Here at A. C. Waring we were very pleased to announce that “The Star” news publication featured us in an article on January 4th, 2019. For your convenience, we have included a link to its original format here.
A. C. Waring & Associates help with unmanageable debt
If creditors are calling, or you’re facing mortgage foreclosure — even having your wages garnished — it could be time to look at debt solutions from a Licensed Insolvency Trustee. Especially timely in the New Year, when overspending, large holiday credit card bills and car payments can cause huge stress and tip the scales on an already tight budget, many people need to find a way to deal with unmanageable debt.
Since 1994 in Edmonton, Licensed Insolvency Trustee Arthur Waring, and the credit counselling professionals at A. C. Waring & Associates Inc., have been helping individuals and businesses in central and northern Alberta deal with overwhelming financial debt. Whether helping individuals file for bankruptcy or restructure their debt utilizing a consumer proposal, the 14-member staff of A.C. Waring & Associates will ease the stress that comes from unmanageable debt, finding the right path for consumers or businesses to reduce the burden of their debt.
“In recent years, Alberta’s economy has been especially hard on small businesses. Some individuals and businesses we assist have as much as $500,000 in debt or more but typically individuals are struggling with $50,000 or $100,000 in credit card and loan debts,” explains Waring, who has been in the field since 1980. “Often, we can reach a settlement with creditors, but when that’s not within reach, bankruptcy may be the only option. Every situation is unique, so we find a workable solution that is right for each individual where possible.”
Waring says that consumers typically get into financial trouble with credit card debt (increasingly prolific in the last 30 years, with high annual interest rates of 20-30 per cent), as well as with student loans, poor budgeting habits and huge car loans. Indeed, in recent years across Canada, car loans have jumped to an average six-year term, resulting in a treadmill of debt as consumers trade in cars and roll the former loan deficiency onto a new car loan.
“The phenomenon of consumers juggling easy-access credit cards or payday loans, gambling debt and enormous vehicle loans (often $70,000-plus for loaded trucks and high-end SUVs) has changed the complexion of personal bankruptcy,” Waring says. “It’s not hard to see how people get way out on a limb with thousands of dollars in monthly payments. They find that they can’t keep up with all the payments”
The relationship between the trustee and the individual can range from nine months (for a straightforward bankruptcy filing) to a few years for more complex consumer proposals. In the case of a bankruptcy filing, individuals have to file monthly budgets and attend two credit counselling sessions with the company’s professionals, learning about money management and how to change financial habits.
Waring says that while both bankruptcy and consumer proposals affect a person’s credit history, many people want to relieve the stress of crushing debt with a quicker bankruptcy filing. But if someone’s income shows a reasonable means of making payments to a creditor, then a proposal is usually the way to go, because it affects the person’s credit history somewhat less then bankruptcy.
“About two-thirds of our cases are consumer proposals,” he says. “When debt is unmanageable, that financial stress can take a toll on health and relationships too, so people are usually open to the counselling and whatever is needed to get rid of that burden.”
“There’s a huge variety of individuals availing themselves of our services. Some people don’t want to give up their financed vehicles, and some have been bankrupt before who are having problems again. Second time bankrupts are in bankruptcy for a minimum of 24 months and their credit history is affected for a 14-year period. Obviously it is better to consider a consumer proposal if an individual has already been bankrupt, depending on their circumstances.”
Anyone can have debt repayment problems. Waring says. “We often see retirees, people who’ve been laid off, and those swamped by student loans.”