Debt Help Winnipeg – Page 8

November 1, 2013

November is Financial Literacy Month

November is Financial Literacy Month in Canada! If you haven’t heard of this campaign before, it is a national initiative aimed at helping Canadians increase their financial knowledge. This is something we firmly believe in, here at Creditaid. We believe that when people are better educated on how the credit system works, they will be able to make better and more informed decisions when it comes to their personal finances.

If you are interested in participating in Financial Literacy Month – start by picking up or downloading a copy of the 2014 “Money Matters” calendar! The calendar will feature information and valuable money-saving resources for young people, families and individuals nearing retirement, including tips on managing debt, reducing the cost and length of a mortgage, talking to children about money and recognizing personal investment scams.

To download your copy – visit the Manitoba Securities Commission online at msc.gov.mb.ca.

September 25, 2012

Helping Canadians Get Out of Debt

How well do you know the credit counselling agents that you deal with? Are you looking for a more personal experience with a high level of discretion? At Creditaid, we offer you a different kind of experience. Personal finances can get very complicated. Budgets and bills are not just numbers on a piece of paper – they have real life
implications.

April 11, 2012

Student Loans – Coping with Student Loan Debt

If there is one thing that a student doesn’t need it is the worry of a huge debt hanging over them after graduation. A lot of you are probably thinking, hey, I have a grace period. While it is true that you usually have a grace period of six months after you graduate, on federal and provincial student loans, you are not out of the woods yet. You still have to pay eventually, and your federal loan accrues interest during the grace period.

As difficult as it may seem, you need to get used to making payments on your student loan, right from the offset. Don’t let it stress you too much though; there are ways to ensure you don’t carry that debt for a lifetime. The first thing you need to do, before you can even begin to pay off your debt, is to find a source of disposable income.

Some of you will find yourself employed and in a position to make your student loan payments immediately. For those less fortunate, here are some ideas to help you out.

1. Lower Living Expenses: Remember that time you flew the nest and set out on your own? Well, this may break your heart, but moving back to your parents for a while could help you save the extra cash needed towards paying your loan payments.
2. Revision of Terms: You can ask for a revision of terms; which means you can extend the loan period in order to reduce the monthly payments. Just make sure you keep up with these new lower payments, and as soon as possible, begin paying extra towards the principle.
3. Waiver Period: If you find yourself out of a job, don’t despair. You may be entitled to an interest relief period. During this period the government will pay your interest and you won’t have to make any loan repayments.

Don’t let student debt creep up on you, budget your payments today.

April 4, 2012

Control Spending Habits

Controlling your spending doesn’t always mean reducing it; however, more often than not it is the end result. Tracking your spending is the best way to manage your finances, and there are a number of ways to do it. Credit cards and other forms of electronic payment come with the benefit of easy tracking. All your transactions are available on your monthly statement or online. However, a typical credit card purchase, on average, will cost 112% more than if you had used cash.

So is cash better than credit? Well, in a lot of instances it is. Credit cards give you the convenience of on the spot purchases that you can worry about later. With cash, you can only spend what you have. The problem with cash is though, how do you track it? There are plenty of programs out there that are great for tracking your finances; Quicken and MS Money are two that come to mind right away. But do you really have the time or inclination to keep every receipt and meticulously enter them into a tracker?

The good news is you don’t have to track every purchase; you just need to control how much you spend each month. To do this you first need to identify the areas where your spending is not controlled. Usually suspects include groceries, clothing, personal spending and general luxuries. Once you have identified these areas it is time to take control. Withdraw the amount of cash that you think you will need for these purchases and put it in an envelope. Make sure to record the date and amount on the envelope too.

Don’t panic if you find that you run out of money, this exercise is about control, and it takes a few months to show positive results. You will notice that you are becoming conscious of every purchase that you make. Every price tag will represent a percentage of what you have committed to spend, and you will think twice about impulse purchases. Ultimately, you will be surprised by how easy it is to control and reduce your spending when you are parting with real hard cash.

