Canadian-Money-Advisor.ca BLOG
What is a Bank Ombudsman?
Any person may himself or through his authorised representative make a complaint to the bank. If the bank rejects the complaint or the complainant does not receive any reply within a month or the complainant is not satisfied with the reply given by the bank, the complainant may approach the Banking Ombudsman for redress of the grievance.
The concept of Ombudsman has gained importance in many countries worldwide as an expeditious and cost effective customer grievance redress mechanism. The Reserve Bank of India formulated the Banking Ombudsman Scheme in 1995. It covers commercial banks, regional rural banks and scheduled primary co-operative banks.
The objects of the scheme are (1) to resolve and settle complaints relating to banking services and (2) to resolve disputes between a bank and its constituent as well as between one bank and another bank through the process of conciliation, mediation and arbitration.
Grounds of complaint
A complaint can be made on any one of the following grounds:
(a) Non-payment/inordinate delay in payment or collection of cheques, drafts and bills; (b) non-acceptance, without sufficient cause, of small denomination notes; (c) non-issue of drafts to customers and others; (d) non-adherence to prescribed working hours by branches; (e) failure to honour guarantee/letter of credit commitment by banks; (f) claims in respect of unauthorised or fraudulent withdrawals from deposit accounts or fraudulent encashment of a cheque or a bank draft and the like; (g) complaints pertaining to operations in any savings, current or other account; (h) complaints from exporters in India; (i) complaints from non-resident Indians having accounts in Canada; (j )complaints pertaining to refusal to open deposit accounts without any valid reason; and (k) any other matter relating to the violation of directives issued by the RBI.
Rules for filing complaint Any person may himself or through his authorised representative make a complaint to the bank. If the bank rejects the complaint or the complainant does not receive any reply within a month or the complainant is not satisfied with the reply given by the bank, the complainant may approach the Banking Ombudsman for redress of the grievance.
Rejection of complaint The Banking Ombudsman may reject the complaint at any stage if it appears to him that the complaint made is: frivolous, vexatious, malaise or without any sufficient cause or it is not pursued by the complainant with reasonable diligence or prima facie, or if there is no loss or damage or inconvenience caused to the complainant.
Role of arbitrator Any dispute between a bank and its constituents or between a bank and another bank may be referred to a Banking Ombudsman for arbitration, if both the parties agree for such a reference provided that the value of the claim in such dispute does not exceed a few dollars.
Objective The object behind the Banking Ombudsman Scheme is to make available an expeditious and cost effective grievance redressal mechanism to bank customers. Hence he will endeavour to promote a settlement through conciliation or mediation and he will not be bound by any legal rule of evidence.
Comments (3)
CMA Blog Home
What is Body Corporate?
'Body corporate' is an archaic term for "corporation".
A body corporate refers to an organization or group of persons that is identified by a particular name and that acts, or may act, as an entity.
When land is subdivided and registered to establish a community titles scheme, a body corporate is created. The scheme may be a duplex, a residential unit block, a shopping complex, a high rise apartment or a business park. Every owner of a lot in a community titles scheme automatically becomes a body corporate member.
Purpose: The objective of a body corporate is to manage the issues of mutual and necessary interest to all the owners. These issues fall into the categories of:
> physical property issues
> issues dealing with people living together
Physical property comprises of gardens, common building structures and shared assets such as tennis courts and recreation clubs.
Issues related to people living together may involve behavior, noise and parking or anything wherein the actions of a particular resident have an impact on the other occupants.
According to the legislation, however, the body corporate has only a limited purpose. They must ensure that the common property and the body corporate assets are administered for the benefit of the owners of lots included in the scheme; the common property is maintained to the extent that it is structurally fit; the community management statement, including by-laws affecting the common property, are enforced. They must also carry out other functions given to them under legislation.
The body corporate can enter into contracts, employ staff and generally deal with property, while fulfilling these mandatory duties. However, it cannot manage businesses, such as a restaurant, tour operation or letting agency, in contrary to a commercial company. Nonetheless, the body corporate may involve itself in business activities, such as investing funds, which are necessary to properly carry out its functions.
Decision-making: The body corporate makes decisions either at a general meeting of all the owners or at a meeting of the committee for the body corporate. No individual can make a decision, acting in isolation.
Finance: Every lot owner of the body corporate contributes in the form of levies, which are pooled to maintain the community and common areas. The amount and how often the contributions are to be made, in order to properly run the body corporate, are decided by all owners at the yearly general meeting.
The Canadian corporation: Both the provinces and the federal government in Canada have corporate statutes, and hence the incorporation is either federal or provincial/territorial. The Acts of Parliament passed before the introduction of general corporation law caused many older corporations to rise in Canada.
The Hudson's Bay Company is the oldest corporation in Canada. Though the Company's business has always been based in Canada, its Royal Charter was issued in England by King Charles II in 1670, and became a Canadian charter by amendment in 1970 when it shifted its corporate headquarters from London to Canada.
Since 1975, the main law regulating the incorporation in Canada is Canada Business Corporations Act (CBCA). The government firm responsible for the incorporation is Corporations Canada.
Comments (0)
CMA Blog Home
What is Canadian-money-advisor.ca?
Canada is one of the most well developed nations in the world. Being developed obviously means that it is also a very prosperous country. The standard of living of people in this country is pretty high and the job opportunities are plenty. Canada is the second largest country in the world today, not in terms of the population but in terms of area.
When people start making money, the next thing is to make proper use of it. That is to say that the more money people make, more are the chances for investing it and investing money is something that everyone should do. It is important to learn the art of saving as one should always have something put away for the rainy day. One can never say when things can go wrong and it is better to be prepared for the worst than be unprepared.
When it comes to investing, the Canadians are a lot who make very wise decisions. They seek the help of experts in the field and make sure that their money is invested wisely and safely. The Canadian-money-advisor.ca is a website which helps the Canadians to make decisions regarding different investment plans. The website caters to all the needs of the people advising them on everything from what are the best investment plans to how much to invest and when to invest.
The Canadian-money-advisor.ca is a website that was developed with the sole purpose of helping the Canadians with their financial planning. Not everyone can afford legal experts. It is something that is meant only for the rich. The Canadian-money-advisor.ca serves as a source of information on where and how to invest money for those who cannot get advice from legal experts.
The website has information that is got from several different sources. Also, the people who use this website share whatever information they know about the various financial institutions. This helps others to take their decisions based on what the people who have invested in a particular company have to say.
There are a number of links that the Canadian-money-advisor.ca use to research and gather their information. Some of the links that they use for the purpose of research include Alberta Justice, British Columbia Justice, Nova Scotia Justice, Prince Edward Island Justice, Ontario Attorney General, etc. the information that has been obtained from various sources is consolidated by a team that works for Canadian-money-advisor.ca and put up on the website for the use of the general public.
This website is very resourceful and has answers to almost every query a person might have. The people who use this site can also post their questions or doubts which will be answered by the website. So the Canadian-money.advisor.ca serves as a one stop destination for any queries that a Canadian will have on investment. So if you happen to be looking for a good financial advisor, all you have to do is just log onto Canadian-money-advisor.ca and get the best advice there is to get regarding different investment plans.
Comments (1)
CMA Blog Home
What is a Canadian Money Advisor?
Canada is one of the well developed nations in the world today. It is a very prosperous country with most of its people leading a very comfortable life. It happens to be the second largest country in the world today, not in terms of population but in terms of area. It occupies most of the northern part of the North American continent. The standard of living is pretty high here and there are plenty of job opportunities. And with the increase in job opportunities comes increase in money. And with the increase in money comes the need to invest it wisely. This is where the Canadian money advisor comes into play.
It is not enough for one to make money. What is more important is to spend this money properly and carefully. It is very important that one learns the art of saving. It is true that one makes money to spend. However, care should be taken to ensure that there is always some money that has been kept aside for the rainy day. There is no way of predicting what can happen so it is always better to be prepared than be sorry later on. So it is very important that the money we earn is invested wisely and in the right way.
Canadian money advisor is a website that helps a number of Canadians to save and invest their money wisely. As already mentioned, saving money is a very important thing to do and more importantly, it should be done the right way. There are a number of people and organizations which claim to help people invest their money. However, when selecting an agency of organization, the person should be very careful as one can very easily be misguided.
The Canadian money advisor is a very authentic website whose sole aim is to make sure that the Canadians invest their money in the right way. It offers a lot of services for its customers. Whenever one needs any help in deciding how to invest his or her money or where to invest it, all one will have to do is log onto the website and post the question online. The website has its own set of experts who will help you in making the right decisions. Apart from this, you can also get the opinion of others who have invested in the company you are planning to. If you want to know anything regarding the Canadian stock market, you will be able to get all the information on Canadian money advisor.
