Frequently Asked Questions

Consumers Guide to Financial Recovery

We have the answers to meet your needs! We will help you find YOUR financial freedom!

Debt Masters™ was created to help you, who has realized you are living with the Monster of Unmanageable Debt. When there seems to be no way out of the difficult financial times we can help you discover and implement a path out of darkness. We specialize in providing education about the financial system and programs to aid your recovery from whatever circumstance that has become stressful. With our help you will better understand your credit situation and all options that may be available to you. More importantly, our program helps people begin re-establishing their credit everyday.

When you’re ready, contact us for a free, no obligation, 100% confidential consultation. You'll obtain professional credit and debt assistance in privacy that will recover not only your financial freedom but your confidence.

What is Debt Recovery?

Debt Recovery is the action plan that you initiate to repay or resolve your responsibility for all previous debts that are keeping you in stressed and staining your credit report. This may include a Debt Settlement, Consumer Proposal to the creditors, or a Debt Consolidation and Management Program or to file for Bankruptcy.

What is a Credit Recovery?

Credit Recovery is the strategic action plan that you undertake to take charge of your money to rebuild your credit history and score. This will include getting and maintaining a series of small credit accounts that are reported by and to credit agencies. Managing these accounts in a responsible manner for more than 12 to 18 months will re-establish you with good credit history.

Why do I need to establish or re-establish my credit history?

Your credit report is used against you in many ways beyond just getting approval for credit. Having no credit history or having less than average credit history on file can force you to endure invisible challenges when applying for a job, rental accommodations, phone utilities, or even automobile insurance premiums can be quoted 20-30% higher to you than others. It is important to re-establish your credit because it affects your life in hidden ways but if you don't when it comes time to purchase big ticket items such as vehicles or houses you will be turned down or your interest cost will be substantially higher than if you had created a good credit history.

What is the best criteria for re-establishing credit?

The best criteria for re-establishing credit are considered to be at least two active trade lines (three is best) totaling more than $3000 credit limit. And your handling of these must be perfect, to show at least 12 to 18 months of good payment history.

How is my credit measured?

Lenders regularly report your payment behavior to the credit bureaus who in turn assess your regularity and timeliness according to an evaluation of this pooled information. Your subsequent credit score is a numerical expression based on a statistical analysis of your accumulated credit files, which then represents your creditworthiness. Credit scores are used to evaluate the potential risk posed by lending money to specific consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and at what credit limits they are willing to offer. Credit scoring is used by all organizations, such as phone companies, insurance companies, employers, landlords, and government departments to determine how they limit your access to goods, services and life.

How can I find out what is my credit score?

The credit reporting system in Canada is handled by two credit bureaus: Equifax and TransUnion that are also in USA. Unlike the USA that allows you one free credit report per year, by Canadian Law, a consumer may order a free copy of their credit report any number of times in a year, as long as the request is made in writing, and as long as the consumer asks for a printed copy to be delivered by mail. This request by the consumer is noted in the credit report, but it has no effect on their credit score. According to Equifax's ScorePower Report, Beacon or FICO scores range between refusal low 300 and credit approval high 900. Click this link for a generic request form, print and fax your completed Consumer Disclosure Request to both credit bureaus to receive your free credit bureau report by mail. Be sure to send the completed form to both companies.

How long does it take to re-establish my credit?

It takes a minimum of 12 months – 24 months depending on what you are trying to accomplish.

Can I purchase a house after re-establishing my credit?

The whole idea of re-establishing your credit is to put you into a position to buy a house but more importantly to enable you to receive the best possible interest rate that will keep your payments low. In fact one of the benefits of working with DebtMasterS is that we have the ability to help you get such a low interest mortgage once we have recovered your credit history.

How do I begin an effective plan to recover my financial life?

There are 3 steps to the process:
  1. Contact Us! Click the "Get Help Now!" button or Call the Debt Helpline at 1-866-977-7945.
  2. We will contact you to discuss your unique financial circumstances. This evaluation meeting to determine what help we can offer is free.
  3. After which we will recommend a plan to get you started on your way to financial control and freedom!

