Debt doctors: Arbitrators can help you get out of a credit crisis
By P.J. Harston
Published in several Sun Media Corporation newspapers 2007-08-30
It’s no secret Canadians are racking up their credit cards, taking out mortgages for homes they can’t afford, much less afford to furnish, getting loans for new vehicles and otherwise sinking deeper into debt.
Statistics Canada reported that between 1999 and 2005 median debt load for families rose 38% from close to $32,300 to $44,500.
If you’re barely able to keep your head above a flood of bills and notices, Calgary’s Bonnie Krisher may be able to help you.
“My clients are everybody from a well-known snowboarder to physicians, the young, the elderly, families — people from all walks of life and all across the country,” she said.
Krisher is a certified debt arbitrator and is one of just a handful of Canadians who make it their business to negotiate debt settlement with creditors.
“The concept is not new. Banks and financial institutions have done it in the past and lawyers have done it,” she says.
The U.S. has at least 6,000 such companies, says Krisher.
Her company, K&G Debt & Credit Professionals, works to have debt forgiven for a lump-sum percentage of the actual cost.
“We can settle for as low as 15% and I would say our average settlement is for 25 cents on the dollar,” she says.
What that means is that if you have a $10,000 credit card bill, Krisher might be able to settle it with a single payment of $2,000 and keep it from destroying your credit record.
After the settlement is reached, Krisher’s company works with clients to educate them on money management and helps them to rebuild their credit record if it’s already been damaged.
For more information on her services go to www.kgdebt.ca on the Internet.
Tips
Three basic things to do if facing a debt crisis:
- Protect yourself from creditors by creating a joint account with someone who is not associated with your debt; such joint accounts cannot be garnisheed.
- Protect yourself from collection companies that make harassing phone calls by requesting collection attempts be made in writing only
- Protect yourself and/or your spouse by understanding your rights. For example, under Canadian law, a creditor cannot pursue you for debts that are in your spouse’s name.
Source: K&G Debt & Credit Professionals
