Bankruptcy Kitchener Blog by Scott Schaefer

With winter holidays fast approaching, it can be very difficult to stick to our budget and not overspend. Gift exchanging, holiday dinners, and winter activities don’t have to break the bank. Given this, I asked Amie Carroll, one of our Kitchener office credit counsellors, to provide some some tips on how to save this holiday season:

1. Local events: Check out your local paper or go online to find free activities in Kitchener Waterloo and area:

You will be surprised at what you can find for free (or next to it). Many communities hold events each year that cost little to nothing that you and your family may attend. I recommend checking out the light displays in Waterloo Park and Kitchener’s Victoria Park or going tobogganing at a local park. Most TV channels play holiday movies in December, so why not have a free family movie night in the comfort of your own home.

2. Be creative, spend less on gifts:

A great idea to save on gifts is through a gift exchange in which each family member draws a name out of a hat and is only required to purchase a gift for that selected person. This is definitely a crowd pleaser with extended families, as it will save you from having to purchase multiple gifts. This idea is very simple, and you may even set a dollar limit in advance.

3. Be proactive by making a monthly budget and sticking to it:

Set a budget. With less than a month to Christmas, you need to set a budget so you do not over spend. Do not be spontaneous, keep a list of who you have bought for and what you still need to buy. Planning is important to keep on the budget. Store have spent thousands on marketing and promotions to try to get you to spend more, resist the urge go off your budget and overspend.

4. Use 2010 as a guide for 2011:

Keep detailed notes from 2010 holiday season. Now is a great time to start thinking about next year. Set aside a certain amount each month that can go towards your holiday festivities for next year. This way, when the holidays arrive you will not have to use credit cards or stress over how you will pay for everything, because you will already have the savings set aside. Go over what you spent last year and how much you want to spend to determine the amount you will set aside each month.

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I have been a strong believer that our education system gets a failing grade when it comes to teaching and preparing our youth for the “real” world when it comes to personal finance. We take courses in history, science, geography, math, languages, but real life courses in budgeting, using credit, and negotiating contracts are not offered.

We all understand the demands and stresses life can throw at us. Most, if not all of these demands and stresses have a financial or money element to them. Our world revolves around money. Everything else matters, but without income, we do not have the ability to pay for life’s necessities like shelter, food, transportation etc. There are many different techniques in budgeting, financial planning, investing but each one takes much practice and experience. Life changing events, such as job lay-offs, costs of raising children, unexpected vehicle maintenance, and medical illness can play major havoc on our personal financial situation. The availability of credit and paired with not receiving the key skill sets to deal with life changes may lead to an overwhelming buildup of debt.

Consumer debts in the form of credit cards, lines of credit, and overdrafts are accessible. These types of debts are available for continuous use with no mandatory repayment other than minimums per month. The banks issue the credit but fail to provide personal budgeting sessions for administering the credit. That is why it is great to experience Canada’s 4th annual Credit Education Week. The more resources we have available can only benefit individuals and families. Money and personal finances are something we should discuss. Information is available through books and internet but the important part is to find the one that works for you. Education in personal finance is important. If you are experiencing money problems please visit either of these websites for more information: moneyproblems.ca and hoyes.com.

In Canada, the government has recognized that individuals and couples are entitled to a fresh financial start if the amount of debt has become too large to manage. There are options available to help deal with the debts which include consolidation loans, credit counseling, debt management plans, consumer proposals and personal bankruptcies. If you are in the Kitchener Waterloo and surrounding area and want discuss your situation so that you can gain financial control again, please call me at 310-PLAN or send me an e-mail.

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If you are receiving collection calls, you likely can place each of them into three categories: the good, the bad, and the really ugly. Regardless of which type they are, they all add stress to your situation. In most cases, collection calls are being received because you do not have the funds to pay your debts right now. It is not that you do not want to pay them, but rather your circumstances have changed and you cannot afford to make a payment. Collection agents are paid and monitored based on their collection totals and therefore can get very aggressive and will say anything to pressure you in hopes of a payment. For examples of collection call stories, see this link.

If you have collection calls, you need to make a plan to deal with them. I generally consider the following factors:
First: How much are they collecting for? Could you just pay it and be done?
Second: Do you have other debts that need to be dealt with as well? The collection call is just one issue; however, the complete debt situation needs to be considered.
Third: What is the cause of the collection calls? Has there been a change in your circumstances?

Collections will not just simply go away; you need to deal with them. A consumer proposal or a personal bankruptcy both give you a legal option to deal with you debts so you can get on with your life financial. Collection calls are not allowed to continue once a consumer proposal or a personal bankruptcy is in place. To review your situation and make a plan to deal with your debts, call me at 310-PLAN or send me an e-mail and we can arrange a free meeting in my Kitchener Waterloo office.

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