Wednesday, November 30, 2011

Canada joins move to fight global financial meltdown

Synergy Debt Group -- from  thestar.com

Canada joins move to fight global financial meltdown

Les Whittington
Ottawa Bureau

OTTAWA—Bank of Canada Governor Mark Carney joined with his central bank colleagues around the world in a coordinated move designed to keep the European debt crisis from prompting a global financial meltdown.

In an effort to prevent a freeze-up in commercial bank credit of the kind that plunged the world into recession in 2008, the central banks said they will make it cheaper starting next Monday for financial institutions to obtain U.S. dollars outside of the United States.
The Bank of Canada said the coordinated strategy was intended to ensure that commercial banks could continue to provide the business and consumer loans needed to keep the global economy from heading into a tailspin.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” Carney’s office said in a statement.

Besides the Bank of Canada, the surprise move involved the Bank of England, the Bank of Japan, the European Central Bank, the U.S. Federal Reserve and the Swiss National Bank.
Stock markets reacted positively in Toronto and New York and the Canadian dollar surged more than a full U.S. cent. The loonie jumped 1.06 cents to 98.12 cents (U.S.) early Wednesday.
The central banks were responding to rising fears that the European debt crisis could soon veer out of control, leading to loan defaults by debt-burdened countries on the continent and setting off a financial crunch that could spread to other countries and spark a repeat of the 2008-09 global recession.

Fears of more financial turmoil in Europe have already left some European commercial banks dependent on central bank loans to fund their daily operations. Other banks are wary of lending to them for fear of not getting paid back.

Analysts said it was encouraging that the central bankers were stepping in to offer assurances about liquidity.

“It feeds into the idea that policymakers are at least beginning to address the problem,” said Mark Cliffe, chief economist with ING Group.

“With the dire scenarios doing the rounds the last few days, it’s all the more important they step in with aggressive measures to support the banking system and show they’re beginning to confront the financing problems of the sovereigns as well.”

On Wednesday, traders also took in data showing that real gross domestic product in Canada grew at a better-than-expected annualized rate of 3.5 per cent in the third quarter after a second-quarter drop of 0.5. Economists had expected a reading of 3 per cent.
The energy sector led the way and notable increases also occurred in manufacturing, construction, wholesale trade and the transportation and warehousing sector.

Commodity prices ran up smartly in the wake of the central bank announcement with the January crude contract on the New York Mercantile Exchange up $1.73 to U.S.$101.52 a barrel.
Metal prices also advanced sharply with the March copper contract ahead 12 cents to U.S. $3.51 a pound while the February gold contract was ahead $26.70 to U.S. $1,745.60 an ounce.
The reassurance from major central banks further enhanced positive sentiment arising from moves by China to ease lending and encourage growth.

China’s central bank announced that the amount of money China’s commercial lenders must hold in reserve will be cut by 0.5 per cent of their deposits, effective Dec. 5. It was the first easing of monetary policy in three years.

Lending has been tightened as Beijing dealt with unacceptably high levels for inflation, especially for food.

But analysts have expected China to loosen lending controls after inflation eased to 5.5 per cent in October from a three-year high and a surge in housing prices levelled off.
China has been a rare bright spot for the global economy since the financial crisis of 2008.