What types of debts can be included?

At Debt Masters we work with unsecured Canadian debt. That means credit cards, medical bills, lines of credit, bank loans, student loans, short falls on mortgages, fitness clubs, collection agencies, and YES - our plans work with Payroll loan companies.

Do I have to live in Canada?

No, our clients may live all over the world, however, you must have Canadian debt in order for us to assist you.

How can Debt Masters benefit me?

Knowledge is power! When you apply with DebtMasterS you add to your team all the financial knowledge and experience in negotiating debt difficulties to a positive conclusion. This is the knowledge to overcome your financial problems. Debt Masters also has 26 programs available to help recover your financial life. More than just debt settlement, we can save a foreclosure, get you a home mortgage, a replacement vehicle, an equipment lease and even help you to get a credit card, or we can work with you to re-establish your credit. When you follow our strategic credit rebuilding plan to gain the positive credit position required you will be enabled to buy a house in approximately two years.

Can you stop legal action and collection phone calls?

Yes! In the majority of cases we are able to work with creditors towards a positive solution that will satisfy everyone, and hopefully stop any legal action. The phone calls from collectors cease immediately and will remain silent as long as clients maintain their payment arrangements.

What should I do when a debt collector calls?

Tell the caller that you are a Registered client of Debt Masters and refer them to your Debt Masters consumer advocate. We are happy to take those calls on your behalf. If those collectors who you have already referred to our office continue to call you directly, notify your Debt Masters advocate.

Will Debt Masters stop interest from being charged on my accounts?

The majority of creditors want to work with you and do stop interestwhile you are on a Debt Management Program. However, there may be a few creditors that do not.

Is this service confidential?

Absolutely! All applications and client files are 100% confidential.

Will my creditors know I have sought assistance from you?

If a creditor calls us to verify you have contacted us we will assume it is because you have told them to do so, or because the creditor has referred you to us. We will then verify the date you contacted us and the status of your application.

How do you determine the amount paid to each creditor?

That is determined by the total amount of your debt, your income, and your living expenses.

What if a creditor does not agree to a Debt Management Program?

It is unusual to have creditor refusal as we try to work out an agreement that will satisfy both the creditor and the client, in the orderly reduction and repayment of the debt.

Do we have to continue to work with our creditors?

We ask you to respond to them in a positive way. Let them know you are using our services and give them the information they request and/or refer them to call us. However, it is important that you do not make any additional payment arrangements that conflict with your Debt Management Program. Call us, or have the creditor call us if there is a request for additional money. We need to know. We are here to help you.

Will Debt and Credit Recovery programs affect my credit rating?

Yes. In the short term your credit rating will reflect that you are not current with your accounts. Our goal is to first help you solve your financial problems and then recover your positive credit rating. It is up to the individual creditor how your account is reported to the credit bureau. However, remember that our Debt Management Programs are NOT bankruptcy. Think about your financial future. At the end of this program you will be debt free, so all of the money that you were paying to reduce debts can now go into the bank for your benefit. You will be able to provide for your family using cash and making use of credit only as a payment convenience if you wish to.

Will my employer know I have asked for your help?

We do not notify your employer or anyone else that you are working with us.

Will my employer know I have asked for your help?

We do not notify your employer or anyone else that you are working with us.

Do you lend money?

No, as your credit advocate, we cannot and do not become a creditor. Even in debt consolidation this is not a consolidation loan we consolidate your debt and guide the negotiation with your creditors based on the entire circumstance without the need to borrow more money. Sounds good doesn't it.

I think I want to get a loan instead. Isn't a consolidation loan a good option?

If you have a good credit rating that may be a solution that merely reduces the payments into a single lower payment. However, you must consider in the big picture that if you have to create a debt to pay a debt it may make the payments easier to live with but this is not going to help you to get out of debt. Our experience has taught us that most financial institutions today will not give consolidation loans unless you have security of an asset to hold as collateral, like a home, other valuable assets, or heaven forbid a co-signer with asset. Then if you were not able to make the payments the creditor could take away your home, your assets, or go after your co-signer and their assets. In this poor solution you could lose the few precious things that you do have.

