Getting out of debt is the first step toward a bright financial future. There are tons of benefits to becoming debt-free, especially when it’s high-interest loans or “bad debt” like credit card balances that are holding you back.
When you’re carrying less debt, you have more money to invest, earning interest instead of paying it. Your credit score will also benefit, making it possible to qualify for lower interest rates in the future.
But getting there isn’t necessarily easy. If money’s tight and you’re struggling to keep up with bills, you can get assistance through credit counselling on Vancouver Island with a Licensed Insolvency Trustee.
The Initial Assessment
Licensed Insolvency Trustees should offer a free initial consultation, at which point they will assess your finances. They will then advise you on the best way to proceed. They may suggest options like debt management, debt consolidation, filing for bankruptcy, or a consumer proposal, depending on the specifics of your situation.
Only Licensed Insolvency Trustees can help you with filing for bankruptcy or a consumer proposal; however, other professionals can assist with debt management and consolidation.
Credit Counselling on Vancouver Island During a Proposal or Bankruptcy
Filing for a consumer proposal or bankruptcy is an effective way to get debt relief and settle your accounts with creditors. As part of the process, you’ll go through two credit counselling sessions that are conducted one-on-one with an experienced insolvency counsellor.
The goal of these sessions is to help you avoid insolvency again. Filing bankruptcy for a second time will remain on your credit history for even longer, and debt always has a negative impact on your financial future.
A counsellor will work with you on improving money management, identifying financial danger signs, and learning how to use credit productively. You’ll come out of credit counselling with a better idea of how to achieve your long-term financial goals and avoid debt in the future.
Other Types of Credit Counselling
There are other types of credit counselling not offered by Licensed Insolvency Trustees, usually using the term “Credit Counsellors.” They offer services like negotiating with your creditors and payment arrangements. They may be able to save you some money on interest charges, but keep in mind that unlike a Licensed Insolvency Trustee, they are not required by industry regulation to advise you of all your debt relief options. These types of services aren’t as closely regulated, either.
They also don’t have any means to stop legal actions from creditors or calls from debt collectors. Whereas filing for bankruptcy or a consumer proposal will bind all creditors in a debt settlement arrangement, that doesn’t apply to any arrangements made without a Licensed Insolvency Trustee.
If you can get out of debt without filing for bankruptcy or consumer proposal, and do it in a reasonable amount of time, that can be great for your finances. But there are other mechanisms available that you can use to find relief and start over sooner.
OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
