Business

How to Recover From Crushing Debt

Published

3 years ago

July 4, 2022

Most of us have at least some debt. You might have a mortgage, a standing student loan, and a standing balance on a credit card. But for some people, debt is crippling. They have more debt than they can ever easily pay off and the balance just seems to climb higher and higher.

What can you do if you feel like you’re in a hopeless financial situation like this?

The Good News

First, the good news: you have options. Some of the options are difficult. Some of the options have short-term consequences. But all of your options give you a potential path forward, allowing you to move past this difficult period of your life.

File for Bankruptcy

One option is to file for bankruptcy. You’re likely familiar with the idea that bankruptcy allows you to eliminate your debts in exchange for putting you in a kind of financial quarantine, damaging your credit score and making it much harder to apply for credit cards and loans in the future. However, in reality, typically, bankruptcy only negatively effects one’s credit for a relatively short period.

There are many misconceptions about bankruptcy. For starters, there are multiple types of bankruptcy and not all of them play out the same way. Chapter 13 bankruptcy, for example, generally allows a person to eliminate a substantial portion of their unsecured debt, while allowing someone to restructure other debts, to permit an individual to keep their property. If you have steady income, and you want to avoid some of the worst ramifications of bankruptcy, this option could be perfect for you.

Bankruptcy is a complex topic, and it’s not a good fit for everyone. Because of that, it’s important to talk to a bankruptcy lawyer to get more information, evaluate your options, and make the best decision for your situation.

Negotiate

If bankruptcy isn’t an option, or if it’s not of interest, you can consider negotiating with your creditors. Oftentimes, credit card companies and loan providers will be willing to work with you so that you can continue paying off your debts without much hassle. Sometimes, simply asking for a lower interest rate or an extended deadline for your payments is all it takes to put yourself in a better financial situation.

Debt Settlement with the Assistance of Third Parties

There are two accepted options for settling debt with the assistance of a company. The first is debt settlement and the other option is a debt management program.

Debt settlement companies may be able to work out a settlement with one or more creditors. Generally, after a certain amount is paid into the company’s account, the company will use the funds to pay off a specific creditor.

Typically, a company that handles debt management programs will work out a settlement with numerous creditors that requires a monthly payment.

Further to that, real estate note selling is also a viable option in this scenario where you can sell your mortgage notes while obtaining the best market value.

There are two issues that occur when working with either option. One’s credit report will still reflect the payment arrears amount, even though a settlement agreement is in place. Also, any creditor that has not yet agreed to settle, or that refuses to settle, may continue to pursue the debt, which includes filing a lawsuit for the funds.

Transfer and Consolidate Your Balances

After negotiation, consider transferring and consolidating your balances. High interest rates can quickly skyrocket your debt, putting you deeper into a hole that’s already almost impossible to climb out of. But with lower interest rates, you’ll buy yourself more time and end up paying less over the long run. Transferring balances from high interest accounts to low interest accounts allow you to take advantage of this course of action .

Put Together a Strict Repayment Plan

After taking these initial steps, consider putting together a strict repayment plan. Ideally, you’ll be making more than the minimum payment each month, gradually chipping away at the principal you owe. You should make debt repayment one of your highest priorities in your budget, second only to absolute necessities.

Many people find it difficult to put together a repayment plan because they’re living paycheck to paycheck and barely making ends meet. If this is the case, you’ll need to improve your financial situation in other ways.

Increase Your Income

One option is to increase your income.

Start a side gig. There are dozens, if not hundreds of ways to make money on the side. You can babysit, walk dogs, practice freelance photography, or work as a chauffeur. The options are limitless, so even if you only have a few hours each week to dedicate to this project, you can make some extra money.
Work overtime. Are there overtime opportunities at your current place of employment? Can you take on more responsibilities to make more?
Apply for a new position. If your current position doesn’t give you much money or flexibility, consider applying for a new one. Look for promotions or an alternative employer.
Improve your skills. Set yourself up for long-term career success by improving your core skills. Learning new things and getting more experience will set you up for much higher pay in the future.

Reduce Your Expenses

You can also work to reduce your expenses.

Move to a cheaper area. Different places have different costs of living. Consider moving someplace cheaper.
Downsize your home. Smaller houses and apartments are much more affordable.
Cut unnecessary lifestyle expenditures. Entertainment subscriptions, restaurant meals, and personal vices are unnecessary luxuries.

