Helping Canadians Get Out of Debt
You’ve likely heard how COVID-19 affected millions of household incomes, but what about debt levels? Household debt has reached extraordinary levels, but not for everyone. Its largest stronghold is on the middle-income earners – the households that lost their jobs during the pandemic and who didn’t benefit enough from CERB payments.
Here’s what happened.
Continue reading “How COVID-19 Affected Household Debt”
Canadians have many financial worries thanks to the pandemic, of which the largest issue right now is interest rates.
During the heart of the pandemic, we saw the lowest interest rates available in decades. This made it easy for millions to get in over their head in debt. Whether it’s consumer debt (credit cards) or mortgage debt, millions are wondering how they’ll make ends meet.
What caused this?
Continue reading “Pandemic Anxiety – What Should you Do?”
You have a debt with a collection agency, but you wonder if/when they are crossing the line. What rights do they have and more importantly, what rights do you have for managing the collection?
We answer your most pressing collection agency questions below.
There are laws regarding how often and what time collection agencies can call you. In most provinces, they can call between the hours of 7 AM to 9 PM, but it may vary slightly by province one hour each way.
Continue reading “The Top 5 Answers about Collection Agencies”
If you’re a senior with debt, you may feel like you’re up a headed up a creek without a paddle. Living on a fixed income makes it hard to take care of anything except your daily costs of living, but fortunately, there are ways to work out your debt so you have peace of mind and can enjoy your golden years.
Here are the simple steps to take.
First, get an honest look at your situation. Don’t sugarcoat it, that won’t get you anywhere. Pull out all bank statements and credit card statements. Categorize your spending and total up your debt.
Continue reading “Senior Debt Forgiveness – What you Must Know”If you’re in over your head in debt, you may hold back from doing anything about it. Is it fear? Is it embarrassment or a bit of both? In a world where we broadcast just about every aspect of our lives online, debt is one area we don’t speak about even in person.
We look on as we think others are ‘successful’ not knowing the truth behind the perfectly chosen pictures. The fact is the average consumer has $23,800 in consumer debt, not including the mortgage.
If you’re ready to do something about your debt, but worry about fear and embarrassment holding you back, read on.
Continue reading “Are Fear and Embarrassment Holding You Back from Consolidating Your Debt?”
If you’re feeling financial stress, you not alone. Over half of Canadians are within arm’s reach of financial insolvency thanks to the COVID-19 pandemic. The numbers are at a five-year high and don’t seem to be falling anytime soon.
Millions of Canadians wiped out their savings accounts during the heart of the pandemic and others relied on credit cards to make ends meet. But where does that leave them today?
If you’re coming off a job loss, shuttered business, or increase in bills, bankruptcy may seem like the only answer, but it’s not. Here’s what to do instead.
Continue reading “Canadians on the Brink of Bankruptcy – Here’s what to Do”
Millions of Canadians found themselves financially distraught amid the COVID-19 pandemic. Fortunately, the Canadian government came through in a big way with the Canadian Emergency Response Benefit.
CERB provided the financial relief consumers needed, but come tax time, you may owe more money than you thought because of the benefit. Depending on your financial situation, you may even have to pay back CERB, or a portion of it.
Continue reading “How CERB May Affect your Tax Return”A proper budget makes room for needs and wants. Sometimes, though, it’s hard to differentiate between the two. It can be subjective, but certain things are clear-cut and easy to determine.
So how do you tell? Let’s look at the basic definition of each.
Needs are items you must have to survive. Clothes, food, proper healthcare, and transportation – those are needs. You can’t live without them, and these apply to everyone.
Other needs may be more individualized. For example, one person may NEED dental insurance because they have extensive dental issues, while another person may only go to the dentist for routine cleanings twice a year and may not consider dental insurance a need.
Write down the things you NEED in your life. If you didn’t have one, it would make it hard to survive or cause financial destruction.
Continue reading “Distinguish Between Needs vs. Wants”The pandemic made it tough for thousands of Canadians to keep up with their bills, especially the high-interest consumer debt. A debt holiday was put in place on consumer debt and mortgages helping Canadians handle the daily cost of living without worrying about excessive debts.
Now that the country and even the world are coming back together and things are opening up, the debt holiday is nearing its ends. This means many bills will be due again – but how do you prepare for such a change in your finances?
Check out the tips below.
Before your deferment plans end, contact your creditors. Don’t wait until the plan expires and then try to work something out. At that point it’s too late, your payments will be due and if you don’t pay them, it will hurt your credit.
Call your creditors long before it ends and ask about your options. Let them know your financial situation, whether you’re furloughed, not working, or working but trying to catch up. Most creditors will work with you, helping you figure out an affordable plan. Creditors would rather make a plan and receive the full payment than put you at risk of defaulting altogether.
Continue reading “How to Prepare for the end of Debt Holiday”
Has the pandemic brought your family down to a single income? With more than a million jobs lost in Canada, many families are in the same boat. Whether you were laid off or were required to stay home with your children who couldn’t go to school or daycare, it’s important to know how to budget your single family income.
Even if you collect unemployment, for now, it may not last. Just in case, consider the following ways to budget your single family income.
Make Cuts
It’s not a pleasant thought, but you must cut expenses. Get creative here. For example, if you cut cable, can you afford to replace it with a streaming service? Netflix, for example, costs a fraction of standard cable services. See if you can work it into your budget so you don’t feel like you’re sacrificing too much.
Think of other places you can cut, such as:
· Eating out
· Entertainment
· Grocery store (shop sales and clip coupons)
· Household goods (shop sales or comparison shop online)
Redo your Budget
Take an honest look at your budget. Where do you spend? If you can’t cut in certain categories, where does that leave you each month?
Think about saving for an emergency fund and retirement. Both should remain line items on your budget even when you’ve gone down to one income.