Many Canadians want to restructure their finances for various reasons and saving money is often high on the list of priorities. The decisions they make lead to habits and tendencies which create that person’s “financial environment” and getting it right is the difference between success and failure.

Your financial environment is your position relative to risks. Basically, savings and assets versus expenses keeping in mind income security.

Everyone reading this has probably seen themselves or others work hard to get into a situation where they are very likely to succeed with multiple projects in progress while having strategies in place to watch for and correct any issues. Some may call this being “in the zone”. I prefer to call it “smart planning” and I’ve adhered firmly to the principle both personally and in business for a long time. This is the mind set required with debt consolidation. A summary of things to remember will follow.

Debt consolidation should, under NO circumstances, involve any of the following:

1. Assumption that a loan is the only solution

2. Loan interest of over 15% per year (secured) or 30%(unsecured)

3. Loan term of over 12 to 24 months except in certain circumstances

4. Payments to a debt management agent or other agent who accepts payment intended for distribution to creditors other than a Chartered Insolvency Professional

5. Any assumption that a personal credit report will be updated to properly reflect the lump sum payout of debts or that loan company management or bankers have any experience, knowledge or motivation in the category of credit repair

6. Failure to focus on overall credit improvement AND save you money now AND save you money later

7. Reliance on a third party to confirm the state of your credit.

All Canadians can obtain a copy of their free credit report and can also correct any inaccuracies within thirty days



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