Canadian-Money-Advisor.ca BLOG
What is an Investment Loan?
An investment loan is a form of interest-only, fixed-rate loan granted by banks for any acquisition of fixed assets such as property, equipment and other machinery.
The loan can be used for any development activity. Current assets are funded with a working capital credit. http://www.investorwords.com/15283/capital_investment_loan.html
The article provides information regarding:
- Small Business Loan in Canada
- Canada Life’s Investment Loan Program
- Basic Concept of Investment Loans
What is a Small Business Loan in Canada?
The only way in which a small business can get investment loans in Canada at the present time is by applying for them. All government funding programs are offered to the most qualified applicants who can adequately show the ways in which they meet the terms of the loans and why they are the most deserving. Utilizing the services of a professional can help you with this process.
http://www.grants-loans.org/qa/qa.php?id=Small-Business-Investment-Loans-Canada
Entrepreneurs in need of money to finance their small enterprise may get a grant, loan, or other form of financial aid that can be put towards new equipment, renovations, training, advertising, and numerous other objectives. The Centre for Small Business Financing can tell you how to get government funding and how to grow your small business with these valuable small business resources. Various Canadian governments have set aside monies for funding programs (grants and loans) earmarked for financing small businesses. You can avail of $100 or $100,000 available government grants and small business loans. Knowing where and how to apply gives you a real advantage. The centre’s research organization can help you get information on government money to start up a new business or help your small business expand.
Pls See: grants-loans.org
What is Canada Life’s Investment Loan Program?
It is your option to borrow money and invest responsibly to achieve your financial planning goals. Here are some questions that you may want to ask:
- Have you attained financial security with a strong and stable income and comfortable with market unpredictability?
- Do you make full use of RRSP contributions and other tax-efficient strategies?
- Are you an investor with little-to-no non-deductible debt, such as a car loan or mortgage?
- Do you plan to invest with a long investment horizon?
The investment loan program of financial organization will allow people to apply, through a competent advisor, for competitive investment loans from the National Bank of Canada. The money is used to set up Canada Life non-registered segregated fund policies.
You do not have to be wealthy to borrow to invest. Some people successfully use this borrowing strategy to become wealthy. However, it is essential to have the available cash flow to handle regular payments, as well as the ability to handle changing market conditions and interest rates. Cash flow for payments typically does not come from investment income. You need to be prepared to pay the loan from other sources such as employment income or other investments. There are advantages and disadvantages to borrowing to invest. Anyone considering this strategy should consult their advisor and tax professional.
Pls See: canadalife.com
What is the Basic Concept of Investment Loans?
Canadian Money Advisor stated that cash flow for all those payments typically does not get from any sort of an investment income. You have to be able to pay off that investment loan from any other source, such as an investment or even an income for employment. There are certain advantages as well as disadvantages in borrowing to make an investment. If you are one of those people who are looking to make money of this then you for sure will need to consult a tax professional as well as an advisor.
Here are a few terms that are in relation with investment loan for your needs. The first that comes up in this list is the loan amount. The loan amount is referred to that total amount that you are planning to take with you. This amount is also made use of as the value of the asset, that is appreciable or even the investment that you are going to make in the initial stages. The next word in the loan term is years. This is the number of years that you do wish to analyze for this loan that you are going to take. This can go up to about thirty years ranging from one year. Next will come the loan interest rate. This is the annual rate of interest that you are being charged with for taking this loan. This sort of a calculator also assumes that the payments that you are paying are made every month and also sees to that the rate of interest is also compounded every month along with it.
Pls See: canadian-money-advisor.ca
Borrowing and Investing
Borrowing money to invest in a worthwhile activity is a good choice. However, you need to study carefully your investment to ensure that you get returns promptly.
Comments (0)
CMA Blog Home
What is TD Canada Trust?
TD Canada Trust is the personal, small business and commercial banking operations of the Toronto Dominion Bank in Canada.