With files from Canadian Press and Reuters

end of article
~~~~
About Synergy Debt Group
Synergy Debt Group enables consumers caught in the, "Minimum Monthly Payment Trap" to become debt free, providing an alternative to bankruptcy and the damages that come with it.

At Synergy Debt Group, we make it possible for our customers to achieve their financial
goals and gain independence from creditors quickly. If you are serious about getting out
of debt, preserving your credit, and saving money; give Synergy Debt Group a call today for
a free consultation.

Canadian Dollar Rises on Solid U.S. Consumer Data

Synergy Debt Group from Canadian Business

By Malcolm Morrison, The Canadian Press  | November 29, 2011

TORONTO - The Canadian dollar closed higher Tuesday as investors continued to be comfortable adding more risk amid some strong economic data from Canada's biggest trading partner.

The loonie was up 0.48 of a cent to 97.06 cents US as American confidence in the economy in November rose to its highest level since July. The U.S. Conference Board's consumer confidence index rose 15 points to 56.0, up from a revised 40.9 in October.

However, that is well below the reading of 90 which indicates the economy is on solid footing.
Market sentiment has also improved as eurozone finance ministers met to consider extreme steps to deal with the worsening debt crisis, such as having nations cede control over their budgets to a central European authority.

Another plan calls for some kind of elite group of euro nations that would guarantee one another's loans but require strong fiscal discipline from anyone wanting membership.
But analysts wouldn't be surprised to see this optimism fade.

"The crisis in Europe has entered a new and more dangerous phase for which a 'solution' is increasingly expensive and politically unpalatable," observed Scotia Capital chief currency strategist Camilla Sutton.

"Accordingly, we expect that any near-term rally will fade, with the euro moving back towards its recent lows."

The sense of urgency that a fix is badly needed was seen at a bond auction Tuesday morning where Italy's borrowing rates skyrocketed.

Though Italy easily raised €7.49 billion, the yield on its three-year bonds surged to 7.89 per cent, a full 2.96 percentage points higher than last month, while yields on 10-year bonds spiked to 7.56 per cent, up 1.5 percentage points from October. Both rates are unsustainable for very long and are on par with levels that forced other eurozone governments to seek bailouts.

Italy is labouring under debts amounting to €1.9 trillion, or some 120 per cent of its national income. The country, which is the eurozone's third-largest economy, is considered to be too big to be bailed out under current rescue arrangements.

An Italian default would create devastating consequences for the eurozone, and send shockwaves throughout the global economy.

Commodity prices improved following the U.S. consumer data with the January contract on the New York Mercantile Exchange up $1.58 to US$99.79 a barrel.

Bullion was also higher with the February gold contract on the Nymex ahead $4.40 to US$1,718.90 an ounce.

And the March copper contract was up two cents at US$3.39 a pound.

End of article

~~
About Synergy Debt Group
Synergy Debt Group enables consumers caught in the, "Minimum Monthly Payment Trap" to become debt free, providing an alternative to bankruptcy and the damages that come with it.

At Synergy Debt Group, we make it possible for our customers to achieve their financial
goals and gain independence from creditors quickly. If you are serious about getting out
of debt, preserving your credit, and saving money; give Synergy Debt Group a call today for
a free consultation.

Tuesday, November 29, 2011

Posted to Synergy Debt Group from  the Financial Post

Crushing Debt: The 4 main options

by Jonathan Chevreau  Nov 29, 2011 – 12:21 PM ET | Last Updated: Nov 29, 2011 12:44 PM ET


About a year ago, a couple I know well were seriously contemplating bankruptcy but were at a loss for finding a neutral source of information about their options. Today, I’d have no hesitation in directing them to a new book just published by chartered accountant David Trahair:Crushing Debt.

Subtitled Why Canadians Should Drop Everything and Pay Off Debt, the relevant chapter for my friends would be Chapter 7: How to Get Out of Personal Debt. I read it cover-to-cover on the weekend and found it a surprisingly compelling read.

There’s plenty of material on sovereign debt and the fact that Canada is hardly immune from what’s going on in Europe, the U.S. and elsewhere. Debt is also a major theme of another book that won’t be out for another month or so: Financial Recovery in a Fragile World, by Evelyn Jacks, Al Emid and Robert Ironside.

More on that later but back to Trahair’s book, one of a flurry of books published this autumn by Wiley Canada. Trahair has also published an RRSP book called Smoke & Mirrors and another Wiley book, Enough Bull. The former questioned a lot of conventional wisdom about RRSPs and retirement (such as the perception you need $1 million to retire). The latter questioned the equity culture of the financial industry and essentially counselled concentrating on fixed-income and GICs.

Being free of all debt a prerequisite for Retirement