This website is very user friendly and even if you do not know much about computers, you will soon find that it is very simple and easy to use this site to get information. So make it a practice to invest a part of your earnings as it is very important and whenever you need any advice on how to invest your money, just log onto Canadian Money Advisor, one of Canada’s best investment advisors.
Comments (0)
CMA Blog Home
What is Collections?
You must have wondered why the collection agencies do keep calling you a lot since you have got that credit card of yours. There are a number of situations that the collectors of credit use so that they get back that money you owe them. Everyone who owns a credit card knows that they will have to pay their credit on time. However this is not the same when it comes to repaying the debt of the credit card.
Once you do become late with paying your credit card amount that you have to pay, the credit card companies will start reminding you and give you chances to pay off the debts of yours. This is when they can actually get back all they have to from you. If you are always late with your payments the collection agencies will start sending in notices that you are late with your payments and not only this you will be in more trouble as your credit scores will take a huge hit due to these late payments of yours. Your credit history will hence be bad. So make sure that you do not get yourself into this mess in the first place and pay off your dues right in time.
A single day of late payment will account you as a month late for payment and this will for sure appear in that credit report of yours. If you still do not pay then later you will also receive another notice so that the credit department is called to help you out of this situation. They may also many a times offer you other payment plans that will make it easier for you. If there is no sort of an action that your credit card company is taking up then this will end up in the hands of the collector. The collection agency will now be commissioned for this. The collection agencies will have profit negotiations that are pre arranged with the credit card companies. If the collector is not able to collect the amount from you then they larger part of the profit is kept for themselves.
Credit card companies get very serious about the privacy of the data and many a times tend to dictate the way in which the information of yours is to be transferred before the collector will see your name, your address and other details like your SSN number. Even with all this and much more there are only a few credit collection agencies that will look at spending more money on the sophisticated software as it turns out to be really costly for these collection agencies. Once the data is got from the credit card company then the collection agencies will use their own way to determine how quickly you will be able to repay the debt if they are to call you. This is got from information like your credit score, your balances, your late payments and other such details. This will give them soon a number of how quickly you will be able to repay them.
Comments (0)
CMA Blog Home
What is Commission Income?
Introduction: Selling and buying of properties are done nowadays by indirect ways. The person needing to sell a property does not go directly to a place and market his material. He chooses a common place from where the object could be sold. The person needing to buy these objects too comes to this common place to get the object. So what does the person who provides this common ground gets? The answer is a small amount of commission from the seller for helping him find the right customer and from the buyer for finding the right object. This amount that is given to him is known as the commission and the person is known as an agent. This type of income is mostly not a full time job and this income is categorized as commission income. There are also organizations which solely rely on this type of trading. The person's commission is usually a margin of the buying price and the selling price. He gets this profit and this income is also taxable under Canadian Regulations.
Types of Agents and Commission incomes: There are various types of agents that are in the world today and the most common and the most popular of them all is the Real Estate Agent. This person's job is to find homes that are up for sale and market these homes. The agent is also known as the realtor. He searches for prospective clients and when he finds them, he tries to sell the house to them. The realtor would originally have bought the house for an initial sum of money and the main challenge lies in marketing the house in such a way that the buyer buys it at a higher price.
The same applies for the other type of agents like the credit card agents, insurance agents, property agents, antique agents etc. These people try and sell their objects at a higher rate. However most of their incomes excepting that of the antique agents come close to that of the realtor. Hence the government had made regulations that tax these commission incomes. The Canadian government has made it a part of the income tax and it requires the citizens to file their commission incomes.
Filing of Commission income for Income Tax: The Canadian government requires the commission income to be filed along with the income tax on or before January 31for tax deductions to be taken into account. This deduction is based upon the expenses that the agent might have had while the transaction is being done. These expenses might be travel expense or some other expense that is related to the transaction. The deduction to be obtained requires the td1-x form to be completed and filed with the employer. The employer is the company that conducts these transactions.
Conclusion: There are many ways of improving one's commission income and that is by increasing the amount of objects to be sold and by increasing the price in which it is sold. There is also another way by which the commission would be directly increased by raising the charges but that is not recommended for it might send away prospective customers.
Comments (0)
CMA Blog Home
What is a Credit Decision?
Introduction: Credit or borrowing has become a way of trade nowadays, and as a person of the globalized trade community, we should all be aware of the possibilities and the regulations regarding the credits and loans. The credit or lending of money against some form of security is done by most of the banks and the main reason behind this is to stop unscrupulous persons from embezzling the banks. It becomes necessary to check the person’s financial status and other sources of income before considering him for credit. This is due to the fact that analyzing the customer is necessary when deciding upon the loan sanction for to make sure whether the debt would be satisfied or not. This process of decision making is known as Credit Decision.
Loans that require Credit Decisions: Almost all the loans require a proper analysis of the respective person’s financial status before the decision of sanction is to be taken. This credit decision affects how much a person can be loaned, what the rate of interest for the amount should be. The Best example is the credit card type of loan. The credit cards are usually of three main types, the platinum card with the highest credit limit and lowest rate of interest, the gold card with medium interest and medium credit limit and the silver card with the lowest credit limit and the highest rate of interest. These types of cards are sanctioned based upon the financial status of the respective individual. This is checked by the credit report of the person.
Another major type of loan called the mortgage requires a credit report to be drawn and the sources of income to be established before the loan is sanctioned for the user. The property holdings and the security factor of the loan is extensively examined and noted before the sanction of this type of loan.
Credit Report and Credit Scores: The credit report is the report generated on the person’s financial status, by a third party company. This report consists of all the debts that the person is in, the income of that person, the sources of the income and if the person is paying back the debts in the right intervals at the right times. The Credit report is much of a status report on the person’s financial standings. Since it has all the information required about the person’s financial status, it becomes easy for the banks and credit unions to take the proper decision upon the sanction of the loans. The credit score is generated with the help of the credit report
Good Credit and Bad Credit: The person is said to be in good credit if the credit score averages and is very high. These persons are very much in good financial status and can be given a high priority for the lending of money. The people with very low credit scores are the ones with bad credit and they would not be able to promptly repay the loans.
Conclusion: Thus the person with good credit score is given a higher priority and the credit decision is taken in favor of them. Hence it is necessary to improve our credit scores.
Comments (0)
CMA Blog Home
What is a Prepaid Credit Card?
Any credit card adds to the burden of debt that one is liable to pay. To offset the chances of incurring too much of a burden, one can opt for a prepaid credit card. It is safer to carry than cash, but provides the same convenience as a credit card, the only difference being that the card is already paid for and so you have no choice but to stick to its limit and thus you incur no new debts. A prepaid card is an ideal option for those who want the convenience of a credit card without the attendant risk of overspending. Anyone above the age of 18 can apply for one, and it is not necessary to have a bank account for obtaining one. In Canada there are a range of prepaid cards available for calling international numbers, for getting petrol, for shipping and courier services, etc. including even for legal services.
Most commonly people opt for the prepaid cards after a negative credit history makes it difficult for them to obtain a regular credit card. Even if they manage to get a regular card, chances are that the interest charged is going to be exorbitant and the line of credit offered very minimal. In such cases, it makes better sense to go wth a prepaid card which attracts no interest. Canada prepaid credit cards can help people get better credit rating and thereby improve their FICO score and so are an ideal choice for people getting over bad credit history. This is the best way to repairing and rebuilding your credit history.
The bank requires you to deposit a sum of money and you are issued a card. The amount of money in the bank becomes your credit limit at any given time. When the bill is generated, you have the choice of either paying the bill or a minimum payment which will limit your credit to the available amount, depending on the bank’s terms and policies. But if you allow the bank to recover the money from your account without paying the bill on your prepaid card, you lose the chance to repair your bad credit history.
The prepaid card is also a great way to save for future purchases or expenditure like buying furniture, taking a vacation, etc. where you can meticulously plan your expenses and do not over extend yourselves. As a credit card is more widely accepted than a debit card, the prepaid credit card becomes a choice way to pay for your hotel and other bills when you are traveling or on vacation. The refilling of the card when you run out of available credit can be done anywhere, even online. They are useful for frequent travelers as they come for all sorts of uses, in various guises. For example the international calling card, the petrol card, the car rental card are all a veritable boon to travelers with special needs. Even the application for the card and the processing is done online now with a horde of merchant establishments offering them for various uses. Their numbers are increasing day by day and the prepaid card is the card of the future.
Comments (3)
CMA Blog Home
What is a Delinquent Account?