It offers an assortment of financial services and products to more than 10 million Canadian customers through 1,100 branches and 2,600 "Green Machine" ATMs.
The article discusses the following:
- History of TD Canada Trust
- TD Canada Trust $150 Cash Bonus
- TD Canada Trust Secured Credit Card
What is the History of TD Canada Trust?
The current TD Canada Trust division was formed after the bank’s acquisition of Canada Trust in 2000. New accounts are officially issued by TD Bank, although Canada Trust remains a separate subsidiary entity, and the issuer of accounts opened at that institution prior to the merger.
TD Canada Trust markets itself as having longer hours than any other major bank. Most branches are open 8am-6pm Monday to Wednesday; 8am-8pm Thursday & Friday; and 8am-4pm on Saturdays. Some exceptions are made for very low traffic branches. As of February 2011, over 300 branches are open 12 noon-4pm on Sundays.
Canada Trust was formerly an independent company, originally founded in 1864 as Huron and Erie Savings and Loan Society. The company was acquired by TD Bank in 2000, which adopted the new brand name TD Bank Financial Group. Canada Trust's retail division was merged with TD's existing retail banking operations over the course of 2000-2001 to collectively form TD Canada Trust. Canada Trust President and CEO W. Edmund Clark was made President and COO of TD, and later ascended to President and CEO of TD Bank Financial Group in 2002.
Pls See: en.wikipedia.org
What is the TD Canada Trust $150 Cash Bonus?
There are requirements to earn the cash bonus of $150.
With the Infinity Account ($14.95/ month), you are given access to a free checking account that gives you unlimited transactions. While on the other hand, the Select Service account ($29.95/ month) is a premium, all inclusive account where virtually all of your everyday banking needs is covered.
These accounts have high fees, especially the Select Service account although the Select Service account waives the annual fee of the premium credit card. This means you are able to get up to $170 waived depending on the credit card.
TD Canada Trust offers you the chance to get your account fees waived if you are able to keep a minimum monthly balance of $3,500 for the Infinite account and $5,000 for the Select Service account. If you are able to keep those balances, especially for the Select Service account, then this deal is more than worth the switch. You have until June 30, 2012 to get the requirements completed before TD Canada Trust ends the promotion.
Pls See: banknerd.ca
What is the TD Canada Trust Secured Credit Card?
Recent immigrants to Canada with no credit history find it hard to get approval for a credit card. This is the same for those who are trying to rebuild their credit rating after experiencing some financial difficulties.
For those going through this problem, a secured credit card could be the answer since it can help you establish or rebuild your credit, and give you the freedom and convenience of access to credit when you need it.
A secured TD Canada Trust Credit Card is a credit card secured by funds you deposit with the bank. Your credit limit on your card is set by the amount you deposit to secure the card. The bank holds the money you deposit as security in many cases for up to three years depending on the type of card you have.
In addition to helping establish or re-establish your credit history, a secured credit card gives you the same freedom and convenience enjoyed by other credit card users. A secured credit card is also a great way to take care of the following:
- Hotel reservations
- Car rentals
- Emergency purchases
Pls See: tdcanadatrust.com
Qualifications
Even if you have no credit rating or if your credit history could be better, you should still consider a secured credit card. Because you deposit the funds to secure the card in advance, you are almost guaranteed to be approved. The amount you deposit must be at least as much as the minimum credit limit for the card you choose.
Comments (0)
CMA Blog Home
What is a Credit Repair Company?
The prevalent use of credit report has caused credit report agencies to form a three digit number based on customers’ credit reports. This number plays a very important role when it comes to loan applications. Consumers with low three digit numbers will have to pay higher interest while those with high scores are asked to pay lower interest rates. This is the job of credit repair companies in Canada. These companies try to alter the negative data on your credit report. However, debate is going on whether these credit repair firms are authorized to do this.
