Top Listeners' Questions on Dealing with Debt
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Top Listeners' Questions on Dealing with Debt (Part II) - Money Problems Radio Show |
| Originally aired on April 7, 2007. | |
Show Topic:
As we mentioned last Saturday, every week on the show we invite our listeners to e-mail us their questions on dealing with debt and their own financial issues and concerns. On this week's show we go further down our list of the best listeners' questions from previous shows and ask our experts for their best advice and suggestions on how to deal with the problems the listeners are experiencing.
Guests:
Ted Michalos and Doug Hoyes joined us from Hoyes Michalos & Associates Inc., Ontario Trustee in Bankruptcy firm. They founded their company in 1999 and since then have helped thousands of Canadians deal with their financial problems and get a "fresh start". They advocate the importance of having a "Plan" to deal with your debt issues.
Show Summary:
We started the show by explaining how a consumer proposal, #1 bankruptcy alternative in Canada, works. It's essentially a deal between you and your creditors that allows you pay back a portion of your debts, administered by a licensed trustee in bankruptcy. The creditors stop calling and you are free of collection calls. Ted suggested that a proposal is a legal option that is an excellent remedy to allow you to pay your bills.
We talked about student loans and the responsibilities of a graduate with respect to paying back their loans. Ted explained the framework and timetable for paying back your student loans.
We also discussed the concept of the seismic events in people's lives like job loss, illness and marital break-up when it comes to debt repayment. Ted laid out a scenario where a divorce or separation can lead to very serious money problems and how there are ramifications for both partners in the relationship. Doug explained that if both partners in the relationship signed for a loan, credit card or financing, they will both be responsible for 100% of the debt, regardless of the status of the relationship.
On this show we also talked about credit cards and credit card debts. According to Ted, if you go to your wallet or purse right away and if you have more than two credit cards - you have too many of them! Doug echoed that the high interest department store cards or bank cards can leave you in a situation where you are paying so much interest that you can never catch up. He said that a credit card should be a substitute for cash but never a substitute for borrowing. If you are just paying the minimums or taking a cash advance from one card to pay another, you have a problem.
Ted talked about what credit counselling is and how it can help you take charge of your debts.
We discussed debt issues and senior citizens. There are more and more families, Ted said, facing the situation of having to deal with not only their debts but also with the money obligations of their parents as they hit their golden years. Your best bet here is, again, to seek professional guidance on how to deal with your problems.
Don't let your money problems overwhelm you, contact a licensed trustee in bankruptcy and arrange for a free consultation today - they have the answers to your questions on dealing with debt.