How much does the Debt Masters service cost?

Our initial financial evaluation of your current situation is always provided free of charge. Debt Management Program (DMP) administration fees are based on the complexity of your case, and your ability to repay. So, our fees can only be detailed to you once we have completed your financial evaluation. At that point you will decide that our price and program is right for you. In most cases, our fees are more than offset by the interest rate concessions that can be negotiated with your creditors. When you successfully complete your program you may find that our service may have saved you so much that we have not cost you anything! In fact, our program may not only save you money but may also avoid bankruptcy that allows you to keep your assets.

Do I get to keep my credit cards during debt settlement?

You are asked to turn in your credit cards if you decide to enroll in the Debt Management Program. You will obtain an Advantage prepaid credit card for use during your debt management program. You may reapply for other cards upon completion of your program.

Is there a way to have a credit card during the DMP program?

Yes, our Advanced Benefits Card looks, acts, and feels like a premium credit card so not even the vendors will know you are using a prepaid card. You transfer cash from your bank and pay no interest and no transaction fees when you swipe the card! On top of that huge savings, the Advanced card automatically offers you an approved Credit Building Loan that reports to a credit bureau an build your credit at a faster pace than any credit card could. Most importantly, for both the Advanced Card and the CBR Loan you put up your own money so you get to use the credit purchasing and building system while using your own money interest free!

How do Credit Accounts help me re-establish my credit?

The finance company for any consumer loan or credit card regularly reports your payment activity to a credit bureau (Equifax or TransUnion) on a monthly basis. Each time your credit report is updated with on-time payment information your credit history begins take new shape. Loans are regarded higher and bring far more credit points than credit card accounts.

Do Credit Cards Really Build Credit Score?

No! This is a myth. The lower your credit score, the higher interest all lenders can charge you when you want to borrow. Credit cards are money lender's profit center and are so common, that if they were set to really "build credit", almost everyone would have a great credit score and this would lower lenders profits. Credit cards are a control mechanism designed to keep credit scores lower so there are more ways to lose score than gain score. So on perfect credit card use you are lucky to get 2-3 points a month, but its far easier to loose 6 to 12 points a month. Some examples of how credit rating is affected by credit card use:
  • If you pay a credit card once a month, every month, you barely get points
  • If you pay only the agreed minimum payments, you get no points
  • If you pay your credit card down to zero balance each month, you get no points
  • If you use more than 30% to 50% of the credit limit, you lose points
  • If you use more than 60% of the credit limit, you are a risk at high point penalty

Is a secured credit card a Good Deal?

No! Think about this. A secured credit card is one where you put up $1000.00 of your money on deposit, just to have the privilege of access to the credit card purchasing system. When you use this card they lend you your own money back to you and charge you from 15.99% to 25.99% interest. If you use this card the usual way you would probably end up paying $35 - $55 dollars a month in interest just TO USE YOUR OWN MONEY! And coupled with the credit card is built in greatest risk to lose credit score each month you are paying way too much to not be making lots of credit score. You are simply being used and held captive by the credit system. This financial rape is not a good deal.

Why choose a secured credit card?

Many people are declined for a regular credit card due to past bad credit history. As result, they believe that a secured credit card is the last resort you enable a first step at building a steady credit payment history, but Credit Booster Club offers far better loan programs for building credit than this. However, having credit card identification is not a luxury anymore; it's a necessity, so we recommend the prepaid Advanced Benefits Credit Card for everyday use instead.

Can Debt Masters help arrange for me to get a secured credit card?

Yes, if you want a secured card, we can. As long as you have a source of income and a pre-printed cheque with your name and address on them. This will be a Secured Mastercard that can be used anywhere that Visa or Mastercard can be used. The secured card minimum credit limit is $500 and the maximum limit is $ 25,000 and this depends on the amount of cash that you put on deposit.

