Canadian-Money-Advisor.ca BLOG
The Bankruptcy of Chrysler Nearby; Fiat Also Visiting With General MotorsI was listening to a commentary on CBC this morning that talked about Chrysler declaring bankrutpcy. They were mentioning that the bankruptcy is almost certain.
What I thought was interesting was this: If Chyrsler declares bankruptcy, then it may shed some light for General Motors as to what they need to do. There are alot of questions right now as to what would happen if the big car company declared bankruptcy. There are really no answers. There is no way to talk about this topic as it's unprecedented.
Sometimes the only way to learn about something is to do it.
If General Motors is closing down plants for 9 weeks, to use up their current supply, that really says what the automobile sales climate is like.
I just purchased a brand new car (Hyundai Accent L), and it was manufactured back in November 2008.. This means that it had been on the lot for six months. At that point, you can see that with inventory stocked up like that the car companies are cash strapped, to say the least.
So.. is bankruptcy looming for Chrysler and General Motors? Probably. I think the public is getting used to the idea. And that will make it easier for the politicians to decide.
There is so much of a glut of cars right now... it just says that there is ample supply available. There isn't room enough for these big car makers.
MediaPostNewsThe United Auto Workers union would end up owning a substantial shareholding in Chrysler LLC Chapter 11 under a bankruptcy protection plan that the automaker is expected to present next week, Jeffrey McCracken and John D. Stoll and Stacy Meichtry report. The deal lets get rid of some liabilities, allowing Fiat to cherry pick the operations you want, if an agreement is forged sources.
For its part, Fiat has begun talks with General Motors about joining forces in Europe and Latin America, say the sources. The Italian company could close the purchase of a stake in GM Opel. But GM did not try to go forward until the plans are settled with Chrysler Fiat. Fiat has said it wants to have an initial 20% stake in Bankrupt Chrysler.
In either case, it would have a major impact on the automobile supply chain of car dealers, parts and others, as well as the worsening economies of the midwestern states.
However, both Fiat car company and the administration say that President Obama could prevent the bankruptcy of Chrysler if an agreement can be reached with the banks in question. "In a huge and complex negotiation like this, everything is speculation and up in the air until there is an agreement," said one administration official.
Comments (3)
CMA Blog Home
How Bernie Madoff did his scandolous deeds - in JailIt still amazes me to read this story. Thinking of all of the people who were affected by the Madoff Scandal.. When you thinking of companies like general motors and chrysler who are affecting miillions of people. This scandal is small in comparison, however, it still affects a widespread amount of people.
CNN.com The employees were transfixed. Standing in the middle of Manhattan commercial flooring Bernard L. Madoff Investment Securities in late 2007, half a dozen staff members looked at the ceiling-mounted TV and CNBC aired a report on the mysterious death of Palm Beach, a hedge fund manager who was leading a double life. The police, apparently, even considering the possibility that he had been murdered. "Bernie Madoff," someone asked casually Bernard Madoff like to walk, "you've heard of this guy?"
Madoff a look at the screen, bleached, and exploded: "Why the hell would be interested in stuff like that?" The employees retreated. "I never saw him like that before reacting," Madoff said a trader who witnessed the explosion. "It's obviously affected a nerve."
0:00 / 2:48 Minnesota Madoff mess
That loss of control was very out of character for the head. But traders did not know at the time it was extremely Madoff develop a second life is two floors below them, one is to build an epic, and the inevitable explosion. Took a special pass to enter the "back office" in 17, which was making its Madoff $ 65 million Ponzi scheme. And even if a person can go in, there was not much to see: an old IBM computer server maintained in a locked room, the piles of trading states, and a staff of about 20 employees and paper pushers.
In retrospect, of course, there are indications, such as research has found fortune. IBM's server, for example, an AS/400 dating from the 1980s, it was so old that some data had been entered into the hand, but refused to replace Bernard Madoff. The machine - which has been autopsied by the government - is the nerve center of the fraud. The many thousands of pages of statements showed that his trade was never made.
Then it was the man who led the floor, Frank DiPascali, Bernie Madoff deputy chief of staff the 17. He was a veteran of 33 years of the related company, with a heavy accent and a Queens high school, but nobody was quite sure what he did or what his title was. "It was like a ninja," says a former trader at the legitimate operation above. "The whole world knew he was a great thing, but it was like a big shadow."
There are other mysteries, as we shall see. But even after the large detonation of five months in a brilliant fireworks display of betrayal and recrimination, Madoff plan - possibly the biggest investment fraud in the country's history - has remained among the most difficult to penetrate. More commonly, white-collar cases begin with a quiet, behind the scenes of research, followed by a series of transactions with younger employees, who are squeezed by lawyers and prosecutors to cough up details about their superiors. Step by step, prosecutors move up. Finally comes the denouement: the ringmaster hauled to court in securing handcuffs.
But Bernie Madoff all aspects of the traditional narrative that has been reversed. The case began with flabbergasting his confession, which was outside the investigation. Bernie Madoff argued that all crimes committed by himself, but because it covers decades and continents, a cloud of suspicion immediately plunged Bernie Madoff family members who worked at the company, as well as employees and business associates.
Now that the fog may be about to lift. Fortune has learned that Frank DiPascali is trying to negotiate a plea deal with federal prosecutors in which, in exchange for a reduced sentence, disclosed the encyclopaedic knowledge of the plan Madoff. And unlike his boss is willing to DiPascali names.
According to a person familiar with the matter, DiPascali has no evidence that Bernard Madoff other family members were involved in fraud. However, he was prepared to testify that he manipulated false returns on behalf of some major investors Bernard Madoff, including Frank Avellino, who used to run the so-called bottom feeding, Jeffry Picower, whose foundation was closed because of related Bernard Madoff losses, and others. If, for example, one of these clients had large gains in other investments, which would DiPascali, which produce a loss to reduce the tax bill. If true, this would mean that investors knew their statements fish. (Lawyers and Picower Avellino declined to comment. Marc Mukasey, DiPascali counsel, said, "We expect and encourage a thorough investigation.")
The emergence of this potential star witness can be on the case scenarios in their heads: Some people widely assumed by the public which has been implicated in the fraud may not have been, and a small group of investors that Bernard Madoff seemed innocent victims can not have been totally innocent, after all. But then, some things about the life of Bernie Madoff become what they seem.
Comments (4)
CMA Blog Home
I've been slow posting lately.I thought I would pop my head in a little today. I've been working a little slowly on the site here... My wife has been pretty ill and It's a stressful situation.
I will probably do some posts as my energy permits... and also, I am working on a few other projects that I need to get done.
So... Hopefully I'll be at it in the next few days.
Comments (2)
CMA Blog Home
The Necessity of Building Emergency FundsDo you have a financial emergency due to a job loss? Or do you have a medical expense that will significantly affect your finances? Almost everyone has a financial problem and the route that the recession is taking has compounded loss and depression. It's definitely time to reserve the cash flow and save up for emergency funds that has been depleted with the falling dollar, gas hikes and the weak economy. So what do you do when it comes to a matter of saving? The best way is to get creative and think of ideas and ways of how you can save money and stash it away as your emergency funds.
Maybe it's easier said than done, but there are secret routes to saving up emergency funds. You could also involve your children so that they are aware of finances and the nuances that are attached to it. You could draw your children into the circle of awareness by paying them money for a job done or collecting money from you as a fee for late payment. No doubt this would transform your emergency saving into an expense but the children will definitely get the idea that money is precious and needs to be conserved. You can also add on an imaginary 10% to the price of your purchase and then save the money. This would not only help you save some money, but it would make you prudent about spending and adding to expenses.
How to Save for a Rainy DayThere are many ways that can help you to save up for emergency funds. You keep a coin box and collect all your coins, which, in actuality is a very handy thing when you need money or you can collect five dollar bills. This really helps when you save money and adds to your emergency funds. Instead of the usual price that one pays for gas, you could add a dollar more and pretend that it is really a dollar extra. This will help you to put that extra dollar into your
emergency funds. You could sell all the unwanted things around the house and though you may have more than a few bargaining about the price, this method will add to your emergency funds. You could save gas money by buying all the groceries and other commodities that you may need in one trip. Instead of driving many times to the supermarket, you could take a walk that would help you save money as well as improve your fitness regime. Another way is to get a credit card that offers a good reward program. As soon as you get the rewards, pass it on to your emergency fund.
It is necessary to keep aside about three to six months of emergency funds that would cover payments. This would come in useful if you or your spouse loses a job or if any undue expense crops up. You can set targets and goals as to how much you would like to save in a given period of time. You can start small and then get used to doing without that money. Start a savings account or certificate of deposits (CDs) or a money market account. See that you get considerable interest for your savings, but make sure that you save your emergency funds in a place that would be accessible and not blocked when you need it the most.
Be Prudent and Creative about Saving Money
Comments (3)
CMA Blog Home
Unprocessed Food is Cheap - HealthJust recently we've been trying to help my wife's health get better. Along with the chemo that she is doing, she also wants to eat healthy, do juicing etc.
I went to the store the other day and purchased a bunch of fresh vegetables that we're going to put through the juicer.
I filled up my basket and it was quite heavy. When I went through the check out, the bill only came to $27 !!
All of the vegetables that are recommended for my wife to eat to help fight cancer, was the cheapest foods of all. In my mind that means that I should be eating them as well.
For a very healthy diet that floods your system build up... you need fresh fruits and vegetables. Because we're juicing them, we're going through alot more than usual.
I purchased a 50 pound bag of carrots last week and it cost $25 for the bag. That's pretty reasonable. The bag has lasted us the better part of a week... and we're eating alot of carrots.
We didn't get recommendations to eat processed foods, sugary foods and deserts etc. These are costly and also aren't really recommended as cancer fighting foods.
BTW... cancer loves sugar.. sugary processed foods are BAD if you're trying to fight cancer. Something I learned recently.
I thought I would do a short post to say that unprocessed fruits and vegetables are really cheap. Ultimately they are the best food for you. The down side is that they take a little longer to process.
It goes to show that the best things in life are usually free or much less expensive.!!
Comments (3)
CMA Blog Home
Low interest credit card - U.S. websiteI was asked to do a review for a credit card website that features American credit cards
Sometimes it's good to see what the "other guys" are doing.
This site allows you to search for low interest credit cards, secured credit cards, student credit cards and more.
The thing that's different about the U.S. credit card websites is that they show many of the banks' credit cards. Unlike Canadian banks which don't have affiliate programs for their credit cards.
This site has many different articles about credit cards which are things you need to know if you're going to carry credit.