Because he’s an accountant rather than a financial planner or securities salesperson, Trahair’s insights are relatively objective and no-nonsense. I’m completely aligned with his view that there’s little point in building wealth while you’re still mired in the basement of debt. (To paraphrase a line from my own book).

I wrote “the foundation of financial independence is a paid-for home.” Trahair says the same thing in different words: “If you want a comfortable retirement your goal should be to retire debt-free, including the house mortgage.”

To return to the situation my friends were facing a year ago, here are the four options they had; I’ve used Trahair’s headings and have paraphrased and condensed his content:

1.) Paying off your debts yourself.
This is the old-fashioned route I’d hope most of us would take, providing we still have employment income and we’re not too deeply in the hole. My friends had long passed this option, however. The objective here is to pay off all your bills, both principal and interest. You stop accumulating expensive assets and try to sell some of them; you get a debt-consolidation loan and/or try to renegotiate your debts with your various creditors.

2.) Use a credit counselling service’s Debt Management Program
This option involves paying back principal but arranging to get a partial or total break on interest owed. The credit counselling agency contacts your creditors and coordinates payments to them on your behalf. You make one monthly payment to the agency, which they then distribute to your creditors. One of the several benefits is that phone calls from creditors will stop.

3.) Use a Bankruptcy Trustee to file a Consumer Proposal
As Trahair notes, if you don’t think you can pay off 100% of your debts, a DMP may not be for you. He defines a consumer proposal as a “negotiated offer to all of your unsecured creditors to pay a portion of what you owe.” That includes credit card debt, unsecured lines of credit, personal loans, payday loans and income taxes.

This is an alternative to outright bankruptcy but it still is administered by a licensed Bankruptcy Trustee. You negotiate to pay less than 100% of your debts and all interest charges stop as soon as you file the proposal. You don’t lose your house or other assets, and the negative impact on your credit rating is less severe than under bankruptcy. The maximum repayment period is five years. This may be the best choice if you owe $5,000 to $250,000, not including your mortgage. (A proposal does not deal with secured debt like a home mortgage or car loan.)

4.) Use a Bankruptcy Trustee to file bankruptcy.
This of course is the last resort but Trahair says “for some people it is the best option.” You’re just so deep in debt there’s no other way out. But you can’t do it on your own: you must use a professional. It’s a legal process that can only be filed through a Trustee in Bankruptcy, someone licensed by the Office of the Superintendent of Bankruptcy to administer the process.

Trahair cautions that bankruptcies usually do not affect the rights of secured creditors with valid security against such property as your house or car. “Bankruptcy will not wipe out your mortgage or your car loan.”

The trustee will try to sell some of your assets, although some are exempt because of provincial or federal laws. The proceeds will be held in trust for eventual distribution to your creditors. Exempt assets include up to $11,000 of household furniture (in Ontario), personal effects,  vehicles worth under $5,650 (in Ontario), tools of the trade, and RRSPs (except for contributions made within 12 months of the bankruptcy).
During this time, you may be required to make payments to the trustee for later distribution to creditors. You may have to meet with them and will have to attend two counselling sessions. If all conditions are met, you will be discharged nine months after filing for bankruptcy.

All in all, if you’re drowning in debt, the $19.95 spent on Trahair’s book will be money well spent.
End of article

About Synergy Debt Group
Synergy Debt Group enables consumers caught in the, "Minimum Monthly Payment Trap" to become debt free, providing an alternative to bankruptcy and the damages that come with it.

At Synergy Debt Group, we make it possible for our customers to achieve their financial
goals and gain independence from creditors quickly. If you are serious about getting out
of debt, preserving your credit, and saving money; give Synergy Debt Group a call today for a free consultation.

8 Myths About Bankruptcy

From CBC Business News
by Tom Mcfeat

Filing for personal bankruptcy still carries a powerful stigma in this country. Mere mention of the word conjures up images of deadbeats — irresponsible consumers who couldn't be bothered to get a job or figure out a budget.

Yes, there are deadbeats among the bankrupts. But the truth is that there are plenty of people who find themselves in desperate financial straits despite having initially had every intention of paying their creditors. A divorce, the death of a spouse, a severe illness or disability, the loss of a job can all propel even the most well-meaning consumer into debt hell.

People don't tend to share their bankruptcy fears with friends and neighbours. That sense of shame, failure and isolation allows some persistent misunderstandings and falsehoods about the process to linger. In some cases, those mistaken impressions can prevent people from seeking the relief that a bankruptcy filing is designed to provide.

