Helping Canadians Get Out of Debt
Debt used to be for the ‘deadbeats’ or people who didn’t care about their finances. Today, though, it’s the new norm.
Why?
Mostly because we live in a world of instant gratification. Millennials, and younger generations especially, want everything now. Technology, the internet, and the advancement of most services today are to blame but that doesn’t make it okay.
Continue reading “Drowning in Debt Is the New Canadian Norm”
Did you know that much of your debt consists of interest? This is especially true if you’ve carried balances for a long time.
For example, if you have a $10,000 balance at 20%, it will take you 60 months to pay off the debt with a $264 monthly payment and a total of $5,896 paid in interest. Your $10,000 would cost you $15,896, which is made up of 37.09% interest charges.
Reducing your interest rates can help you save money and pay your debt off faster.
Continue reading “How Reducing Interest Rates Reduces Debt Faster”
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”
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 are taking on more and more debt. The latest statistics show that, excluding their mortgage, the average adult living in Canada has more than $20,000 of debt hanging over his or her head.
This huge figure is the result of a recently surging economy, which builds confidence among borrowers about their ability to pay back their debt, and record low interest rates, which means that the cost of borrowing those dollars might seem lower than the average.
At Creditaid, we see this as a huge problem. The Canadian economy has slowed, especially in Western Canada, where a recent softening of the market for petroleum products has impacted the oil industry and its core of support businesses.
There are a lot of reasons people wind up with debt, and not all of them are irresponsibility. An unforeseen job loss, a sudden expense, or a family member in need can start the slide, and the banks and credit card companies will let you spiral further and further into debt from there, as that helps them maximize their profits.
At Creditaid, we help people get a handle on their debt. We can tell you how to start to climb out of your debt situation, and offer services like debt consolidation when they’re appropriate. We’re credit professionals who are, for once, on your side in your battle against debt.
To have your questions about credit counselling, debt management, and debt consolidation answered, contact Creditaid online or by telephone at (204) 987-6890. We can help you no matter where you live in Manitoba. Our area of service includes but is not limited to Winnipeg, Brandon, Steinbach, Winkler, Stonewall, and Selkirk.
Creditaid is very proud to have formed a relationship with Smart Biz Winnipeg for 2015.
Smart 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.
Be 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!
Life is made up of moments – individual memories that bring meaning to our lives. Don’t let debt keep you from making these moments. Take action today.
Contact Creditaid to schedule a meeting with our counsellors.
When you are buying a home, it is important to know that you will be able to manage the payments on the mortgage. You will also have to secure a down payment amount, which is usually paid out of your own pocket without the help of a loan. While your budget may cover the monthly repayments on your mortgage, you also have to allow for future outgoings for things like starting a family, purchasing a car, or home improvements.
Although a higher down payment means handing over a large amount of cash, it will also greatly reduce the interest and insurance that you pay on your mortgage loan. Any payment under 20% of the total mortgage loan amount requires that you purchase default insurance, which will add thousands of dollars to the loan.
There are two main types of mortgage – open or closed payment. An open mortgage allows you more freedom to pay off higher amounts on your loan, but usually come with a higher interest rate. Closed mortgages require that you pay a fixed amount each month; however, you may have an allowance for making over payments. In the case of over payment allowances on closed mortgages; make sure to check your limits with the lender, as they can charge you penalties – known as repayment charges – running into thousands of dollars.
Each lender has their own terms for issuing mortgage loans. It is up to you to shop around and get the best option for you. Before you do, make sure that your credit report is clean and free of errors. You can order a copy of your credit report from a credit agency before you speak to lenders, giving you time to correct any errors or making payments on defaulted debts.
If you have forecast your budget wisely, you will know which mortgage suits you best. A good rule of thumb is to opt for an open type loan if you expect to make large frequent payments to bring down your loan cost quickly. If, on the other hand, you have a tighter budget where you will only be able to pay a fixed amount each year – opt for a closed type loan.