When a loan or credit card becomes overdue, the defaulting borrower's account is called a delinquent account. Generally, in Canada, an account or loan is considered delinquent when no payment has been received towards the same for a period of 90 days. It is the responsibility of the banker to collect the amount due from the defaulting borrower. Once the loan is moved to a delinquent one, the matter is normally referred to a collection agency. But nowadays, after intense lobbying by the banking community, the federal government in Canada has passed legislation allowing the banks to recover the loan from the defaulter’s account without any notice or intimation whatsoever. There are some instances where the entire paycheck of the defaulting borrower has been used to offset the over due loans.
As the shifting of a loan or overdue credit card to a delinquent account gives the bank the right to recover the same from the borrower’s account with the bank, it provides the banker with much needed relief when it comes to tackling defaulters. Thus the defaulter is forced to acknowledge his default and is ready to take responsibility for repaying the loan and fulfill his obligations regarding the loan or credit card. A clause to this effect is added to the loan or credit card agreement which is duly signed by the borrower at the time of entering into the agreement. This is to protect banks from routine defaulters, although they cannot recover their dues from accounts held with other banks.
In cases where the borrower has moved his money to another bank, their only recourse is to take legal action. This is just a safeguard for the bank to stop customers and borrowers from defaulting on loans and then claim harassment when the collection agencies get involved. The ideal way for the borrower would be to pay the loan dues before it gets shifted to a delinquent account. Though there are some restrictions that come into play regarding the type of accounts from which money owed can be recovered without the customer’s express consent or notice.
In case of credit cards, in Canada, if no payment has been made for more than 30 days past the due date, then the account is considered delinquent. However, the government has stipulated that the bank has to wait for a period of 180 days after the shifting to a delinquent account before it can move to recover from the borrower’s account the amount overdue. So, even after your loan or card account has been moved to a delinquent account, you still have a grace period of six months to make good on your commitment to pay off your loans. Your credit score improves dramatically when you pay off a delinquent account, though it will reflect on your credit history for a period of seven years. However a prudent option would be to go in for a consolidated debt plan and pay off the delinquent accounts and at much lesser interest rates, as consolidated loans are made for this purpose.
Comments (0)
CMA Blog Home
What is a Judgment?
Whenever there is a civil or a criminal case filed in a court of Law, once the hearing is over, the judge and jury deliberate over the relevant facts of the case before them and arrive at a conclusion. This conclusion is called a verdict or judgment. This judgment is binding on both the plaintiff and the defendant. Their only recourse in case they feel dissatisfied with the verdict is to appeal in a higher court. In civil suits for reclaiming loans etc. a default judgment may be obtained by the creditor to recover bad debts. This is enforceable as it is issued by a judge and the creditor can garnish the debtor�s paycheck and other assets. One can obtain a judgment against a debtor who is unwilling or refuses to repay his loans or credit card dues and then enforce it to recover his money.
In cases where the creditor does not have enough information for garnishment of the debtor�s assets or paycheck in lien of his loan dues, a judgment is the only option available to him. In legal parlance it is called judgment debtor examination. It forces the debtor to appear in court and take responsibility for repaying his loan. If the debtor is found to be untruthful about any assets he possesses, he can be held in contempt of court and face jail time or a hefty fine. In Canada each province has a different process for debtor examination. Once you know the process, you can move the court and have the judgment enforced. Ideally the debtor examination should be done as soon as possible after obtaining the judgment to ascertain the debtor�s assets, maximum within 30 days.
The judgment along with the debtor examination notice has to be served in the province where the debtor resides in. If the debtor does not show up at the examination or fails to respond, the judge may conduct the examination in his absence, but still will be binding on the debtor. Once the examination is conducted according to the court�s directions, the judge makes his judgment which is a formal order for the debtor to repay his debts. But while the court order is in force, the creditor is prevented from further harassing the debtor.
If after a reasonable period of time the debtor fails to respond or repay the loan, then he can be held in contempt of court for violating a direct court order. Once the judgment has been pronounced and the debtor does not comply, the creditor can move the court for seizure of the debtor�s assets. He can do so after informing the bailiff in the court of the debtor�s jurisdiction of the valid judgment in his favor and his intentions to recover his overdue loan. Once the creditor receives a writ from the court bailiff empowering him to seize the property of the debtor, he can do so with a few exceptions � everyday clothes, utensils, farm equipment in case debtor is a farmer, etc. The judgment can be enforced within six months from the date it is issued and can be renewed if necessary.
Comments (0)
CMA Blog Home
What is Lending?
Lending refers to the act of extending a loan to a borrower. The Lender may be an individual or institution such as a bank. It may also be a private financial group of company. The lender offers the borrower a loan proposal that includes interest rates and payment period. The loan may also be brokered by a third party. This broker offers the loan request to a group of lenders.
This article talks about mortgage lenders, types of mortgage loans and lending regulations in Canada.
What are Mortgage Lenders?
In Canada, mortgage lenders finance commercial and residential properties.
Mortgage lenders base their rates on the type of mortgage that borrowers get. For mortgage lenders, conventional mortgages are less risky because the buyer puts down 25% of the purchase price. While the financing may be less, mortgage lenders are not bothered because if a buyer is responsible enough to save 25% of the purchase price, it will be less likely that they will default on a loan. Mortgage lenders offer conventional mortgage seekers some of the best rates on the market because they tend to be fiscally conservative and have good credit. For mortgage lenders, high-ratio mortgages are more risky because buyers tend to put down less than. The default rate on high-ratio mortgages is higher than for conventional mortgages.
What are the Types of Mortgage Loans?
There are different types of mortgage loans that are available to Canadian home buyers. This will help them choose a loan according to their specific needs. One of the basic classifications of a mortgage loan is conventional as against high ratio mortgage. This will depend on how much you can afford to put up as initial funding. If you are capable of putting up more than 25% of the value of the property, you can avail a conventional mortgage. This entails a lower interest rate. On the other hand, high ratio mortgages are more expensive because of the greater risk for lenders.
Open and Closed Mortgages
An open mortgage is generally a short-term mortgage where you can pay off part or the entire loan before the due date without attracting a pre payment penalty. In contrast, a closed mortgage entails a penalty if you prepay the loan before the end of the term of mortgage. Open mortgages are typically more costly and have higher interest rates.
Fixed Rate and Variable Rate Mortgages
Fixed rate mortgages are preferred by home buyers since these require a fixed amount to be paid each month. The system keeps you in control of your monthly finances. The interest payable in such a mortgage is predetermined and fixed at the time of taking the loan. This will be fixed for the entire term and protects the buyer from any increase in prime lending rates in future.
The variable rate mortgage has an adjustable interest rate, which can be altered from time to time depending on the market situation. These loans may be beneficial for you if there is a sudden fall in lending rates. However, a hike in interest rates would mean greater monthly payments for you.
First and Second Mortgages
The first mortgage is simply the first loan that you take for financing your property. If you need more cash in the future for any purpose, you could take a second mortgage loan against your equity in the house. The second mortgage usually comes at a higher interest rate as the risk for the lender is greater. The second mortgage is subordinate to the first. This means that in case of a default, the first mortgage lender would have the first right to recover the money.
An experienced and reliable mortgage advisor can help you choose the right type of mortgage loan that suits your needs and financial situation. He or she can also inform you about the variable aspects in various types of mortgage loans that can be customized to your specific needs.
What are the Lending Regulations in Canada?
Lending regulations have been instated in Canada to provide borders and guidelines to payday lenders. The Canadian government has determined that over the years, payday lenders have been charging over 60% interest. This is not allowed and considered a criminal offence as the Criminal Code of Canada states. These regulations have been set in place to eliminate “loan sharking” which is illegal in Canada. In 2010, the government proposed to change the mortgage lending laws. The first provision was that new borrowers will qualify for a five-year fixed term rate mortgage. This will be put in place to protect Canadians by giving them flexibility. It also supports payments at higher interest rates for years to come. Another provision is that the maximum amount that you can refinance your property will be lowered from 95% to 90%. This is meant to help homeowners save money. The last is the increase in down payment from 5% to 20. This will surely have a huge impact on Canadians with bad credit. The market is not providing any ways for Canadians to work on their bad credit by allowing them to purchase homes with small down payments, or to be considered for a loan in banking institutions.
Follow Lending Regulations
Lending and borrowing are both complicated issues. The bottom line for consumers is to borrow money, which they are capable of paying. For lenders, it is important to follow regulations imposed by the government. They must also keep in mind not to put borrowers in a disadvantage by imposing excessive interest rates.
References
mortgagescanada.ca
canadianmortgagesinc.ca
Comments (0)
CMA Blog Home
What are Credit Services?