The main thing you want to do if you're shopping for a credit card is look at rates and the other costs to own the credit card. It's all about the cost of credit. If you can find a better deal and save money, just by spending some time shopping, then it's really worth it. Sometimes you can save hundreds just by getting the lower interest rates.
And it's safe to use a site like this. All of the links follow back to the banks website, and the credit card issuers sites are always secure.
If you need a secured credit card, low interest credit card, student credit card etc.. and you live in the U.S... this is a good site to visit. It's got a clean look, has credit card comparisons and you can sort the credit cards by type.
This is a sponsored review
Comments (2)
CMA Blog Home
this is a great video that talks about the debt situation in Canada.
I like the fact that the commentator puts the blame for the too high level of credit squarely on the consumer. We need to take responsibility for the amount of debt that we're in now..
Nobody forced the consumer to buy , and take on more credit.
Currently the Canadian consumer has $1.3 trillion in consumer debt, this includes mortgages
I like this second video as it gives an actual example of a lady who's quickly accumulated $10,000 in debt. The industry calls her a revolver, as she can't pay off her balances completely.
Credit card companies like revolvers as that's how they make their money.
This lady has figured out that "perhaps the credit card companies want you to carry balances!!"
Comments (9)
CMA Blog Home
Debt Settlement - You don't have to pay your debts??!!Just going through youtube looking interesting things that people say..
This guy starts off by saying... "you don't have to pay your bills"
This makes me crazy. This guy is suggesting that you shouldn't pay your bills/debts especially if you owe $25-$100,000 on credit cards.
He mentions that you should be using the interest that you're paying the credit card companies to save up for retirement.
This is LUDICROUS
The following is what this guy is explaining on the video
He starts off by explaining you should just not pay your bills for six months.. This will start the collection process. You can then negotiate with the collection agency at 10% on the dollar.
Part of the negotiation is that the credit bureau wipes any negative debt notation off of the credit bureau.
So... after 6 months, you'll have a nice squeeky clean credit report, and no debt.!! Wow... this is fantastic!! Or is it?
There are so many assumptions in his discussion that they need to be addressed.
Also it's important that this type of service is for U.S.A. (Americans) only. This system isn't going to work the same in Canada.
I complete disagree with not paying your bills for the sake of getting out of them. That's the cowardly way to do this. This type of logic will erode the social fabric of our society.
IF YOU CAN, PAY YOUR DEBTS
If you've got alot of debt, and can afford to make payments, then you should pay for your debts as agreed. After all, you made all of the purchases that incurred the debt!
The only exception in my opinion is if you've got health issues, and your debt is making your health worse. Then it's time to seek debt settlement or bankruptcy help.
THE CREDITORS MAY SUE YOU
If you owe $25,000 -$100,000 then the creditors may sue you in Canada. This is worth going after in the courts. Don't assume that you can automatically settle you debts after not paying them for six months.
THE CREDITOR DOESN'T HAVE TO REMOVE BAD MARKS FROM YOUR CREDIT REPORT
This fellows assumption is that you can have the creditor or collection agent remove negative items and comments from your credit bureau, as part of the payment negotiation.. While some may do this, some may not do this.
It all depends.
CREDIT REPORT ITEMS MUST BE ACCURATE, COMPLETE AND VERIFIABLE.
Are you going to walk away with no debt and squeeky clean credit after the creditors and collection agencies write off your debt? More than likely not.
Why would the banks want to remove negative items. This sends a false message to other creditors that you've got good credit.
Again, you could ask to have negative items removed from your credit bureau, however, there is no law / motivation for the creditor to do so.
In my opinion, this is a shifty way to deal with your creditors.
If you've had a high consumption lifestyle, then you should pay for it, as agreed to when you took on the credit facilities.
If it takes you 10 years to pay off your credit cards, then so be it. After 10 years, you'll have learned your lesson about the effects of spending too much on your credit cards.
There are always exceptions to the rules, but in the case of North American consumers.. I think we're all guilty of over consumption.
Comments (2)
CMA Blog Home
Peter Schiff on Youtube. - He's Right about the economyI like to watch Peter Schiff. He's usually pretty straight forward and understands the fundamentals of the economy.
Sometimes it's important to understand what's going on in the economy to know what we should be doing individually.
When you see the whole nation suffering from too much debt, and not enough savings, then you can see what the effects are overall.
This should tell people what they need to do in their own personal finances.
Peter Schiff is good to point out items in the economy that are going to affect everybody on the overall.
Learn more about the Canadian coin and the Canadian Economy
I recommend that you check out Peter Schiff's channel on youtube, if you're interested to know what's going on in the economy.
Ultimately it gets back to this.. low debt and high savings will save any economy. Not giving in to instant gratification like we have done for the last 20+ years.
It's also good to invest in R&D so that our country can be profitable and competitive in the future.
I think this economy is going to stay like this for a while until people get the idea and decide to really get on with fixing their balance sheets.
Comments (1)
CMA Blog Home
Mortgage Crisis - The bank's Fault? - or the Consumer?I was reading a blog that said that the mortgage crisis is the bank's fault. I can't believe that somebody would seriously write this in a blog.
Let's see.. the definition of a Consumer, is somebody who consumes. Nobody put a gun to the consumer's head to buy. They all did so willingly.
There were no laws passed that said that the consumer HAD to buy houses, cars or consumers items.. they did so willingly.
IMO... if a person buys a house, they should understand whether or not they should be able to finance the property.. If you don't understand the contract, then hire a lawyer (or somebody trained in contracts) to help you understand the fine print.
I'm very surprised that the media is saying that the homeowner got duped by the mortgage companies.. That's ridiculous. That's putting the blame in the wrong place..
Buying a house for $250,000 is a big purchase. It deserves a great deal of attention, to understand the costs involved. A house has current and future costs.. A mortgage has current and future costs.
BUYER BEWARE: If you don't take the time to understand the costs involved, then you are at risk for making an expensive decision.
Here's what I would recommend to anybody buying a house.
- Learn how much the house & Utilities will cost
Take the time to gather all of the current utility bills, tax bills etc for the house you're looking at buying. See what the costs are.
There are also down payment, closing costs, inspection costs etc with the mortgage.
If you're clear on the costs, then there won't be surprises later on.
- Learn and understand the mortgage contract
Contacts are not easy to understand. You should NEVER sign a contract that you don't fully understand. Doing so means that you're vulnerable to whatever you agreed to.
If you're not sure what the contract language means, ask a lawyer. This is a cost of due diligence. If you need to save up additional money to afford the lawyer, then take the time to do so.
Ask the lawyer what the fine print means, and what are the things you should watch out for.
A lawyer is trained in legal speak and will be able to give you advice that the mortgage company may not come forward with.
- Learn about the fees and future/renewal costs of the mortgage.
This is something you should also ask a lawyer. What are the hidden fees, if any? What are the fees should you decide to refinance, or sell the property?
You might just ask the lawyer to itemize all of the potential costs that the contract holds.
This may cost a few hundred dollars, but the lawyers analysis could save you a ton of hard ship in the future.
I don't believe for a second that the mortgage crisis is the bank's fault. It's not the mortgage companies' fault. It's the consumer's fault all the way. They made the choice to buy the houses in the first place.
Each and every consumer who got involved with a toxic mortgage made the decision to do so. They could have known what the costs were before they took the mortgage. They could have insured for mortgage with critical illness insurance, and life insurance..
There's enough information in the market place to make an informed decision. If the consumer DECIDED NOT TO TAKE THAT INFORMATION, it's their fault!
Comments (1)
CMA Blog Home
Consumerism Withdrawal - Do you suffer from it?This is one problem with the economic downturn that I thought of. Consumerism Withdrawal.
The premise of the economy for the last 20 years has been consumption. Living the American dream. People have done a pretty good job spending, and consuming.
There have been many posts in the blogosphere where people explain that they're going to cut back spending and go on a spending diet. They talk about how they're not going to go shopping for a month, or not buy anything on credit for the next three months. Ultimately with those posts, I just roll my eyes, and wonder about their resolve.
Once you've tasted luxury and spending, it's hard to give it up.
With all of the lay offs and the credit crunch that we're experiencing, I'm sure that many people are suffering from consumerism Withdrawal.
This is more like being forced to go on a diet because of food shortage. In this case, credit is tight, and people have overspent.
If you're suffering from consumerism withdrawal, there are a few things you can do to help the situation:
- Learn to enjoy life with what you've got
The problem with consumerism is that we're always looking for the next big toy, or the next fashion. We're satisfied for a small time with what we've purchased. Much of what people have purchased is to satisfy wants and not needs.
The best thing to do is to learn to appreciate what you've got already.
That's a pretty hard thing to do, if you're used to a constant diet of new things all the time.
I've found that I really only enjoy a few of the possessions that I own. the rest are just sitting in a closet doing nothing.
Enjoying what you've already got, means that you won't need to spend any money on goodies.
- Take the time to strengthen your balance sheet
If we're going to be in a recession for the next year or so, why not take the time to pay down debt and save up some money.
This is really not fun, and it's pretty boring, compared with shopping all the time for the latest gadget.
My thinking is this: if you've got money saved up, and you're not in debt,
you'll sleep better, and won't need to go through withdrawals at the retail store.
Having some money saved up, means that you'll be able to go into the store and make some moderate purchases, based on your available cash.
Buying things with cash will give you a little taste of having something new, without the pains of paying down credit later.
- Take the time to enjoy the free things in life: family and friends.
I've gone on a cash diet for the last few years, by choice. In doing so, I've learned to really enjoy free things. Going for a walk, visiting with a friend. I enjoy looking at flowers more.
There are many things you can do for free. Sometimes we look at these FREE things as boring and unexciting. If you're used to hyper spending at the stores and for entertainment, then going to the museum would probably be boring.
If you detox off of the sugar rush of retail spending for a few months, perhaps the free things in life will start to look good again.
Yes, that's what I'm saying.. hyper retail spending using your credit card is like eating alot of refined sugar products. They taste great, give you a sugar rush for the moment, and then give you a big let down afters. You get addicted to sugar, and retail shopping for the buzz it gives you.
The free things in life are more wholistic. They're not as exciting, but they are better for you in the long run.
I see Canadians and Americans going on a consumerism diet for the next year or so. Let's take the time to get back into shape financially and as well, start to enjoy less expensive more healthy activities again.
Comments (0)
CMA Blog Home
Are we NOW happy with Less? - The EconomyThe other day I was chatting with my son, Alex.. He deleted his facebook account, and is cutting out other instant messaging type programs that's he's grown up with.