March 28, 2012

Budgeting – Review Your Spending

Budgeting – Review Your Spending Before You Create Your Budget

If you want to reduce your debt, then you need to have a budget. I know, you have tried this a million times and it is a waste of time. You see, the problem with a budget is that it only works if you know what you are budgeting for. If you sit down and pull numbers out of your head, what you are doing is the equivalent of wishing away your debt. First and foremost, a budget needs to be realistic; which means you will have to do the ground work.

The key to success is in reviewing your spending, before you create your budget. To do this you are going to have to be honest with yourself. The easy part is your recurring payments, such as mortgage, insurance, taxes and credit cards; so start with those. Next you will need to look at your outgoings for less predictable or fluctuating costs. Consider your groceries, clothing, travel expenses, entertainment and any other impulse purchases. Track what you spend on each area for a month to give a realistic view of what you are currently spending.

Now, once you have calculated your outgoings, there is a chance that you will be over budget. Don’t let this dishearten you. You have effectively listed the component parts of an overall formula; you now need to make those components work for you. This is where you budget really begins.

Look at your outgoings; especially those that are not essential or are adjustable, and consider how you can reduce them. Allocate higher amounts from your budget to payments which have high interest rates. If, after you have tweaked the numbers as much as you can, you are still in the red, it is time to speak to your lenders. You may be able to make further monthly reductions by changes to your payment plans.

March 21, 2012

Saving Commitment – Change Your Habit, Pay Yourself First

Whether you are saving for one big purchase or simply as a means of combating debt, you deserve a reward for your efforts. If you have ever played games on social media sites, where you effectively click buttons for six hours, you will appreciate this article. The developers of those games use psychology to keep you hooked. They are based on an effort and reward system, which keeps the player motivated to continue in order to receive their reward.

Saving is just like those games, except for most of us, it is often a long time before we see a reward. So why not have a little fun with your saving, by setting yourself challenges? It is difficult to appreciate the results of your hard work when the goal is in the distant future. By setting incremental goals, with a reward at the end, you will feel that your efforts are worth it and you will also notice an increase in your motivation.

So, let’s say that you set a target of $5,000 dollars and you reach it within your estimated time frame. Now you can reward yourself. Here’s a tip: create two dates; one is your reward date and the other is your ultimate deadline. If you reach your target by the reward date, you can treat yourself to a night out or a similar luxury. Obviously the reward should reflect the target amount, so if you are aiming to save $100 dollars, don’t splash out on a foreign holiday as your reward or anything else that will eat up a large chunk of the money saved.

This simple idea will make saving fun, rewarding and worth the effort. Get as creative with it as you like, as long as the end results are the same.

March 7, 2012

Results are In for Top 5 – Winnipeg 2012 Debt Resolution

We recently asked you, our Manitoba readers, to share your debt resolution for 2012 for a chance to win an Apple iPad. Our iPad winner is Janice Margelino! We were very happy to meet and present the prize to Janice. We were extremely impressed by her dedication to good saving practices and determination to pay off her student loans!

Also, here are the Top 5 Resolutions we would like to share, as chosen by the contest participants. The choices are listed in descending order from lowest to highest votes.

Number 5. Commitment to save – By creating a budget and cutting your costs you will put yourself in the best position to save in 2012. You can use those savings in the future so that you don’t find yourself in debt again.

Number 4. Follow your budget – A budget is absolutely essential, if you really want to reduce your debt. The key to success is to make sure that the budget is realistic and to stick to it. If your budget comes in over your monthly income, it is time to start looking at where you can cut costs.

Number 3. Pay off student loans – Those students loans are not going to go away on their own. Commit to making regular payments on student loans as part of your overall budget. If you are struggling to meet your payments, speak to your lender to discuss your options.

Number 2. Pay down credit card debt – Credit cards are a quick and convenient way to pay for the things you want. However, they are also a sure way to increase your debt and put a huge dent in your monthly budget. Pay off your highest card balances first and work your way down.

NUMBER ONE. Cut frivolous spending – The top choice for debt resolution, and rightly so, is to cut frivolous spending. This does not necessarily mean going without. Look for cheaper alternatives to your favorites treats. For instance, retro clothing is fashionable at the moment, so why not check out your local thrift stores?