These are the services provided by the I T companies to the banks .They offer a wide range of services to the banks and other firms in various fields .they provide facilities such as
a.)Credit reporting
b.)Portfolio management
c.)Consumer assistance
d.)Consumer credit protection
Credit reporting is one of the most important jobs of the companies which provide credit services. The companies deal in making consumer credit information available to the banks for every individual and they make information such as borrowing and bill paying behavior of the individual. This information provided by theses companies are very helpful in monitoring the credit profile of the individual such as his/her ability to pay back the loan and moreover this consumer credit information also helps in determining the interest rate on loans taken by that individual. When a consumer’s credit history mentions of defaults or we may say that if the consumer is having a bad credit history the banks also tend to increase the risk premiums levied on that individual because his/her chances of going bankrupt or being not able to pay the loan is more. This information is made available to the bank by these credit services companies when the individual applies for the loan or credit card.
The methodology of working of credit services companies requires active contribution by all the creditors and debt collection agencies when they start gathering consumer credit information of an individual. The debt collection agencies and the creditors with which the individual has had a relation helps in refining the finer details about the individual’s credit history.
The credit services agencies are not just to assist the banks but also to the borrower .These service companies provide online secure access to their credit information .They develop secure passwords so that no external agency can inhibit the financial privacy of the customer. These days the credit services companies are aiming to develop even more secure passwords amidst the increased threats of passwords being hacked which are leading to heavy losses and thefts in the financial sectors.
The credit services companies also perform portfolio management of various banks about their performances, their debtors and their respective credit histories.Portofolio managed by the credit services agencies give valuable information about the bank’s wealth gaining abilities and other crucial data. Thus the evolution of these credit services companies has increased the performance rate of banks and financial transactions done .Banking today has become very fast and easy. One of the main subjects which has become an easy and a short process is the seeking for approval of loans. This is solely because now credit reporting has become fast and easy.
Consumer assistance is also an important part of the services they provide to the financial sector. One such service is consumer assistance. The consumer can enquire about the details of his/her account or credit card statement. The consumer can also learn about other facilities which the creditor bank is providing .The status of the application for the credit is also provided online today and thus has proved a benchmark in the financial sector.
Comments (0)
CMA Blog Home
What are Bank Interest Charges?
Interest is basically a rent of the money used by the borrower. Bank interest charges are of many types such as interest charges on credit card, home loans etc. The bank is a lender which actually charges interest because the money they issue to the borrower could have been used for an investment but they were in reality advanced to the borrower but in any case the bank enjoys the benefit by charging the interest from the borrower whenever the borrower makes any payment to the payee by the use of credit card because it is not the borrower but instead the bank which pays to the payee on the behalf of the credit card holder. The money given to the borrower is been termed as opportunity cost .The bank interest charges vary because of many factors and schemes under which the money has been given to the borrower.
The money given to the borrower is the principal on which the interest is being charged. So the fact is that the borrower pays the money for the principal. There are many factors which are responsible in deciding the value of interest charged such as:
1.) Opportunity cost-
If the bank would have invested the money in some other field it would definitely have had a profit, but since he has used the money to give to a borrower, this factor is a deciding factor for the interest rate.
2.) The lender would try to charge the interest according to the estimates of the expected inflation. So some part of the total interest charged is the inflation estimation also.
3.) There is always a risk that the borrower might not be able to repay the loan or the credit he/she takes from the creditor or he might abscond, so there is a risk premium which forms the part of the total interest charged by the creditor .The risk premium varies from individual to individual & country to country. For eg:-Canada pays a lesser amount of risk premium than India because Canada is a developed country whereas India is a developing country so the creditworthiness does makes a lot of difference when the interest rate is been decided.
4.) The length of time also plays an important role in deciding the interest rate of the borrowed money. If length of time for paying the principal plus the interest is less, the interest rate will be less because then inflation and risk of a default will be less, because predicting near future is very easy.
The bank interest charges also vary because of the factors like recession because during recession the liquidity problems tend to take place and the banks have to take necessary steps to regain the momentum and make more borrowers .Also the interest rate is different from bank interest charges because if supposedly you have a balance of $500 and you want to calculate the bank interest charge on an interest rate of 20% then your interest charge will be $100. So actually your interest charge comes different because your balance for every period is not same.
Comments (0)
CMA Blog Home
WHAT IS DEBT ASSIGNMENT?
When a person assigns the debt that is already owed to another person with all the rights associated with it, it is called debt assignment. The person who assigns the debt which is owed is called creditor. The debt is assigned to a third party that is neither the lender of the money nor the person who borrowed the money. Now it is the responsibility of the third person to pay back the borrowed money. This occurs at all levels, generally at a personal or a corporate level. The main motto is that the debtor should not be affected in any way by all these changes. He might or might not be affected if new terms are agreed upon. The debtor is the person who lends the money.
Debt assignment is generally done when the person who borrowed the money cannot repay or is unable to repay the loan. Hence under such circumstances he can assign the debt to another person that is the third party who is ready to repay the amount for the borrower. There exists certain level of understanding between these two. They might have some arrangement made between them. Either ways the debtor should not be affected. His only concern is that he should get his money back. He is not bothered about who is paying his money back. Unless any new agreements has been made between the debtor, the borrower and the third party. The person might not be able to pay the loan due to many reasons and hence he assigns his debt to a third party.
Debt is anything that is owed. Generally debt is money owed. It can also refer to assets owed, moral obligations and other interactions which do not concern money. Anything and everything that is owed is called debt. In case of assets, a person buys the property in the present by means of this debt. He knows that he can repay it using his summations which he will earn later. Hence he is using his future purchasing power in the present time through debt in the form of assets. It is not necessary that a debt should always involve money. It can be of any form. It is also used by companies and some corporations to plan their overall corporate finance strategy. When they make their finance strategy or any such plans then they would have an idea about the required money. This helps them decide whether they would have to borrow money or not. Debts are very common in the corporate sector.
A debt is created when a person agrees to lend a sum of money or assets to another person. The person who lends the money is called creditor and the person who borrows is called debtor. In most cases debt is given only if they agree to repay the sum borrowed plus interest. This way the person who lends the money also benefits. Hence both creditor and the debtor are satisfied. It is a two way arrangement.
Comments (1)
CMA Blog Home
What is Debt Relief?
Debt relief, as the word speaks, it means forgiving or waiving some portion of debts. The meaning of debt relief covers the full waiver of debts. The caption covers not just individuals but even governments of various republics around the globe. Debt relief became an important term in the financial sector once the western developed countries took the request of debt relief seriously. Their are various countries around the globe which are underdeveloped or are developing. But while the time the caption was adopted by various financial institutions and governments around the world, steps were also taken to ensure that the money was used by various governments to improve the standard of living in respective countries. Steps were also taken to be vigilant about the misuse of the money being financed to various countries.
The problem arises when an individual or a country take up loans from various financial institutions and often eventually are not able to repay the amount they borrowed from banks. This has become a serious problem and thus the word debt relief has registered a huge demand in this sector. Besides many individuals who are in heavy debts seek help from debt consolidation companies. Actually debt consolidation means taking a loan for repaying many other loans. Debt consolidation is a fall back option in case debt relief is not granted because it actually makes the assets of the borrower as a collateral(pledging the surrendering the property such as house to the lender of debt consolidation in case the borrowers goes default).The interest rate for the debt consolidation is lower because the lender has the option that if by any chance the borrower goes default he will have all rights to sell the valuable assets mortgaged by the borrower and earn back all the money given to the borrower. The risk to the lender is reduced manifolds.
Corruption today is the major obstacle in the transparency of the debt relief to various developing nations of this world. Sometimes the money financed by the developing or poor nations becomes impossible to repay because the lawmakers or we may say the government of the country cannot make right projections and are not able to collect enough money from taxpayers to repay the loans borrowed from various financial institutions. Something very similar happened some years back .The OPEC nations due to their exports of oil, were rich financially and hence deposited loads of their money in various financial institutions. Now the developing countries drew heavy loans from these financial institutions for the development of infrastructure and other basic amenities for the citizens, but a lot of money was drained away and could not be repaid because it got lost in corruption.
There is a lot of debate amongst various financial experts in the financially lobby about the worthiness of the debt relief given to many nations. They think that by adopting debt relief, it will motivate the developing countries to go default against the loan taken .this will lead to bad consequences and liability of the financial institutions which stores the money of developed nations will become questionable.
Comments (0)
CMA Blog Home
Student Credit Cards in Canada
With the number of students increasing in the country of Canada there has also been a simultaneous increase in the number of credit cards for them. Considering the needs of students and the amount of money that they get and how much they can spend, credit cards have been designed to meet these basic essentials of the student community. Here are some of the student credit cards in the country of Canada which have been designed for the student community who do not require any income. This is one reason why these are one of the first student credit cards to establish a history of credit. You can now apply for these student credit cards online.
