Debt Free in 30

It’s the start of season number two of Debt Free in 30, and we start this season like we started the first season: we let Ted Michalos rant about payday loans.

A lot has happened in the last year, and today talks about a presentation he attended this summer with the Ministry of Government and Consumer Services, where Ted gave his thoughts on how to deal with the rise of many new types of high interest lenders.

These loans are easy to get, but charge a high interest rate. Ted explains who gets these loans (it’s not who you think), and what borrowers should do if they find themselves caught in a cycle of high interest loans.

For the month of August we are rebroadcasting our most popular shows.

We're going to wrap up our "Best Of" summer series with a discussion we had with Jonathan Chevreau about obtaining your own version of Financial Independence or "Findependence" as Jonathan calls it.

Jonathan's approach to getting out of debt is to adopt a form of guerrilla frugality in order to get out of debt, stay out of debt and reach your goal of financial freedom. Last week with talked about how people get so deep in debt without evening knowing how they got there. One of the underlying problems is a lack of a balanced budget. To get out of debt Jonathan suggested taking the concept of balancing your budget one step further to something he calls 'Guerrilla Frugality'. He suggests we should live below our means, not just for a year or two, but as a life-long habit. Only by doing so can you pay off your debts and build a strong financial foundation that will support you throughout your life.

In many regards that is the lesson learned by most people who file bankruptcy or a consumer proposal. Without access to credit while they are bankrupt, they must learn to live within their means. No credit cards means paying for groceries, the rent and everything else by cash or cheque. This is the ultimate way to ensure you live within your means.

For the month of August we are rebroadcasting our most popular shows.

On today's rebroadcast we talk with Gail Vaz-Oxlade about how to build a repayment plan to deal with your debt before it reaches the tipping point. If however you find that you are looking at years and years to pay back your debt then you may need to consider other options.

We also talk with Ted Michalos, bankruptcy trustee and co-founder of Hoyes, Michalos about how a consumer proposal can help you get out of debt while avoiding the need to file for bankruptcy.

Gail Vaz-Oxlade is one of the most popular financial experts for a reason. Her no holds barred approach is based on one consistent message: You need to be the one to take action to take care of your debt problems.

You may criticize the bank, the credit reporting agency or payday loan companies but at the end of the day you have to be able to identify that you are too deep in debt and need to do something about it.

types of debts that most often trigger deep financial problems include credit card debt, high interest financing loans, payday loans and misused lines of credit. In our rebroadcast of one of our post popular podcasts, Gail calls these types of debt 'callable debt'. She recommends you focus any debt repayment plan on this type of debt first, and for good reason.

This is the type of credit that can be taken away at a moment’s notice. The bank can cancel your credit cards, your line of credit and demand immediate payment. If you don't have a good credit score this could leave you struggling and at risk of bankruptcy.

In the bonus segment Doug Hoyes discusses his experience on reality TV.

Heather Cudmore is a credit counsellor with Carizon Family and Community Services in Kitchener, Ontario, and on today's show we discuss credit counselling.

Who does a credit counsellor work for? Is it true that they are just a collection agency for the big banks? What does it cost? What are the fees?

Isn't a debt settlement better and cheaper? What about other options?

Answers to those questions and a lot more on today's show.

For the month of August we are rebroadcasting (with updated information) our most popular shows.

Dr. Lee Anne Davies, co-author of When Life Bites You in the Wallet, discusses the financial challenges faced by seniors and gives practical advice for over-coming "Bag Lady Fears".

In an updated introduction to the podcast, we discuss some of the findings from our 2015 Joe Debtor study that revealed that seniors have the highest debt, and are also turning to payday loans. We discuss the implications, and options for dealing with debt.

From now until Labour Day we are rebroadcasting (with updated information) our most popular shows.

Today’s guest is Christi Posner, a credit counsellor and new mother. Christ starts the show by telling us how, after graduating from university she had a lot of debt. She got married, and she and her husband wanted to start a family, so they knew they needed to tackle their debt. They did. They paid off their debt, and were in good shape financially to start a family.

Even though Christi is an experienced credit counsellor, there were many expenses that surprised her when she went on maternity leave. She shares her practical tips for preparing for the birth of your first child, and gives advice on how to save money while on maternity leave.

On today's show I talk with Adam Rauf, a trustee in bankruptcy and consumer proposal administrator at the Hoyes Michalos St. Catharines and Niagara Falls offices. Adam receives many questions from his clients and came in with a list of 20 concerns that people have when they come in to see him to get out of debt. We narrowed down his list to some questions about what type of debts can be eliminated in a bankruptcy:

1. Can I give back my financed vehicle and get out of my car lease if I file bankruptcy?
2. Will my 407 debts be eliminated in a bankruptcy?
3. If I pay off my consumer proposal early, will there be a penalty?
4. Can a bankruptcy or consumer proposal stop a law suit or wage garnishment due to unpaid debts?

Trustee in Bankruptcy, Benny Mendlowitz answers the most pressing questions about paying down debt by filing bankruptcy. Benny is a trustee at Hoyes Michalos in charge of our Scarborough and North York offices and during the show he answers these frequently asked questions:

• What does it mean to go bankrupt?
• What does it cost to go bankrupt?
• What if I don't want to go bankrupt?
• Can I keep a credit card during bankruptcy and how will filing affect my credit score?
• How can I get rid of the stress caused by my overwhelming debt?

Benny points out that not everyone has to go bankrupt. However if you can't pay your bills, have credit card debt, struggle with your car payments you need to do something. Meeting with a bankruptcy trustee is a start.

Today’s guest is Joel Sandwith, trustee in bankruptcy and consumer proposal administrator at Hoyes Michalos working out of our London and Sarnia offices. Normally we broadcast an FAQ show on the last Saturday of the month, but we receive so many questions that are worth taking the time to answer that we decided to run an FAQ series during July; starting with this one. To prepare for this show Joel made a list of the most frequently asked questions that he receives from clients. The burning questions on everyone's mind focuses on credit rebuilding, what happens to a house when you file bankruptcy and why clients should choose Hoyes Michalos.

Tune in for the answers to these questions.