Financial situationsDebts

When you apply for financing, Pomerleau and Associates Trustees Inc. will calculate your debt-to-income ratio, which is the percentage of your total debt and the amount you need to pay monthly in relation to your gross monthly income, to determine your repayment capacity.

Your debt load is based on your gross income and cannot exceed more than 35-40% of it. By default, your banker, without any particular explanations, will most likely refuse the loan. To obtain a loan, you need an adequate debt load, but you also need a good credit rating.

We are speaking of excessive debt in Quebec, after the family’s monthly expenses have been paid, where there is not enough money available to make substantial monthly debt payments.

We take into consideration that you are at risk of excessive debt in the following situations:

• You have 2 or more credit cards
• You spend more than 25% of your gross income on consumer credit (i.e., any debt other than the mortgage);
• You spend more than 50% of your net income on consumer goods and your household expenses (rent, mortgage, heating, electricity, taxes, insurances).

The first step to get out of debt, and usually the most difficult, is to recognize that there is a problem. The fear of being judged and shyness are usually important factors and can constitute an obstacle for most. Asking for professional help is nothing to feel ashamed of. Trustees exist because of people in these exact financial situations.

By acting and getting a consultation quickly, you are avoiding many problems and anxieties. You may have more alternative solutions than if you were ignoring the problem without acting on it.

A member of our team, at Pomerleau & Associates Syndic Inc., will happily help you regain control of your financial situation. Take a first appointment now, it is free and confidential. Contact a member of our team