Pls See: canadian-money-advisor.ca
This article talks about the following:
- Repairing Bad Credit
- Fair Credit Reporting Act
- Legitimate Credit Repair
What is Repairing Bad Credit?
Your credit rating determines whether or not you will be able to get any kind of loan in the future. A bad mark on your credit report, such as filing bankruptcy, will remain on your credit record for a maximum of seven years. The information is dropped from your record after this period.
Unfortunately, you cannot erase your bad credit completely because it is not possible to remove bankruptcy from the report. However, there are things that you can do to improve your credit history. There are tips on how you can repair bad credit follow:
Get a credit report. You need to do a credit check on yourself. In most cases, you can obtain your own credit report for free, or by paying a minimal fee.
Review your credit report for any errors or negative comments. An error may include a debt that you have already repaid. A negative comment may result from a department store credit card that you stopped using ten years ago. If it still has a $10 balance owing, this may still show up on your credit report.
Correct any errors on your credit report
If you find an error, contact the credit bureau and offer proof that you do not owe the money. You may need a letter from the creditor indicating the payments were made. Another option is to provide cancelled cheques showing payments were received.
You may also send a letter to the credit bureau explaining your side of the story. Your comments can be attached to your credit report.
Save Money. Having cash in the bank is the best strategy to ultimately repair your credit. Cash can be used as a down payment or a security deposit when you are borrowing money, which is very important after bankruptcy.
Pay off your debts. Even if your credit report indicates that you have made all of your regular monthly payments, a potential lender may not look positively at your high levels of debt. The solution is to pay off as much of your existing debt as possible before applying for a new loan.
Take other actions. If you have more debt than you can possibly repay, your credit report will only improve by formally dealing with your debts. You may need to file a formal proposal to your creditors, or consider consumer credit counselling and a debt management plan.
Pls See: moneyproblems.ca
What does the Fair Credit Reporting Act Say?
The Fair Credit Reporting Act states that you can dispute your credit report errors for free but this process takes time. You need to apply for your credit report, review and file errors, and send dispute letters to creditors. An alternative is to hire a credit repair firm, which does all the work for you. However, there is a big possibility that you may end up with fraudulent companies promising 100 percent bad credit remedy including removal of bankruptcies. This is not legally acceptable. It is important to know that you are hiring a legitimate credit repair service to solve your credit problems or you end up with more problems than before.
What is Legitimate Credit Repair?
Ask your friends or relatives about credit repair companies that they have approached in the past for similar problems.
Check out the company before you start making any deals. Find out if there are any pending legal cases filed against the company.
Check the fee payment policy of the company. According to the Credit Repair Organizations Act, you are not entitled to pay the company until they deliver on all their service guarantees. It is not advisable to make any upfront fees.
Ask them how they go about repairing credit. If they say that they would dispute all negative information on the credit report including accurate and inaccurate, then just ignore the company. It is not possible to remove accurate negative information of bankruptcies, bad loans, and lawsuits, from your credit report. Bankruptcy cannot be removed from the report for 10 years, judgements and lawsuits stay for 7 years or until the expiry of the statute of limitations, under law.
Ask what information the company provides on its contact form. A contact form should give the company name and address, complete details on the services to be offered, total cost of services and payment policy. It should also include information on the time period required to achieve the target and other service guarantees. There should be a grace period of three days after signing of contract until which the company cannot start their services for you. You have a right to cancel the contract during this period without any payment of fees.
Pls See: ehow.com
Credit Cards and Credit Repair
Credit cards are convenient and adaptable payment tools. However, credit card holders should be prudent in their spending habits. Failure to pay purchases on time can lead to bad credit records and this may require expensive credit repair just to resolve the problem.
Comments (0)
CMA Blog Home
What is Hard Credit Inquiry?
The hard inquiry is made on your credit report whenever a business checks your credit report after you made an application for a credit card, loan or other services.
When you check your credit report, you will see both hard inquiries and soft inquiries. However, only hard inquiries will impact your credit score. Ten percent of your credit score is based on credit report inquiries. Soft inquiries do not impact credit scores. Hard inquiries will only impact your credit score for one year.