I was curious about why he would give up facebook.com especially because this type of program is meant for his generation.
He indicated that he's grown up with internet, video games, TV, cell phones. He's getting tired of all of the programs and software that replace human interaction.
I was intrigued by this.
Growing up in the 60's and 70's, we didn't any of these modern tools and conveniences and toys. Nowadays.. the kids are flooded with them.
The Point is:
North Americans have had 20 years of free spending. We've bought what ever we've wanted, and are now slaving away to pay for the credit cards we used. We've had 20 years of endless consumption. We know what consumption is. We know that we can get what ever we want if we work hard enough for it. Learn more about capital gains
We've been there, done that!
I'm just wondering if people will be content to sit back and take a break for a while, consumption wise. This would be hazardous to the economy.
Consumers need a rest. I'm sure alot of people are suffering burnout from trying to make payments on all of their debts. The satisfaction of getting that new 52" TV is gone, especially because many people have already purchased one and had that experience.
My question is:
As my son is tired of all of the new gadgets that he's been bombarded with his whole life.. are consumers tired of being in the buying / paying off cycle? Are consumers going to want to take a break from being on a continuous spending spree?
An even more intriguing question:
Are consumers going to be HAPPY with less?
I don't mean "are they going to suffer, and put up with less?".
I mean, "are they are actually going to be happier with less stuff, less debt payments, less noise in their lives?" These are some thoughts I've been having lately about the economy. If people are happy with less, then that will spell bad news for the current economy that relies heavily on consumer spending!
Comments (8)
CMA Blog Home
I just signed up for Clickbooth, which is a Cost Per Acquisition (CPA) based advertising portal.
This is all about making money on the internet. If you're a internet advertiser or publisher http://www.clickbooth.com is a site that you should have a look at.
ClickBooth is big enough that they're dealing with Google, Yahoo!, MSN. If they're dealing with the big guys they must have a pretty good system in place.
Cost per acquisition (CPA) is an advertising model where you only pay for leads received. You don't pay for clicks or impressions, only qualified leads. This is good because the publisher makes sure they've got enough good quality traffic to give to the advertisers.
I was also impressed with some of the advertisers that deal with clickbooth.com. BlockBuster, Efax, VistaPrint, AOL, and many more. Again, with a line up of advertisers like this, you know that Clickbooth.com has a pretty robust system in place.
I have yet to figure out how many advertisers are looking for space on Canadian sites. But in the meantime, I'm sure there is a ton of U.S. business there.
I would say that if you're into internet advertising or publishing, you should definitely check out http://www.clickbooth.com.
Comments (0)
CMA Blog Home
With Gas Prices,
What's your next car going to be?As I've been riding my bicycle around I've been thinking about my next car purchase.
It scares me to be honest. There are the cars you'd like to have and cars you should have.
I'm curious to know what our visitors think they will drive the next time you buy a car?
I get a sense that there are many families thinking to themselves, "this car was really nice 3-4 years ago when we first leased it. However, now with sky high gas prices, we will definitely get something more economical with the next lease or purchase."
Many people have 4 year leases, or 3-5 year purchase contracts that are going to run out this year or next. It will be really interesting to see what their next choice of car will be.
Will people keep up with the same lifestyle car, or go with something more practical.?!!
What are your thoughts?
For now, my bicycle is paid for, there is no insurance costs, and no gas costs. I may upgrade to new narrower tires for $100 but that will be my major vehicle expense for the year.
Comments (2)
CMA Blog Home
Have you saved up money?
-Looking for more Money HerosI am currently looking for people who have gone from having $0 cash saved up to having saved up 3-6 months of cash reserve.
I would like to interview people who have gone from no savings to saving up enough money to keep the wolves from the door for a while.
I'm interested to hear your journey along the way along with the problems and successes you encountered.
Questions I would have regarding saving up money:
- What motivated you to start saving money?
- What did you purchase less of
- What were you able to get at reduced prices?
- What did you friends and family say when you started to make progress?
- Did you pay off some debt at the same time?
- How did you feel when you finally got 3 months of cash reserve saved up?
- How did you feel about the overall process of saving up money?
- Would you recommend saving money to everybody?
If you've saved up $10,000, $15,000 or $20,000+ I would really like to interview you for this blog.
Let me know in the comment section if you're interested.
NOTE: These savings are not part of your company's benefit program, or part of your retirement savings. These are short term savings that you saved up for "emergencies".
Comments (1)
CMA Blog Home
Shanel Yang - Money Hero?
- Paid off $50,000 in credit card debt in 1 year!I went looking for other bloggers who did remarkable things with their money.
According to her blog, Shanel Yang paid off $50,000 in debt in one year! I am thoroughly impressed with that kind of persistence and creativity.
I was interested to read about how she got into so much debt, and as well how she felt when she was in over her head. She mentioned that, "I tried to console myself with even more spending. "What's the point in trying?" I rationalized. "I might as well have a good time!"
Isn't that the way you feel for a while. You're so much in debt and while your head is spinning you try to rationalize it away while you're trying to figure it out.
I think Shanel is a Money Hero because she decided to take responsibility for paying down her debts and found creative ways to do so.
She had to become creative and frugal. On her blog she lists 11 different ways that she used to pay down her debt. All of them range from cutting out frivolous purchases to making more money. She also figured out how to do the same types of things for less money.
Shanel was critized for being frugal.
I scratch my head at this. Being frugal is like being on a money diet. If you're over weight financially, you need to go on a diet. That's what Shanel did. She mentions that she was called names for being frugal: "Yet, try to be frugal, and suddenly you'll hear "tightwad," "miser", "cheapskate", or "Scrooge."
I think that this is probably true but pretty sad at the same time. If people have debt and are paying 18.9% on that debt, they need to start paying down their debts. Buy things with cash instead of credit cards if they're really necessary.
In the over all I thing that Shanel Yang has paid down her debts and bought herself peace of mind, along with freeing up that monthly cash flow.
Well done Shanel Yang, you're the Money Hero for today!
Comments (1)
CMA Blog Home
Minimum Payments
- How Do Credit Cards Companies Calculate Them?I was doing some research for the previous article
Which credit card debts should you pay off first? and realized that I should talk about something else that is relevant making credit card payments.
It seems that credit card minimum payments are sometimes calculated differently by each credit card company. I was under the impression that each credit card company wanted you to pay 3% of the ending statement balance, and that this was the rule across the board.
I found out that the minimum credit card payment are calculated differently as per the following examples:
TD Visa Credit Cards: 2% of Ending balance.
Presidents Choice Mastercard: 2.2% of Ending balance.
American Express Gold Card: 3% or $10 which ever is greater
Canadian Tire MasterCard: 3% or $10 which ever is greater
MBNA: Interest Calculated on ending balance +penalties +service charges + $10
ASSUMPTIONS:
Let's assume that each had an ending balance of $5,000 outstanding with and interest rate of 18.99%.
MINIMUM PAYMENTS CALCULATED
TD Visa Credit Cards: $100
Presidents Choice Mastercard: $110
American Express Gold Card: $150
Canadian Tire MasterCard: $150
MBNA MasterCard: $88.75
Monthly interest calculated = $5,000 x (18.9% / 12) = $78.75
At first glance it seems better if you're making smaller minimum payments, but in the long run you'll pay much more interest for those cards.
PRINCIPAL PAYMENTS CALCULATED
TD Visa Credit Cards: $21.25
Presidents Choice Mastercard: $31.25
American Express Gold Card: $71.75
Canadian Tire MasterCard: $71.75
MBNA MasterCard: $10.00
42 YEARS TO PAY OFF CREDIT CARDS?!!?
If you paid only minimum payments on MBNA Mastercard, it would take you 500 months ( 42 years ) to pay off the credit card.
If you paid off monthly payments @3% of ending balance as with American Express Canada it would take you approx 439 months ( 37 years ) to pay off this debt.
UPDATE: I found this interesting article about credit card minimum payments rising in the U.S. from 2% to 4%. According to this article: Did you know your minimum credit card payment is rising? A new government program working to get Americans out of credit card debt is pushing credit card issuers to raise minimum monthly payments. Will you be able to make the higher monthly payment? Here are some tips for getting by.
This is to help credit card users to pay off their debts faster. Is this going to cause alot of strain on the average American family?
Comments (2)
CMA Blog Home
Car Repossessed? Trouble with high risk car loans?If you've had any trouble with high risk car loans and / or have had your car repossessed, I would like to hear from you. I am doing some research of our members and readers about the topic of subprime auto loans for a national newspaper chain, and would like to have input from our visitors.
The trouble you may have had is that you had bad credit, or new credit and you signed up for a high interest loan with a local car lot. Maybe one of those car lots that said that you could fix your credit if you got one of their car loans.
You may not have understood the terms of the agreement, and/or were not able to make payments for some other reason.
If you have had any problems at all with a car loan, or have had your car repossessed and would like to discuss it, please let me know.
Please leave a comment here if you're interested.
Comments (58)
CMA Blog Home
Which credit card debts should you pay off first?I've been thinking about how to save money on debt. It's a cost cutting type of topic that will help you pay off your debt faster.
As I was looking at some of the other personal finance sites, I came across a good article on fivecentnickel.com that talks about "If you’re familiar with Dave Ramsey, then you’ve no doubt heard of his ’snowball’ approach to paying down your debt. In short, Ramsey suggests that you make minimum payments on all but the debt with the lowest balance."
I disagree with Dave Ramsey's approach in that it's not the most cost effective way to pay off debt. He's suggesting that you pay off the credit cards with the lowest balance first. This psychologically is a good way to go as it gives you a sense of accomplishment. It's also a great way if you're paying the same interest rates on all of your credit cards. You can say, "I paid off a credit card in full!"
Pay off the most expensive credit cards first
Different credit cards charge different amounts of interest. Capital One's Prime +0.9 card is much cheaper than a HBC Card at 28.99% interest.
If you're paying minimum payments on your highest interest cards, you're pouring money down the drain, especially if you can afford to make higher payments.
EXAMPLE #1: Make regular payments
ASSUMPTIONS: Example #1:
- The payments assume that you're paying 3% of the initial balance throughout the whole payment time IE. 292.50.
- You're not making any extra payments at this moment.
- If one credit card is paid off early, you're NOT using the freed up payment money to pay off the other card.
NOTE:
- I'm using Visa's credit card calculator
- These are highly simplified calculation for the purposes of illustration only.
