Tag: consumer debt

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Has Society Become Desensitized to Spending?

Desensitized-to-spending-Apr-15

Good question. Certainly, not everyone has, but spiraling levels of consumer debt have risen to record levels, indicating that Canadians are spending more money that they don’t have at an alarming rate.

Statistics Canada has released figures for the third quarter of 2014 indicating that Canadian household total credit-market debt, which consists of mortgages, consumer credit (mostly credit cards) and non-mortgage loans rose to 162.6 percent of disposable income. The Bank of Canada has stated that “high consumer debt loads and imbalances in the housing market” are a concern.

In short, people are using credit more today than ever before.

Two generations ago, very few people used credit. Society was based on a “cash on the barrelhead” philosophy that encouraged living within one’s means. This standpoint has been slowly eroded by rising home ownership costs (it is virtually impossible to purchase a home without a mortgage, and the length of time that the average family spends paying for their home gets steadily longer), the availability of consumer credit, and the replacement of “hard” currency with cheques, credit cards, and digital wallets.

It’s easier to access credit today than ever before, and advertising inundates us with constant messages promoting consumption of high-value items, usually on payments. It’s no wonder that people wind up in trouble with credit cards, loans, and lines of credit.

Creditaid exists to help people who have used credit improperly, or have been faced with unforeseen circumstances, and are having trouble dealing with their debt. We offer a free initial credit counselling review with professionals who can advise you on how to best manage and repay your debts. We’ll work with you in a judgment-free manner to develop solutions for your specific situation. We have a number of tools available to help you deal with your creditors, including debt consolidation and debt management solutions. If you’re feeling the pressure of collections, call Creditaid for help today.

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2015 Marks a New Relationship with Smart Biz Winnipeg

Creditaid is very proud to have formed a relationship with Smart Biz Winnipeg for 2015.

Smart Biz Jan 2015 editionSmart Biz is a monthly publication that aims to connect people with information about different educational paths and career streams. Smart Biz works with the Winnipeg Chamber of Commerce, the Assiniboia Chamber of Commerce, and the Downtown Winnipeg Biz, in order to present perspectives from within the workforce. Every issue also features lifestyle columns on health, money, gaming, personal life and fashion.

Brian Denysuik will be publishing articles to appear in Smart Biz throughout the coming year, offering advice on everything from the new rules of cohabitation to the basics of creating a budget.

You can access the January edition here or by clicking on the image in this post. Brian’s first article in the series appears on page 15.

Follow button from Smart Biz siteBe sure to visit the Smart Biz website and click the “Follow” button in the bottom right corner to keep up with all of the updates!

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Peg City Car Co-op. Fantastic Vehicle Alternative

Photo Credits: Peg City Co-Op

Do you wish you had access to a vehicle anytime you wanted but didn’t have to pay the monthly loan payment, insurance payment, gas and repairs? Imagine being able to drive a car anytime you needed one but also saving thousands a year on car costs? Peg City Car Co-op is here for you. This organization has 9 cars located in and around the downtown area waiting for you to pick and use anytime you need one. You pay a low hourly (plus kilometer) rate with no further charges- not even gas! They have 2 programs available for you to choose from depending on your expected car usage. One of these programs is accessible without a credit card. It’s perfect for anyone in a credit counseling program or someone without access to credit.

To learn more call 204-793-3912 or visit their website at www.pegcitycarcoop.ca.

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Consumer Obsession Leads Us to Over-spending

The desire to “keep up with the Jones’s” has become more than a social status issue for many people.  Also, it is very easy to get caught up in this during the holiday season. It has become a catalyst for overspending that has consumers running to banks and other lenders looking for ways to finance their purchases. This issue also has countless consumers loaded up with credit card debt so steep it may take them a lifetime to get out of it.

Give your financial literacy a good double-check, and if you are not already practicing the following financial practices, now is a great time to start today:

  • Pay bills on time and balance your check book each month. You can’t know how much you can afford to spend if you don’t know how much you currently have to spend.
  • Stop buying on impulse. If you want something, rather than charging it on your credit card and paying interest, save for the next few month and buy it when you have the money.
  • Always pay more than your minimum balance on credit cards: Get rid of them as soon as possible. You will save money on interest and have more to save for the future.
  • Vow to maintain only “good” debt. This is the type of debt that will increase your net worth: A mortgage on an affordable home, a car loan, or college debt. These will either increase your creditworthiness or make you more employable so you are able to earn more and keep debt to a minimum.
  • Always include some savings in your budget. Many short-sighted people are unable to see their needs after retirement and don’t save. This results in financial difficulty during their declining years.
  • Find out what you don’t know about finances—and learn it. Despite the flood of information on financial management, people don’t take the time to learn.

Finally, in order to put a stop to this financial madness keep in mind the media pull for spending and don’t be drawn into the hype. By being savvy shoppers and savers, the overspending and debt can stop.

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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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Credit Card Offers Are Sexy

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.