Financial Problems - Causes and Dealing with Them (Special Guest: Amma Seaforth)
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Financial Problems: Causes and Dealing with Them - Money Problems Radio Show |
| Originally aired on October 7, 2006. | |
Show Topic:
On today's show we discuss the various causes of financial problems and what you can do to effectively deal with them. From preparing a budget to solutions like Debt Management Programs or Consumer Proposals, this program covers the issues surrounding money problems and the alternatives to help get you out of trouble.
Guests:
Ted Michalos joined us from the firm of Hoyes Michalos & Associates, Trustees in Bankruptcy. Ted and his partner Doug Hoyes started their firm in 1999 and have helped thousands of clients deal with their financial problems and get a "fresh start". The special guest on the show was Amma Seaforth from In Charge Debt Solutions, a non-profit charitable credit-counselling agency offering confidential and professional advice on money issues.
Show Summary:
We discussed the importance of budgeting as a way to determine what you are spending your money on and what money is coming in and from where. Everyone should take the time to work out a budget to provide an indicator of where your money is going. It is not complicated - you can make your budget work for you, and it is well worth it.
We have also discussed some of the "danger signs" warning you that you may be headed into financial trouble - including taking a cash advance from one credit card to pay off another card. Amma suggested that one of the causes of financial problems for many people is waiting too long to seek professional advice. Being proactive, she says, is a great way to deal with your financial difficulties and to take charge of your problems.
Question of the Week:
Q. Recently I went to get a debt consolidation loan and was rejected by the bank because of what was on my credit report; I didn’t even know I had a credit report. What is it and what can I do to repair what's obviously a bad report.
A. A credit report is prepared by agencies that report credit performance to their members. Members can include banks, trust companies, anyone who grants credit. A DMP (Debt Management Program) is a structured repayment plan, where the credit counsellors negotiate lower interest rates and monthly payments with creditors to stop collection calls. Every month the client makes one consolidated payment to the agency and they disburse to the creditors.
Don't let your money problems overwhelm you, contact a licensed bankruptcy trustee or a credit counsellor for more information on causes of financial problems and ways of dealing with them.