DEBT SOLUTIONS

Credit Relief and Debt Solutions in Vancouver

If you are having trouble paying your debts, you need reliable information to assess your possibilities. There are many options available and Crowe MacKay & Company is here to help. We are glad to offer a wide range of credit relief services and debt solutions in Vancouver and the surrounding area. Bankruptcy is not your only option, so please call us or fill out our Debtor Application Form to learn what the best course of action is for you.

 

Bankruptcy

For most people, bankruptcy should be treated as a last resort. If you’ve declared bankruptcy before, you should especially try to avoid going bankrupt again. The consequences can include:


• Serious harm to your credit
• Loss of your professional accreditation
• Loss of some of your assets


Although bankruptcy should be avoided if possible, in some situations it is impossible to reach an agreement with creditors. In these cases, bankruptcy may be the best option.

 

Debt Consolidation

There are different types of debt consolidation. Some require you to borrow more money and use it to pay off your due amount. Other consolidations create a debt management program; rather than taking more money, you use your income to pay. If you’re struggling with it, a consolidation loan may let you pay off your creditors, leaving you with just one monthly payment. It's important to not rely on credit cards. Try to live on a cash-only basis to protect yourself from further debt.

Be mindful to shop around for the best interest rates. Depending on your circumstances, you may find that you can’t get a consolidation loan through conventional channels.

 

Proposals

A proposal is an agreement between you and your creditors allowing you to discharge your debts by paying more than your creditors would receive if you went bankrupt but less than what you currently owe. Your proposal must be filed by a Licensed Insolvency Trustee. After filing, your creditors will vote on whether to accept your proposal. There are 2 types of proposal available to you: Consumer Proposals and Ordinary Proposals.

Consumer Proposals are available to individuals with debts of less than $250,000 (excluding mortgage secured by principal residence). If your proposal is rejected by your creditors, you will still have options available to you, and you do not have to go bankrupt.

Ordinary Proposals place no restrictions on the maximum amount of debt. If an Ordinary Proposal is rejected by your creditors or by the Court, you will be automatically bankrupt. To learn more, speak to our experienced staff. They will be glad to help you.

 

Credit Repair

  • Most financial institutions review your credit report and credit score to decide if they will lend you money. If you have no credit history or poor credit history, it could be more difficult for you to get a credit card, loan or mortgage.

  • If you have a good credit history, you may be able to get a lower interest rate on loans. This can save you money over time.

  • Your payment history is the most important factor for your credit score.

To improve your payment history:

  • Always make your payments on time.
  • Make at least the minimum payment if you cannot pay the full amount that you owe.
  • Contact the lender right away if you think you will have trouble making a payment.
  • Don't skip a payment even if a bill is in dispute.

  • Do not go over your credit limit. Borrowing more than the authorized limit on a credit card can lower your credit score.

  • Use less than 25% of your available credit limit. It’s better to have a higher credit limit and use less of it each month.

  • If you use most of your available credit, lenders see you as a greater risk. This is true even if you pay your balance in full by the due date.

  • The longer you have a credit account open and in use, the better it is for your score. Your credit score may be lower if you have credit accounts that are relatively new.

  • If you transfer an older account to a new account, the new account is considered new credit.

  • Consider keeping an older account open even if you don't need it. Use it from time to time to keep it active. Make sure there is no fee if the account is open but you don't use it.

  • It is not unexpected that you will apply for credit from time to time. When lenders ask a credit bureau for your credit report, it is recorded as an inquiry. Inquiries are also known as credit checks.

  • If there are too many credit checks in your credit report, lenders may think that you are urgently seeking credit, are desperate or trying to live beyond your means.

To control the number of credit checks in your report:

  • Limit the number of times you apply for credit.
  • Get quotes from different lenders within a two-week period when shopping around for a car or a
    mortgage; your inquiries will be combined and treated as a single inquiry for your credit score.
  •  Apply for credit only when you really need it.

  Your score may be lower if you only have one type of credit product, such as a credit card.

It's better to have a mix of different types of credit, such as:

  •  A credit card
  •  A car loan
  • A line of credit

  A mix of credit products may improve your credit score. Make sure you can pay back any money you
borrow. Otherwise, you could end up hurting your score by taking on too much debt.

Contact Us

For any questions on debt solutions in Vancouver, call us today. You can also fill out the online form and our team will respond promptly.

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