- Hoyes, Michalos & Associates Inc.Co-Founder, 1999 - presentIn addition to meeting with people in financial trouble, Douglas is a frequent writer and speaker, working to educate Canadians on all of their debt management options.
- KPMGSenior Manager, 1987 - 1997
- PricewaterhouseCoopersSenior Manager, 1997 - 1998
310-PLAN, 1-866-747-0660 ext 4020
Douglas is an expert in all aspects of debt management, including money management, budgeting, credit counselling, consumer proposals and personal bankruptcy.
- University of TorontoCommerce & Economics Specialist, 1983 - 1987
- Institute of Chartered Accountants of OntarioChartered Accountant, 1989
- Canadian Association of Insolvency and Restructuring ProfessionalsChartered Insolvency and Restructuring Professional, 1994
- Government of CanadaTrustee in Bankruptcy, 1995Licensed by the government of Canada to act as a trustee in bankruptcy and a consumer proposal administrator.
- Hoyes.com (current)
- Huffington Post (current)
- Bankruptcy Brantford (current)
- Consumer Proposal Cambridge (current)
- Consumer Proposal Brantford (current)
- Consumer Proposals.org (current)
- Bankruptcy Cambridge (current)
- Bankruptcy Canada (current)
- Moneyproblems.ca (current)
- Bankruptcy Toronto (current)
- Bankruptcy Ontario (current)
- Bankruptcy St. Catharines (current)
- Bankruptcy Hamilton (current)
- First Foundation (current)
In statistics just released by the Office of the Superintendent of Bankruptcy, insolvencies increased in December, and that's the first time that's happened in quite a while.
My guess is that the five year decline in bankruptcy volumes has ended, which is not good news for the Canadian economy.
#debt #bankruptcy #statistics
In an article published today, of the CIBC is quoted as saying that, with interest rates at record lows, and the stock market doing well, you should contribute to your RRSP before paying off debt. His point is that if you have a mortgage at 3%, and are earning more than that on your RRSP, it makes sense to get the tax break and the higher yield on your RRSP, as compared to paying down a low interest rate mortgage.
I don't disagree with that math, but I have two comments:
First, as Mr. Golombek states, you should pay off high interest credit card debt, since it's unlikely that you are earning 20% in your RRSP. I agree.
Second, Mr. Golombek does acknowledge that equity investment carries risk. If you could guarantee that you would make 7% on your investments for the next five years, locking in a mortgage at 3% makes sense. Unfortunately, there are no stock market guarantees.
Markets are at record high levels, and interest rates are at historic lows. Will that continue forever? I suspect not. A not-unusual 10% stock market correction wipes out the investment advantage, so under that scenario paying off debt is the safest, and best, alternative.
My point: before you speculate with borrowed money, consider the risks. Paying down a low interest mortgage may not seem sexy, but if the markets fall we will all wish we could achieve a 3% after tax return, guaranteed, which is what you get when you pay down your mortgage.
#debt #mortgage #interestrate
Pay down your debt.
Yes you can. One of the advantages of a consumer proposal is that you are in control of your assets (unlike in a bankruptcy, where you may lose them). So, you can decide to sell your house, find a place to rent, and use the money to pay off your proposal.
Should you? That's a more difficult question. If your goal is to be debt free, selling your house and paying off your proposal makes sense. If your house is expensive or larger than you need, selling also makes sense. If the mortgage is affordable, or if you have special circumstances (like pets that would make it more difficult to find a place to rent), continuing to own your home may be a reasonable alternative.
Ultimately you should crunch the numbers and do what's right for you and your family.
#debt #debtfree #consumerproposal
If you ever wondered what happens from the collection agent's point of view, today is your lucky day. My guest today on Debt Free in 30 is , an actual real life collection agent. Read the show notes for lots of great links, and listen to the full podcast on the web, or download via iTunes. You won't hear these tips anywhere else...
Not at Hoyes Michalos we won't. If we forced people to do something that wasn't right for them we wouldn't have thrived as one of Canada's largest personal insolvency firms for the last 16 years.
We want you to find the right solution for you, and that's why we explain all of your options, as and I explain in this video.
#debt #bankruptcy #bankruptcytrustee
Why do I need to use a trustee to make a deal with my creditors? Can't I just make a deal with them myself?
Yes you can.
You can get on the phone with all of your credit cards, bank loans, payday loan companies and Canada Revenue Agency and attempt to work out a deal with each of them individually. It may work.
But what happens if only 5 out of your 6 debts agrees, and the final one decides to sue you for non-payment? Or what if one of them later changes their mind and wants more money? Do you have the time to work out deals with lots of different creditors?
With a consumer proposal, your consumer proposal administrator does all of the work, and we only need to get more than half of the dollar value of your creditors to agree, and everyone else is forced to take the deal. We then get the court to approve the deal, so no-one can change their mind later.
So yes, you can attempt a deal yourself, but why would you? Full details here: http://www.hoyes.com/consumer-proposals/
#debt #consumerproposal #debtfree
In an interview with newretirement.com, I make the point that debt is not something you want to carry with you into retirement. I give some tips, including eliminating high interest credit card debt first, and then working through and eliminating all other debt.
Do you believe that all debt is bad? Or do you believe that debt can be good, depending on what you use it to purchase?
I invited four experts to give me their take on it, and their comments are quite illuminating. It's not a simple discussion, because you may only know what debt is good in hindsight, after the fact (depending on whether or not you were able to pay it off).
My opinion? If you can avoid debt, avoid it. It makes your life much more simple and stress free.
You travel for work purposes, and you need a credit card to book a hotel room; how can you do that if you lose all of your credit cards when you file bankruptcy?
In this just-released video, and I discuss how to survive a bankruptcy or consumer proposal when you surrender your credit cards.
#bankruptcy #creditcard #consumerproposal
Sadly, no-one is immune from math: if you spend more than you bring in, you have a problem. It appears that Orchestra London was counting on a large donation that didn't happen this year, but they had already committed to spending the money, so now they are considering bankruptcy.
As I discuss in today's article, there are options, but quick action will be required.
#bankruptcy #london #debt
"Buy the biggest house you can afford", we are told, because that will generate the maximum profit. Interest rates are low, so you can afford a bigger mortgage, or so they say.
Unfortunately interest rates can do up, and it's not just the mortgage that you should be concerned about, as I explain in today's article.
A Dirty Little Secret About Mortgage Interest Rates
TD Canada Trust announced that they were increasing the interest rate on a five year closed mortgage from 3.09 per cent to 3.29 per cent. If
Who Will Know I Filed Bankruptcy? | Bankruptcy Canada Information
A popular bankruptcy myth in Canada is around who will know you filed bankruptcy. We debunk top myths and provide information about bankrupt
Bankruptcy Canada Surplus Income Limits for 2012 Released by Government
Each year the government adjusts the surplus income numbers if you file for bankruptcy in Canada; new limits for 2012 just released.
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Buy Silver, gold, and precious metals from Sprott Money, the online bullion dealer you can trust. Get silver bars and silver coins like Amer
Consumer Proposal: Debt Negotiation and Settlement with a Consumer ...
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