With that in mind, here are eight myths about bankruptcy … and some facts that just might open your eyes:

I don't want to file for bankruptcy because I'll lose everything.Yes, if you have a lot of assets, chances are you will lose most of them. After all, your creditors do have a right to get at least some of their money back. But you won't lose everything. "This fear-mongering is often disseminated by credit collections people who want to frighten you into paying them rather than seeking the help of a licensed trustee," says the Toronto-based bankruptcy firm A. Farber & Partners. Some assets are protected from liquidation in the bankruptcy process. For instance, creditors usually can't touch locked-in pensions, RRSPs or RRIFs (although RRSP contributions made during the year prior to the bankruptcy filing can sometimes be clawed back.) Each province and territory has its own list of assets that bankruptcy filers are allowed to hang on to. The exemptions can vary dramatically from one jurisdiction to the next. In some provinces, if you have any equity in your home, that must be included in the available asset pot to be divided among the creditors. But in Alberta, the first $40,000 in home equity is exempt. People are also generally allowed to hang on to modest amounts of furniture, clothing, tools of the trade, and even a car if there's not much equity in it (the car's value minus the amount owing on it). But if you're behind on your mortgage or car payments, secured creditors can still take legal steps to protect their positions despite any bankruptcy filing. You can also keep your pets.

My friends will all know that I've filed for bankruptcy. We've all seen those little ads in the "legal notices" section of the paper that alert potential creditors to someone's bankruptcy. But that's for larger bankruptcies. If the assets are minimal, the creditors are notified by mail and there's generally no notice in the paper. And while bankruptcy filings are a matter of public record, who actually goes to the bother (registration required) and expense ($8) of searching? So unless you tell them, there's a good chance that friends, neighbours and work colleagues won't find out about your filing.

Who's filed for bankruptcy?

Almost eight per cent of non-retired Canadians between the ages of 45 and 64 — or more than 480,000 people — have gone through at least one bankruptcy in their lives. Source: Statistics Canada

My credit rating will be ruined if I file for bankruptcy. Creditors sure don't like to see a bankruptcy notation in someone's credit file. But if you're many months behind in paying your bills, collection agencies are calling and you're not able to pay back anything close to what you owe, your credit rating will already be a disaster. For the record, in most provinces a bankruptcy notation remains on your credit report for six years after you're discharged (which can occur in as little as nine months after filing). Arranging a consumer proposal (often thought of as a less drastic solution to bankruptcy) remains on the credit file for at least three years after it's been satisfied (which can itself take several years). Even entering into a debt management plan through a credit counselling agency (where you will be paying back every cent owed) gets a notation on a credit report.

Bankruptcy erases all your debts. Definitely not true. Some debts cannot be discharged in a bankruptcy filing. They include secured debts like mortgages or car loans, alimony, spousal and child support obligations, court fines, claims arising from an assault, or student debts, unless you're been out of school for at least seven years (this can be reduced to five years in cases of hardship).

It doesn't cost anything to go bankrupt. You may think that you shouldn't have to pay to go bankrupt. But bankruptcy trustees don't work for free. Usually, they get paid from the money that's freed up from the liquidation of the bankrupt's assets. Their fees come to about $1,500. You're also required to attend counselling sessions at an additional cost. In cases where the bankrupt has no assets to liquidate, the trustee will require his or her client to pay over time (as little as $200 a month). And until you are discharged, a portion of earnings above a certain level (what's called surplus income) must be turned over to the trustee for distribution to creditors.

I'll never be able to get credit again if I file for bankruptcy. As mentioned earlier, a bankruptcy notation will remain on a credit file for at least six years after the discharge. During that time, every creditor will be able to see the bankruptcy notation. After those six years have expired, there will be nothing on the file to show a bankruptcy. Even during that six-year period, people can take steps to rebuild their credit ratings. "You will be able to get a secured credit card and a car loan shortly after you are discharged," says Earl Sands, a Vancouver-based trustee in bankruptcy. "Provided you meet the income tests, a year after your discharge you should be able to qualify for most loans." Many lenders specialize in clients who've had a less-than-stellar credit history.

Filing for bankruptcy will destroy my spouse's credit rating. A consumer bankruptcy filing is personal to the individual filing it. As long as your spouse didn't guarantee or co-sign for your credit cards or loans, his or her credit rating will not be affected by your filing.

