Debunking Common Debt Myths in Canada: Why It’s Crucial to Act Now

At Creditaid, we understand that navigating the world of personal finance can be overwhelming, especially when it comes to managing debt. Misinformation and misconceptions can lead individuals down a path of financial uncertainty. Today, we’re here to debunk some common debt myths in Canada and shed light on the importance of seeking assistance before your financial challenges become insurmountable.

Myth #1: “I Can Manage My Debt Alone”

It’s a common belief that tackling debt is a solo journey, but the truth is that seeking professional guidance can make a world of difference. At Creditaid, our experienced team is here to provide support and guidance tailored to your unique financial situation. Don’t let pride or stigma prevent you from reaching out – a helping hand can make the journey to financial stability much smoother.

Myth #2: “I’m Not Eligible for Debt Assistance”

Another prevalent misconception is that debt assistance is only available to a select few. At Creditaid, we believe that everyone deserves a chance at financial well-being. Our consultations are free and open to anyone seeking assistance. Whether you’re facing credit card debt, student loans, or other financial challenges, our experts are here to evaluate your situation and provide personalized solutions.

Myth #3: “Credit Counselling Will Ruin My Credit Score”

Contrary to popular belief, seeking credit counselling can actually improve your credit score in the long run. Our experts work with you to create a sustainable debt management plan that fits your financial goals. You can rebuild your creditworthiness over time by making timely payments and adhering to the plan.

Myth #4: “Bankruptcy Is the Only Solution”

Bankruptcy is not the only option, and at Creditaid, we explore various alternatives tailored to your specific circumstances. Our goal is to find solutions that empower you to take control of your finances without resorting to extreme measures. From debt consolidation to negotiation with creditors, we have a range of strategies to help you achieve financial freedom.

Act Now Before It’s Too Late

The most crucial step in overcoming financial challenges is recognizing the need for assistance. Waiting until the problem becomes insurmountable can limit your options. By contacting Creditaid for a free consultation, you’re taking a proactive step toward a brighter financial future.

Our experts will assess your situation, provide valuable insights, and guide you through the process of regaining control over your finances. Don’t let debt myths hold you back from seeking the support you deserve.

Remember, financial well-being is a journey, not a destination. Start your journey with Creditaid today, and let us help you pave the way to a debt-free tomorrow.

October 12, 2023

Navigating Your Financial Journey: Credit Counselling vs. Debt Settlement

At Creditaid, we understand that life can throw unexpected financial challenges our way. In Western Canada, we’ve been proudly serving our community for years, providing guidance and support to help individuals regain control of their financial well-being. Today, we want to shed light on two common approaches to tackling debt in Canada: Credit Counselling and Debt Settlement.

Credit Counselling: A Path to Financial Wellness

Credit Counselling is like having a trusted friend by your side during your financial journey. Our dedicated team at Creditaid works to provide you with a comprehensive overview of your financial situation. We start by evaluating your income, expenses, and outstanding debts to gain a clear understanding of your financial landscape.

One of the key advantages of Credit Counselling is the emphasis on education and financial literacy. We believe that knowledge is power, and we empower you with tools and resources to manage your finances more effectively. Through debt consolidation, budgeting, and debt management plans, we help you create a personalized roadmap to debt freedom.

Our supportive, uplifting approach means that we work with your creditors to negotiate lower interest rates and reduced monthly payments, making your debt more manageable. We believe in sustainable solutions that prioritize your long-term financial health.

Debt Settlement: A Last Resort

Debt Settlement can be an option for those facing severe financial hardship, but it’s important to approach it with caution. In Canada, Debt Settlement should be considered a last resort due to its potential impact on your credit score and financial future.

In a Debt Settlement program, you negotiate with your creditors to settle your debts for less than the full amount owed. While this can provide short-term relief, it can also lead to negative consequences, such as a damaged credit score and potential legal action from creditors.

