Helping Canadians Get Out of Debt
Back-to-school for many post secondary students means the onslaught of credit card offers that entice with low interest rates and perks – Free Trip Anyone?
Before you apply for that new credit card, ensure you educate yourself on how to handle credit and manage debt. Student debt is such an important thing to understand. It is the begining of establishing a solid financial start as an education is pursued.
As a reflection of our continued commitment to our clients and the industry, Creditaid has recently become a member of the Receivables Management Association of Canada (RMA).
Receivables Management Association of Canada (RMA) vision is to become the first National association of its kind; extending into every province and territory to set the professional standards of our industry.
RMA Canada works with its members to promote the activities of all those connected to the industry by bringing their concerns to the attention of the authoritative bodies that control day-to-day activities.
Weddings can be expensive, but that doesn’t mean you need to break the bank to have a beautiful and meaningful event. There are several ways to save money without losing the beauty and charm that you expect for this special occasion.
Here are the top five ways to keep your costs in line with your budget.
1. Limit your guest list. Determine the amount of guests you can afford to feed at the reception and set your guest list accordingly. Take into consideration, how many people you can actually greet personally in the time you will have available. If you won’t have time to say hello to each one, maybe your list is too long.
2. Keep it light. Since the catering bill can be the largest cost for many weddings, this is the ideal place to look for options. Many wedding couples are opting for a dessert reception or finger foods after an evening wedding.
3. Shop locations. There are many locations that offer package discounts that combine honeymoon accommodations with their reception hall rental. Take the time to find the place that fits your budget and your seating needs as well.
4. Uncover the talent. Rather than paying large amounts of money for unknown professionals, seek out the talents of friends and family for areas like music, photography and catering.
5. Custom invitations. Instead of buying expensive printed invitations, many couples are saving money and also creating very customized invitations by putting their computer skills to work.
Set a budget and then work to fit your dreams into it. When you look back, you’ll be glad you did.
Frugal is not a term you hear very much any more, but perhaps it needs to make a comeback into our vocabulary. To be frugal means to save money, to conserve your financial resources instead of spending to their limits. How we handle our finances easily develops into a habit. Unfortunately, it is always easier to develop bad habits than good habits. Breaking bad habits and starting good habits, requires self-discipline, something most of us are short on. Here some tips to help you make the change in your spending and saving habits.
Start small. Choose one item or area of spending that you reduce or eliminate, and then place that amount of money in savings each month. If you eliminate your landline and reduce your bills by $30 a month, then put that $30 into savings each month so it doesn’t get spent on something else.
Direct deposit. Make it easier to save by never putting the money in your checking account in the first place. Have your designated savings direct deposited from your paycheck into a savings account that is not tied to your checking account or any piece of plastic.
Track your spending. For one month, keep track of everything you spend, how much for groceries, how much for utilities, how much for dining out, etc. At the end of the month, determine what areas you could decrease and how. Having a specific plan will be much more effect than simply trying to ‘spend less’.
Many people are struggling in the current economy due to lost jobs. Developing frugal habits before a financial crisis hits can be the best safety net you can have.
Has it ever occurred to you that the clutter in your home has a cost to it? We’re not just talking about the original price of the objects that are creating the clutter, but additional costs beyond that.
Clutter takes up space. Space costs money. Whether you rent or own your home, you are paying for that ‘space’. You are also paying for utilities for that space.Too much clutter can be taking money out of your bank account without you even realizing it.
If you’d like to get some perspective on how much your extra clutter is costing you, try this little exercise. Find out the total square footage of living space in your home or apartment. Then add up all the costs associated with that home, the monthly payment, the utilities and any insurance. Now take those total costs and divide them by the square footage of living space. This is what it costs per square foot to live in that home. Now come up with the number of square feet that is being allocated to clutter. Estimate an amount by counting items and floor space being covered by clutter. Come up with a square footage of clutter, and then, multiply that number by your cost per square foot and you will have the monthly cost of storing clutter in your home. It can be quite shocking.
Hopefully, this little exercise provides you with the extra incentive you need to de-clutter and get the most value out of the space you are living in.
Once again the federal government and Bank of Canada is sounding the alarm bells! Canadian debt hits $1.5 trillion!
We need to starting taking these warns seriously.
“We have very low interest rates in Canada,” Flaherty said. “We need to remind Canadians that historically low interest rates will not be there forever, that interest rates really only have one way to go and that’s up,” Flaherty said.
read on….
A lot of people make the mistake of simply comparing the cost of a rent payment to the cost of a mortgage payment, when considering whether they should continue renting or purchase a home. There are several other things that need to be taken into consideration when comparing these two options.
The first thing to remember is that in addition to the mortgage payment on the house, you will need to pay house insurance and property taxes. These costs will vary depending on the value of the house and the location of the house. You will also need to make a down payment and pay closing costs when purchasing a home. Cost of utilities paid in each of the different scenarios need to be considered in the comparison also. When looking at homes to purchase, it is always wise to ask for statements that show the costs of utilities for the previous year.
Another difference between renting and owning a home is the time and costs of maintenance, in and outside of the home. Are there areas of the home that will need replacing in the near future, such as roofing, exterior finishes or floor cover? What ongoing maintenance will be involved in the home: water softener salt, lawn care, snow removal, exterior painting, staining or cleaning? Are you prepared to make those commitments of time and funds?
Each individual needs to carefully consider their own financial situation, and weigh ALL the costs involved when making this kind of decision.
The CBC draws attention to a very serious issue that concerns Canadians seeking help with debt. We suggest you read the article and see what is happening.
Keep in mind that if you need help make sure the company you are dealing with is a Canadian licensed and bonded agency.
Read article – U.S. ‘debt resettlement’ firm draws Canadian warnings
What a great way to start day two of the conference with a few fun words from Dr Adele Atkinson, Policy Analyst Financial Affairs, OECD.
“Tell your money where to go, don’t ask it where it went.”
Brian Denysuik is attending the FCAC OECD Conference on Financial Literacy.
Here is a summary of what he’s learned from Day One.
We spent the day hearing update on the current state of financial literacy in Canada with different perspectives from around the world. The workshops were very educational and covered some interesting ways on how social media and technology is being reviewed as delivery channels.
Education in the school systems is going to be a very important delivery channel as the provinces role out their models. The studies on gender and financial education were a key interest as they compared where each gender believes they are at with understanding. Alison Griffiths, Toronto Journalist, financial author and TV host of Maxed Out concluded the day with an energetic presentation.
Looking forward to another day, stay tuned.