Pls See: credit.about.com
This article is about the following:
- Hard and Soft Credit Inquiries
- FICO
- Importance of Checking Credit Ratings
What are Hard and Soft Credit Inquiries?
If you are recovering from bankruptcy in Canada in today’s tough economy, it is important to be more vigilant than ever with credit profiles and credit scores. You may not even be aware if a credit check is being conducted on you. Each credit check that is conducted displays credit reports. This can lead to a lowering of credit scores.
The hard inquiry is one wherein your full credit profile and score are obtained by the company that you are getting credit from. It can be a car loan or a mortgage. A soft inquiry is one wherein a company just wants to verify some basic information like your name and address, but without asking for credit information. This may be done with your authorization, like to verify your identity when opening a bank account or by a credit card company wanting to send you a pre-qualified offer. When you submit that application, it goes through a hard inquiry. Requesting your own credit report is classified as a soft inquiry.
Pls See: afterbankruptcycanada.ca
What is FICO?
Here in Canada, the FICO Score Range can be easily understood from the Government of Canada’s publication called Understanding Your Credit Report and Credit Score. But what concerns many is that individuals do not know what is the criteria involved, nor is he informed about his rating; the banks are not obliged to inform the individual about his score – the impetus is on him if he wants to know. A Canadian citizen can order copies of their credit score visiting the Equifax site at: http://www.equifax.ca. You will not receive your credit score with your FREE credit report by mail.
Any bad credit history like delayed repayments of loans and bounced checks will adversely affect their credit score. Student loans, credit cards, home loans and mortgages can all be now decided in hours as the decision is taken on the customer’s FICO Score Range, which is readily available.
Pls See: en.wikipedia.org
What is the Importance of Checking Credit Ratings?
It is important to check your credit rating even once a year to find out any cases of possible identity theft and to determine your credit scores. Almost every adult Canadian has a credit file. This contains information about every loan that one has obtained for the last six years. Each of the accounts includes a notation that includes a letter and a number. The letter "R" refers to a revolving debt, while the letter "I" stands for an instalment account. The numbers go from 0 (too new to rate) to 9 (bad debt or placed for collection or bankruptcy.) For a revolving account, an R1 rating is the notation to have. That signifies that you pay your bills within 30 days, or "as agreed."
Pls See: cbc.ca
The Value of Credit Ratings
Consumers should make it a point to take care of their personal credit rating at all times. It is their scorecard that determines if they will be given additional loans in case of need.
Comments (0)
CMA Blog Home
What is Equifax Dispute?
Equifax Inc. is a consumer credit reporting agency in the United States. It is one of the three largest American credit agencies along with Experian and Trans Union. It was established in 1899 and is the oldest of the three agencies. It collects and maintains information for over 400 million credit holders worldwide. Based in Atlanta, Georgia, Equifax is a global service provider with US $1.5 billion in annual revenue and more than 7,000 employees in 14 countries. The company grew quickly and in 1920 had offices throughout the US and Canada. The Retail Credit Company is one of the nation's largest credit bureaus. It holds the files of millions of American and Canadian citizens.
Pls See: en.wikipedia.org
This article is about the Equifax Business Marketing Services; Equifax Dispute in Canada; and, Credit Reporting Act in Canada.
What are Equifax Business Marketing Services?
Equifax has been helping business organizations choose the right customers for more than a century by providing them with credit reports and credit risk scores. It has expanded its offerings to assist clients in their sales and marketing efforts.
