Information About How To Overcome Debt Problems

Being in debt is depressing and difficult; however, there are several ways to overcome debt such as bankruptcy or consumer proposal. Bankruptcy is a legal procedure for liquidating a business. Consumer proposal is a formal and legally binding process that is administered by a Licensed Insolvency Trustee.Check out consumer proposal vs bankruptcy and find out for yourself which one will fit your needs.

debt money problemsWith a consumer proposal, the Licensed Insolvency Trustee will work with you to develop a proposal; an offer to pay creditors a percentage of what is owed to them, or they will map out an extension of the time you have to pay off the debts.

Benefits of a consumer proposal are protection from creditors, keeping all of your assets, payments that are manageable, avoiding bankruptcy and no cost associated with the process. Other ways to overcome debt problems are lowering your interest rates. Another way is to plan a strategy. Find out if you can afford to pay the total monthly payment until your debt is paid off. If this is possible, decide which debt to pay off first. Then, track your behavior carefully to make sure that you are making progress.

To conclude, being in debt is depressing and difficult; however, there are ways to overcome debt such as a consumer proposal. Find out soon about filing bankruptcy in Canada and the benefits it offers.

If you need more information about any of this then you can visit Hoyes Michalos at one of their many locations across Ontario.

Small Business Woes Can Cause Financial Burden

Together with the loonie hovering around $0.90 (U.S.), a report by CIBC implies small businesses in Canada are best-positioned to benefit from U.S. growth and to serve as our country’s increase engine over the next five years.

As small and medium enterprises are much less responsive to a rise in the worth of the loonie, they can be just like insensitive to Canadian dollar weakness,” says Benjamin Tall, deputy chief economist at CIBC who co -wrote the report.

But despite an edge over larger companies in this respect, small businesses face a number of challenges that go past the money market and even tax. Among these concerns are greater susceptibility to internal power struggles, concerns over succession planning, cash flow problems, inability to accurately valuate one’s business, and trouble managing excessive regulations.

1. Family-run encounter more conflict in the workplace. It’s not always due to a greater degree of friction, but rather, because it’s simpler to criticize your manager when she or he is your mother, brother or uncle.

Paul MacDonald, executive director of The Canadian Association of Family Enterprise’s (CAFÉ), argues that, despite private issues, family-run companies enjoy an edge over publicly held companies.

Findings from this study reveal that family businesses are given a long-term by possession construction orientation unmatched by public companies that are competing.

2. Small business owners aren’t prepared to market. Many owners will necessarily determine that cashing in will offer the most effective return on their investment. And though, for some reason, as it pertains to independently-owned businesses, most are perfectly content not understanding the value of the company. Lou Celli, a partner at Grant Thornton LLP, really wants to understand why. “The difficulty,” says Mr. Celli, “is that company owners cannot forecast when the day they have to sell their company will come.”

small business failure causing personal bankruptcy
3. Succession planning is grappled with by small businesses.

Whether it’s an ill-fated health dilemma that forces an owner to make an untimely choice or a world-wide competitor knocking on your own door asking ‘how much does one want, the future is unclear. That’s why Mr. Celli insists that business owners need to begin preparing now, and be ready to sell at any time, and he explains why.

The first thing you do is fix up the landscaping and put in a layer of fresh paint to the kitchen as well as toilet “If you are getting ready to sell a home. Additionally, when you’re getting ready to market a business you’ll want to be able to increase the value you receive for all to improve the appearance of your background you have invested within the years. Ideally you’d like to have at least three years of solid financials, and sell when your neighbourhood is popular, but you also should tidy up your balance sheet, which could mean moving around specific assets or removing bad debt,” says Mr. Celli.

4. Small businesses lack access to capital for increase.
As one of their most formidable concerns facing the future in their businesses year after year, owners recorded access to funding. While it’s not the authorities’s obligation to gift companies with success, or to produce jobs, it’s the their responsibility to be sure that progressive, growing companies have entry to capital along with sufficient infrastructure to hasten their growth.

“Too often small companies, particularly those in key sectors like complex manufacturing, agriculture, and food processing, overlook most of the lucrative funding opportunities available through provincial and national levels of government,” says Bernadeen McLeod, president and creator of Mentor Works Ltd., a firm that specializes on helping small to mid-size companies overcome obstacles to growth through leveraging of government grants and loans.

A huge selection of small business grants and loans programs exist to help companies subsidize hiring, expand, and enable firms to take part in tasks and projects proven to increase international competitiveness. Ms. McLeod works with dozens of not-for-profit organizations and business service firms to offer free educational workshops and webinars for established small to mid sized businesses across Canada. Businesses needs to be using funding as a cash-flow preparation tool. By leveraging government grants and loans for business, they gain access to cash that is improved, so enhancing their company growth capabilities and accelerating the performance of tactical plans.

