July 12, 2012

As promised before, we are posting some of the Q&As from the Ask Margaret: Live Q&A session with the President of Solutions Credit Counselling, Margaret Johnson, that took place on July 5, 2012. It was a great success! The questions you have asked were excellent. Stay tuned for the update on the next Ask Margaret: Live Q&A!

Question:
I am currently in a debt counselling program for the past 2 years. At the time I joined, my financial situation was desperate. If I knew then what I know now, I might not have opted to go the route I did. I am not paying off my debt quick enough, there is a fee that I have been paying and the interest on one of my creditors is still troublesome. Now this debt settlement company is not returning my calls. What should I do?

Answer:
Canada has recently been inundated with questionable debt settlement companies offering “debt settlement” services. They target Canadian consumers with false claims of their ability to reduce debt by 40-80% in a short period of time and many Canadians are being lulled into believing these claims. If you have made an agreement with a debt settlement company and have experienced an unfortunate or unforeseen situation please contact me at This email address is being protected from spambots. You need JavaScript enabled to view it. or 1.877.588.9491 ext.119 and I will try to help you.

 

Question:
Hi. I need help with my debt! I have payday loans in the amount of $4,000, unsecured loans of $10,000, credit card debt of $2,800. I do not have good credit. How does your company work? Is this going to be like a consumer proposal or bankruptcy? I do not want to go that way.

Answer:
Our Debt Management Program is not a loan. Our program is a consolidation of your payments into one payment and can be extended to 5 years if required. No credit checks are required and your interest payments, late fees and over limit fees will be reduced or even eliminated. We will review your current financial situation including monthly income, expenses and current debts, and negotiate to lower interest rates and monthly payments with your creditors. Then you submit your low monthly payment to us “In Trust” and we work with the creditors. You may contact us to obtain monthly statements and outstanding balances at anytime.

 

Question:
I just completed a consumer proposal. Once the 3 years pass will it automatically fall off my credit report or do I have to call in and get it removed?

Answer:
A consumer proposal stays on your credit report for three years after your last payment. It will be dealt with automatically afterwards. Generally, it is a good idea to check your credit report once a year.

 

Question:
How long a creditor can legally try to collect a debt in New Brunswick?

Answer:
Debts become stat-barred after 6 years. Statute barred debts are debts that have been extinguished or cannot otherwise be pursued in court after a period of time specified by a provincial statute. Most provinces in Canada maintain a 6 year period from the last time the debt was acknowledged. This can get tricky. If a collection agency calls you on the 11th month of the 5th year and asks you to make a $5.00 payment on the account this would reactivate the debt for another 6 years if you paid the $5.00. The same would happen if you agreed in writing that you owed the money – then the 6 year cycle would begin all over again. 

Remember, if you are experiencing financial difficulties do not wait. Call Solutions Credit Counselling at 1(877)588-9491 or fill out our Debt Consolidation Questionnaire and get your Free Credit Counselling Advice today.

For more information visit Debt Canada - your Canadian credit education centre.

If you are a woman in debt, speak with Women and Money first. We specialize in helping women with their personal and business financeMoney management advice you can count on!


We have created this website for public use. Every reasonable effort has been made to ensure that the information presented is current and accurate. However, users of this website should verify information before making decisions. We do not provide legal advice, and the information provided on or through this website should not be seen as such. If you have a legal problem, we encourage you to contact a Lawyer in your community for assistance.