Credit Card #1
Interest Rate: 19%
Balance Outstanding: $9,750.00
Minimum Payments: $292.50
Months to pay in full: 48
Total Interest Costs: $4,220.35
Credit Card #2
Interest Rate: 29%
Balance Outstanding: $3,500.00
Minimum Payments: $97.00
Months to pay in full: 73
Total Interest Costs: $4,119.07
TOTAL INTEREST PAID: $8,339.42
Assuming that we have an extra $200 per month to pay down these credit cards, which would be the best way to go? Should we pay down $100 on each card equally, or should use the full $200 to pay down either credit card?
EXAMPLE #2: Pay off $100 on each card equally
ASSUMPTIONS: Example #2
- The payments assume that you're paying 3% of the initial balance throughout the whole payment time IE. 292.50.
- You're going to pay $100 extra on each credit card until the first one is paid off.
- You've got $200 to make extra payments with.
- If one credit card is paid off early, you ARE using the freed up payment money to pay off the other card.
TimeLine #1 Months 1 to 24
Credit Card #1 -
Interest Rate: 19%
Balance Outstanding: $9,750.00
Minimum Payments: $392.50
Months to pay in full: 24
Total Interest Costs: $2,736.13
Credit Card #2
Interest Rate: 29%
Balance Outstanding: $3,500.00
Minimum Payments: $197.00
Months to pay in full: 24
Total Interest Costs: $1,128.09
TimeLine #2 Months 1 to 11
Credit Card #1
Interest Rate: 19%
Balance Outstanding: $5,783.26
Minimum Payments: $589.50
Months to pay in full: 11
Total Interest Costs: $551.50
Credit Card #2
Interest Rate: 29%
Balance Outstanding: $0.00
Minimum Payments: $0.00
Months to pay in full: 0
Total Interest Costs: $0
TOTAL INTEREST PAID: $4,415.72
Example #3: Pay off $200 on the more expensive credit card first
ASSUMPTIONS: EXAMPLE #3:
- The payments assume that you're paying 3% of the initial balance throughout the whole payment time IE. 292.50.
- You've got $200 to make extra payments with.
- You're going to pay $200 on the most expensive credit card each month until it's paid off, and then use that $200 per month to pay off the other credit card.
- If one credit card is paid off early, you ARE using the freed up payment money to pay off the other card.
TimeLine #1 Months 1 to 14
Credit Card #1 - 1st 15 months
Interest Rate: 19%
Balance Outstanding: $9,750.00
Minimum Payments: $292.00
Months to pay in full: 14
Total Interest Costs: $1,950.56
Credit Card #2
Interest Rate: 29%
Balance Outstanding: $3,500.00
Minimum Payments: $297.00
Months to pay in full: 14
Total Interest Costs: $668.85
TimeLine #2 Months 1 to 14.6
Credit Card #1 - 1st 15 months
Interest Rate: 19%
Balance Outstanding: $7,619.19
Minimum Payments: $ 589.50
Months to pay in full: 14.6
Total Interest Costs: $ 972.83
Credit Card #2
Interest Rate: 29%
Balance Outstanding: $0
Minimum Payments: $0
Months to pay in full: 0
Total Interest Costs: $0
TOTAL INTEREST PAID: $ 3,592.24
SUMMARY:
You SAVE THE MOST MONEY on credit card interest by paying down your most expensive credit card first and then applying the freed up payments to the other outstanding credit cards. You're also paying off your credit cards in a total of 29 months! See example #3
Interest Paid: $ 3,592.24
Example #1 is by far the most expensive as you're paying $8,339.42 in interest payments. You also take much longer to pay off your credit cards as it takes up to a full 73 months to complete the payments on both credit cards.
Comments (2)
CMA Blog Home
Are you a Money Hero?Lately I've been doing some searching for regular people who have done extraordinary things with their personal finances. I'm calling these people Money Heros.
What is a Money Hero?
A money hero is a person who has been in trouble financially and pulled themselves out of it. They've been in debt and paid off all of it and / or they've had very little savings and have stashed away a sizable reserve.
Why are these folks heros? Anytime somebody goes above and beyond, I like to think of them as a good example.
Example 1: Somebody who has got themself into $50,000+ worth of credit card debt and then decides to pay off these burdensome credit cards until there is nothing owing on them.
Example 2: A family who has no savings decides to start putting money in to a savings account. Within a few years they accumulate $30,000 in savings.
Example 3: A couple who is $50,000 in debt and has no savings. They decide to pay off their credit cards and put away an emergency reserve. After alot of cost cutting and scrimping and saving, they pay off their credit cards and put away $15,000 in cash savings.
I found this link on fool.com of a person who has paid off $100,000 in credit card debt.
I also found this blog that is dedicated to a person who is in the process of paying off $100,000 in debt.
These people are money heros.
I call these people heros as they set an example for the rest of us. They made a decision to better their financial situation and then worked the plan until they had success.
I am looking for Money Heros!
Are you a financial hero? I am looking for people who have done the extraordinary with regards to saving money, paying off debts or a combination of both. I would like to interview these people for my blog.
If you've done one of these wonderful things let me know right away. We can set up an interview so that you can let your light shine to those who are not in as good financial shape.!
If you're interested, leave a comment in this post.
UPDATE: I found another blogger using the terminology Money Hero here
Comments (0)
CMA Blog Home
- Posted April 21, 2008 by Monty Loree
|
|
Leveraging a Secured Line of Credit - What does it Mean for You?
Sometimes a credit crisis happens and it negatively impacts our credit rating and our credit score. A bad credit history makes it difficult to obtain an auto loan or a home loan. A bad credit history also makes it difficult to be approved for future credit cards.
-->
But now it is easier to secure a new credit card even with a poor or inadequate credit history. It is possible if you want to use a secured credit card.
So what are secured credit cards? Secured credit cards are similar to your traditional credit cards but the cardholder has to pay a deposit to purchase the credit card. That is the "secured" portion of the credit card. Depending on the credit card company and how bad the applicant's prior credit history is, the deposit amount will vary anywhere from between 100% and 300% of the approved credit line.
The actual credit line offered by the issuing bank is often less than the deposit amount. The excess funds from the deposit are retained by the issuing bank to cover any future unpaid debt owed to them by the cardholder. Some credit card companies will issue secured credit cards with higher fees, so be careful and read all the fine print.
Aside from the deposit, a secured credit card functions like any traditional credit card. For example, if a payment is late or missed completely, the interest rate will increase just as in a normal credit card. However at the start of the program, most secured credit cards carry a higher interest rate versus regular unsecured credit card.
-->
Most Canadians that apply for a secured credit card are considered risky applicants who either have a poor credit history, or do not have an adequate amount of credit history. And yet despite the additional cost of the deposit amount, obtaining a secured credit card is a very good way for someone to build or repair their damaged credit history. Again, always read the fine print to understand all the fees involved with a secured credit card.
And if a cardholder has maintained timely payments, they will often reap other rewards and benefits from their credit card issuer. In some rare cases,
the cardholder may also be able to apply for an unsecured credit card. It take
Comments (2)
CMA Blog Home
American Express Canada- The Status SymbolYou’re entertaining a client and want to impress them. You want to buy your wife a special anniversary gift she won’t forget. You’re almost ready to retire and want to spend your days traveling around the globe. Whatever that special occasion or event will be, avoid an embarrassing moment of having your bill returned to you because your credit card exceeding its spending limit. With an American Express card, there’s no worry about pre-set spending limit. And, with as many as 15 cards to choose from, there’s definitely an American Express card to fit the lifestyle of every Canadian.
Membership benefits for personal card members vary from card to card and may include:
- Zero pre-set spending limits
- Zero annual fees
- Upgraded travel amenities
- Aeroplan air mile rewards with a sign-up bonus between 15,000 to 25,000 miles
- Cash rebates
- A low interest rate on some cards
- Preferential ticket access to some of the hottest shows around
- American Express cheques that good all over the world
- The privilege of having global customer service 24 hours per day for 7 days a week
- Payment flexibility
- Credit limit increases
- Supplementary cards that help you earn rewards even faster.
- Plus there are security services that include purchase protection, travel emergency assistance, and online fraud protection guarantee.
With such a variety available to you, it’s easy to find an American Express card that will fulfill your needs. This is a lifestyle credit card that rewards you just for enjoying your Canadian life in style.
Do you have a Canadian small business, or are thinking of starting one?
American Express has several small business cards which feature simplified management control of your business’ expenses. Your small business card can even help you manage your business by finding ways to streamline your processes, or find ways to reduce costs, as well as reward your employees with Aeroplan Miles while earning cash back. All of these amenities and more are available to you when you apply for an American Express small
business credit card.
As if these benefits are not enough for personal and business card members,
American Express features the AMEX InfoAssist service that protects all your credit card numbers and personal details in one private, secure location that is accessible to you 24 hours a day, 7 days a week, from anywhere in the world.
AMEX InfoAssist will replace lost cell phones or lost airlines tickets, and can even replace lost or stolen money with an emergency money transfer. They can help you plan a trip and even act as your personal messaging service by forwarding phone calls and handling any change of address. You can even cancel the InfoAssist within the first 60 days for a full refund if you’re unhappy with the service.
But American Express is more than just a card services company. They offer many insurance plans to fit your lifestyle needs. They can provide you or your family with term life insurance, a health and dental plan, an accidental protection plan, a critical illness recovery plan, as well as a hospital and recovery cash plan. And, if you’re traveling American Express can provide travel assurance and automatic flight insurance.
You can even do your banking with American Express. They offer four different financial products to fit your personal banking needs. While their business bank financial product offers security and flexibility plus a higher rate of return with zero fees.
For the frequent traveler, American Express Travel services provides Traveller’s cheques, which are welcome all over the world, Travel Gift Certificates, which make a memorable gift for any occasion, Membership Rewards Travel Certificates which allow members to redeem reward points for travel certificates, and, finally, Gift Cheques which are redeemable almost anywhere and NEVER ever expire.
See More Canadian Credit Cards
Comments (2)
CMA Blog Home
Banks Can Take Your Money Without Asking - How a Right of Offset WorksBy Richard G Cooper
The collection of debt is a stressful event. Phone calls, nasty letters and constant threats of legal action are often enough to drive you crazy. Creditors have a trick up their sleeve that most people don't know about, and when it happens it's even more disastrous then an irritating bill collector phone call.
The person in debt to the bank often calls it stealing money. The creditor calls it a right of offset. And it's perfectly legal. A right of offset can be described as: a banks legal right to seize funds that a debtor may have on deposit to cover a loan in default.
