: Since the Bankruptcy filing appears as a black mark on your credit report, it would be extremely difficult for you to qualify for a loan in months directly following the bankruptcy. Even if you do qualify, it would be for low dollar amount-high interest loans only.
- Trouble in getting work: Unfortunately, for some employers, bankruptcy is a reason good enough to not hire someone. Nowadays, employers carry out credit checks in addition to criminal background checks for prospective employees. So if you do not have a job at the time of bankruptcy, you might have trouble finding one immediately after.
The Positives
Fortunately, not everything resulting from bankruptcy is negative – no matter how we see it, bankruptcy is in fact is a protection intended to relieve the burden of liability for people struggling to make ends meet. Listed below are some of the specific positive effects you can generally expect when filing for personal bankruptcy:
- End of lender contact: Once you file the bankruptcy, you are then legally protected that takes effect. This protection stops all sorts of creditors from contacting you, which eventually means that you no longer have to be intimidated by threats of repossession, foreclosure or garnishment through any mode of communication during your case.
- A new financial beginning: the decision to file for bankruptcy is a major step, and thus offers an important reward: a chance to rebuild your life financially. If your bankruptcy case proceeds normally, you have an opportunity to restructure your finances so that they are healthier and better than when you filed for bankruptcy.
- Improved credit than before: Immediately after the bankruptcy, your credit rating will definitely take a hard blow, but as you learn from your past mistakes and take steps towards a better, financially secured life, you have a chance to create a strong credit.
For more on how to make the most of these positive effects and alleviate the damage from the negative aspects, you might want to approach credit counselors at GTA credit to steer you through this financial storm.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
With bankruptcy plaguing the country, it is only necessary to know how one can stay clear of it. One of the biggest causes of bankruptcy in recent times is over spending, which leads to building up of loans and credit, eventually becoming a burden too heavy to carry. Listed below are smart ways in which you can avoid making a mess out of your finances.
Borrow Only What You Can Repay
For every dollar you borrow, make sure you have the capability of paying it back on time. Most of the times, creditors will make sure of that before lending funds to you; however, you as a borrower have the ultimate responsibility of making sure you honor your commitment. Draft out a plan so that you know what and how much you can repay.
Start Saving
Make it a habit to save money regularly. Set up a deposit account with little or no charges and transfer a certain sum of amount into the account each time you get paid. The money you save can pay for unexpected expenditures, or a vacation later.
Review and Pay Existing Bills on Time
Make an effort to pay all current credit card and utility bills on time. You can opt for the direct debit facility offered by your bank that makes regular payments against your account on your behalf. This way, at the end of the month, you will have only a nominal amount to pay or maybe none at all.
Take charge of your finances by reviewing your bills, bank accounts, and credit card activity statements on a monthly basis. This will not only help to investigate any erroneous or doubtful transactions, but will also bring to your notice any bills that you may have not paid.
Keep a Track on Your Credit Cards
These credit cards can prove to be fatal for your finances if not monitored properly. If you have more than one credit card, it is wise to only carry one with you. This not only saves you from unnecessary expenditure but also prevents credit card frauds in case your card or wallet is lost or stolen.
Close down any unused credit cards that you have in your possession – this will help you will smartly evade charges and fees on your dormant cards, not to mention curb the urge to overspend and use up additional credit.
Review Your Credit Report
At least once a year, make sure you review your credit report – always do it before you apply for further credit. The benefits of doing so are two-folds; firstly it will give you a clear picture of where you stand on your credit rating, and secondly, you can spot and fix any errors in the report that may affect your report adversely.
Still, if you are having trouble managing your finances, contact a credit counselor like GTA credit as soon as possible and allow them to help you.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
With an increasing number of people declaring bankruptcy in recent times, one lives in fear of the repercussions of even the slightest financial crunch that materializes in our everyday lives. Nobody wants it, nobody likes to go through it, but the truth is that reasons of bankruptcy vary from person to person and this crisis could hit even the most financially sound people.
Luckily, there are certain defensive measures you can take to avoid having to file for bankruptcy.
Settle Your Debts
Filing for bankruptcy may often lead to liquidation which means selling off all your assets and property; thus a smarter way to go about this would be to hold onto your wealth and still pay off your creditors by negotiating on your debts. You could opt for Debt Consolidation, Consumer Proposal , both of which allow you to make payments to lenders in easy affordable sums.
Paying of your debts will keep you in control of your finances and away from filing for bankruptcy.
Borrow from Family/Friends
Do not feel ashamed of asking your friends and family for financial help. Make a budget and estimate the amount you would need to avoid bankruptcy; you will know how much you need to borrow once you subtract the amount of money you can afford to pay yourself. Just make sure you have a comprehensive plan for paying back both your family and lenders on time.
Sell Your Property
Sell off the excess property to repay your lenders, or at least raise enough money to save you from filing bankruptcy altogether. This does not mean that you empty your house, but parting from a few valuable assets may prove a fruitful investment for your future. Besides, it’s always better than losing everything you own.
Make Sacrifices
Prioritize your expenditure – avoid unnecessary spending on things that could cost you everything you own. Start living your life fulfilling just the basic needs, restructure your spending pattern; save more and pay off your creditors.
Working on one or a combination of the above suggestions could save you from declaring bankruptcy. It will not be easy, but it sure isn’t impossible either. If you still feel it is too much for you to handle on your own, consult a credit counselor or personal finance consultant at GTA credit to get your finances back on track.