So here are a list of student credit cards that we are going to discuss. First of all we will be talking of the CIBC classic visa card for the students. The best feature of this card is that you do not require an annual fee and also that it has a line of great credit management features. You will now be able to protect the purchases that you make with replacement that is automatic, repair or even reimbursement coverage for many of the personal items of yours if they have been stolen, lost or even damaged. This however works only if it did happen within the first ninety days of your purchase of the product with the CIBC classic visa card for students. You also have extended protection that is available with this card. This helps by simply doubling the original Canadian manufacturers warranty up to an additional year automatically on those items that are purchased with the CIBC classic visa card for students.
The next card that we are looking at is the capital one guaranteed MasterCard. This card helps you strengthen the credit history of yours while you can enjoy the valuable benefits of the MasterCard. There is 0$ fraud liability for use that is unauthorized. Customer service with this capital one guaranteed MasterCard is available all day long either by phone or online. You have special features that are available with this capital one guaranteed MasterCard like the extended warranty and also purchase assurance.
The next student credit card that is available and one of the good ones in the country of Canada is the capital one guaranteed secured MasterCard.
You can apply for this card online and also get guaranteed approval and also an opportunity to establish that credit history of yours. However an annual fee of about fifty nine dollars has to be paid. A minimum of about seventy five dollars is required for the purpose of security funds. This card has been proved to be really useful to the student group as it is not too costly and yet provides them with services that are considered to be good.
When it comes to choosing a student card it is necessary that you make a wise choice and choose the right type of card that will suit you the best.
Comments (0)
CMA Blog Home
Travelling with Your Credit Card
There are a number of credit cards made for those who travel a lot. Apart from choosing one of the credit cards that suit you the most while travelling it is important that you know what you have to do with the credit card of yours when you are travelling. So here are some tips for you to maintain your credit card when you are travelling around the globe. Many of the people who do travel with their credit cards turn out to have some problem or the other so these tips are sure to help you not set your foot in the wrong direction with your credit card.
So the first thing that you ought to know is that you should have made photocopies of all the credit cards of yours, your airline tickets and also the other documents. Make sure that you get both the front as well as the back xeroxed. Leave a copy of these with a friend of yours. This way if you do lose your credit card when you are not in your country then you can be sure to cancel it right away so that you are not cheated with it. Many a times travelers forget to do this and hence they will have a lot to do by calling back their country to make sure that everything is alright. A simple xerox is sure to help if this does happen to you by any chance.
The next simple thing that you have to keep in mind is that it becomes easy when you travel with a credit card in each individuals name instead of having it together. The problem with this combined credit card is that if a credit card is cancelled due to one reason then all the credit cards in that name get cancelled too. So make sure you take your individual credit cards when you are travelling abroad. Also if you are going with your husband or wife then you can survive on the other credit card till the credit card that is lost is replaced.
Also automatic credit card deactivation will spoil a vacation of yours. In some of the banks they might cut off the credit cards that are being used more than about six times a day so that just in case your card has been stolen you will not lose much. So make sure that you are not using your card more than about five times in a single day. If you do want to use it or might be using it more than that make sure that your credit card companies are informed that you will be travelling abroad.
Canada now has a number of credit cards that are available for those who travel a lot. Customer services are provided all day long for your convenience. The cards are not too expensive and make sure that you do not spend a lot with the credit cards when you are not in town.
Comments (0)
CMA Blog Home
What is a Lead Capture Page?
Marketing and advertising are the two most important things to be taken into account when it comes to promoting a product. For the success of a company, the product or the service that the company offers should be accepted among the general public. For this to happen, the people should know about the existence of the product, what it is used for and more importantly, they should be convinced that it is worth spending their money. All this needs very good marketing strategies. And this requires the need of professionals who will be able to come up with the right kind of strategies to market the products.
Canada is a very well developed nation with the industries and companies doing good business. This goes to show that the marketing and advertising industry is also doing very well as only when a product is marketed properly will people buy it. Nowadays, everything can be done with just the click of a mouse. There is almost nothing that cannot be done online. Right from buying vegetables to buying a property, it is possible to do it all online. This is one of the most important reasons why marketing for a product online has gained a lot of importance in the recent past. Almost everyone uses the computer today and promoting a product online is a very important strategy that has been adopted by many companies. It is as good as any other form of promotion if not any better. Actually, promoting a product online has more advantages than the usual forms of promotion.
When it comes to advertising and marketing, a very important term that comes to mind is lead. And when it comes to marketing online, the term lead capture page comes into significance. A lead is a person or a company or an organization which is interested in making use of the services that the company has to offer or is interested in buying the product that a company is promoting. And lead capture page, as already mentioned is a term that is associated with the online marketing industry. It is basically a web page that is created to capture the attention of a lead or a potential customer.
A lead capture page is created with the aim of making a customer want to buy the product. It should have all the necessary details about the product and it should be able to convince the customer to but the product. Most of the online advertising companies in Canada are very good at creating attractive lead capture pages in order to woo the customers. An important thing to remember while creating these lead capture pages is to submit it to the search engines so that this page will come up when people are searching for the product you are promoting. It is also very important to promote these lead capture pages. These pages can be marketed the in the same way as websites are marketed and that includes a lot of ways.
Comments (0)
CMA Blog Home
President George Bush Doesn't Understand
Personal FinancesI watched President Bush do his BailOut Bust speech this morning.
This president is going to go down in history as the credit loving president I'm sure. He's still encouraging his government to vote for a credit bail out package that will allow people to borrow for cars, houses, consumer goods etc.
WAKE UP!! This is what got you into trouble in the first place. Americans are a lavish lifestyle loving country. They like their consumer goods. They like their toys. Their love their American lifestyle, which is way more extravagant than the rest of the world.
AMERICANS DEMAND INSTANT GRATIFICATION
The Americans are known as gluttons. They're using 25% of the worlds oil supplies to keep up with their lifestyles. They're addicted to oil, and addicted to credit. Americans are used to their lavish lifestyle.
This is why President Bush is encouraging the government to save the credit markets. He wants to help maintain his country's lavish lifestyle.
What ever happened with buying things with cash. IE.. you work hard, save up, put money away, and then buy your items with cash.
How many families have 3 TV's, 2 cars, cellphones, computers, more gadgets etc. These products that the consumers buy really drive the market in many ways. Many of these products are purchased on credit. With the credit crunch, many people won't be able to purchase these consumer items. So what?!! People aren't going to have their instant gratification goodies! Booo Hooo!
The only thing I would worry about is that people's necessities are met. Food, shelter, clothing etc. If these are met, people will be fine. They won't be lavish, but they'll be fine.
I can't believe that George W Bush is still promoting businesses and individuals taking on more debt. Why not step back, & start working with cash.
Mine is not a popular point of view, however, it would make our economy, and the American economy stronger in the long run.
Final thought... maybe good that this credit crisis is blowing up 6 weeks before the new president is elected. Whereas George Bush will be remembered for being a credit loving president, hopefully the new administration will get a fresh start as far as managing their money and credit better.
This article talks about:
Does george w bush understand personal finances?
Did george w bush make the country go bankrupt?
Should we blame george w bush for u.s. bankruptcy?
Comments (5)
CMA Blog Home
Canada's Federal Debt is shrinking 1997 - 2007I did a quick search on the federal government's financial website to see how our federal government's debt is doing. This is in comparison to what the U.S. government is doing.
CANADIAN FEDERAL GOVERNMENT DEBT
2008 - $455.1 billion (projected)
2007 - $467.3 billion
2006 - $481.5 billion
2005 - $499.9 billion
2004 - $501.5 billion
1997 - $562.9 billion
I am overwhelming pleased to see that Canada has paid down its debt $95 Billion over the last 10 years!!
This says that our economy has been strong, and that we've taken the responsibility of paying down the debt seriously.
I'd be curious to see if Canadian's individual personal debt has decreased over the same period.
In this case, Canada's setting a fine example of financial prudence for the U.S. government, who in spite of their strong economy, have increased their federal debt trillions over the last 10 years.
To Canada, I say, Congratulations on paying down your debt!
Comments (0)
CMA Blog Home
This is bad for free enterprise
- Senate passes $634B spending billThis Just In - money.cnn.com
Grants $25 billion in loans to auto industry and lets ban on offshore oil drilling expire. Bush expected to sign measure.
WASHINGTON (AP) -- Automakers gained $25 billion in taxpayer-subsidized loans and oil companies won elimination of a long-standing ban on drilling off the Atlantic and Pacific coasts as the Senate passed a sprawling spending bill Saturday.
The 78-12 vote sent the $634 billion measure to President Bush, who was expected to sign it even though it spends more money and contains more pet projects than he would have liked.
The measure is needed to keep the government operating beyond the current budget year, which ends Tuesday. As a result, the legislation is one of the few bills this election year that simply must pass. Bush's signature would mean Congress could avoid a lame-duck session after the Nov. 4 election.
This is another case where the government is saying, "we NEED to do this" and the people are saying, "NO!! DON'T DO THIS?" The last time was when George Bush ordered troops into Iraq.