In Canada, it happens quite often, and people in debt to their bank are frequently left wondering how they are going to account for this money and get it back. Having money offset from your bank account when your rent or mortgage payment is due can be extremely stressful.
Creditors can take money out of your bank account and in some cases without asking your permission if you are sufficiently delinquent in your payments on a credit card or loan to them. Most of the big banks in Canada have the concept of a right of offset written into their credit card and loan agreements. It's a level of protection you usually give them when you sign for and borrow unsecured money from your bank in the form of a credit card or loan.
Most people are oblivious to this fact and when a regular paycheque goes into your account, it can disappear as quickly as it arrived. Remember your bank can view your cycle of deposits and withdrawals, so they know when to go in and get their money back.
Can you get the money back? Sometimes, the bank will work with you and return it if you can talk to the right person. Your branch manager or the banks Ombudsman can help. But they usually don't have to. There are also in some cases certain restrictions on the types of deposits that can be offset from your account. You should also be aware that if you owe bank "A" a balance on a credit card, they cannot offset money out of an account from bank "B". The account has to be with the same financial institution.
The best protection is not exposing yourself to having money offset from your bank account by staying up to date in loan and credit card payments. But for some people this is not a reality. I know first hand that bad things do happen to good people and that most folks who end up in debt did not intend for it to happen.
There are further steps you can take to protect yourself, not depositing new money into an account you owe credit card or loan debts is a start. But this is not a solution to debt. Seek help from a reputable debt settlement company if you are drowning in debt, and not able to deal with it. But do something today!
Richard Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years.
www.totaldebtfreedom.ca
Comments (4)
CMA Blog Home
Ways to Get Rid of your Personal DebtAn increasing number of Canadians today spend more than they can afford to. The bills keep piling up and they just can’t seem to pay back the personal loan they took out to finance their kitchen’s redecoration. Eventually, they end up with a mountain of personal debt and a bad credit rating. Anxiety and desperation overwhelms them because they see no way of getting out of their predicament.
Does this sound like you? If you are one of the many Canadians that just can’t seem to keep up with their debts, you’ll love what comes next. The truth is, you can get out of your debt and it doesn’t have to be as torturous as you imagine. But first, you have to take a step back and make it a point to change some of your habits and be more proactive. You can start catching up with your debts by sticking to some of these simple techniques:
Get rid of your credit cards. Credit cards and store cards create the temptation for you to spend money on unnecessary things at ridiculously high interest rates. Get rid of your credit and store cards immediately by cutting them up. Of course, you need to keep the credit card that charges you the lowest rate of interest for emergency situations, but the rest of them have to go.
Setting up a direct debit. You can set up a direct debit system that automatically charges your bank account in such a way that your debt payments are settled on the same day you receive your monthly salary. It is a great way to discipline yourself and stops you from spending money you don’t have.
Visit your lenders personally. Too many debtors make the mistake of avoiding their lenders and the discussion of their default. That is the wrong approach. If you owe your bank money, visit your account manager personally and let him or her know that you are aware of your mistakes. Also communicate your intention to repay the loan. Lenders appreciate this much more than you think and they may even help you in setting up a more lenient repayment plan.
Try to get promoted. Did you know that one out of every two Canadians who ask their bosses for a promotion actually get one? Put in a little more effort at work and find the right opportunity to discuss the possibility of promotion with your boss. What do you have to lose? The worst that can happen is you’ll get a negative answer.
Save on Utilities. There are many Canadian utility companies that will perform a home energy audit for you free of charge or for a very low fee. This can save you hundreds of dollars in energy bills per year. Also, try to find utility suppliers that charge the best rates and switch suppliers if you have to. It helps immensely to do some research on the internet to compare prices.
These techniques are very simple and easy to implement. If you put in the effort and time needed, things should get better for you in no time at all. Remember, there is always hope for those who choose to take action.
Comments (0)
CMA Blog Home
Three Easy Ways to Save MoneyIf someone gave you a dollar for every Canadian person you met that wished he or she had more money, you’d be pretty rich by now. Why’s that? Because the majority of Canadian people have a great desire to improve their current financial status. Now, unless you win the grand jackpot in the Canadian national lottery, there are only two ways for you to increase your bank account balance: you either increase your income or you save money. Increasing your income can be a sticky issue sometimes. After all, it’s not like you can just walk into your boss’s office and ask for a raise. And that hot new job isn’t always waiting for you around the next corner.
Saving money, on the other hand, is a lot less sticky. You have complete control over your actions. All it takes is a little creativity and discipline. Apart from the lack of discipline, most Canadians find it hard to save money because they overlook the most basic expenses in their lives. If you take a closer look at the way you spend your money on a daily basis, you may find some simple ways to save. For starters, you could try these three:
Want to
- Cooking at Home
Many Canadians come home feeling too tired to cook, so they either eat out or order in. Did you ever think about how much money you could actually save if you took the time to cook your own meals at home? Cooking at home does not mean you have to do it everyday. The trick is to cook in bulk – you only cook once or twice a week but make sure the meals last for the rest of the week. You freeze daily portions and just pop them in the microwave when the time comes. Not only is this economically smart, it is also healthier than eating mass-produced food.
- Cut down on driving
Let’s face it, gas and car insurance is expensive. Being stuck in traffic isn’t all too pleasant either. Have you ever thought about walking or bicycling to work instead of driving? Not only will you save several thousand dollars every year with this, but you may also lose a couple of pounds and become more fit. And if you live too far away from work for walking or biking to be a possibility, how about car pooling?
- Housing repairs – do it yourself
How difficult is it really to give the kitchen a new coat of paint?. And is it really impossible for you to put in a new bedroom carpet? Many of the home improvements and repairs that people usually hire contractors for are simple enough that you can do them yourself. There are plenty of Canadian hardware and DIY stores that have trained personnel who will give you advice and tips on home repair issues. Set some time aside on the weekends to make those small repairs instead of paying a contractor to do them for you. Sure, you will save quite a bit of money, but you will also feel much more proud of yourself.
It's time to
Comments (1)
CMA Blog Home
How to Assess your Personal Financial PositionCanadians go for regular medical check-ups every year to make sure they are in good shape and to detect medical complications early on. The same concept that applies to your health also applies to your wealth. You need to know where you stand financially in the present if you want to make sure that you can maintain your current lifestyle and determine how much you can afford to spend in the future.
Did you know you can apply the financial methods that are use by large corporations to the assessment of your own personal financial status? You can easily set up your own financial statements that will tell you how well-off you really are. It isn’t as hard as you think. You just have to locate and organize some of your financial documents, that is all.
The Income Statement
On a personal level, the income statement is used to determine whether or not your income exceeds your expenses. In other words, are you in the black or in the red?
First, make a list of all your sources of monthly income. Your monthly income will usually be comprised of more than just your salary. It may include what you earn from renting out property, interest payments on your saving account, and profits from the sale of stocks. If you are earning money from any extra jobs or sideline activities, such as translations, tutoring, and selling items on eBay, you must also put them on the list. When you are sure you have thought of everything, add up your total monthly income.
Next, make a list of all your monthly expenses. These may include the monthly payments for your car, your monthly mortgage installments, your weekly shopping, your utility bills, your credit card bills, your medical bills, your monthly taxes, money you spend going out with friends, and even donations you make. When your list is complete, add up your total monthly expenses.
Now simply put the two lists and their totals on a piece of paper (preferably with the income list and total on top) and calculate your net income:
net income = total monthly income – total monthly expenses
If your net income turns out to be positive, it means that you earn enough to cover your monthly expenses and can afford to maintain your current lifestyle. If it is negative, it means you need to cut costs and live less lavishly.
The Balance Statement
The balance statement is used to determine how wealthy you are. In other words, it answers the question of how much you are worth (that is, only in terms of money, of course).
First, make a list of all your assets and how much they are worth. Assets are things you own, such as your cash, your properties, the stocks you bought, your investment in mutual and pension funds, and your car. Now add up your total assets.
Next, make a list of all your liabilities and their amount. Liabilities are things you owe, such as what’s left to repay on your mortgage, car, or education loan. It also includes your outstanding tax obligations. Now add up your total liabilities.
When you are done with both, put the two lists and their totals on another piece of paper (preferably with the assets list on the left and liabilities list on the left) and calculate your net worth:
net worth = total Assets – total Liabilities
If your net worth turns out to be positive, you can be considered well-off. If it is negative, you are not financially fit and need to start thinking of ways to cut down on what you owe other people.
As you can see, setting up your personal financial statements is not rocket science. If you set some time aside to really think about the four lists, you are well on your way to assessing your current financial position.
Comments (0)
CMA Blog Home
Advance Fee Loan Scam Conversation with Renee - Part 3This is Part 3 of 3 of my conversation with Renee regarding Advanced Fee Loan scams.
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Renee: Yeah, there, these criminals are upset, we have made a very difficult for them to run their latest scams, we have had cooperation with the phone companies, we let them know of the new company loan scams, they go ahead and they shut down their phone service. They know who we are, they know everything about us, we have had our computers hacked in to, we have had our bank accounts accessed, I have had fraudulent mails come to my house that’s supposedly what’s from my banking facility which was not, which would have meant it was a request for a W8 then formed, which is a non-resident alien form and with this form I would have had to fill it out and send the copy of my birth certificate and to whom it has been addressed not belong to my bay.
Monty Loree: How was their ID?
Renee: You know they have shut off utility in our name, they threatened our children, it’s very scary.
Monty Loree: And they are doing this because you are starting to make some progress with shutting them down?
Renee: I think so, I think that, that’s what it is. I mean they know who I am, I am not afraid to tell him who I am. I mean if they are going to come to my house, they can come to my house, I mean they know where I live. They know my banking information. They have my social security number, they have my picture from my license, they know who I am, you know but I am not going to be one of these victims that’s is the I lost money, no big deal, [miscellaneous voice] lot of people don’t even report it because there are ashamed of the fact that they are ripped off, it is nothing to be ashamed off. People need to stand up together and have some law enforcements listen to us and have us demand for them to look in to this. We deserve that, we are actually going to it, we don’t get a response. We are actually planning on posting a link somewhere saving that on the same day at the same time we are going to have some one from every single a victim from every single state stand out in front of an FBI office till some one listens to us.
Monty Loree: How was that rated?
Renee: Yeah, that we have that, it has to come down for that, it’s that, you are acting with the little person, I am not very computer smart, and I have so much research and so much information that if it’s put in the right law enforcement agencies hands, it’s very useful.