Choosing the Right Path for You

When it comes to Credit Counselling vs. Debt Settlement, the choice should be clear. Credit Counselling offers a structured, supportive, and educational approach to debt relief. Debt settlement should be considered as a last resort. Our goal at Creditaid is to empower you to take control of your finances and build a stronger financial future.

Remember, there is not a one-size-fits-all solution to debt problems, and it is essential to choose the path that aligns with your unique financial situation and goals. With Creditaid by your side, you are not alone on this journey. We’re here to provide the support, guidance, and knowledge you need to overcome financial challenges and achieve a brighter, debt-free future.

If you are seeking help with your finances, reach out to Creditaid today. Together, we can turn your financial dreams into reality. Your journey to financial wellness starts here!

September 12, 2023

Planning for a Debt-Free Future: Setting Financial Goals with Creditaid

In today’s rapidly changing economic landscape, achieving financial stability and freedom has become more important than ever. At Creditaid, we understand the unique financial challenges that Canadians face and are here to guide you toward a debt-free future. Setting effective financial goals is the cornerstone of this journey.

Understanding the Canadian Financial Landscape

As a trusted partner to countless individuals across Canada, we recognize that each financial situation is unique. From managing student loans to navigating credit card debts and mortgages, Canadians often find themselves juggling various financial commitments. Our mission is to help you overcome these challenges and thrive in your financial endeavours.

The Power of Setting Financial Goals

Setting clear and attainable financial goals is the first step toward achieving financial wellness. Whether you’re aiming to pay off credit card debt, save for a down payment on your dream home, or establish an emergency fund, having a roadmap in place is crucial. Our experts at Creditaid are here to help you create a personalized financial plan that aligns with your aspirations.

Crafting Your Path to Financial Freedom

Devising a strategic plan to achieve your financial goals requires a holistic approach. We work closely with you to understand your current financial standing, your income, expenses, and debt obligations. By gaining a comprehensive view of your situation, we can tailor debt management strategies that work best for you.

Prioritizing Debt Repayment

Our team of experts understands that not all debts are created equal. With our Canadian financial expertise, we help you identify high-interest debts that may be weighing you down and develop strategies to prioritize their repayment. This targeted approach can significantly accelerate your journey toward a debt-free future.

Navigating Canadian Resources and Solutions

As a Canadian-based company, we are well-versed in the resources and solutions available to individuals in the region. From government programs to debt consolidation options, we provide you with insights into strategies that can help you regain control of your financial situation.

Empowering You Through a Free Consultation

The journey to a debt-free future starts with a single step. Contact Creditaid today for a free consultation. Our dedicated team of financial experts will work closely with you to analyze your financial standing, understand your goals, and craft a personalized plan that leads you toward financial freedom.

At Creditaid, we’re not just about managing debt – we’re about empowering you to build a brighter financial future. By setting achievable financial goals and leveraging our expertise, you can embark on a journey toward financial freedom with confidence. Contact us today and let’s work together to turn your aspirations into reality.

May 23, 2023May 3, 2023

Is My Partner’s Debt Mine after we Marry?

Exchanging vows is exciting, but when reality kicks in and you have to combine your finances, you might wonder what you’re responsible for regarding your spouse’s finances.

If your spouse entered the marriage with a lot of debt, is it now your debt, or are you off the hook?

Marriage and Debt

The good news is that when you marry your spouse, you don’t marry their debt.

Phew!

If your spouse entered the marriage with debt solely in his/her name, it does not affect you. However, once you are married, different scenarios can affect what you owe.

How do you Get Joint Debt?

So how do you become responsible for your spouse’s debt? Here are three scenarios.

You Borrowed Debt Together

This is a common scenario. For example, if you and your spouse borrowed money together to buy a house or car or open a credit card together, you are both responsible. Likewise, if both spouses are on the application and the creditor used both spouses’ information to approve the loan, you are both equally responsible.

If one partner is responsible for paying the bills and misses a payment, it negatively affects both partners’ credit.

You Were a Co-Signer

If you co-signed for your spouse’s debt either during the marriage or before, you could be responsible for the debt. When you co-sign, you say you’ll take responsibility for the debt if the application doesn’t make the payments.