I get the same feeling that the people are going to find this $634 billion measure just as distasteful and horrible as going into Iraq, for years to come!
The automakers get $25 billion to make more cars.. Like they need the money. And the bail out is going to help people buy more cars with credit thus perpetuating the credit problem.
This bailout is so wrong for so many reasons. The American people have clearly stated that they're not interested in the bailout. They don't want their tax money going to help out the rich, which this directly will. The government has gone against their wishes not worked in their interest.
I only hope the Canadian government learns a huge lesson from the American governments stupidity. I hope that Stephen Harper, or who ever the new Prime Minister is, will learn from this monumental error.
One of the things our Canadian Federal government can do is pay down OUR debts...set the example for the Canadian people to pay down our debts and to never get in the situation that the Americans are.
Canadians do love their debt, and they love their spending.
If we can't afford cars, let's take the bus. If we can't afford all of the millions of manufactured goods we buy.. let's not buy them, on credit.
Credit is everywhere, and people need to save up money.
I wish I could say, everybody's bank account is loaded with cash. And thus they don't really need credit. People are saving up so much money that their credit card payments are NO PROBLEM. Wouldn't that be nice to say!
The American government giving banks $634 billion is only going to come back and bite them in the butt alot in the future.
Let's all learn the lesson and start paying down our debts, and not taking on any more debts.
P.S. Mr Bush - "Take Down That Wall of Debt!!"
Questions this articles talks about:
Is the U.S. government able to lend this money?
What is wrong with government bailouts?
Is more credit good to pay off credit?
Can we take down this debt wall?
Comments (0)
CMA Blog Home
Cash Back / Rewards Credit Cards in CanadaI was asked by Ellen Roseman of the Toronto Star to put together a list of Cash Back / Rewards credit cards in Canada, and I came up with the following list.
RBC Rewards Points Visa Cards
Merchandise including home furnishings, electronics, jewellery, sports equipment and more
Gift certificates from top retailers in Canada
https://www.rbcroyalbank.com/RBC:SN0tZI71A8cAHwCYqB0/cards/apply/pickcard.html
BMO Moneyback Reward
Interest Rate - 18.5%
Rewards up to 1% Moneyback reward every year on the purchases2 you've made with your card.
Earn 1.5% CashBack at Shell and save with a low interest rate.
NOTE: BMO has a bunch of "Give to Charity" rewards cards as follows:
http://www3.bmo.com/mosaik/student/perform_othercards?CTX=NU&PUID=064
Cards that support your cause from BMO
Arts & Culture
Cause & Community Service
Canadian Hockey League - CHL
Conservation & Agriculture
Education
Pets & Animal Welfare
Professional
Sports & Recreation
Universities and Colleges
MBNA PremierRewards
http://www.mbna.ca/shopping_cardList.html
1% back on all net retail purchases
MBNA - Ecologique
Earn carbon offset pointst that MBNA will use to acquire carbon offsets on your behalf
MBNA - Worldpoints
http://www.mbna.ca/shopping_cardList.html
* Earn 1 WorldPoint for every $1 in purchases
* Get 1,000 Bonus WorldPoints after your first qualifying transaction
Redeem WorldPoints for travel and merchandise rewards redemption levels start as low as 1,000 WorldPoints
MBNA Automotive Rewards
http://www.mbna.ca/auto_rewards_cardList.html
CAA Quebec
Earn a 0.5% rebate in CAA-Quebec dollars on net retail purchases and additional rebates on select gasoline
Chrysler Rewards®
Earn 1 reward point for every $1 on net retail purchases
Jeep Rewards
Earn 1 reward point for every $1 on net retail purchases
Dodge Rewards®
Earn 1 reward point for every $1 on net retail purchases
Harley Davidson
Earn 1 Genuine Reward point for every $2 in net retail purchases
NOTE:
MBNA Also has cards for its charitable causes.
http://www.mbna.ca/special_cardList.html
CARP
Canadian Wildlife Federation
Ducks Unlimited
Humane Society of Canada
The Royal Canadian Geographical Society
TD Rebate Visa
Earn up to 1% cash back with NO annual fee.
Interest rate 19.5%
http://www.tdcanadatrust.com/tdvisa/rebate.jsp
GM TD Visa
Earn 3% towards a new GM Vehicle
Interest Rate 19.75%
http://www.tdcanadatrust.com/tdvisa/gm.jsp#1
Capital One - Platinum Cash Back MasterCard
http://www.capitalone.ca
Up to 2% cash back:
- 1% cash back annually on total net purchases up to $10,000
- 1.5% cash back annually on total net purchases between $10,000.01 and $20,000
- 2% cash back annually on total net purchases above $20,000
$59 annual fee
Variable annual interest rate, currently 19.8%1
ScotiaBank Scotia Money Back Visa-->
http://www.scotiabank.com/cda/content/0,,CID10411_LIDen,00.html
Interest Rate 18.59%
Moneyback Reward
Rewards up to 1% Moneyback reward every year on the purchases2 you've made with your card.
CIBC Dividend Card
http://www.cibc.com/ca/visa/dividend-card.html
Earn up to 1% cash back (NOTE: It says earn UP TO 1%)
Interest rate 19.5%
CIBC Dividend Platinum Card
http://www.cibc.com/ca/visa/dividend-platinum-card.html
You can earn up to 2% in cash dividends -up to $735 annually!!
How the dividends are calculated
http://www.cibc.com/ca/visa/dividend-platinum/dividend-plat-ftrs.html
Current Interest rate: 19.5%
American Express Costco
Take advantage of the benefits
Interest Rate 18.25%
https://www212.americanexpress.com/
No Annual Fee
Earn an Annual Cash Rebate1 of 0.25% on the first $2,000, 0.50% on the following $3,000 and 1.50% on any amount over $5,000 to an annual maximum rebate amount of $500. Bonus Rebate of 0.5% on all net eligible new purchases when you carry a balance. The annual maximum Bonus Rebate amount is $125.
American Express Holt Renfrew Card
Interest Rate - 30% per annum
www.americanexpress.com
* $399 annual fee
There is no-preset spending limit1 on your account which allows you flexibility when spending, however, the balance must be paid in full each month. Using a charge card is a great way to manage your finances
* Finance Charges: 30% per annum (0.0822% per day)
* Automatic Enrollment in the Membership Rewards® program Holt Renfrew Tier and the Points Accelerator® Service1 for the Holt Renfrew Tier
Citizen's Bank Shared Interest Gold
www.citizensbank.ca
Our Shared Interest Gold Visa provides you with more purchasing power. You earn one My Visa Rewards Plus point for every dollar you spend on the card. Your points can be redeemed for free travel, merchandise, Citizens Bank financial products and charitable donations. If you'd prefer a lower interest rate, we offer that too. Plus, every time you use your card, Citizens Bank will donate $0.10 to support not-for-profit initiatives worldwide through the Shared Interest Fund.
Citizen's Bank - Charitable Donations Visa Cards
www.citizensbank.ca
Shared Interest Gold Credit Card
Oxfam Canada Credit Card
Amnesty International Credit Card
Questions that this article talks about:
What are the cash back cards available in Canada?
Which credit card companies offer cash back credit cards?
What is the best cash back credit card available?
Comments (0)
CMA Blog Home
The U.S. Economy just isn't learning - It's sickening!I watched President Bush last night do his Address to the Nation regarding the credit crisis.
In that speech he's trying to sell the American public on why they should spend $700 billion on fixing the credit market.
The thing that I found appalling was that President Bush mentioned that among other things, this will help people buy new cars, send their kids to college, small businesses will get more loans, and more.. This bailout will help the taxpayer take on even more debt!!
I'm stunned when I hear them say that.
The thought is.. the American population can't even service their own debts as far as mortgages go.. now they're supposed to be able to take on more debt.
Isn't the idea to deleverage and pay off your debts? Not go into more debt?
The government's taking on the populations bad mortgages to the tune of $700 billion. Many of these mortgages are for houses that are empty and not being paid for. Many of these houses were probably purchased by speculators. The speculator drops his houses, declares bankruptcy, and the American people have to pay the bill.
Fundamentally I disagree with the $700 bailout on so many levels, I don't know where to begin.
President Bush indicated that if the Federal government didn't do something the American economy would crash. So... let it crash. This all about letting the free enterprise system do its work. If companies have made big mistakes, let them fail big time.
America is so addicted to credit that they don't want to let the economy crash. They would rather keep their credit addiction at this high cost then to let things progress in a natural way. This is the equivalent of a drug addict needing that next heroin fix lest he have to go through the pain of withdrawal.
I don't think anybody is going to die if they can't get more credit. They may have to stay at home for the next few years, and pay down their debts. Wouldn't that be a good idea?