Creditors cannot go after your spouse for debts that are in your name. The flip side of this is that a bankruptcy filing only results in the filer having their debts discharged. The spouse's debts must still be paid.
Filing for bankruptcy is no big deal. Make no mistake — bankruptcy is a last resort and even bankruptcy trustees acknowledge that. During the nine- to 21-month-period it takes to complete a bankruptcy and have your debts discharged, you will have to hand over total control of your finances to a bankruptcy trustee. You will have to surrender all your credit cards. You will have to report your household income and living expenses to the trustee every month and send along copies of your pay stubs. If you borrow more than $1,000, you must tell the creditor that you are an undischarged bankrupt. If you fail to do this, you can be fined and even jailed. You will also have to take two credit counselling sessions. Nothing impossible, to be sure. But bankruptcy is definitely not something to be trifled with.

In the end, if you're told that the best solution to your financial woes is a bankruptcy filing, don't despair. Bankruptcy laws were set up to allow people in dire straits to wipe their slates clean and start fresh.
Debt management expert Gail Vaz-Oxlade acknowledges that the decision to file for bankruptcy is not an easy one. "But if that's what it'll take to get you out of hell, then do it," she writes in her best-selling book,Debt-Free Forever.

"It won't be easy to live through. And the black mark will stay with you for a long time. But there is an end and you can have a life — a good life — after bankruptcy."

Alternatives to bankruptcy

Debt consolidation loan
Consolidation loans are used to pay off a variety of high interest rate consumer debts (like credit cards), resulting in a lower overall monthly payment.

Available at banks, credit unions and finance companies. Interest rates will be higher than regular bank loans but lower than credit card rates. Be sure to ask if there are fees and other charges.
Consolidation loans can only include unsecured debt, so mortgages and car loans can't be included.

Credit rating will not be hurt as long as regular payments are made and you don't go out and rack up a lot of new debt.

People frequently use Home Equity Lines of Credit to pay off high-interest rate debt like credit cards since HELOC interest rates are much lower and repayment terms can be interest only.

Debt Management Plan (DMP)
Credit counselling agencies contact creditors and negotiate a DMP to fully repay your unsecured debts over a period of up to five years. You make one monthly payment to the agency and it distributes payments to your creditors. They may be able to negotiate lower interest rates going forward.

Agencies cannot force all creditors to accept a DMP.
Unlike a bankruptcy, DMPs will not discharge your debts — you will usually be repaying your creditors in full, over time. But agencies can often negotiate a lower interest rate going forward.

Once a DMP is in place, the creditors who agree to the plan will stop phoning you. Those who haven't agreed can continue to take action to collect.

The presence of a DMP will be noted in the credit report.
Credit counsellors charge fees to arrange a DMP. These depend on the debt load and the number of creditors.

Fees are not regulated.
Non-profit credit counselling agencies that arrange DMPs are often funded by banks and credit card companies.

Consumer proposal
A consumer proposal filing is done by a trustee in bankruptcy.
The trustee makes an offer to the creditors to accept a portion of the amount of unsecured debt (i.e. excluding mortgages and car loans).
Trustee submits a proposal to the creditors.

If creditors who are owed a majority of the debt agree, the proposal will be binding on all unsecured creditors.

Once the proposal is accepted, all unsecured creditors are required to stop collection efforts.

Proposals can last up to five years, but three-year plans are generally more successful.

Unlike a bankruptcy filing, your assets will not be liquidated but the presence of the proposal will be noted in the credit report.

Fees are regulated by government.

Monday, November 28, 2011

Synergy Debt Group Helps Attain a Debt Free Lifestyle


We help people pull themselves out of the financial crisis of overwhelming debt, enabling and empowering them to experience the joy of a debt free life, allowing them to sleep at night and plan for a home and retirement for themselves and a future for their kids. That’s why people in crisis seek us out. We are an emergency room for those who have debt problems and need a debt management specialist in their corner. We know how stressful it can be when debt collectors make demands for payment. Most have reached their maximum credit limits, and are struggling to make just the minimum payments.

We step in and help people take their credit card debt problems off their dining room tables and directly into our hands where we take over all communication with your creditors, lower the rates, and put you on a monthly payment plan that could see you completely debt free within 36 to 48 months instead of decades. We will work with you to provide the best solution for your individual circumstances while acting as your advocate during the debt management process to protect your rights, and ensure that you are not obligating yourself to pay a penny more than what you have to. If you’re  suffering from high credit card balances with high interest rates and feel your spiraling out of control, contact us today and we'll help you get that load off your back once and for all.

