Finding solutions for insurmountable debt

One of the biggest challenges people have encountered since the COVID-19 pandemic is the financial burden brought on by inflation and rising interest rates, placing many who were already struggling pre-pandemic into serious debt. For those individuals, debt relief is key.

“In the last three years, life has quickly become more expensive, and those with limited budgets have suffered the most. We’re seeing so many more people now who are experiencing overwhelming debt,” says Alex Denko. Denko is a customer service manager at York Credit Services, offering debt consolidation and relief services to individuals experiencing serious financial challenges.

“When people come to us, they potentially have two problems. Either they’re in too much debt or their credit is completely destroyed and they’re looking for guidance on how to rebuild it. The main focus of our activities is finding debt relief solutions for clients.”

“Typically, we’re working with people who have excessive unsecured debt – credit cards, payday loans, tax debt,” explains Denko. “At the same time, those clients are often dealing with increased mortgage rates. When you combine all that with rising inflation and interest rates, what might have been doable a few years ago is now unmanageable.”

Unfortunately, when individuals are overextended to that degree, the banks are usually unwilling to lend. Their debt ratio is high and they are considered high risk. “People come to us because we can provide independent advice to them,” says Denko. “We do charge a small private fee, but we don’t financially benefit from any solution they may go with, so our interests are always aligned with the client. We essentially earn our fees based on how much we save for the client.”

York Credit Services has been in operation for 10 years, but as Denko explains, the percentage of inquiries from homeowners who are coming close to insolvency has increased almost two-fold since 2021 alone.

“Everyone pretty much in Canada is experiencing more challenges in the last few years because of price and interest rate increases. What we are seeing is that mortgages are getting more expensive to carry, pushing people into unsecured, consumer debt. Taking care of the mortgage comes first because people don’t want to lose their homes, but other things fall behind, and they start accumulating credit card debt and using alternative financing loans, and it just starts to snowball into a situation that gets out of control. It becomes impossible for them to resolve either without refinancing their property or looking at other solutions.”

When a new client comes to them, York Credit Services creates a full financial assessment for them. Next, they look at possible solutions – these may include being referred to a third-party professional, an updated mortgage, a referral to a trustee, or they engage in a settlement on their client’s behalf, depending on the severity of the individual’s situation.

“It’s important to know that we do not charge any upfront fees. Clients only pay on results,” says Denko. “We’re usually able to get them into a debt relief solution within a matter of a week, a pretty quick turnaround time which is important for some clients who are being pressured by collection agencies.”

Reviews online for York Credit Services underscore their reputation for success for their clients. “We stand behind our services and we offer a guarantee that if your situation is not resolved to your liking, there is no charge because we are 100 per cent confident that we are able to help those clients that we take on.”

Read client reviews and find out more about York Credit Services debt solutions at https://yorkcreditservices.com/.