Author: Creditaid

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Is money causing stress in your life?

Is your relationship with money causing stress in your life? If so, then it may be time for some financial therapy. Winnipeg-based psychologist and life coach Dr. Moira Somers specializes in financial psychology, an emerging field that explores people’s relationship with money (and why they may treat it the way that they do).

Dr. Somers maintains that our behaviour towards money may stem from our childhood experiences including exposure to money management beliefs and culture. These beliefs in turn causes many disordered behaviour in our adult lives such as chronic debt, overspending, under-earning and using money as a means (whether consciously or not) to exercise power, control or to fill a void.

You can read more about Dr. Moira Somers in the Winnipeg Free Press article by Carolin Vesely, or visit her website at http://www.moneymindandmeaning.com/.

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Finance Minister kicks off Financial Literacy Week

Canada’s Finance Minister was in Toronto last week to kick off the Financial Literacy Week.  This initiative is a nationwide campaign aimed at helping Canadians increase their financial knowledge so that they can make more informed decisions when it comes to their personal finances.

Many Canadians have taken advantage of the low interest rates since the recession and the government warns of the dangers of piling on too much debt, and especially at this time.  With a clearer understanding of financial matters and stronger financial literacy, Canadians will have greater control over their own finances and collectively build a more stable economy.

Financial Literacy Week was started in 2009 with that aim in mind.  Many resources are now available online, and events are being held across the country.

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Low Monthly Payments = Instant Gratification & Longterm Debt

Retailers have learned how to appeal to our desire for instant purchase power. They can easily sell us on how great it would be to own their newest electronic device, kitchen appliance or piece of furniture. They also know that they need to convince us that we can afford this new luxury item, and low monthly payments through a finance plan is one of their favorite ways to do that.

“This can be yours – TODAY, for ONLY $25.00 a month!”

‘I can afford that,’ we think to ourselves, and we sign up for the monthly payments and take home our brand new purchase. A few months later, we do it with something else. Pretty soon, we have several ‘low monthly payments’ that we need to keep up with and balances that are very slow to decrease.

The trouble with these monthly payment plans is that they take so long to pay off. Because you are paying high interest rates on the principal, you may end up paying two or three times the total value of the item you purchased, just so you could have it NOW. What seemed like a small amount of money, when broken down in installment payments, is making the finance companies lots of revenue, and it’s coming out of your pockets.

Although, it may not be as easy to get out of this situation as it was to get into it, it can be done. At Creditaid, we know the ins and outs of this type of financing. We’ve helped plenty of people dealing with too many monthly payments. We’d be happy talk with you about your own personal situation. Ask for a FREE consultation today.

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Unexpected Repair Bills Can Put You in Hot Water

Owning your own home is something that gives a person a sense of independence and accomplishment. You are no longer paying monthly rent payments on property that doesn’t belong to you. You are building equity in your home instead. When you purchase your home, your mortgage company will generally assess your financial situation to determine whether or not you can afford the payments on the home you are purchasing. They know that it is in their best interest to keep you from purchasing a home you cannot afford.

In spite of this careful financial screening by your mortgage company, financial positions can change after you make the purchase. Even when you are able to make your house payments, there may be little, if any, extra cash for repairs and maintenance to the home you own.

Unfortunately, repairs to your home can’t always be planned for. If your furnace dies in the middle of the winter, you have to replace or repair it. If you have water damage that isn’t covered by your insurance, those repair costs will have to paid by you, the homeowner. These types of unexpected expenses can break a family’s budget that is already stretched to its limits.

If you’ve found yourself in this spot and don’t know how you’re going to get out of this downward financial spiral, Creditaid may be able to help. Contact us for your free consultation.

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Financial Literacy Week

Did you know that October 30th – November 5th, 2011 is Financial Literacy Week? The national campaign is organized by ABC Life Literacy Canada and aims to increase the financial knowledge and know-how of Canadians. This year’s campaign ambassador is Gail Vaz-Oxlade and together with ABC Life Literacy Canada, she has released a series of videos sharing her best financial advice.

