Helping Canadians Get Out of Debt
It’s a common debate consumers face – do you pay down your debt or save money? You want to get rid of your debt, but you also need money saved for emergencies, so what do you do?
What if you could have the best of both worlds?
If you pay down your debt but continue ‘paying yourself’ the interest, you’ll get out of debt AND save money.
Here’s how!
Continue reading “Pay Down your Debt and Put the Interest Money Toward Savings”
If you’re trying to improve your credit, you need to pay off your debts. High debts can hurt your credit score tremendously, especially if you have a lot of revolving debt (credit cards).
To improve your credit score, focus first on credit card debt and then installment debt, which includes your mortgage, car payments, student loans, and personal loans. Before you jump in to pay off your credit card debt, though, you’ll need a strategy.
Continue reading “Which Debts Should I Pay Off First to Improve My Credit?”
If you’re in over your head in debt it may seem logical to not pay it. If you can get debt relief, by all means you should take it, right?
Wrong.
Not paying your debt is much worse than paying it off as agreed. Even if you need a credit counselor to intervene on your behalf, get you lower rates, or a payment arrangement, as long as you pay the debt, it’s a lot better for your credit.
Here’s why.
Continue reading “Why You Want to Pay Your Debt, Not Get Out of Paying”
The millennial wage gap is a real problem for those ages 25 – 40. Not only do they make 20% less than Baby Boomers at their age, but they also have fewer consistent paychecks because of the Recession of 2007 and now the pandemic. With more people freelancing, regular paychecks feel like a thing of the past for most millennials.
The largest issue this causes for millennials is a delay in homeownership, aka achieving the American Dream. With lower wages, higher debt, and less consistent paychecks, only 42 percent of millennials own a home by age 30 versus 48 percent of Gen Xers and 51 percent of Baby Boomers.
Continue reading “Understanding the Millennial Wage Gap”
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”
Back to school spending is inevitable. As parents, we do it every year, and yet every year it sneaks up on us, right? Even in 2020, most parents had extra expenses to send their kids back to school, even if it was at home.
This year, let’s do something different and budget for the return to school spending so it doesn’t catch you off guard.
Continue reading “Budgeting for Back to School” 
Get the Most for the Least by Shopping Carefully
Budgeting can be like strong tasting medicine – it’s one of the most challenging remedies to take, but its effectiveness cannot be denied. Whether you’ve got money troubles or not, a budget will help your finances. You don’t make a budget just to fix problems – you have to do it all the time.
A spending plan is more than just a list with numbers. It’s a willingness to do things that may seem inconvenient at the time, but add up to a considerable advantage when you’re looking to cut costs, without sacrificing quality.
Here are some everyday actions you can take that will make your bottom line look better:
Check Prices
Ok, so you’ve decided to make a purchase, and you’ve budgeted for it. Before you expend precious funds, make sure you’re getting the best value for your dollar. Ask yourself the following:
“Can I save money by buying used?” A lot of times, a used item will serve just as well as a new one. Appliances, for instance, are often available used, many from dealers who will offer a warranty. Clothing, too. Many discount stores offer name brand clothing, gently worn, at a fraction of the original cost. If you’re ok with previously enjoyed clothes, you’ll find that you can start dressing really well for really cheap.
“Is another store having a sale on this item?” Is the sale good enough to justify the extra travel time and expense? Try to avoid paying more just for convenience.
“Is it less expensive online?” Sometimes it’s worth having to wait a few extra days for delivery.
Prepare your Own Meals
We can’t stress enough just how much impact this one simple act can have on your bottom line. Take out or delivery costs several times as much as preparing a similar item at home, and when you make it yourself, it’s how you like it. Compare the savings to the time spend preparing meals, and it’s like you’ve got another job that pays really well.
Continue reading “How to Maximize your Spending Plan (AKA Budget)”
Manulife Bank of Canada released their debt survey which revealed that many Canadians are not meeting their debt goals. Creditaid’s Brian Denysuik was on the air at CBC Radio with Caroline Barghout to discuss the survey, provide advice and tips on how to save to spend, budget and the steps to take to relieve stress and become debt free.
Listen to the broadcast below.
Half of Canadians surveyed are willing to postpone retirement for their children according to a study by BMO Wealth Management. Even more worrying is that 24 per cent said they’d be willing to go into debt to help their children succeed. Ironically, one of the top reasons parents cited for their financial concern about their children is that they will incur debt that they can’t manage.
According to Statistics Canada, today’s youth are more educated, staying at home longer and putting off their entry into a treacherous labour market where unemployment rates for young adults are twice the national average. This is daunting information but not insurmountable. Parents and their children can find a way through the morass by learning about how to manage their money better.
Continue reading “Canadians are Postponing Retirement to Help Their Adult Children”
We all know that we need to be careful with credit – because it’s easy to borrow money, and wind up owing as much, or more than we can pay. We all know what it feels like when there’s “too much month left at the end of the money”.
And there’s this vague fear of a negative impact on our credit history that can affect us in the future. The more we know about credit reporting, the more we can work to improve the way potential lenders see us, and then we can leverage a good report to get favourable terms when we borrow money.
What is a Credit Score?
In Canada, a credit score is assigned by one of the two large credit reporting agencies – Equifax or TransUnion. The score is a number between 300 and 900 (900 being perfect) that represents 
the aggregate of all of the information that the bureau has on file about us. Most interactions that you have with lenders, either positive (payments made on time) or negative (late payments, collections, bankruptcy) will affect our score. Anyone who has ever accessed any form of credit has a file with the credit bureaus. Potential lenders use your credit score, with your permission, to determine whether or not you qualify for credit, and sometimes they use it to set the terms of borrowing (interest rates, etc.).
Who Can Access My Credit Report?
Any lender can provide information about your loan, payments, etc. to the credit bureaus. You give them permission to do so in the agreement you sign when you begin to access credit with them. Any potential lender with your permission (usually in the application) can access your report and score. You can (and should) access your own credit report with both bureaus. Make sure that all of the information that they have on file is accurate.
By knowing your own credit score, you can demonstrate to potential lenders that you are a responsible borrower. You may be able to negotiate more favourable terms as a result.
If you’ve got questions about credit, or have found yourself in some trouble, contact Creditaid anytime online or by telephone at (204) 987-6890 or (877) 900-2659. We can help you take those important first steps toward a debt free life.