5. Small businesses shy away from international growth. Moreover concerning is that, of Canadian makers, three-quarters of the overall sales of service or their highest selling good came from within Canada, while only half of Canada’s big makers relied on local markets during the period of the survey. This is despite that people want things around them and not looking outward, so they need to get in front of these people. Small and medium-sized companies cite numerous concerns when rationalizing their favoritism toward the Canadian market, from language and culture barriers to firm size limitations and risk aversion. When it comes to international trade knowledge and expertise, businesses can turn to professionals that are seasoned through internal hiring and consulting firms, or they can elect to prepare themselves and their team through courses held both online and also offline . And when danger is what’s holding your business back, Export Development Canada (EDC) offers solutions offering risk management services, insurance, financing, bonding and guarantees, and much more.

6. Small businesses battle with regulations.

Government regulations bother one third of company owners to the point that they insist they’d earlier haven’t gone into business in the first place. This is according to some survey ran by the CFIB, which gives council to owners dealing with challenges to running their companies in Canada, and lobbies to the government on their behalf. Lately, in part due to lobbying by the CFIB on behalf of Canadian businesses, the federal government enacted a “one in, one out rule” that finds one regulation removed for each regulation added. “It’s a great beginning,” says Laura Jones, executive vice-president of CFIB. In addition to such dilemmas, the organization is, in addition, lobbying contrary to the projected pension increases in Ontario, as well as in the interest of removing obstacles to trade across territories and states.

Toronto Money Woes

There have been reports of high money problems within Toronto (the GTA) and even further surrounding areas. People appear to be spending and spending on consumables. They spend on things that quickly fade away, such as food or even clothing. While these are obviously essential for life, there is a limit to which we need. We don’t need to be going out and spending money on fancy restaurants all the time or eating fast food all the time – I mean this specifically for people that can’t afford to do it.

credit card problemsMoney is much better spent on investing or at the very least being poured onto the massive debt
loads people are carrying these days. According to Stats Canada, as reported in the Globe and Mail article here, consumer debt levels rose to 165.4% of debt to income. Which means come tax time, consumers will actually carry $1.65 for every $1.00 they make in income over the year. That’s debt that still needs to be paid down, let alone debt that continues to climb to finance current lifestyles.

Anyone looking to get a bit of debt relief and get themselves out of these problems is going to need to go to a bankruptcy trustee in Toronto (or surrounding area). A trustee will work with you no matter what your situation. They will advise you on any issues they see in your financial situation and help you put a plan together to get out of debt. If they believe your situation doesn’t merit bankruptcy or a consumer proposal, they won’t force it on you. Instead they will refer you to a credit counselor to take it from there with a debt management plan. Alternatively they will refer you to a financial institution if they feel you just need to consolidate your debt. That being said if that’s the situation you’re in you need to be diligent to make sure it doesn’t get any worse.

Hoyes, Michalos & Associates Inc.

8 King Street East
Suite 812 (8th floor)
Toronto, Ontario
(416) 815-7515

There are a number of other great resources around the province of Ontario including the Bankruptcy Ontario website. If you’re interested in Ontario-specific stats and information it’s the website to visit. That being said if you’re looking for even more particular information around the city of Toronto and GTA, then you might find the Bankruptcy Toronto website a bit more useful. Both of these tools have a lot of facts and figures very relevant to the specific geography of the GTA.

What Makes Up Net Worth

Anyone that has ever taken any accounting course from the most basic to the most advanced, should be able to recall the basic accounting principal:

Assets = Liabilities + Shareholder’s Equity

That’s the heart and soul of double entry accounting. Now while this applies to a business, as we can see from the term “Shareholder’s”, we can translate this into our personal life as well.

Assets = Liabilities + Personal Equity

Using the above equation that is now meant for an individuals personal equity, or essentially, Net Worth – then we can rearrange the formula to isolate Net Worth. The new equation would then look like this:

Assets – Liabilities = Net Worthhow accounting works

That’s it! It’s that simple. All you need to do to calculate your net worth is list out the value of all of your assets and subtract the value of all of your liabilities. Unfortunately in this century, the number is negative for a lot of people. They simply borrow more than they have in value to pay it back. We can get into these reasons and how borrowing works in general in a later post.

Now that we know how to calculate Net Worth (simplistically, as a lot of the calculate comes down to determining what counts and what doesn’t and the subjectivity around that), we can begin to understand the tools of the trade to grow that number. Even if your goal is just to get that number greater than 0, our website can help! Stay tuned for more great posts from the industry’s leading experts.