Wednesday, November 23, 2011

Rising Household Debt

Canadian consumers continue to borrow at a faster rate than their wages grow, making the country's otherwise healthy-looking economy very vulnerable..

Economists have warned against rising household debt, as Canadians continue to borrow at a faster rate than even the profligate Americans. U.S. borrowers have begun to check their own debt after their a deep recession and housing bust.

Meanwhile, Canadians are binging on debt due mostly by rising home prices, low interest rates, and economic prospects that are among the best in the Group of Seven. The quarterly ratio of household credit debt—incorporating mortgages and consumer loans—to disposable income hit 147.3% in the January-to-March period, up from 146.2% in the preceding quarter, That's the highest level since the agency began keeping these figures, dating back to 1990. It is also up sharply from just four years ago, when the figure was 127%.

By comparison, household debt in America, as a ratio to disposable income, peaked at 164% in late 2007, and is now hovering around 144%, according to data compiled by economists at Toronto-Dominion Bank.  "Canadian debt ratios are now leaving their U.S. counterparts in the rearview mirror," wrote BMO Capital Markets economists.

Consumer debt growth in Canada moderated in the first quarter, to 1.3%, a slower advance compared to increases of 1.4% and 1.7% in the two preceding quarters, respectively. Regardless, the first-quarter rise was faster than the 0.7% gain in household disposable income.

High debt levels could force households to hold back spending, which would make the Canadian economy to rely more on investment in business and exports. Earlier this month, Canada reported a surprise trade deficit, bringing worries that the strong Canadian dollar was making Canadian goods less competitive overseas.

Meanwhile, the data agency said Canada's national net worth rose 0.7% to 6.4 trillion Canadian dollars (US$6.53 trillion) in the first quarter, as growth in non-financial assets, mainly in non-residential properties, was partially offset by an increase in net foreign debt. Household net worth advanced 1% to C$6.3 trillion, after a 2.4% increase in the October-to-December period. Per capita household net worth was $184,700 in the first quarter, up from $183,300 in the fourth quarter; household debt per capita climbed to C$45,000, from C$44,500.

Monday, November 21, 2011

Debt Management May Not Be For You


Interestingly enough, we at Synergy Debt Group discovered that only seven out of 100 people we counsel are qualified candidates for our debt management program. Our program isn't  for those who already have reasonable credit card rates, pay them down each month, and are easily handling their finances. We congratulate and gladly encourage them to keep on doing just what they’re doing. And it’s also not for those who have fallen significantly behind on their payments and already in collection. They would benefit more from a debt settlement company that negotiates with creditors to settle their accounts for an amount potentially much lower than the outstanding balances.

The ideal candidate for debt management is one who is near or reached his or her credit limits, is on the cusp of falling behind, and stressing over the ability to make even the minimum payments.

Being a few days past the grace period (usually ten days) and paying a late fee does not reflect on your credit. Only when you’ve gone more than 30 days past  the due date will it hurt your credit rating.

Saturday, November 19, 2011

Life Coaching on Personal Finances and Credit

Synergy Debt Group of Scarborough, Ontario, is now providing free financial life coaching for all current and new clients who enroll in Synergy’s debt management program; an $800.00 value

Life Coaching is not counseling or consulting, mentoring, or therapy, but rather a one-on-one process with a person that helps him or her address specific personal and/or business concerns, and the obstacles and challenges that have hindered them from achieving their life’s goals. Life coaches help clients design and implement their own plan of action that, with guidance, will result in an improved financial condition.

Behavioral Scripts
Behavioral scripts are subliminal impulses that were implanted in each of us throughout our early childhood. They dictate how we operate in certain areas of our lives, from the way we interact with people and relationships, our work ethic, discipline, and of course money. As a debt management company, Synergy Life Coaching will focus on the negative scripts clients have towards money. These scripts were written and shaped from both the direct and indirect influences we received from the significant people in our lives that, well beyond our volitional awareness or control, command how we respond to circumstances today; a stimulus-response mechanism no different from Pavlov and his dogs.

