Scott Patton operates our Kitchener / Waterloo office. As a debt expert since 2007 he has seen lots of changes to the debt industry and what it means for consumers to look for bankruptcy or consumer proposal help when facing difficult financial problems.
The Reasons for Insolvency
Since 2007 I have seen many factors that have affected the financial lives of everyday Canadians. Things such as marital breakdown, loss of employment, sickness, and using credit to supplement incomes. While these are not the only reasons, they are generally the most common. The emotional and physical impact that debt troubles can have must also be considered when developing a solution to the financial issue.
When I ask my clients what the biggest issue is when they come to see me, the most frequent answer is stress. A big part of what I can accomplish for my clients is eliminating large portions of debt through using different methods while making their everyday lives better by reducing the stress they are feeling.
The Changing Debt Landscape
One of the biggest changes I have seen in the debt industry since 2007 is the number of companies that claim to be the best company for Canadian debtors.
Since the recession hit Canada in 2008, there has been an influx of American debt companies as well as other debt companies claiming to be the best for you.
4 Pillars is 100% Canadian, and works strictly on behalf of our clients, to ensure they get the best possible advice and solutions when facing debt problems, bankruptcies or consumer proposals.
We have seen an increase in the number of companies claiming similar results.
4 Pillars has a 98% success rate – which is one of the highest in the industry. The success rate for others in the industry is far lower, which is why 4 Pillars continues to be the leader in innovative new ways to help consumers. We want to give Canadians a choice when it comes to dealing with their financial problems.
In the coming months, Ontario is expected to bring into force new legislation to license Debt Management companies. 4 Pillars is a strong supporter of this legislation and we fully expect to see the debt industry rationalized. We expect to see many debt related companies eliminated who fail to meet the new government guidelines.
What does this mean for you the consumer?
Currently, we are licensed in Alberta who has the toughest laws in Canada. It is just another reason to trust 4 Pillars, and that we stand behind our commitment to our clients.
Consumers are Better Informed
In 2007, consumers were not very informed about their debt options, how to choose the right debt company or how debt restructuring affected long term wealth creation. Today consumers spend more time researching their options, gathering information on companies, and being armed with questions before they ever make contact with a company. As more consumers learn online its important to make sure they understand that debt restructuring can be complex and not all the information they read may be accurate.
How has 4 Pillars Changed
4 Pillars in Kitchener has evolved from a company that provided just debt solutions to providing debt and budgeting solutions, foreclosures, small business consulting, credit rebuilding, and consolidation loans.
4 Pillars is now the only debt company in Canada that provides consolidation loans to our clients for settling debts that have been negotiated on a client’s behalf. This can be done using a Consumer Proposal or informal creditor negotiations.
This is such an amazing program that we have inquiries everyday from consumers looking for new ways to deal with their debt related problems. It significantly sets us apart from our competition by offering the lowest impact on a debtor’s credit rating of any debt restructuring plan in Canada.
The consolidation loan offers the following benefits:
1. Eliminates the chances of defaulting on a consumer proposal (normally people then have to file a bankruptcy)
2. The loan reports to the credit bureau which helps to rebuild your credit,
3. The one- time payment can reduce the settlement (amount paid to creditors) made vs a regular monthly payment consumer proposal.
Choosing the Right Company
When going through a stressful and difficult financial situation, you are not always thinking clearly. You need someone who can explain your options clearly, and how your future long term goals can be attained by having the right plan and solution in place.
These goals can be as varied as the individual, such as saving for a home, saving for retirement, saving for a child’s education, rebuilding credit, improving monthly cash flow, or paying the debt off as quickly as possible. Without knowing what your future long term goals are, then how do you know which solution would be right for you?
Your 4 Pillars Debt Relief Specialist is here to assist you with your specialized restructuring plan, and to listen to your concerns. From our first phone call, to that fantastic day of when you have achieved your long term goals, we will guide you through the process.