Equifax Business Marketing Services presents a suite of business-to-business solutions that will help you reach your target customers whether they are large corporations or SOHOs (Small Office Home Office). Equifax can help you pre-qualify potential customers before a mailing is sent, a phone call is made or a sales representative is dispatched. These business marketing solutions can assist in doing the following:
- Target new customers
- Increase the base of customers
- Design marketing campaigns
- Develop prospecting strategies
- Do market analysis
Big Canadian enterprises and small businesses alike trust Equifax risk predictor scores to avoid problem accounts. Equifax credit risk scores and business trade data bring a higher level of sophistication to standard marketing lists, enabling you to pre-qualify potential customers. Thus, these objectives are met:
Avoid making sales calls on deadbeat prospects.
Avoid wasting precious advertising dollars sending promotional materials to companies that fail to pass your credit screening.
Improve profitability by avoiding high-risk accounts.
Save time and effort collecting on slow accounts.
Pls See: equifax.com
What is the Equifax Dispute in Canada?
Canadian Money Advisor recalled how Equifax sent out press releases about the rising bankruptcy cases in Canada (by 20%) in 2010. This incident and the exchange of credit information between financial institutions made life difficult for the average to avail an unsecured loan or a mortgage.
Equifax believed it did right in releasing the data about rising bankruptcies. However, given the scope of their data regarding an individual’s credit history, date of birth and social security information, critics felt the protagonists should have been prevented in exchanging such sensitive information.
There are numerous cases where people dispute their rating which is called Equifax dispute. The affected people are justified in their anger and clamor for restrictions on Equifax because this data is compiled with no input from the person involved. Any discrepancies will generate a dispute and the time normally taken to resolve them is anywhere between 60 to 90 days.
Pls See: canadian-money-advisor.ca
What is the Credit Reporting Act in Canada?
The Credit Reporting Act explains the information that credit reporting agencies are allowed to collect. This includes the recipients of the information and for what purposes the reports can be used. By limiting the information that a credit agency can include in credit reports, the act works to guarantee the privacy of Canadian citizens.
Credit reporting agencies are private, licensed businesses that retain and provide credit information. This can be released upon request to employers, banks and other businesses. Activities are overseen by the attorney general's office, which also holds the right to revoke licenses of companies, if they fail to comply with regulations set by the Credit Reporting Act.
Pls See: ehow.com
Mission of Equifax
The mission of Equifax is to assist clients identify and reach the right customers for their business-to-business sales and marketing needs. It also deals with credit reports and credit risk scores.
Comments (0)
CMA Blog Home
What are Credit Tips?
Customers should know the meaning and value of credit tips. These pointers enable consumers to manage all types of concerns regarding credit cards, credit ratings and scores. There are credit card tips from Canada Banks as well as pointers about credit reports, files, scores and ratings.
This article talks about the following:
- Credit Card Tips
- Credit Reports and Files
- Credit Scores and Ratings
What are Tips regarding Credit Cards?
Canadian banks mention a lot about credit card tips. The first credit card tip is – Don't carry a balance on your credit card. If you can pay all your credit card bills in full each month. If you really have to carry balance on the card, consider using cheaper borrowing alternatives like personal line of credit.
Do not take cash advances. With most credit card purchases you have grace interest free period, during which you can repay what you spent on the credit card. If you pay your credit card bills on time, you do not have to pay a single cent in interest charges. This is not the case with cash advances. With cash advances, the interest is charged from the moment you get the cash advance until you have repaid it in full. When taking cash advances, the credit card issuer might charge you a service fee. If you really have to get a cash advance, then try to pay it back as soon as you can.
Choose your credit card carefully. Don't get just any credit card, but do a thorough research before applying for one. Don't be fooled by the enticing no interest credit cards advertisements and reward programs. Choose a credit card which is right for you and you'll be able to easily manage.
Use pre-authorized payments to pay your credit card bills or pay them always on time. By using pre-authorized monthly credit card bill payments you are ensuring that your credit cards are paid on time and you won't be charged any interest. Credit card debt is one of the most expensive loans you can get.
Pls See: canadabanks.net
What are the Different Credit Reports and Files?