Who qualifies for Debt Settlement Programs?

Debt Settlement Programs are available to anyone who is burdened by unmanageable debt and overstressed by the inability to pay their obligations. To go bankrupt it is necessary for a person to be insolvent. To be insolvent means to: Owe at least $1,000 in debts, and, Not be able to meet your debts as they are due to be paid.

What is a Consumer Proposal?

Under the Bankruptcy and Insolvency Act, a trustee or an administrator files a proposal or an arrangement between you and your creditors to have you pay off only a portion of your debts to gain complete release without going bankrupt. Proposal agreements can also extend the time you have to pay off the debt. As well, they may provide some combination of both — paying off a portion of your debts while extending the duration to finish them off. To be viable, your creditors must be better off financially under a proposal than if you were to go bankrupt.

What is Bankruptcy?

Bankruptcy is a legal proceeding that is available to a person who is coping with a financial crisis. One of the main purposes of bankruptcy legislation is to free a person who is hopelessly burdened with debt. A bankruptcy allows a debtor to start fresh and receive a new financial lease on life.

Are there options to get out of debt without filing for bankruptcy?

Yes, bankruptcy is the last resort only when your situation does not qualify for other options. Using a Debt Masters Consumer Advocate means we will examine all the many ways to repair financial difficulties without bankruptcy. We will not know what method should be implemented until we see just how difficult your details are when we do the free evaluation. However, even in worst cases we assure you that our first concern is to save as much of your assets (your house) from loss so you do have a financial life boat to restart your Financial Freedom! First it will pay you big dividends to take the time to learn the difference between an insolvency counselor and a trustee in bankruptcy. The difference may mean you restart your financial life with or without a life boat.

What does a Bankruptcy Trustee do for you?

A Trustee in Bankruptcy is the one who legally registers a bankruptcy/proposal and knows everything that is lawfully required to process your affairs. A trustee will question you regarding all aspects of your financial history, scrutinizing every account and statement to get to the bottom of your disclosure to the penny. You pay the trustee to do this forensic accounting but the Trustee is bound by law to take all your data as you provide it to him and use it in favour of the best interests of your creditors. When you engage a trustee you do not know what settlement will ultimately cost and fate is sealed as they do this work at your expense to maximize your payout settlement in favour of creditors.

What does a Debt Masters Consumer Advocate do for you?

A Debt Masters Consumer Advocate is a credited insolvency counselor who knows everything that is lawfully required to process your settlement or proposal or bankruptcy and will question you regarding all aspects of your financial history, scrutinizing every account and statement to get to the bottom of your disclosure to the penny. You pay the insolvency counselor to do this forensic accounting and report concisely to the trustee all that the trustee requires to process your bankruptcy to reduce the trustee's need to ask you costly questions. The Insolvency-Credit Counselor is working directly for you to use every legal opportunity in "your" best financial interests when presenting your affairs to the trustee. When you engage Debt Masters we do all the work to save you a life boat, then shop for the trustee that will agree to our proposal.

How long does bankruptcy take?

A person who files bankruptcy for the first time is eligible for an automatic discharge in 9 months. In order to obtain a discharge in 9 months you must:
  • Provide the Trustee with accurate information about your financial affairs.
  • Attend a meeting of your creditors, if one is held.
  • Attend 2 sessions of financial counseling.
  • Assist the trustee in selling your assets.
When you file bankruptcy, an automatic stay of proceedings goes into force on your debts. Legal action, such as wage garnishees cease. It is important to receive your discharge, as it is the discharge that releases you from your debts.

How long after applying for bankruptcy can I start to re-establish my credit?

Yes, it makes a difference as many of the lenders will not deal with anyone that went bankrupt for less than $20,000. This is however at the discretion of each lending institution.

Remember, if you are experiencing financial difficulties, do not wait. Speak to a professional today!

You have all the control in Changing Your Future!

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