A co-signer helps the applicant get approved for a loan. When you co-sign, you let the lender pull your credit and use your income to help qualify for the loan.

It doesn’t matter if you are married or not; the debt is yours if the applicant doesn’t pay it because you agreed to the terms.

You Guaranteed a Loan

If you guaranteed a loan for your spouse before or after marriage, you could be responsible for the debt.

You aren’t on the application when you guarantee a debt as a co-signer. Instead, you are on there to guarantee the applicant’s past credit history and mistakes are taken care of, and they are good to handle the debt.

Like a co-signer, if they don’t pay the debt, you become responsible for it. So there is a risk in guaranteeing a loan, but if you know your spouse is good for the debt, you may feel comfortable doing it.

Final Thoughts

Handling your spouse’s debt can feel overwhelming, even if you are not responsible. If you join finances, you might worry about where your money goes or how you will achieve your financial goals.

If you feel like you are in over your head in debt, or don’t know how to handle your spouse’s debt, consider a free credit counseling consultation. You will learn your options on how to handle the debt and then how to handle your finances moving forward.

Rather than blaming one another for the debt or letting it ruin your marriage, let’s look at everything and help you move forward!

May 4, 2023May 3, 2023

Are you and your Partner Financially Compatible?

When you said ‘I do,’ a big part of that commitment had to do with your finances. Whether you had the ‘money talk’ before you got married, or you are finding out the hard way that you are not on the same page financially, there are ways to get your marriage and finances back on track.

It all starts with determining if you are financially compatible.

Determining your Financial Compatibility

Every couple is different, but we see three common scenarios with couples and their finances.

The One Person Has Control Marriage

In some marriages, one person takes complete control over the finances. They pay the bills, balance the checkbook, and handle investments. The other partner generally does not know much about the money and, if asked, would not know where the checkbook is or how much money they have.

While this might seem ideal, especially if you do not like dealing with finances, both partners should understand their financial situation and have a say in how the money is handled.

The Couple with Opposite Habits

Do you and your spouse have different views about money? For example, maybe you are a spender, and he is a saver or vice versa. The key is that you are not on the same page, and your differing habits are bound to cause struggles.

Some couples with differing habits have separate accounts. For example, they don’t keep their money together, and instead, they split the bills, so each partner is responsible for some of the household bills, allowing them to handle their money the way they want.

The Couple that Ignores their Issues

Some couples are on the same page; they know they have financial struggles but won’t verbalize it or change their habits.

These couples continue with their spending habits and living life however they want, without considering how it might affect their financial future. People with these habits often have deep-seated thoughts about money that comes from their family, and the habits are hard to break.

Getting on the Same Financial Page

So how do you get on the same financial page with your partner? If you are on the same page, and it’s not a good one, what do you do?

The key is communication.

You must talk to one another about money. Open up about your habits, worries, and your financial goals. Compare notes and see where you stand. If you don’t see eye-to-eye, try to find a middle ground to meet somewhere in the middle and achieve financial harmony.

This may seem overwhelming at first, but go slow. Set up ‘money dates’ monthly and only talk about money. This way, you both come to the date knowing what to anticipate and can give one another undivided attention.

Final Thoughts

If you and your partner cannot get on the same page, or if you can but cannot fix your finances, consider credit counselling. With a free consultation, you can see what steps you can take to improve your financial situation and get on the same page to reach your financial goals.

May 12, 2021

Are Fear and Embarrassment Holding You Back from Consolidating Your Debt?

If you’re in over your head in debt, you may hold back from doing anything about it. Is it fear? Is it embarrassment or a bit of both? In a world where we broadcast just about every aspect of our lives online, debt is one area we don’t speak about even in person.

We look on as we think others are ‘successful’ not knowing the truth behind the perfectly chosen pictures. The fact is the average consumer has $23,800 in consumer debt, not including the mortgage.

If you’re ready to do something about your debt, but worry about fear and embarrassment holding you back, read on.