Increasing your income, reducing your expenses, and sticking to a strict repayment plan should be enough to help you crawl out of debt, even if you have to do it slowly. If that’s not an option for you, filing for bankruptcy could be the better option. Make sure you talk to a lawyer about the possibilities and think through all your forthcoming decisions carefully. If done right, you can start a new financial life – and leave all your old debts behind.

Business

Why Multi-Province Payroll Compliance Is the Hidden Challenge Canadian SMBs Face and How Folks Solves It

Published

3 days ago

November 6, 2025

Matthew Wiles

Photo courtesy of: Folks

Byline: Shem Albert

Running payroll in Canada can feel like crossing a country stitched from many different fabrics. Each province weaves its own pattern of tax rules, leave policies, and benefit requirements, creating a landscape where a single misstep can ripple through every paycheck. For small and mid-sized businesses, the challenge often remains hidden until growth pushes hiring beyond provincial borders or brings remote workers into the fold. What seems like a routine back-office task quickly becomes a test of accuracy, timing, and local knowledge. This is the gap that Folks set out to close, offering a way for employers to navigate Canada’s regulatory patchwork without slowing their momentum.

Provincial Rules Add Complexity

Canada’s payroll environment varies sharply by province. Federal rules set the foundation, but provincial tax rates, deductions, statutory leave entitlements, and benefit premiums add layers of complexity that employers must monitor carefully. Small and mid-sized businesses with staff across provinces or remote employees face different tax tables, reporting deadlines, and leave calculations that directly affect pay accuracy and remittance schedules.

Folks built its payroll module to address these differences. The platform calculates the correct provincial tax rates and deductions for each employee, applying updates automatically so employers avoid misapplied withholdings or late filings. Multi-location tax management allows a company with workers in Ontario, Quebec, or several other provinces to process payroll without creating separate accounts for each jurisdiction. Bilingual functionality in English and French and secure Canadian data hosting support compliance while keeping employee records accessible across language and regional boundaries.

Unified Records Improve Accuracy

Payroll errors often stem from mismatched employee data. Changes in pay rates, banking details, or benefits eligibility may not align between HR and finance systems, creating incorrect deductions or delayed payments. Smaller teams juggling separate platforms spend valuable hours reconciling information instead of focusing on strategic work.

Folks resolves these issues by combining HR and payroll in one platform. Updates to wages, hours, or tax information entered on the HR side flow directly into payroll without re-entry. This single, verified record strengthens the accuracy of every payroll run and ensures employees receive the correct pay and deductions. By removing the need for repetitive administrative work, HR staff can redirect their time to tasks that support growth and employee engagement.

Automation Keeps Provinces in Step

Each province sets its own requirements for holiday pay, pay frequency, and statutory benefits, making manual calculations both time-consuming and error-prone. Businesses that expand or hire remote employees must keep pace with shifting provincial regulations or risk penalties and audit issues.

Folks address these demands with automation designed for Canada’s regulatory landscape. Pay statements, deduction calculations, and custom pay schedules follow the applicable provincial rules without extra configuration. The system’s automated updates mean that a company hiring staff in British Columbia or Quebec can meet local payroll standards without adding new layers of setup or monitoring. Employers gain the ability to expand into new regions while maintaining accurate, on-time pay.

Reporting Strengthens Compliance

Changing tax rates and reporting requirements require ongoing attention from HR and finance teams. Companies that rely on disconnected systems risk missing a provincial update or submitting incorrect remittances, which can lead to fines and interest charges.

Folks provides detailed reporting tools that compile payroll, deductions, and benefits information across all locations. Employers can generate clear remittance and deduction summaries, simplifying the process of meeting provincial filing requirements. For organizations that want additional guidance, Folks also offers a payroll management service that brings in-house specialists to assist with configuration, compliance, and regular updates. These reporting features help companies stay audit-ready and avoid costly compliance gaps.

Scalable Payroll for Expanding Businesses

Many small businesses begin in a single province, where local tax and payroll demands can be learned over time. Growth into new provinces or the decision to hire remote staff adds a level of complexity that manual processes cannot handle efficiently. Errors multiply, compliance risks rise, and payroll teams spend more time correcting mistakes than supporting expansion plans.

Folks provides payroll that scales with company growth. Provincial tax logic, automated deductions, bilingual support, and secure Canadian data storage are built directly into the platform. By maintaining an accurate employee record and applying province-specific rules automatically, the system allows Canadian SMBs to expand with fewer administrative surprises and more predictable payroll operations. Companies gain the stability of compliant payroll across provinces while controlling the time and costs that typically accompany multi-jurisdiction growth.