Monty Loree: Yeah, yeah by all means, yeah I mean with other types of crime, if people get the money stolen and the police are all over, but in this case it seems like because it is an advance fee loan scam, but you know it’s a big problem, so they got to address it anyway, you wanted to give some contact information, what is the contact information that people can get a hold of you with?
Renee: Okay there is a phone number, the lady’s name is Gill and her phone # is area code 248 -673-0531, she is also a victim.
Monty Loree: Okay so yeah just say that again.
Renee: It’s Gill and her phone is 248/673-0531.
Monty Loree: Okay and what is the, what is the URL or the website address for ripoff reports?
Renee: That is ripoffreport.com
Monty Loree: So that’s rip off reports for home, so R-I-P-O-F-F-R-E-P-O-R-T.com, okay.
Renee: Yeah.
Monty Loree: And that’s where they are going to go and see all of these, where you have done all of your work with the advance fee loans scams?
Renee: Yup, you can punch in, there is a little bar that you have to click on or even pipe in and you will either punch in a loan scam, you can punch in Canadian cross border scams to American, and you will see, I mean as just report after report, after report. There is something that I would like people to be aware of, there is two websites online that when you click on to their website, it actually puts a virus in to your computer.
Monty Loree: Oh, was that right?
Renee: Yeah and your typical protection on your computer does not detected, the only program that’s detected is AVG and what is doing is putting a Trojan virus in your computer.
Monty Loree: Oh yeah, okay, so what is the URL that people can avoid that?
Renee: So that one is www.loansfast.com and also www.statewideloans.net and both of those websites have these viruses on them.
Monty Loree: So yeah, so base and the reason again I just want to confirm the reason we said those is so that you know not to owe to them, sounds good, sounds good, well is there anything else that you want to close up here, is there anything else you want to mention to people while we got a minute here?
Renee: I think the only thing for people to know is if you cannot go to a local bank and get a loan, you can get loan any where else, that’s about and that’s the bottom line. If you cannot get a loan at a bank, you are not able to get a loan anywhere else.
Monty Loree: So what you are saying is if these guys are asking you, if it seems like it’s too good to be true, it probably is,
Renee: Oh, it definitely is.
Monty Loree: And if these folks were asking you for money up front that’s illegal, they can’t do that, even in Canada they can’t do that.
Renee: And they can’t in the United States either. The only type of fee that you should be paying for a loan is a closing cost on a real mortgage loan which you are going to have to meet people face to face for anyways or if they are asking for a see to do an inspection on your home and again if you can’t meet these people face to face then they are not the real thing.
Monty Loree: Right, exactly, okay let’s just close here by giving Jill’s phone number, Jill is your contact, who is taking calls and information and what is Jill’s phone number again?
Renee: It’s 248/673-0531.
Monty Loree: Sounds good alright. Well on the one side I am glad that you called them, on the other side, I am sad that you got ripped off there and but it sounds like you are doing a lot of work on this and I am quite impressed with that and so I want to thank you for contacting us and I hope that I would like to invite people, I will do a post on this on my blog, and if people want to start posting and if you got websites and if you heard of advance fee loan scams, Canadian money advisor is the site that you want to post them on as well for Canada and in the US there. So we will close off with that and I want to say thanks again Renee for getting with us.
Renee: Well, thank you.
Monty Loree: All right, and we will talk to you again later on, okay bye bye.
Renee: Bye.
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Comments (3)
CMA Blog Home
Advance Fee Loan Scam Conversation with Renee Part 2This is part 2 of 3 of my conversation with Renee about advanced fee loan scams
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Renee: Let think I think, people here doing a research inside the United States and also in Canada they are victimizing their own people from their own country, but they are preying on people that are debt and dire desperate need for this loan to either get out of debt or not lose their home or still forced.
Monty Loree: Yeah, as we talked about that you mentioned that it is for people with bad credit but I am just thinking with, with the sub prime problem in the USA, this is all of a sudden really scary to me because there is a lot of people that are losing their homes and they want some desperate cash in order to save their homes before they get foreclosed on and so on, and so oh my goodness. I have just a question for you. How many people you said you have gone with the group of people, how many people are there that you have coordinated with?
Renee: There are 15 of us so far, and we are still approaching re-battles on every single person’s report on rip off report waiting for a response. Some people go back a rip-off reports and lots to see that another victims are an update so we are waiting for people to respond back to us, we are posted a fax number for people to call or phone number for people to call so we can all come together and find that what their stories are and what people do they deal with, and what does their contract look like compared to ours and we give them all the information of everything single police report, government agency, News Station any person to contact about their situation because we are finding that if we can all come together that may be something can be done.
Monty Loree: Right, so something that you mentioned to me that was interesting and was little bit more advanced than what we are doing here in Canada, but you said that some of this, some of the criminals are leaving back traces, they are getting sloppy, can you talk about that?
Renee: I think what it is, is that they have got from the research that we have done, we have found that they are running 3-4 scams at the same time, where when one is found to be the people are starting to realize that it is the scam and they are starting to post comments about their company, they have already started their next and starting to post, starting to get other people’s money from another company name so, they are making all these phone calls and I think that they are, I really think that they feel that other victims because we are falling for the scams that we have got like stupid posted on our forehead and they forget to block their phone call when they call us and this happened to me, they forgot to post it. They forgot to block the number so, in that case you can do a trace so far by yourself but with out the help of law enforcement, you can’t get that further information but they are there so leaving behind phone numbers that are real phone numbers that aren’t linked to their company, they are linked to a person, they are just unlisted phone number.
Monty Loree: Okay when your?
Renee: They got the signal off the phone, but you can’t get actual name of the real owner, you get the fake company name of this phone number and no physical address.
Monty Loree: Right and so you mentioned that you have also being that you have combined a whole bunch of contract, you are seeing the same names and same sort of company IDs or what ever same, same information about the criminals, all went over again and so you are sort of seeing your pattern there?
Renee: These contracts are the exact same contract word per word except the company name is different and the little logo that the use on top of the contract is different, everything is word for word is the same, exact same contract and in some cases they will use “gentlemen I doubt with data miller” and in another company’s scams different name it’s David, whatever but it’s the same voice and their extension number, it’s the same voice because you as a victim I could say I am in a room of 2000 people and if I heard this guy’s voice, I would now attempt.
Monty Loree: Okay, all right.
Renee: I played his voice in my head over and over again. I would be able to pick him out of room full of people and he even just said hello.
Monty Loree: Right, so did you say you had recordings of these other voices?
Renee: We do we have, we have their voice mail messages, that they are lasting our transactions of our take loan, we have actually done three way calls us victims, calling on their next companies scam actually recording the full scams so, we have been actually approaching us for you need to make a deposit to this person by moneygram through Walmart, we have a special relationship with Walmart so that’s why we need you to use Walmart for your moneygram, you need to send it to this person and this state in Canada, we have all of this on takes. I am not the type of person to just roll over and play data for I have been victimized, I am going to try to track down the person behind this, even if it is the little, little runner man of this scam. These people involved to know that they are ripping people off.
Monty Loree: Yeah other these guys…
Renee: And it needs to be stopped.
Monty Loree: Right.
Renee: And it needs to be stopped and that I know other victims, most victims understand that they are never going to see their money ever, ever I mean I am never going to see my money back and at this point that’s not what matters to me, what matters to me is that my self as a victim I deserve the right to an investigation as that every other victim, criminals get the right to a trail, why can’t we have the right to an investigation.
Monty Loree: Yeah, by all means and it sounds like you are not getting that satisfaction with your local government there which [miscellaneous voice] I find odd because as I mentioned to you, I was talking with Louis Robertson of the phone busters in Canada here and he indicated that this is a $500 million dollar a year problem. In Canada and I can imagine that is you know multiplied by 10 in the US there, so it is a huge problem?
Renee: So, again.
Monty Loree: So, obviously, obviously it is very profitable for these criminals and so thus they take the time and do it professionally, they are professional criminals?
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Comments (0)
CMA Blog Home
Advance Fee Loan Scam Conversation with Renee - Part 1The following is the conversation that I had with Renee who was a victim of advance fee loan scams in the U.S.
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Monty Loree: This is Monty Loree from Canadian Money Adviser and you know it seemed that advance fee loan scams are rearing their heads, well I mean they are rearing their head again but they keep rearing their heads and I have got a guest on. Her name is Renee, and Renee is a victim of advance fee loan scams, hey Renee, how are you doing?
Renee: Good, how are you?
Monty Loree: I am good, thanks. So, yeah your story just concerns me and we don’t a lot with advance fee loan scams back in September, August of last year and I haven’t heard too much I thought we informed the public enough because I wrote enough articles about it and so on but it seems that it’s hasn’t gone away at all, can you tell me about what, what’s happened in your situation?
Renee: On my situation I had got on the computer, I was in need for a not a very large loan, I was looking for $5,000 to $10,000 personal loan and I got on my computer and typed in loan for people with that credit and came across the whole bunch of websites and I probably applied on 4 or 5 different websites on the same day and with in a couple of days I got a phone call back from a company called “City Lending Group” and we are based out of Virginia and everything seems fine, I did the research on city lending group which is a huge lending company in the United States, so I didn’t think anything other the fact over their paper work, I find it and then I was told that I had to pay a fee which they had called that the-what was the term that they used- a good phase payment and any months in advance, and we are instructed that we have to do use “Walmart Moneygram” as the sending facilities and then I will be sending fees would be reimbursed to us and so on. The days out my loan was supposed to be deposited in to my bank account, I then was not getting any return phone calls, the money did not show up in my bank a/c and I try to get on their website and found ripoffreport.com, we would have making me aware of plenty of other victims.
Monty Loree: Okay and when, when was this?
Renee: This started my first application in contact with them started “January 28th of 2008. I was supposed to have my money deposited in my account on February 15th . I have not and at that time is when I found that I was scammed.
Monty Loree: Yes, you didn’t get your money and now you are doing some research so, I guess comparatively it sounds like you have done a whole bunch of research and as far as our Canadian circles here because you are I don’t know if I mentioned by you are out of the states there?
Renee: Yeah,
Monty Loree: So you have done a whole bunch of research and you have also gotten together with other victims of Advance fee Loans Scams”, can you talk about that?
Renee: Your rip off reports, some people leave little identifying trials of themselves and you can contact them calling for information or what not or posting reported on this website and found that you just called, your column up you talk to him and we kind of out pull together to try to have our voices heard by the law enforcement.
Monty Loree: Okay, what happened there?