March 15, 2021

Distinguish Between Needs vs. Wants

A proper budget makes room for needs and wants. Sometimes, though, it’s hard to differentiate between the two. It can be subjective, but certain things are clear-cut and easy to determine.

So how do you tell? Let’s look at the basic definition of each.

What are Needs?

Needs are items you must have to survive. Clothes, food, proper healthcare, and transportation – those are needs. You can’t live without them, and these apply to everyone.

Other needs may be more individualized. For example, one person may NEED dental insurance because they have extensive dental issues, while another person may only go to the dentist for routine cleanings twice a year and may not consider dental insurance a need.

Write down the things you NEED in your life. If you didn’t have one, it would make it hard to survive or cause financial destruction.

February 4, 2021February 4, 2021

Why you Need to Record your Spending

Does tracking your spending sound about as fun as going to the dentist? We get it. But just like the dentist is important for your oral health, tracking your spending is important for your financial health.

Obviously recording your spending identifies where you overspend, but there are plenty of other reasons too.

Creates Accountability

You can say you want to save for specific goals all you want, but if you don’t do it, you’ll never reach your goals.

Recording your spending provides visualization of where your money goes. You can see ‘gosh I spent $50 eating out and now I can’t save for my XYZ goal.’ That accountability is HUGE when you’re trying to meet financial goals.

January 4, 2021January 4, 2021

2020 Tax Season Tips

Goodbye, 2020! It was a strange and challenging year for many of us for several reasons.

This 2020 tax year will be unlike any other, with many individuals collecting CERB without any tax withholdings. However, this income is taxable, which means that individuals receiving CERB will owe tax on the funds they received, which can seriously impact your 2020 tax return. Those who typically expect a refund might owe money for tax in the current year or significantly reduce their refund.

At Creditaid we want to ensure our clients are prepared financially to assure continued success in our program and beyond. We have provided several tax tips below, some of which may apply to the current year. These are beneficial tax tips and suggestions that can benefit you and your family for years to come!

If you have any questions or wish to set up a tax planning session, please give us a call at 204 987 6890.

Working From Home Office Expenses
Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

October 18, 2020October 19, 2020

Have you heard about Government of Canada’s New COVID-19 Benefits

Many Canadian workers have missed work and pay due to COVID-19 can now apply for three new benefits from the Canadian Government.

Families and individuals who are facing financial difficulty can now get support through the following benefits that are available through Canada Revenue Agency (CRA):

Canada Recovery Sickness Benefit (CRSB)
Canada Recovery Caregiving Benefit (CRCB).
Canada Recovery Benefit (CRB)

Applications for CRSB, CRCB, and CRB applications are now open.

Canada Recovery Sickness Benefit (CRSB)

Workers who are sick or must self-isolate for COVID-19-related reasons, or have underlying conditions that make them more susceptible to COVID-19 can apply for CRSB.

If you are eligible for the CRSB, you can receive $500 ($450 after taxes withheld) for each 1-week period. Check your eligibility here – https://www.canada.ca/en/revenue-agency/services/benefits/recovery-sickness-benefit/crsb-who-apply.html

Canada Recovery Caregiver Benefit (CRCB)

Caregivers who need to care for a child(ren) under 12 years old who is affected by the illness or if their school, regular program, or facility is closed or unavailable due to COVID-19 is eligible for CRB. This also applies to other family members requiring supervised care, who cannot attend regular care facilities because of COVID-19, can apply for CRSB.

If you’re eligible for the CRCB, your household can receive $500 ($450 after taxes withheld) for each 1-week period. Check eligibility here Read more here https://www.canada.ca/en/revenue-agency/services/benefits/recovery-caregiving-benefit.html

Canada Recovery Benefit (CRB)

There is also assistance for self-employed workers who are not eligible for Employment Insurance (EI) and still require income support. These workers must be available and looking for work and accept work when it is reasonable to do so.

If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period. Check eligibility here https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit.html

Canadians can apply for these benefits online through CRA’s My Account or call 1-800-959-8281.