Instead of Ronald Regan's "Mr Gorbachev, bring down this wall" speech, we should say, "Mr Bush, Bring down this debt!!"
This $700 Billion "rescue" is going to be the worst thing for the American Public in my opinion. Bottom line, I think that the credit addicted nation should go to credit rehab, go through their withdrawals, and start to feel better as a nation. Take the proper amount of time, and pay down some of your debts. After a few years, your economy will be strong again.
But for now American people, your credit addiction is killing your nations economy!
Just my opinion.
Questions this article talks about:
Why isn't the U.S. government learning about the credit crisis?
Why is the $700 billion bailout a wrong idea?
Does the U.S. government need debt settlement and credit repair?
Comments (2)
CMA Blog Home
U.S. Economy Turns Socialistic? I am pretty furious about the U.S. economy's bailout of AIG, and the $700 billion bailout of the bad debt in the U.S.
In my opinion, that makes the U.S. government owner of business, which makes them pretty socialistic.
CNN's Mad as hell - taxpayers lash out
The U.S. free economy is supposed to be based on free enterprise without intervention from the government. Of all the businesses that have failed over the years, and the pain people have suffered because of businesses failures, the government never stepped in to help. Which is the nature of business.
Of the 1,000,000+ individuals that declared bankruptcy in the U.S. in the last year or so, the government didn't bail out those families. That's alot of pain and suffering that these bankrupt people suffered.
So.. why now? Why is the government stepping in and bailing out AIG, and then the whole bad debt economy?
Simply put, IMO, if the government doesn't step in, their whole economy will implode. Falling share prices will mean less value on balance sheets for companies to borrow against. This will mean that their loans will be called for lack of collateral and so on...
And, the point is... ???
It's a free enterprise system. It's supposed to collapse if errors are made. While I admit that the whole U.S. economy collapsing would be extremely bad, that's the way it was built, and that's the way it should be run.
I fear that the ramifications of having the government step in will be even worse. If AIG declared bankruptcy, it would have to do what every other business does when it fails. It would have to liquidate assets at a discount and then start over again. While 1 trillion dollars in assets is alot to liquidate, that's the way it should be.
I feel pretty sore as well with the U.S. government bailing out businesses.
I also believe that this move will help other countries lose ALOT of respect for the U.S. economy over the next few years. This may be even more expensive to the U.S. businesses and citizens over the years to come.
GOVERNMENTS... Stay out of businesses' business!!
Memo:
From the desk of Monty Loree
P.S.. I've held my tongue on this... This topic makes me furious.
Questions that this article talks about:
Is the U.S. economy becoming more socialistic?
Who is helping the consumers who declare bankruptcy?
What happens if the government doesn't step in?
Comments (3)
CMA Blog Home
No Fee Credit Cards in Canada
With a bit of research, you can find reputable credit cards that do not charge extra fees that drive your balance up. Almost anybody can get a credit card if they are willing to pay certain fees. The problem with some people is that they do not walk the extra mile by understanding the policies and the fine prints in their credit cards. The fees add up and people end up paying more than they intended to pay for purchases that does not even benefit them.
-->
One important responsibility of a card owner is to make sure that they are not lured by the bold-type, large-print advertisements. A no-fee credit card sounds like the best possible deal, because nobody thinks they should pay $29, $59, or $129 just for the privilege of using a credit card. That is true for sub-prime customers as well as for those who have excellent credit; more true, in fact, because sub-prime customers are the ones who can least afford it. And in many cases, those credit card companies that claim "no fee" for their credit cards are only redistributing their fees to other parts of the bill where they will not be as easily recognized.
Cash Advances and Convenience Checks
One way to avoid hidden fees is to carefully read your card's policy on cash advances and convenience checks. These are not simply charged to your credit card as another charge, they are treated as cash loans from the credit card company and interest becomes applicable to them immediately. On top of the high interest charged for these transactions, there is almost always a 3% fee on whatever amount you withdraw. Again, even "no fee" credit cards charge these fees, so be sure to read the fine print carefully.
Online or Telephone Payments
There may also be fees charged for the so-called "conveniences" of phone payment or online payment, rather than payment by sending in a check. Some companies charge between $5 and $15 when paying online or on the phone -- even though they enjoy the convenience of getting the funds immediately and not having to wait for a check to clear.
Late Fees
Certainly, credit card companies charge fees for late payments. But some companies add hidden charges even to late fees. For example, some companies require a payment not only on the day it is due, but before a certain hour on that day; if you are late in payment, even for a few hours, you may accrue a charge. This is often true even if the bank does not publish a time of day for payments to be made.
No Fees?
Obviously you cannot expect a credit card not to charge any fees. In fact, the term "no fee" generally refers to the one time or yearly fee that cards charge for you to hold them. However, the fees they do charge should be above board and made clear, or "no fee" is less a policy than a deceptive sales ploy.
-->
Comments (0)
CMA Blog Home
Joint Ventures:
How to Leverage Other People’s MoneyIn general terms, leverage is when you use your assets to increase your assets. Without increasing your expenses or outflow, you want to increase your earnings and make your business more profitable. Sometimes you don’t have the money on hand to do this. In these cases, you may need to borrow funds, or to use funds provided by a business partner or investor.
Learn more about Joint Ventures
Some ways you can leverage other people’s money include: - Have a business plan. Your business plan needs to be thorough and up-to-date, so that investors see you as a good risk. Investors are usually willing to take a risk if they know what they can reasonably expect. They also need to know what your vision is, and what you plan to do to make that vision a profitable reality.
- Form an LLC. One of the best ways to leverage other people’s money to make your business into a limited liability corporation, or LLC. In an LLC, one person retains control of the business as the sole general partner, and the others are simply investors. You share both profits and financial burdens, but not control. This helps you retain your vision for your company, and it lets the investors out of the responsibility of the daily running of a company.
- Grants. There are many grants for businesses. Some of these are from the government, some are from private corporations, and some from universities or research groups. You may be eligible for even more grant funding if you are a women or a minority, so be sure to check those categories. Do some research on the internet first, and don’t forget, this information is free, despite the large numbers of companies who will try to charge you for it.
- Venture Capitalists. Venture capitalists often work on a larger scale than angels or LLC investors. They are accustomed to finding enough money not only to start a business but to fund the marketing and other costs that will ensure that the business will succeed. Venture capitalists are committed to the success of your venture, since their investors’ success depends on it. For that reason, they may become very involved in your company—sometimes more so than you would like. You should decide beforehand whether you want their expertise in running a profitable business, or if you just want their money. They are very good at what they do, but they will not allow you the total control that other models will allow you.
- Personal connections. This is not the same as personal funds—remember, we are leveraging other people’s money. But if you have faith in your venture, your relatives and friends may want to get in on it, and they may have money to invest. You still want to protect yourself with a legal contract spelling out the terms, but if you are honest and work hard to make your business successful, it can be lucrative not only for you but for your whole circle.
Listen Up!
We are hosting a DollarMakers Joint Venture bootcamp in Regina on October 25, 2008. This bootcamp will help entrepreneurs and small business people make more profits, and learn how to joint venture with others. Visit the link above for more information.
It's well worth the price of attendance. -- Monty Loree
Questions this article talks about:
What are joint ventures?
Can Individuals and small businesses get involved in joint ventures?
How can I use a joint venture to make money?
Comments (0)
CMA Blog Home
Whole Life Insurance CanadaWhole life insurance Canada is life insurance that covers you for your entire life. You don’t have to arbitrarily define a set period like 20 or 30 years. Often a whole life insurance policy in Canada comes with many extra perks, especially if you acquire your insurance policy through your employer.
Many companies for example, are willing to provide guaranteed rates of returns to their loyal customers (although these dividends are rather small). You can also enjoy a relatively high rate of pay in the form of dividends when you invest in Canadian whole life insurance.
Whole Life Insurance Benefits
One of the biggest perks associated with whole life insurance policies is the premiums, which remain constant for the life of the policy. That means you never ever have to pay more than you are quoted at your initial consultation. This is especially beneficial for Canadians worried about fluctuating health problems as they age. Most people assume that as their health declines with age they will have to pay higher insurance premiums. While this typically is the case with a term life insurance plan once an individual reaches a certain date, this will never happen with a whole life insurance policy.
As long as you consistently pay your premiums monthly or as specified by your plan documents, you will continue to enjoy the same rate you have when you sign on with your policy.
Get a FREE Life Insurance Quote
Cash Value Whole Life Insurance Canada
Cash value of whole life insurance Canada is something of concern to individuals when signing up for life insurance. The cash value of a whole life insurance is the equivalent value of a life insurance plan in cash. When you start making payments on a whole life insurance policy, the cash value associated with your life insurance company starts to grow. In a whole life insurance policy you can choose how you want to govern your funds.