Your credit history is recorded in files maintained by at least one of Canada's major credit-reporting agencies: Equifax Canada and Trans Union Canada. This is kept along with the credit histories of millions of other people. It is possible to obtain your credit file for free. Please consult the agencies' websites in order to obtain more information. These files are called credit reports. A credit report is a snapshot of your credit history. It is one of the main tools lenders use to decide whether or not to give you credit. Your credit file is created when you first borrow money or apply for credit. Companies, which lend money or issue credit cards to consumers, send specific factual information related to the financial transactions they have with you to credit reporting agencies. These are including banks, finance companies, credit unions, retailers.
Pls See: ic.gc.ca
What are Credit Scores and Ratings?
Your credit score is a status of your financial condition. There are many different ways to work out credit scores. The credit-reporting agencies Equifax and Trans Union use a scale from 300 to 900. High scores on this scale are good. If your score is high, it implies lesser risks for the lender. Lenders may also have their own ways of arriving at credit scores. In addition, lenders must decide on the lowest score you can have and still lend you money. They can also use your score to set the interest rate you will pay.
Some credit-reporting agencies report the lenders' rating of each of your credit history items on a scale of 1 to 9. A rating of "1" means you pay your bills within 30 days of the due date. A rating of "9" means that you never pay your bills at all or that you have made a consumer debt repayment proposal to the lender. A letter will also appear in front of the number: for example, I2, O2 and R2. The letter stands for the type of the credit you are using.
- • "I" means you were given credit on an instalment basis. This can be a car loan, where you borrow money once, and repay it in fixed amounts. This should be on a regular basis and for a specific period of time until the loan is paid off.
- • "O" means you have open credit such as a line of credit, where you borrow money, as needed. This is up to a certain limit and the total balance is due at the end of each period.
- • "R" means you have "revolving" credit, where you make regular payments in varying amounts depending on the balance of your account. You can also borrow more money up to your credit limit. Credit cards are a good example of "revolving" credit.
The most common ratings are "R" ratings. These are known as North American Standard Account Ratings and are the most frequently used. The "R" indicates that the item being described involves revolving credit. If you always pay on time, it will be coded an R1. If an amount was written off because you never paid it back, it is coded R9.
Pls See: ic.gc.ca
Responsible Cardholders
Consumers must know that it is important to make sure that you settle all payments on time. This is the only way for you to maintain good credit scores and ratings. If you do this regularly, there will be less problems in managing your credit reputation.
Comments (0)
CMA Blog Home
What is a Prepaid Credit Card?
A prepaid debit card (also called a reloadable debit card or reloadable prepaid card) is often used for recurring payments. The payer loads funds to the cardholder's card account. Prepaid debit cards use either the offline debit system or the online debit system to access these funds. Prepaid debit cards allow the delivery of international payments without the delays and fees associated with international checks and bank transfers.
Pls See: itlaw.wikia.com
The article discusses the following:
- Prepaid MasterCard and Visa Cards in Canada
- Steps in Getting this Card
- The Debit Card
What are Prepaid MasterCard and Visa Cards in Canada?
These prepaid stored-value cards are not true credit cards even though they are Visa and MasterCard. They are, however, processed just like their credit card counterparts, and look just like them too. In theory, these cards should, but do not always, work everywhere. You may have to register an address with the cards online, even if nothing is being shipped. Companies can choose to reject all prepaid cards if they want to. The BMO reloadable prepaid card, which you have to apply for, is registered with your name, address and other details. It should have no problem working everywhere. However, it can still be an issue.
Information on Prepaid Visa and Master Cards in Canada
- It is good for privacy for those who cannot get a credit card and offers security while doing online transactions.
- It is not often accepted for rentals and in hotels or motels.
- It should not contribute to your credit rating. Some do check for identity verification, or because you can go into debt with non-instantly processed payments.
- It is not a bad way to carry money if you do not have a credit card while travelling
- It is accepted in most places where a MasterCard or Visa card is accepted.
- The zero-liability policy that Visa and MasterCard have applies to these prepaid cards just like regular cards.
