credit cards
Posts about credit card debt and strategies to deal with it, including filing a consumer proposal or personal bankruptcy proceeding.
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Can you file a consumer proposal with a positive net worth?
I’m struggling to pay debt and honestly I’m super confused with all the different debt options available since I never faced this situation before. Which way to reduce my debt while NOT hurting my credit score? (Ideally) Debt consolidation, Debt settlement, Credit counseling, Consumer Proposal, or Bankruptcy? (last resort i guess) I still have a decent credit score (715) and still making mortgage/car/minimum cc payments, but i have the following debt which i cannot pay anymore: CRA personal: 47k CRA business: 38k Property Taxes: 15k Credit Card balances: 20k (30%ish usage of available credit) I also own a home valued at 450k and have 175k balance on the mortgage… What…
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Was in an abusive relationship and owes $50,000
I’m 23 and I was in a long term abusive relationship that severely impacted my finances and put me in a terrible debt situation. I currently have just over $50k in debt, roughly $30k from a car loan that I was pressured into getting into, about $7500 in credit card debt and around $13k in personal loans. I am making around $2300 per month and once all my payments are made (rent, car, insurance, phone, loans, credit cards) I have about $185 left over to cover food, gas and other necessities. I have good credit, around 750. I’ve never missed a payment but soon it will get to the point…
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When does debt consolidation loan make sense?
What is the best company for consolidation loans? $33.5k in debt and looking at debt consolidation. How do I find the best company for consolidation loans, or at least someone to talk to about it I looked on Google of course, but you never really know what places are legit, and I couldn’t really find anything like testimonies on the best company for debt consolidation or anything like that. Is doing this online the best way? Or is looking locally better? I’ve just never had to do anything like this before, so I’m a little lost. Should I speak to a financial advisor at my bank about this maybe? Or…
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Can you keep a credit card when filing a consumer proposal?
I have a personal AMEX and a Visa I use for paying services I need for my consulting business (how I’m able to make money at the moment). What’s the likely hood I’ll be able to keep cards assuming I have no balance at the time of the proposal? My debts come from personal guarantees I had made for a Corp that got loans, that business failed and I’m on the hook for whatever the lenders decide to do (I’m ready for the worst tbh). My trustee handling the business bankruptcy has been helpful, but I’m asking PFC to see if anyone from my side who’s dealt with this before…
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My mother is 53 years old and $50,000 in credit card debt
Hello there. I’ll explain myself a bit Basically my mother has nearly 50K in credit card debt with her multiple cards. This was acquired just by living expenses since my mom didn’t work much through covid (health problems) My mom is 53 and has pretty much been financially downtrodden constantly, she first went bankrupt on student loans whenever just before the cutoff where you could not go bankrupt for student loans anymore, 15 something years ago I’m not sure. The majority of her paycheque goes towards the minimums for all her cards and will take her 2 decades to pay off. Recently she has talked about claiming bankruptcy but is…
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Can I max out credit cards before bankruptcy?
Here’s what would happen if you did this. Your Licensed Insolvency Trustee would be contacted by the bank which issued you the credit card. The bank would inform your LIT that it’s reviewed your credit card transactions for the 12 month period before you filed bankruptcy and they’ve noticed that you’ve made some questionable transactions such as large purchases, cash advances, vacations, etc. The LIT will arrange for you to be examined under oath by the Office of the Superintendent of Bankruptcy and will ask you questions about these transactions. After the examination, they’ll issue an examination report to both you and your LIT with an opinion as to whether any aspects…
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Handling my mother’s credit card debt because she’s irresponsible
My mom got a Capital One Credit card in 2014 with a limit of $7300. She eventually ended up maxing out the card and due to some issues with her relationship, she had to move out. They told her they were going to pass her to collections but they never did, so she forgot about it. About 4 years ago, she ended up buying a house (I don’t know how she got a mortgage with this possibly on her credit record), and she had no problems. Then Capital One retained a lawyer to recover the debt + interest, so they lawyer told her, she has to pay back $11,313.73 due…
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A Millennial banker is $33,000 in debt – what are his options?
29M in GTA with maxed $8,000 RBC Visa @ 20.99% and $25,000 RBC LOC @ 12.5%. Started university later in life and was living out of family home with no outside help so incurred this debt in the last 5 years or so. Finally finished school and am working as a paid intern at a big 5 bank in DT Toronto but currently only making $53,500/yr and interest is killing me. No assets or savings. At this rate I’m never gonna get this paid off so considering a consumer proposal. Is this my best option? Any help appreciated! Victor Fong, Licensed Insolvency Trustee responds: LIT here. In reference to your…
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Credit Scores and Rebuilding Credit in Canada
Introduction In theory, a credit score should be quite simple – through an algorithm, you’re assigned a numerical score that determines your credit worthiness. The score is a weighted average of many factors, including but not limited to: Your payment history Your credit utilization rate, which is how much of your credit limit you have uses versus how much you have available to you Balance owing on your debts The length of your credit history Public records (such as bankruptcy) Number of inquiries into your credit file Different Credit Scores But the reality isn’t that simple. Here are the complicating factors: Each of the two major credit rating agencies, Trans…
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20 Year Old Considering Personal Bankruptcy
A reader asks: I messed up big time but I’ve learned a lot of lessons. I earned just a hair shy of $200,000 in my first year as a real estate agent at 20 years old. I was way too immature to have that kind of money, and blew most of it without saving. I invested my tax savings in growing my team which I thought would have been an easy pay back. Lost it all. No worries though just sell more houses. Depression strikes, mother gets very sick, I took on an expensive apartment and car. Not emotionally mature enough to handle these things like an adult yet. Hemorrhaging…
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