“Life coaching people on their finances will add a whole new dimension to Synergy’s already very effective debt  management program,” said Wendy Manzo, Synergy’s owner. “Its means clients now have the means and support to finally confront the impulses that caused their finances to get out of hand in the first place. The focus is to help consumers help themselves realign their thoughts about money, become more financially literate, obtain financial stability, maximize their growth, and help them obtain their financial goals, and stay out of debt.”

Synergy’s life coaches have completed extensive training and certification from the esteemed Fowler Wainwright International Institute of Professional Coaching, based in Laguna Nigel, California. They successfully guide clients through a series of tests to help identify the content of their money scripts, and then discuss how it had impacted the way they viewed and managed their finances. The coach and client together then come up with a plan to revise the negative  script into a positive one, improving people’s ability to manage their finances and gain success in their lives.

Random studies indicated most people couldn’t say what their actual monthly expenses are without  some degree of thought—and some could not without a lot of thought. Helping the client compile a realistic, controllable budget is one of the most important aspects of the program to ensure positive results. Using the acclaimed Mint.com, a free online personal finance tool, clients can view and track all of their finances through one, very friendly graphic interface, from monthly budgeting to bill reminders to tracking their investments, even be alerted when one item may have gone over budget.

“Money is energy,” Wendy Manzo said. “The more control you have of it, the more powerful it becomes. That’s the objective of Synergy’s financial life coaching, giving the client more control and then ultimately more power over their future.”  


Life Coaching on Personal Finances and Credit


Synergy Debt Group of Scarborough, Ontario, is now providing free financial life coaching for all current and new clients who enroll in Synergy’s debt management program; an $800.00 value

Life Coaching is not counseling or consulting, mentoring, or therapy, but rather a one-on-one process with a person that helps him or her address specific personal and/or business concerns, and the obstacles and challenges that have hindered them from achieving their life’s goals. Life coaches help clients design and implement their own plan of action that, with guidance, will result in an improved financial condition.

Behavioral Scripts
Behavioral scripts are subliminal impulses that were implanted in each of us throughout our early childhood. They dictate how we operate in certain areas of our lives, from the way we interact with people and relationships, our work ethic, discipline, and of course money. As a debt management company, Synergy Life Coaching will focus on the negative scripts clients have towards money. These scripts were written and shaped from both the direct and indirect influences we received from the significant people in our lives that, well beyond our volitional awareness or control, command how we respond to circumstances today; a stimulus-response mechanism no different from Pavlov and his dogs.

“Life coaching people on their finances will add a whole new dimension to Synergy’s already very effective debt  management program,” said Wendy Manzo, Synergy’s owner. “Its means clients now have the means and support to finally confront the impulses that caused their finances to get out of hand in the first place. The focus is to help consumers help themselves realign their thoughts about money, become more financially literate, obtain financial stability, maximize their growth, and help them obtain their financial goals, and stay out of debt.”

Synergy’s life coaches have completed extensive training and certification from the esteemed Fowler Wainwright International Institute of Professional Coaching, based in Laguna Nigel, California. They successfully guide clients through a series of tests to help identify the content of their money scripts, and then discuss how it had impacted the way they viewed and managed their finances. The coach and client together then come up with a plan to revise the negative  script into a positive one, improving people’s ability to manage their finances and gain success in their lives.

Random studies indicated most people couldn’t say what their actual monthly expenses are without  some degree of thought—and some could not without a lot of thought. Helping the client compile a realistic, controllable budget is one of the most important aspects of the program to ensure positive results. Using the acclaimed Mint.com, a free online personal finance tool, clients can view and track all of their finances through one, very friendly graphic interface, from monthly budgeting to bill reminders to tracking their investments, even be alerted when one item may have gone over budget.

“Money is energy,” Wendy Manzo said. “The more control you have of it, the more powerful it becomes. That’s the objective of Synergy’s financial life coaching, giving the client more control and then ultimately more power over their future.”  


Friday, November 18, 2011

3 Good Reasons Why Not to DIY With Debt Relief



Some have the opinion that consumers should not sign up with a debt management company but should do it themselves. But if the truth be known, very few consumers can do this.

Why?

1) Emotional Connection
