Credit Repair BC Canada
The Mortgage Group Canada Inc.

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  Get out of Debt and Keep it that Way

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  Solutions and strategies to get out of debt can vary for everyone, the sooner you are able to deal with debt, the more options are generally have available to you. Some options for dealing with debt include:
  Can income be increased?
  Increasing hours at work, taking on a part–time or second job anything to increase income if possible.
  Which expenses can be decreased?
  This may mean spending less on recreation or entertainment, not eating out for lunch or dinner at all or as often and learning how to stretch the dollars at the grocery store a little further. It can also mean filing taxes to receive assistance with premiums or government funds which are based on income levels, e.g. medical premiums, child tax credits or GST refunds.
  Are there assets which can be sold?
  Are there any additional vehicles like recreational vehicle ie. ATV, motorcycles & snowmobiles, a second car or other asset that can be sold and used for debt repayment?
  Is a consolidation loan an option?
  For home owners, is refinancing the mortgage a possibility? Refinancing might lower the monthly mortgage payment. A consolidation loan may reduce overall monthly debt payments, as long as no additional credit is used until the consolidation loan is repaid in full.
  Are creditors able to help?
  Negotiate lower interest rates with creditors to pay debt off faster or obtain payment relief during a difficult time.
  Does a settlement for a portion of the balance owe an option?
  Depending on the circumstances, creditors may accept a written proposal to settle outstanding balances owing for a reduced amount. Consult a Debt professional.
  Could a debt repayment plan be a possibility?
  For consumers with a surplus in their budget and the desire to repay their debt in full through a non–profit credit counseling organization, a voluntary debt management program supported by their creditors may be possible.
  Is there a need for a legal remedy to the debt through a Trustee?
  Depending on the nature of the debts and a consumer’s situation, a Consumer Proposal or Bankruptcy, might be options to consider.
  Does it feel like your pay-cheque doesn’t go quite as far as it used to?
  Living costs have increased significantly for most consumers. Gas prices have gone up. Housing costs, including utilities, maintenance, taxes and insurance have risen, not to mention the price of the home itself. Groceries and consumer goods and services have become more expensive.

  How these costs affect your everyday life.
  The cost of borrowing has increased: long–term mortgage rates and variable rate loans and mortgages cost more now than they did just one year ago.
  While many consumers feel that a few small increases won’t affect them very much, the cumulative effect can be significant enough to destroy a budget. Just spending a little more each month; $30 more on fuel, $75 more on housing, $150 more on loan or mortgage payments, plus an extra $100 at the grocery store – where will the extra $355 each month come from? What extras are you able to cut back on so that you have money to pay for necessities?
  When costs increase, rather than looking for ways to decrease their expenses, other consumers turn to credit to supplement their income. Limit increases on credit cards, using one credit card to pay another, or depending on a line of credit to make ends meet, are not sustainable money management strategies.
  Without a plan to manage the additional expenses, many people face an uncertain financial future. The good news, however, is that with a little preparation and planning, most people are able to avoid financial disaster.

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  Preparations to avoid financial disaster need to include:

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  Reducing debt and staying out of debt – some strategies are noted above in points one through nine, or contact us for help
  Eliminating costly contracts that may be difficult to maintain during a financial crisis – only commit to services / features that you really can’t do without
  Building up a savings account to cover 3 – 6 months of living expenses and financial obligations having a budget so that you can quickly identify which extras you can do without if money gets tight
  Over–committing to deferred payment plans or locking in to long–term contracts can make it difficult to reduce debt. Repay deferred interest loans before interest charges become payable. Avoid long–term obligations that you may want to eliminate from your budget during times of reduced income or when expenses increase.
  Save for the Unexpected
  Building up a savings account may seem like a daunting task, especially when trying to eliminate debt at the same time. Some tips to jump start a savings account includes:
  Save unexpected funds, such as tax refunds, gift money or bonuses from work, in a separate account.
  If you are paid bi–weekly, you will have 2 extra pay cheques during the year – add them to your savings account.
  If you receive a pay increase, continue your budget as if you were still earning the lower amount.
  Make savings automatic – ask your employer or financial institution to direct deposit a set amount to your savings account each pay day.
  Eliminating debt, using credit wisely and saving for the unexpected are all part of a responsible money management plan which, in turn, reduces the possibility of a financial crisis. We can help you get started with a budget that works for you! Our free booklet, Money Management Basics, is a short, step–by–step guide to teach you how to develop a plan that will put you in charge of your money. Our friendly and helpful counselors can help you assess which debt management strategy might be right for you. We can also provide you with tools to help you track your spending. Our goal is to help you get in charge of your money – contact us; how can we help?

  Tips for Paying Off Debt

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  Put your credit cards away until you have completely paid off the outstanding balances. Paying for your purchases with cash instead of credit will help you separate needs from wants.

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  Make a complete list of all of your debts (outstanding balances, interest rates and charges) and prioritize them in order of importance. Mortgage payments and vehicle payments are typically at the top of most lists.
  Review your monthly expenses and look for opportunities to cut your costs. Making your cup of coffee in the morning instead of buying a $3 specialty coffee will save you over $1,000 a year! Check your spending for more ways to save.

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  Create a monthly spending plan and track your purchases to help you stay within your budget and maximize your ability to pay down your debt.

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  Establish realistic goals for paying off your credit card debt as well as other consumer debt (lines of credit, vehicle loans). While it is easy to run up credit card balances in a short period of time, it will take time and self discipline to pay them off. Monitor your progress regularly to help you stay on track and motivated to reach your goals.

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  After paying debts that are on fixed monthly payments (mortgages, vehicle and term loans), make the minimum payments required on your credit cards with the lowest interest rates and maximize your payments on the credit cards with the highest interest rates. Once a debt is paid use this extra money to pay down the credit card with next highest interest rate. This will save you money and help you pay down your debt faster.

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  Consider paying off credit cards with small balances first. Psychologically it shows that you are making progress. Once paid, cut up and cancel the credit cards. Most people only require one major credit card and perhaps one retail credit card with savings incentives during special sales events.

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  If you regularly contribute to a savings plan consider suspending the payments until you have paid off your debt. The money you save by paying down your debt faster will be substantially higher than the interest you will earn in a savings plan. Also consider using income tax refunds, pay increases or other unexpected funds to pay down your debts.

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  Consider consolidating your debts with a consolidation loan or transferring your credit card balances to a low rate credit card. Carefully investigate the terms, conditions and any hidden fees as well as evaluating the overall interest savings you may realize. Cut up and cancel your credit cards if you choose this option, otherwise you may be tempted to continue using your credit cards and further increase your debt load.
  If you are overwhelmed by your current financial circumstances or have difficulty maintaining a monthly budget, the Credit Counseling Society can help with confidential and unbiased advice and information. Call us toll–free or visit us online.

   

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Mortgage Solutions

No matter where you live, Mortgage Rates BC can help provide you with the right Mortgage Solution for now and for your future.   Are you looking to Buy your First Home in Vancouver BC or Refinance your current mortgage in Kelowna BC or Consolidate Debt  in Victoria BC we have the tools to get the job done for you no matter where you live.
We have the experience to handle the most difficult residential refinancing too. If you need Private Mortgage Help in Surrey BC or a 2nd Mortgage in Burnaby BC or if you are facing a possible foreclosure in Richmond BC, Mortgage Rates BC has the knowledge to inform you of your options and the lenders that have tailor made solutions to Help.
We are just a click away on our Contact Application or by phone at 778-839-3963. Call or Click today and let us handle your Mortgage request for you and have the peace of mind knowing you have a professional on your side.