Renee: Well, the law enforcement is telling us on all agencies FBI secret service, local police you get a laugh because you fell for a scam like this, or they tell you that it is not big enough for them to do an investigation, yeah I lost $4000 and other victim one lost $20,000, another victim lost $15,000 and another was $4707, you name it and that is little as $900 or all the way up to $20,000 from what we have found from other victim.
Monty Loree: Right, yeah.
Renee: We felt together this is the straight on.
Monty Loree: Right absolutely.
More Later
The original post and podcast for this discussion was here:
Advance Fee Loan Scams are alive and well
Comments (0)
CMA Blog Home
Creating a Personal Budget to Reduce DebtIf you have managed to rack up some personal debt, you are likely looking for some ideas to help you get out of it. While there are many steps and strategies available to Canadians looking to get out of debt, starting a personal budget is the most effective. Working to get out of debt is only the first step; you must also begin to build for your financial future.
Track your Spending
If you don’t know what is coming in and out every month, you will not be able to focus efficiently on getting your self out of debt. Track either on paper or by using a software program to examine your personal monthly spending habits. Focus on the items that are fixed to begin. Fixed expenses are those expenditures that are the same each and every month. The next part of the process is to review the discretionary expenses; those that you can control and those that change every month. Consider what amount that you have available each week to spend on these amounts. You may want to consider using cash for these items so that when it is gone, you won’t be tempted to spend more. Or, you can simply track the expenditures each week to ensure that you don’t go over. To make it more fun and less like a budget, spend this discretionary money on whatever you like per week. This way, you can enjoy what you are spending without going over your personal budgeted amount.
Cut Back
You may not want to, but cutting back is an important part of the process when you are looking to build capital and pay down debt. Look at any and all areas that you can cut expenses back. The easiest to cut back are things like entertainment, groceries and clothing. Manage your expenses each and every week and be creative when you are looking to reduce expenses.
Pay Yourself
When you are looking to get out of debt, you also need to begin saving in order to stay out of debt over the long term. Start an automatic savings plan and deposit a minimal amount every month or every paycheck. By the time that you have been able to pay down and off your debt, you will also have built some personal savings to rely on in the future. This process is called establishing a “cash reserve” and it is recommended that you have 3 to 6 months of your regular expenses put aside in a cash account for financial emergencies or opportunities. Start small and over time you will have established yourself a cash reserves and you will have paid down and paid off.
Canadians can Create Their Personal Budget
Comments (3)
CMA Blog Home
7 Simple Steps to Creating a Personal BudgetPersonal budgeting is the most crucial step for all Canadians to take in order to build personal wealth. While the "B" word scares most people or it seems more like a chore than a benefit, there are some easy things that you can do in order to make it work for you and your household. Follow these 7 steps to building a personal budget that works for you:
- Start your personal budget by collecting your last 3 months of expenditures. Look for your bank statements, any cash transactions and receipts if you have them. You will also want to look through any of your credit card statements. Look for what you purchased, if there were any fees associated with your charges, any monthly bank statement charges and try to notice any habits. Do you spend the same amount monthly? Do you have some expenses that seem to be the same every month? This is a very important step for all Canadians to take for their financial future.
- Next, locate any and all documents that relate to your personal income on a monthly basis. If you are on a salary, this will be a simple step as your income is consistent for every paycheck. If you are on commissions, gather up 3-6 months of income statements and take an average.
- Now that you have completed this important step, you will need to compare your income to expenses to see what it left. This is a step that many people fear- but, it is important for citizens of Canada to determine their discretionary income every month.
- Now that you have an idea of what amount of money that you have available at the end of every month, you should start looking at the expenses that you will be able to reduce or eliminate. Canadians should review their expenses carefully to determine how they can leverage additional monthly income. This extra income can be used to reduce personal debt as well as to begin saving for the future.
- Now that you have the budget outlined, you can begin to prioritize your personal debts. Start by reviewing the interest rates and listing each debt starting with the highest interest rate first. Also, list the payment that you are currently making on each credit card.
- Now that you have outlined your budget and your discretionary income available, you need to start planning your financial future. Outline your personal short term and long term goals.
- The last step is to have patience and stay the course. Personal budgeting will not become a habit overnight. You will have to review it often, track your progress and make adjustments when necessary. It takes approximately 21 days in a row to build a habit; so, keep things moving until your personal budget does not require any thinking on your part to manage.
So, Canadians need to take the steps listed above to create and manage a personal budget for financial success.
For Canadians in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland, New Brunswick, Prince Edward Island, Nova Scotia, Canada
Comments (0)
CMA Blog Home
I LOST 10 POUNDS - Saved lots of money!!I am pretty excited today!! I went to the Regina Fieldhouse and weighed myself. I weight 10 pounds LESS than when I started my project!
Only 75 pounds to go!
Here's what I'm learning about the weight loss process. It isn't quick. It requires steadfast diligence. Consistency and diligence.
I've been going to to the Northwest Leisure center and now the Fieldhouse in Regina to get a sauna each day for 25-30 minutes. As well, I am taking the time to do some weights. The sauna is recommended by the Life Force Plan website.
The Life Force Plan recommends that a person sweat (in a sauna or hot tub) for 10-20 minutes each day. This blows out toxins out of the system.
The plan also recommends that you eat only vegetables, fruits (excluding oranges), meats (except pork), water and brown rice products. This is for the first eight weeks while you get your system back into shape.
You don't get to eat breads, sugars, canned food, processed foods or anything else than what is has on its Yes Foods.
While this is not a diet blog by any means, I always have to tie what I'm doing into saving money and being money conscious.
The whole losing weight process has been fairly time consuming which doesn't allow for me spending alot of money. I can't eat at restaurants, and because I'm riding my bicycle everywhere, I don't feel like joy riding to the mall to look for frivolous items.
I tried carrying my gym bag on my bicycle and realized that I need a back stand for the bike.
I'm saving money on processed foods. I can't buy any expensive fast foods.. or gourmet foods.. everything I eat now is fresh fruits and vegetables and is hand prepared.. That is time consuming, however, It's much cheaper than buying the pre processed foods.
I'm pretty excited to have lost 10 pounds so far. Weight loss has evaded me for the last 10 years or so. It's worth the time and effort live this new lifestyle.
It's getting back to basics and I feel much better for doing it.
Ultimately in this new life style, I don't feel like I want to go out and buy frivolous things. I am spending quite a bit of time being active, cooking from scratch etc. It's taking up my time so I don't have alot of extra for other things.
If you're a few pounds over weight, I do recommend the Life Force Plan! It's not glamorous by any means, however the logic is sound. It's hard to put on weight by eating only fresh fruits and vegetables!
Comments (0)
CMA Blog Home
Facts about credit repair in Canada.The culture of "buy now, pay later" long associated with Americans, has gripped Canada as well. Lured by attractive offers, many Canadians have flocked to the stores and picked up stuff almost with abandon. While shopping is thrilling, when bills become overdue, credit card finance charges start to kick in, and in the worst cases, banks recall their loans and those on mortgage lose their homes, things are no longer fun.
When many people are in dire straits, a quick credit fixing solution has never sounded more appealing. And there is no shortage of solutions. There is a plethora of companies that claim to repair your credit within hours, at a fee, of course. The Consumer Reporting Act has stipulated how information on your credit history should appear, how long can that information stay in the file and how it may be removed.
The information on individuals is also protected under the Personal Information Protection and Electronic Document Act (PIPEDA) and Personal Information Protection Act (PIPA). So the "credit report fixers" have no wherewithal, legal or otherwise to alter your report. If you pay these companies to repair your credit report, they are not agreeing to remove anything on their own from your credit report, but are offering to show you how to attempt to remove negative things from your credit as well as to work with you to build stronger habits that will repair your credit rating over time.
The primary way to repair your credit report is the long, hard way; pay your bills in time, live within your means and exercise prudence in your spending.
One thing to remember is that you are responsible to verify the information on your credit report so that it reflects the true status of your credit. There are many entities that could submit negative information without the courtesy of informing you. Thus you should request for your credit reports and see if there are any errors.
The two major credit bureaus operating in Canada are Equifax and TransUnion. The Credit reference bureaus will let you access your report at no charge (if done through ordinary mail). Should you spot any inaccuracies, you can dispute the information. The credit bureau will then contact the creditor to verify your claims. If a claim cannot be verified by the supplier of the negative information, or otherwise fails to respond within the given timeline, then the claim must be purged from the report. Credit repair companies also work in this same process to help you repair previous damage.
Suppose you have a bad credit, and you sometimes are in need of credit? Do you just sit down and lament? No. You need to take the first steps to build a good credit history. Going out of your way to deal with your debt problems may appease your creditors, especially banks that you are a good credit risk worth giving a second look. Also, take the initiative to call your lender and explain your situation, and who knows, they just might be convinced to help you with your debt needs.
Comments (1)
CMA Blog Home
It pays to be to spare that dollar.Some money savings tips
Saving money for the rainy day is old news, but its importance has never been as important as today. While this concept makes sense, it is much more challenging to execute into practice. Anyone can save, no matter how much you earn. If you don’t have much to put away, the correct attitude is to think small and work hard over time to build your personal wealth. Even a $50 savings per week translates to $2,600 per year, not an insignificant amount especially when it’s made over years and exposed to the wonders of compound interest. It’s those small savings habit you need to make them part of your lifestyle.
Here are some simple cost savings tips:
What is the use of buying excess vegetables only to throw them out after every week? Only buy the groceries that you need. You can also save some extra cash buying stuff at no frills stores like Loblaws and Food Basics. These stores also are good in selling prepackaged goods as well as in-season foodstuffs. You can make extra savings by bringing your own bag (about 0.05 per beg. That’s sounds downright mean, but it’s the motivation that’s a greater price). These stores offer the exactly the same kind of merchandise offered by their costlier counterparts, so why pay more.
Another habit you need to develop is to remember keeping those coupons in the car so that you can use them to get the discount at a store. Coupons are like tax-free money, and thus you should make the effort to put them into an organized small folder for easier use. Reward programs like President Choice rewards at Loblaws may also help you get that extra cash. You can also buy the groceries that you need anyway using a reward credit card. But remember to pay the balance lest you end up paying interest for rewards which really isn’t worthwhile.
You can cut your telephone installation bills by subscribing to a second ring service. This is a telephone service that enables an additional number to be routed through your primary landline. It has a distinctive ringtone and therefore you would know who the phone is meant for. Most importantly, it removes the need to install an additional land line.
You can also save money by making smart retail purchases. Compare prices and only purchase what you actually need. In fact, if you can list your shopping trips, your temptation to make unnecessary purchases will be reduced.