- Reloadable cards always require ID and some kind of application process
- Most cards on the market charge fees for various transactions.
Pls See: dan.matan.ca
What are the Steps in Getting this Card?
Determine your need - Do you want a prepaid credit card or a real credit card? If you are under the age of 18, a prepaid card is your only option. It does however have some fees. The $8 fee is charged for the first activation + cash load, and after that it is $5 per load. If one loads $500 this translates to a 1% fee.
Find a CAA Location - You need a CAA membership for this step, but if you don't have one you can use that of friends or family. Bring your money to the CAA location. You can use cash or debit to load the card. CAA is by far the cheapest provider of prepaid debit cards in Canada. Purchase the card - They will walk you through loading up the card and setting it up.
Pls See: ehow.com
What is a Debit Card?
A debit card (also known as a bank card or check card) is a card that provides the cardholder electronic access to his or her bank account at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account of the payee. The card can be used as an alternative payment method to cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.
In many countries, the use of debit cards has become so widespread that their volume has overtaken or entirely replaced checks and, in some instances, cash transactions. The development of debit cards, unlike credit cards and charge cards, has generally been country specific resulting in a number of different systems around the world, which were often incompatible. Since the mid 2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases.
Unlike credit and charge cards, payments using a debit card are immediately transferred from the cardholder's designated bank account, instead of paying the money back at a later date. Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash. Merchants may also offer cash back facilities to customers, where a customer can withdraw cash along with their purchase.
Pls See: en.wikipedia.org
Advantages of Prepaid Cards
The prepaid MasterCard cards are deemed to be acceptable and eliminate the risk of being rejected at shops. This feature will make it very attractive for travellers. The card is supposed to be accepted wherever a normal credit card is accepted. It is meant for consumers who cannot afford standard credit cards.
Comments (0)
CMA Blog Home
What is TD Canada Trust?
TD Canada Trust is the personal, small business and commercial banking operations of the Toronto Dominion Bank in Canada.
It offers an assortment of financial services and products to more than 10 million Canadian customers through 1,100 branches and 2,600 "Green Machine" ATMs.
The article discusses the following:
- History of TD Canada Trust
- TD Canada Trust $150 Cash Bonus
- TD Canada Trust Secured Credit Card
What is the History of TD Canada Trust?
The current TD Canada Trust division was formed after the bank’s acquisition of Canada Trust in 2000. New accounts are officially issued by TD Bank, although Canada Trust remains a separate subsidiary entity, and the issuer of accounts opened at that institution prior to the merger.
TD Canada Trust markets itself as having longer hours than any other major bank. Most branches are open 8am-6pm Monday to Wednesday; 8am-8pm Thursday & Friday; and 8am-4pm on Saturdays. Some exceptions are made for very low traffic branches. As of February 2011, over 300 branches are open 12 noon-4pm on Sundays.
Canada Trust was formerly an independent company, originally founded in 1864 as Huron and Erie Savings and Loan Society. The company was acquired by TD Bank in 2000, which adopted the new brand name TD Bank Financial Group. Canada Trust's retail division was merged with TD's existing retail banking operations over the course of 2000-2001 to collectively form TD Canada Trust. Canada Trust President and CEO W. Edmund Clark was made President and COO of TD, and later ascended to President and CEO of TD Bank Financial Group in 2002.
Pls See: en.wikipedia.org
What is the TD Canada Trust $150 Cash Bonus?
There are requirements to earn the cash bonus of $150.
With the Infinity Account ($14.95/ month), you are given access to a free checking account that gives you unlimited transactions. While on the other hand, the Select Service account ($29.95/ month) is a premium, all inclusive account where virtually all of your everyday banking needs is covered.
These accounts have high fees, especially the Select Service account although the Select Service account waives the annual fee of the premium credit card. This means you are able to get up to $170 waived depending on the credit card.