The cash value of funds is more often than tax-deferred, meaning you will not have to pay taxes on the cash value of your life insurance policy until after you start collecting on your life insurance policy. This can be seen as advantageous to some Canadians and burdensome to others depending on your life circumstances. If you are capable of paying taxes not then it is not really a big deal. However, if you are in a bad spot financially this is an added perk of whole life insurance plans.
If however you reach retirement age and start collecting on your whole life insurance and have to pay taxes on the cash value of your plan, and find you are struggling to make payments still on your home which may not be paid off and other financial debts, you may find paying taxes on the cash received from your policy quite a nuisance. Nonetheless you have to follow the rules and regulations established by the legal entities that govern life insurance policies.
Perks Whole Life Insurance Policies Canada
Many people want a life insurance policy that provides them with added perks. One unique aspect of a traditional whole-life policy is that new home owners can borrow against the policy to take out a loan, say a loan to make a down payment on a new house! A term life insurance policy does not allow policy holders to borrow against the life insurance policy, so if you want to take advantage of this perk you will have to invest in a whole life insurance plan.
Studies suggest that housing and life insurance policies are often decent investments. If you let a whole life insurance policy continue to grow and max out its cash value, then when you do retire and your life insurance policy matures or when you do endow, you may find your whole life insurance policy is worth more than double the amount you first started with.
Questions that this article talks about:
What is whole life insurance in Canada?
What are the benefits of whole life insurance?
What are the perks of whole life insurance policies?
Comments (1)
CMA Blog Home
Identity Theft Canada:
What to Do if It Happens to YouThere are many things you can do to reduce your risk of being a victim of identity theft. But even if you take precautions, it’s possible that someone may obtain access to your personal information and use it to access your credit, your accounts, or your resources. If you suspect that you may have been a victim of identity theft, there are some steps you can take to minimize the damage and recover your financial health.
Need inexpensive legal help? Sign up for Prepaid Legal
- Contact your credit card companies. If your credit card or credit card numbers have been stolen, you’ll have to cancel your cards immediately. Make sure to tell your company that your cards were stolen; this will stop further charges and limit your liability for unauthorized charges. Most credit card companies limit your liability to $50 if your cards were stolen. They can then issue you new cards under new account numbers.
- Contact credit reporting agencies. Contact the three major credit reporting agencies and tell them what has happened. They will put a three month fraud alert on your information and alert you if any suspicious charges are reported. One you have gathered proof that someone has tried to open accounts or otherwise misuse your information, you can then have a seven-year alert placed on your records.
- Contact law-enforcement. Identity theft is a crime, so if someone is using your social insurance number or your credit card numbers, they should be reported to the police.
- Contact your creditors. If you have other creditors or accounts, someone with your personal information may have access to them. In addition, you may be contacted by debt collectors for payment on debts that you are not responsible for. Let them know that you have been a victim of identity theft, and that you cannot be held liable for this debt.
- Contact your bank. If someone has obtained your social insurance number, your ATM PIN, or your chequing account information, your bank needs to know so that you do not incur overdraft fees and no withdrawals can be made without your consent. You may have to be issued new cheques and a new debit card.
- Contact the post-office. Much identity theft occurs when people steal documents out of other people’s mail boxes. This is not only theft, it is mail fraud, and should be reported to your post office. Make sure that all documents in your name are being sent to your address, and not to a different address or post-office box.
- Record everything. One of most inconvenient parts of having your identity stolen is the amount of follow-up you have to do with everyone. Still, this is a step you can’t skip. Every email and telephone call should be followed up with a written letter. Keep a copy of every letter, so that if any agency tries to hold you accountable for debts you didn’t incur, you can prove what steps you took and when.
Need inexpensive legal help? Sign up for Prepaid Legal
Questions that this article talks about:
How big is the problem of identity theft in Canada?
What can I do if I'm a victim of identity theft?
Who can I contact if I'm a victim of identity theft?
Comments (3)
CMA Blog Home
Prepaid Legal Services Canada: A Site ReviewOrdinary people seldom consider that they might need a lawyer someday, but it could happen for so many reasons. But most people figure that lawyers are too expensive, and forego services that they really need. This is where a service like Prepaid Legal Services comes in. It allows clients to subscribe to a legal service so that when they need it, it is available. It is rather like an insurance plan for legal services. Prepaid Legal Services has been in business for over 30 years, and is traded on the New York Stock Exchange.
PrepaidLegal.com is the website for this innovative service. The home page offers button links to subsequent pages, a link to client endorsements, a link to the Advisory Council, and a brief summary of the most important services that Pre-Paid offers, with links to each of them. From the buttons, one set with icons across the top and one with words down the left side, you can go to the following pages:
- Legal Plans. This page leads with the Life Events Legal plan, which is similar to a HMO medical plan. It covers any normal legal expenses a regular person may have, including some questions that will help you determine whether that applies to you or not. This plan appeals to the idea that justice is for everyone, and not only the wealthy with lawyers on retainer. This page has left column links to further details, but to get to the other main pages, you have to go back to the home page and navigate from there.
- Business Opportunity. These pages give a thorough explanation about how an associate can make money selling Pre-Paid legal plans, much like an insurance salesman sells insurance plans. It does so in an easy question-answer format.
- For Employers. Pre-Paid offers legal insurance plans that can be purchased through employers—again, much as health insurance plans are. It discusses the benefits of opting into one of these plans and provides contact information for follow-up.
- About Us. This page provides summaries of the Life Events Legal Plan, their business model, their services and service providers, and their history. Each of these summaries comes with a link to more complete information.
- Investor Relations. This page focuses on Pre-Paid’s place in the stock market, its profit record and other company financial information. It handles technical financial information in a straightforward manner, with links to more complete information.
- Press Room. This page includes information summaries that are releases to the press, including a brief history and services.
- Member Testimonials. On this site you can learn how people like you have benefited from their membership in Pre-Paid Legal Services.
The Pre-Paid Legal Services site is an attractive, clean site which is easy to navigate. It is easy to find what you need, so that your attention is not spent trying to find what you need, but actually engaging the material you came for.
For more information on how you can save ALOT of money on legal services visit PrepaidLegal.com
Prepaid Legal is currently available in British Columbia, Alberta, Manitoba and Ontario only.
Questions that this article talks about:
Who is Prepaid Legal Canada?
What are prepaid legal plans about?
What are the benefits of prepaid legal in Canada?
Is Prepaid Legal a MLM - Multi Level Marketing Company?
Comments (0)
CMA Blog Home
Mortgage and Loan Agreements in CanadaMost people, at some point in their lives, will have to consider the possibility of taking out a loan. If you want to buy a house, a car, or property, start a business, expand a business, renovate a house or business, or buy new equipment for an established business, you will have to explore your financing options.
There are several different types of mortgage and loan agreements for both you and your lender to choose from: - Promissory note. This is a document that you as the borrower sign promising to pay back your loan by a certain date, or whenever the lender calls it in. It is binding, but it does not place any of your assets at risk, since they are not placed as security for your loan.
- Realty mortgage. This is the type of loan most people get to finance a new house, business, or other property. It is registered with the Province and there can be legal ramifications if you default on it, including having your property repossessed.
- Chattel mortgage. This is a loan that you take out using any property that is not your house, business or land. This can include equipment, vehicles, stocks, bonds, or other valuable assets.
- Pledge. This is similar to a chattel mortgage, in that your assets become security, but you are allowed to keep the titles and rights to them during the course of the loan.
- Floating charge. This is a loan which uses any of your assets that are not already being used to guarantee another loan to guarantee the loan in question. You, the borrower, get to keep the titles, but the debt and the assets guaranteeing it are registered with the Province.
- Personal guarantee. With this type of agreement, you promise that if your company or business is unable to make good on the loan, you will promise to use your own personal assets to pay it off. This kind of loan should be a last resort, since your family’s financial security would be at risk if your business went bankrupt or was otherwise unable to pay its debts.
- Postponement of a claim. This is an option taken by the lender, rather than the borrower. It says that once you have taken out a loan, you will take current assets and profits and pay off your debt to the lender before you meet your obligation to the shareholders of your company. This protects the lender if they feel you are a high-risk loan and might not be able to repay your debts.
Different kinds of businesses handle long term loans, though some specialize more in one kind or another. You can seek loans or mortgages from banks, insurance companies, pension funds, loan specialists, or mortgage brokers.
There are also government-sponsored programs that can help you if your goal is to finance or expand a small business. You can contact the Canada Small Business Financing (CMBF) Program for information and assistance in applying for these.
Questions that this article talks about:
What are Mortgage and Loan Agreements in Canada?
What types of mortgages are available in Canada
What features do mortgages have in Canada?
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
|
|