The last concept which is nothing new is to develop a personal budget that you religiously follow. Some people look at a budget as a negative thing, but when it is managed effectively, it can be both empowering and effective. The first place to start is to create a list of all your fixed expenses; those that are the same every month. Next, make a list of all other expenses or otherwise called discretionary expenses. Discretionary expenses are those that you have control over. Take these two amounts and subtract them from your net income. This is the amount that you have available as excess funds to be used for savings. Track your expenses daily until you build both strong financial management and savings habits.
Comments (0)
CMA Blog Home
Getting Rid of Potentially
Crippling Credit Card DebtMany people don’t realize that their credit card debts present serious financial problems until the debt has reached endemic proportions. Financial experts think that there are solid ways that you can eliminate credit card debt. When solving any problem, the point to begin is to determine the actual position; and the same goes with credit cards.
The first step would be to sort your credit cards using such criteria as; the minimum balance, the interest rate, the minimum payment percentage and so on. Then arrange them in a manner that the one with the highest interest rate sits at the top while the one with the lowest is at the bottom. Combine all minimum payment for all the cards.
Now you have an idea of how much is due per month, but this is only the minimum payment and you won’t go far by paying this amount. So find out how much money is available per month for paying your credit card bills. If you can only afford paying the minimum payment monthly, then make you should consider making some budget cuts. Everybody in the household should be informed that there will be some tightening of the belt.
ALWAYS PAY YOUR MOST EXPENSIVE CREDIT OFF FIRST
The next step is to pay your credit card bills in the order of priority. You may pay the minimum amount for the low interest cards, but as for the high interest card, pay the minimum amount plus any other additional disposable money that you may have. This should continue until the card with the highest interest rate is paid in full. After that, take the minimum amount set aside or the fully paid card, plus the minimum amount for the second highest interest card plus any additional disposable amount you have and direct all these into paying off the second card until it is fully paid. The process should be repeated until all the cards are fully paid.
If this option is open to you, you may use a home equity loan to pay off credit card debt. The interest rates charges on these loans are typically lower than the ones charged by credit card issuers, and are also tax deductable. This can be a cheaper way to pay credit card debt if carried out with discipline. Loans are always susceptible to abuse, just like credit cards. But this time remember that home equity loan are secured on your house and you may end up losing your home if you default.
You can also make a life little less hard for you through a concept called credit card surfing or balance transfer which is simply to transfer your balances to low rate accounts. But this method may not cover freshly acquitted debts which also are not given priority over the old debt. This might mean more accumulated interest on the new debts.
You may also try your luck and call your credit card issuer and request that the interest rate to be reduced. Many of them would consider your request, though positive outcome is not guaranteed.
Follow each of these steps with discipline in order to reduce and eliminate your personal debt.
Comments (0)
CMA Blog Home
https://www.onecfd.com:
Contracts for Difference:
SITE REVIEWI was asked to do a site review for onecfd.com which is a site for Contracts for Difference located in the U.K. While this is a U.K. site, Contracts for Difference are available in Canada.
If you do online stock trading this site might be something you want to check out.
Since Contracts for Difference is a new terminology relating stock trading programs to to me I up the definition of Contracts for Difference.:
A contract for difference (or CFD) is an agreement between two persons, the buyer and the seller, which says that the selling party will pay to the buying party the difference between the current value of an asset and its value at the time that the contact was entered into. (If the net sum is negative, then the buying party pays instead to the selling party.)
If you're an online stock trading broker who is involved in taking long or short positions, this is a site that you will want to check out.
This is a secured site which means that you will be dealt with in confidential and professional manner.
Comments (14)
CMA Blog Home
Daryl Diamond Interview- Author: Buying Time
Retirement PlanningI am happy to say that Daryl Diamond and I did our interview on March 31, 2008, and it went really well. We talked about his book Buying Time, and many aspects of Retirement Planning.
The points that Daryl stressed were all about planning for the future. What types of things you'd like to do for your retirement years, and how can you afford to make them happen.
Daryl indicated that many people start planning their retirement 10 or so years before their planned time of retirement. This is when you start to think about what you want to do for your retirement and focus on all of the assets that you have, what sorts of income they generate, and how that measures up with your future needs.
Every body's needs are different. Some people like the caviar lifestyle, and some people are happy with a frugal retirement. Either way, it's nice to be able to have enough money to afford to do the things you like to.
Daryl made a good point about emergencies and other unexpected events taking a bite out of your retirement savings. If you or your spouse has health issues, this may cost you money that you should anticipate in advance.
I recommend Daryl Diamond's book - Buying Time - Trading Your Retirement Savings For Income and LifeStyle in Your Prime Retirement Years. It's only $27.95, and will save you alot of time and money when you go to talk to your financial advisor about working out your retirement plan.
Get your copy of Daryl Diamond's book - Buying Time Today!
This book will prove to be a great help when you start your Retirement Planning
Comments (1)
CMA Blog Home
Retiring with a firm financial foundationThis article should interest you if you have already retired or are close to retiring. In both cases it is wise to think about retirement planning. You don’t want to be caught saying later in life. “I wish I had done that”, when it relates to your personal financial life.
In order to devise a sound retirement plan, you will need to determine your personal financial requirements to help you to become financially independent. That really depends on your lifestyle you want to have, though many financial experts feel that you will require up to 70 percent of what you were earning before you retired; but, the actual figures may be less. You are unlikely to have dependants, expenses on gasoline and clothes will reduce significantly. You will also not be asked to make CPP/QPP and EI contributions anymore.
Since you have all of the time in the world now, you can fix many things you used to pay others to do in your retirement years which will help to bring down your expenses.
Most people are concerned that they might live longer than their money will last, and with the modern healthcare getting better and better, chances of that happening are increasing with each passing year. Hopefully these tips will be of assistance to those seeking to live comfortable retirement lives because, it’s no fun at all to live your sunset years with financial worries.
Make the most of your RRSP to save for the future. RRSP allows your money to grow on a tax deferred basis and your taxes are reduced at the same time. Open your RRSP account with a local financial institution or a brokerage firm and start enjoying tax breaks of as much as $8,000 a year. The power of compound interest might surprise you and you might find you have accumulated amounts beyond your wildest dreams.
There are several other strategies of accessing money for instance the Canadian Home Income Plan Reverse Mortgage. This may offer you the chance to turn part of your home equity into some tax-free cash whilst being able to continue living in the same house. This kind or arrangement gives you access to money that will help you preserve your other assets and investments. And, there are no restrictions on how you spend this money, though it would be hoped you will be prudent enough to use it to secure your financial future.
Also, you might be given the opportunity to take a severance package/severance package as a lump sum, or a continuation of your salary. You may also be entitled to pension money with your employer and you may decide what to do with it. Dealing with a severance package is rather complicated and it’s advisable that you procure services of a seasoned financial advisor to help you make the most informed choices. If a Retiring Allowance due, this can be transferred to your RRSP directly.
Unless you made too much money presumably in the dotcom era, you will almost certainly need a financial plan. Your legacy is likely to be shaped by how you spend these years. If you are about to retire and don’t have a plan yet, you have very little time to waste.
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland, New Brunswick, Nova Scotia, Prince Edward Island
Comments (2)
CMA Blog Home
|
Subscribe in a reader
|
|
|
|
|
Enjoy our "What Is This?" articles
• Taxes
• Credit
• Debt
• Bankruptcy
• Credit Repair
• Investing
• Making Money
• Saving Money
• Retirement Planning
|
Comments on our
Blog Posts
|
|
|
|
|
|
|
2012-11-13 23:08:19
Cbv Collection Services Problems
same deal,,these criminals sent a bill saying i owe 18,000$..hilarious,,they call me 5x per day..i am taking rogers to court..small claimes..why not y
Comment By:karen cliff
|
2012-11-13 13:18:44
Retail Theft Could Get You Sued
I keep receiving emails and phone calls from people who think they can simply ignore the letters from these Civil Recovery lawyers.
Don't.
They
Comment By:Gerry Laarakker
|
|
|
2012-10-18 08:23:07
Retail Theft Could Get You Sued
Bank statements can be demanded or balloon a day even fail to repay the debts incurred from the varied lenders. The offered amount in such cash untill
Comment By:Spadiatrere
|
|
|
|
|
2012-10-09 12:42:44
Credit Repair Canada 3 Things You Should Know
to , take up a new job. Also, reflect on investing in generating a payday advance loan while using classmates and more, typically the segments. The in
Comment By:WarbabsjamY
|
|
|
2012-09-30 20:03:01
Cbv Collection Services Problems
I had a telus pay as you go phone from 2003 2008 and now cbv collectons is claiming that i owe over 1500 dollars, the last time they called i called
Comment By:marcus
|
2012-09-25 10:19:31
Cbv Collection Services Problems
Had a bogus 'roaming charge' bill from Telus a few years back. Got mad at them and switched providers. It went to CBV. Yes, they are persistent and
Comment By:Scammed
|
2012-09-23 07:37:50
First Canadian Finance Scam Site
While these aforementioned dangers are a cause for legitimate concern, there are other dangers that derive from perceptions that often have no basis i
Comment By:effomicok
|
|
|
2012-09-16 16:42:15
Retail Theft Could Get You Sued
I am sick of all you so called legal counsel, wanting money from me , there was a reason i was stealing the items in the first place, i have no money!
Comment By:a shopplifter
|
|
|
2012-09-13 11:18:04
Car Repossessed Trouble With High Risk Car Loans
Our car loan was with wellsfargo to begin with then transfered to carfinco,. Have never had a problem with them yet and have less than 2 years left on
Comment By:Darlene Fougere
|
2012-09-02 18:27:17
15 Blog Post Articles That Talk About Equifax
obviously like www.canadianmoneyadvisor.ca however you need to test the spelling on several of your posts. A number of them are rife with spelling p
Comment By:promotion site
|
2012-08-31 11:32:19
Retail Theft Could Get You Sued
so i went in zellers and i baught bus tickets. then walked around playing with toys, and i was with a friend, we're both adults who like stupid toys.
Comment By:Aj.
|
|
|
|
|
|
|
Site Menu
|
|
Canadian Credit Cards
|
Best Canadian credit debt Financial Blog
Canada, British Columbia (BC), Alberta (Alta), Saskatchewan (Sask), Manitoba (MB), Ontario (Ont), Quebec (Que), Newfoundland (Nfld), New Brunswick (NB), Nova Scotia (NS), Prince Edward Island (P.E.I.), credit canada, Canadian
|
|