One reason many For Sale By Owners do not not successfully sell their home, Realtors say, is because of how emotionally they’re tied to it. They cannot disassociate themselves enough to look objectively at the transaction to the degree a Realtor can. It’s the same thing when facing financial hardship, especially when emotions are exasperated by demanding and bullying collection agents. Bill collectors, working on commission, press to get the most from debtors they can get--that’s how they get paid. And most debtors don’t even know there may be a way to negotiate and pay less. Even if they did, the old adage “he  who represents himself has a fool for a client” certainly comes into play. Ultimately the financial duress imposed by the collector will eventually drive the debtor to throw in the towel and pay all of the balance due.

2) Time and Attention
Dealing with collectors takes time, and attention away from more constructive activities. But that’s debt relief professionals’ full time job. They can take all the time in the world to go back and forth with a collector to get the best settlement. More times than not, it’s the collectors who finally throw in the towel and accept anything they can get. This let’s the consumers keep their mind and time on their work to make the money so they can pay their debts.

3) Knowing the Ropes
A tactic employed by bill collectors is intimidation. They simply just don’t know how how to deal with collectors, other than out of fear. An experienced debt relief professional, however, does have the experience in dealing with the major creditors and their agencies. They not only have the knowledge, but the economies of scale, which helps them work much better settlements and proposals with the creditor.

So bear these three issues in mind before you consider doing it yourself with debt settlement
and debt management.

Will Enrolling in Synergy Debt Group Affect My Credit Scores?

WILL ENROLLING IN SYNERGY DEBT GROUP AFFECT
YOUR CREDIT SCORES?

Enrolling in Synergy Debt Group’s debt management program, or any credit counseling service,  will not affect your credit scores.  So the Fair Isaac Corporation (FICO) clearly states on its web site: http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx   

“Frankly, we think consumers who participate in credit counseling shouldn’t be punished in their FICO scores,” says Craig Watts, public affairs senior manager  for Fair Isaac Corp.

Synergy Debt Group’s debt management program could actually improve people’s credit standing, and ultimately their scores.

A little fact about how the credit reporting bureaus look at credit cards, and one which most people are not aware, is that  when a credit card account has a high balance relative to its credit limit (35 percent and higher), it starts to lower the holder’s credit scores.

Why?

Because the reporting bureaus’ models, not the banks’, consider you're living more on credit than income, thus placing you in a higher risk category and lowers your scores. Charge up to the card’s maximum credit limit will affect  the scores even more, regardless that the minimum payments have always been made on time. Charge over the limit, and the affect is even more dramatic; the bank itself may deem you too high a risk and deactivate the card, further lowering not only just your scores, but  negatively affecting your credit profile overall.

So, by the time you realize you need help with debt management, you should know  your credit scores have probably already taken a hit, maybe even big one. Especially if making just the minimum payments becomes a hardship, and the  fear of potentially falling behind.

Being a few days late and paying a late fee does not reflect on your credit. Only if you’ve gone 30 days past due, and longer, will it hurt your scores.

Synergy Debt Group designs personalized programs for each client that helps them free themselves of credit card debt within three to four years, not decades. Also, as the debt decreases, so too does the clients’ debt to income ratio, improving their credit risk.

You may may not always have the cash, but  good credit will help you get it when we need it.

Thursday, November 17, 2011

New Synergy Debt Group Website http://ping.fm/4yayf

Latest Available Credit and Debit Card Statistics

Below, find the latest credit card statistics for Canada and other nations around the world -- including statistics on credit card debt, credit card delinquencies and more. This page will be updated regularly as new or updated credit card statistics become available.

CANADA
  • There were an estimated 37 million debit cards and 72 million credit cards in circulation in Canada in 2009. (Source: Euromonitor International, January 2010)
  • Total outstanding credit-card debt hit $78 billion in September, up from $76 billion in September 2008, according to Equifax Canada. (Source: Toronto Star, December 2009)
  • Ninety-day credit card delinquencies jumped 53 per cent between September 2008 and September 2009, hitting $3.6 billion. Among major cities, Toronto has the nation's highest delinquency rate (2.14 per cent) in October. The average national rate is 1.67 per cent. (Source: Toronto Star, December 2009)
  • Canadians spent almost $267 billion on their cards in 2008. (Source: Toronto Star, December 2009)

WORLDWIDE DATA

Outstanding national credit card balances, in billions. (In U.S. dollars.)
US - $775.0
UK - $87.5
Canada - $73.9
Australia - $40.4