Thanks to the latest wave of soap opera news casting I leapt out of bed this morning with the grace of a white tailed deer and ran to the window to see the promised ‘Great Snow Storm of Western Ontario 2011.'
What a letdown!
I'm writing from work and I actually made it here early. Sure the journey was no picnic but this was not what I was hoping for. Our chance for redemption after the Army fiasco of 1999, to dig ourselves out of massive snow dump without declaring martial law is a nonstarter{C} . A day to skip work and still be able to look the boss in the eye but now Snow-mageddon has been downgraded faster than Bank of Ireland bonds. If I could do it all again I'd be a stockbroker or a meteorologist...no accountability. Of course school is out but who's surprised by that?
How does this relate to money or finance I hear you cry, but wait it’s coming!
This is the perfect opportunity to point out habits that will have your credit card company downgrade you quicker then the Weather Network has just down graded the worst snowstorm Toronto has seen since 1999. The ironic thing about being downgraded is that your interest rate will be upgraded to account for a greater risk of default.
1) Not making the minimum payment by the due date. If you do this your interest rate can be increased from 2%-6% depending on your card issuer. The increase may be temporary but you can usually expect it to be permanent.
2) Dishonoured payments. If you make a credit card payment by cheque and it’s returned NSF you may face an interest hike on top of the NSF fee.
3) You go over your credit limit. Of course there’s the fee but also an interest rate hike depending on your credit card issuer.
If you’ve found yourself in any of these situations call us. Tackling a financial ‘situation’ is like shovelling snow...the longer you wait to deal with it, the heavier the burden.
Frequently Asked Questions
Have a question? We are here to help.
What is a Debt Consolidation Program?
A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!
Can I enter a Debt Consolidation Program with bad credit?
Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.
Do I have to give up my credit cards in a Debt Consolidation Program?
Will Debt Consolidation hurt my credit score?
Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.
Can you get out of a Debt Consolidation Program?
Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.