Gail Vaz-Oxlade is the host of hit TV shows Til’ Debt Do Us Part and Princess. Gail is also the author of best-selling books Debt Free Forever and Easy Money.

Gail will be coming to Winnipeg on Feb 9th, 2012 – stay tuned to Creditaid for more information.

To watch more of Gail’s videos, click here.

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Student Loans Got You in a Bind?

There was a time when applying for financial aid for university or college meant applying for grants and scholarships that didn’t need to be paid back. There isn’t as much of that type of funding available today. Even when it is available, it doesn’t usually cover the full costs.

Student loans are what most people have used to help them finance their way through university. They’re fairly easy to secure, and they don’t have to be paid back until after you leave college. Their interest rates are also usually lower than you would pay on other loans. They are a good deal for students.

Unfortunately, you may be in the situation that many others find themselves in after their education has come to an end. Starting pay at the job you’ve secured (if you have one) isn’t what you hoped it would be. In addition, you probably are dealing with a lot of other living expenses that you could not possibly have predicted at the time you took out your student loans. Many people start out college single and carefree, and then come out of college married and perhaps having children to support. They usually have added a car payment to their cost of living and a more expensive apartment or the purchase of a home. All these things can easily consume an individual’s pay check and leave little left for paying off student loans.

As we said, if you find yourself financially strapped because of student loan payments that you can’t afford, you are not alone. Plenty of others are finding themselves in the same situation. Many of them are our clients. We are helping them find solutions that can resolve their lopsided financial situation and put them back on track. Contact us and let ‘s discuss how we might be able to help you too.

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What’s Your Hobby Worth?

Everyone has his or her own private passion. It may be sports, photography, fishing, crafting or restoring old cars. These types of passions and hobbies can keep us energized and excited about life. That’s a good thing. On the flip side, some of them can become quite expensive, and when it involves something we truly enjoy, it is easy to justify those expenses to ourselves. A good deal is a good deal, right?

If you’ve gotten yourself into debt to finance one of your hobbies – you aren’t alone. Plenty of people find themselves in that situation. Sometimes people make the assumption that the hobby will be able to pay for itself in some way, and then, that doesn’t materialize. At other times, people just get caught in the heat of the moment and hope they’ll be able to pay off the credit card debt the next month or next spring or…

Debt that has been created because of overspending of hobbies and recreational activities can be dangerous to a family in more than one way. Besides the bind it puts you into financially, it is the type of debt that often can cause strong division in a marriage relationship as well, particularly if the interest  is not one that is shared by the spouse.

Hobby debt can accumulate much faster than we expect, but it doesn’t need to be your downfall. At Creditaid, we’ve helped plenty of people deal with this same situation. Our experienced credit counselors are here to help. Contact us for your free initial consultation.

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Financial Literacy in Canada – A Creditaid Commitment

Understanding basic financial principles and practices is an essential ingredient to every household’s financial stability. Financial stability in Canadian households leads to financial stability for the nation as a whole. It was in recognition of this fact that the Minister of Finance created the Task Force on Financial Literacy in 2009.

The purpose of the task force was to determine ways to strengthen and enhance financial literacy, or understanding, among Canadians. One of the means the task force utilized for gaining input regarding solutions for improving financial literacy was to request input from Canadian individuals and organizations involved in the area of finance. Because of Creditaid’s commitment to educating and training Canadian individuals and households on proper financial management, we were happy to contribute our input to the task force. Click here to visit their website and learn more.

Helping families understand how the credit system works and how to manage their finances wisely is one of Creditaid’s highest priorities. When we meet with people, they often are not fully aware of how they ended up in the financial crisis they are in. If we can provide people with the understanding and the tools to manage their finances properly, before they get in debt, we are happy to that.

Creditaid is here to provide answers to those with questions about credit and help for those with credit problems to resolve them. We are committed to helping Canadians and we’re here to help you.