The state of being insolvent or going bankrupt is likely to cause more damages to anyone’s resources and reputation. It is like a hole that sinks the ship in deep waters. Suffocation is imminent. However, there are always certain people who could lend a helping hand to rescue us from the crisis and fix the situation for us. During such financial mishap, Licensed Insolvency Trustees act upon the situation and do the needful to establish an amicable plan to keep your finances intact. With the ongoing COVID19 pandemic, the world is facing a global recession, and I’m pretty sure many people are looking for the services of a Licensed Insolvency trustee.
Fong and Partners Inc., a Three Best Rated® Award-winning Licensed Insolvency Trustee from Toronto, ON, gives pieces of advice for financial preparation before a recession.
Victor Fong is the founder and President of Fong and Partner Inc. He has predicted that we were heading towards a great recession. His suggestions for financial preparedness are:
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Assess your economic vulnerability when a recession arrives. The economic sectors hardest hit will be resources, building & real estate, banking, media, and the automobile industries. If you’re employed in one of these sectors, follow the next steps.
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Create a budget and see where your money is going. Cut out discretionary expenses and use the surplus to pay off your debts.
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Prioritize your debt repayment by paying off the debt with the highest interest rate while maintaining the minimum payments on all your other debts.
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Once you’ve paid off the debt with the highest interest rate, repeat Step 2 for the debt with the next highest interest rate until you’ve paid off all your debts.
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Once you’ve tackled your unsecured debts, try to bring down the balances of your secured debts like your mortgage. Most banks will allow you to double up on your mortgage payments and will also allow you pre-pay up to 15% of your mortgage balance annually.
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Once you’ve paid off your debts, start saving money in a High-Interest Savings Account (HISA) for an emergency fund should you need it. You should save enough to pay for at least six months of living expenses, if not more.
About Victor Fong, CMA, CPA, LIT – FONG AND PARTNERS INC.
“The insolvency field is an eclectic one. It involves the intersection of accounting, personal finance, business law, and psychology. So it suits my own eclectic personality perfectly,” says Mr. Fong. He started Fong and Partner Inc. in 2007. Unlike the bigger firms, Victor Fong meets, communicates, and stays in touch with every one of his clients during the entire insolvency process. He has made it a priority to answer clients’ questions or concerns all by himself during the process. He does not delegate any of these tasks to administrative staff. Fong’s clients tend to keep in touch with him after they’ve finished working with him. He also has an excellent reputation online within Canada.
About ThreeBestRated®
ThreeBestRated® was created in 2014 with the simple goal of finding the top 3 local businesses, professionals, restaurants, health care providers, and everything in-between, in any city. Every business is meticulously handpicked by our employees. We check business’s reputation, history, complaints, ratings, proximity, satisfaction, trust, cost, general excellence, reviews, and more, using our 50-Point Inspection. We only display businesses that are verified by our employees. Other places will call this “hard work” and “unnecessary”. We call it “due diligence” and “the right thing to do”. Our website is updated on a regular basis for quality and the latest business information.
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