Q & A's
Debt restructuring options can be made up of different strategies depending on the consumer’s current situation. However, any time you settle your debts at less than 100% of the debt amount, it will negatively affect your credit rating. N.B. has one of the most recognized and comprehensive credit rebuilding programs in the country that will help minimize the impact of debt restructuring on your credit rating.
N.B. offers a free 1-hour consultation that will assess your current debt and credit situation providing you with options how to become debt-free within 36 months to 60 months while saving thousands of dollars in interest and penalties.
N.B. is a professional services company that represents the consumer not the creditors – our fees are determined by the option of the services chosen for your situation. Contact us today for more details.
The fees charged by credit counsellors are usually built into the monthly payments you make that get distributed to your creditors. Also, all not-for-profit agencies are paid by the creditors in what is referred to as “fair-share” of which can be up to but not limited to 20% of the debt collected through the debt management program. Again, they do work for the creditor not the consumer. Most credit counsellors charge a 15% processing fee based on the amount of debt you have, and you usually repay 100% of the amount owed. Alternatively, our fee is based on the pre and post restructuring work we complete, in addition to the work your N.B. consultant does representing you, to ensure your restructuring plan is successful and fits your budget.
When deciding on how to restructure debt, for some consumer’s it can be a stressful and intimidating process, and its key to understand the true benefits in doing so.
Restructuring can significantly reduce the debt owed, while massively reducing your monthly payments by eliminating the financial pressure the consumer is facing. Debt restructuring allows you to repay debt, which you know is already unmanageable. If you choose to deal with your debt and stop living from paycheque to paycheque, the trade off is that you will take a hit on your credit rating. However, the proper strategy can minimize the short-term hit of which is often worth it. As you save thousands of dollars in interest and penalties you can become debt-free within 5 years or less.
If you are someone who falls into any of these categories and are concerned on what to do next before the debt problem gets out of control, you should contact us immediately for your free assessment and determine the most affordable and viable ways to become debt-free.
Certain Canada Revenue Agency debt (it must be either personal taxes or Director Liabilities) can be included in different restructuring options. Certain types of debts may not be included in restructuring but these are considered and reviewed on a case by case basis. It depends on the age of the student loan. If it has been longer than 7 years since the last time you attended school, it is considered unsecured and therefore can be included. If the time is less than 7 years, then it is protected by laws that protect the student loans from being included. There are also limitations on student debt, again we need to assess the situation first – contact us immediately for further details.
We can work with almost any kind of debt. We will look at your credit card debt, Revenue Canada debt, business debt, lines of credit, and much more… contact us today and see what we can do for you.
What is a Budget?
A plan for spending and saving money. Most people think budgets are:
Why Budgets Make Sense
Budgets help you:
A good budget is:
Budget Categories
Expenses
Expenses – A cost to meet a need or pay a debt.
Types of Expenses
Fixed Expenses – A cost that occurs regularly and doesn’t vary in amount
Variable Expenses – A cost that occurs regularly but may vary in amount:
Discretionary Expenses – A cost determined by personal wants that may be controlled
Budget Summary
Establish a budget:
Savings: unspent income
Types of Savings
1. Emergencies: Plan to set aside three months’ living expenses
2. Long-term: Large ticket items (house, car, college)
3. Retirement: It’s never to early to start
4. Short-term: Vacation, clothes, new skis
Gross Income vs. Net Income
Gross income: An individual’s income before taxes.
Net income: Income after taxes and deductions are paid.
Example of Gross vs Net Income
Gross salary | = $30,000 |
Minus 25% taxes and deductions | – 7,500 |
Net income | $22,500 |