TD Canada Trust offers you the chance to get your account fees waived if you are able to keep a minimum monthly balance of $3,500 for the Infinite account and $5,000 for the Select Service account. If you are able to keep those balances, especially for the Select Service account, then this deal is more than worth the switch. You have until June 30, 2012 to get the requirements completed before TD Canada Trust ends the promotion.
Pls See: banknerd.ca
What is the TD Canada Trust Secured Credit Card?
Recent immigrants to Canada with no credit history find it hard to get approval for a credit card. This is the same for those who are trying to rebuild their credit rating after experiencing some financial difficulties.
For those going through this problem, a secured credit card could be the answer since it can help you establish or rebuild your credit, and give you the freedom and convenience of access to credit when you need it.
A secured TD Canada Trust Credit Card is a credit card secured by funds you deposit with the bank. Your credit limit on your card is set by the amount you deposit to secure the card. The bank holds the money you deposit as security in many cases for up to three years depending on the type of card you have.
In addition to helping establish or re-establish your credit history, a secured credit card gives you the same freedom and convenience enjoyed by other credit card users. A secured credit card is also a great way to take care of the following:
- • Hotel reservations
- Car rentals
- Emergency purchases
Pls See: tdcanadatrust.com
Qualifications
Even if you have no credit rating or if your credit history could be better, you should still consider a secured credit card. Because you deposit the funds to secure the card in advance, you are almost guaranteed to be approved. The amount you deposit must be at least as much as the minimum credit limit for the card you choose.
Comments (0)
CMA Blog Home
Notes on Personal Finance:
Coping with Financial Risks
The solution to sustained wealth is to formulate a long-term plan and focus on that plan. You should be flexible and capable of making modifications when necessary. Planning your personal finances is not merely for a single time but should last for several years.
You have to be prepared for any risks to your financial security like an untimely death.
Your future plans definitely do not include dying young. However, failing to plan for a worst case scenario leaves your family open to many dangers.
Here are some suggestions from the Cindy David Financial Group:
Life insurance guarantees ongoing financial support to help surviving family members live comfortably if something happened to you. With the proper amount of coverage, your spouse could maintain the same standard of living while taking the time to grieve and get organized. In considering your needs, we’ll help you review regular household expenses, final expenses such as medical and funeral costs, future family income, and debts such as your mortgage, car payments, loans and credit cards.
Becoming disabled
Your financial future depends on your ability to earn an income. Disability insurance provides a monthly payment to replace your regular income if you’re unable to work. If you have children or other dependents, they rely on your income-earning ability as well. For example, if you support aging parents, consider their financial and healthcare needs if something were to happen to you. Bear in mind:
- • Your group coverage through work or a professional association, while valuable, often has restrictions and coverage limits.
- • Unemployment insurance only covers your income for 15 weeks.
- • Worker’s Compensation only covers accidents that are work-related.
- • Canada Pension Plan benefits vary and depend on future legislation
A private plan provides you with both guaranteed coverage and guaranteed premiums.
Becoming critically ill
Odds are 1 in 4 that you’ll suffer a life-threatening illness during your lifetime. And while it’s likely you’d survive, your retirement plans might not. Critical illness insurance pays you a lump sum benefit if you become seriously ill. The money can be used to fund private or alternative medical treatment, pay down a mortgage or other debts, or even fund a holiday to aid recovery, all without dipping into your retirement fund.
Long-term medical care
There is a real chance that at some point in your life you may need to enter a long term care facility or receive special medical care in your home. This type of care does not come cheap, and depending on the level of care you may want or need, the cost may not be paid by your government health plan.
With the benefit that comes from long term care insurance, you may not have to withdraw from your savings, or fully rely on other sources of funding.
Personal Finance Tips
You need to review and be able to change your financial plans when needed. Some of these may include:
- Changes in Profession
- Dramatic income adjustments or pursuing further education
- Marital status, such as divorce, separation, marriage or re-marriage
- New children or grandchildren
- Purchasing a home
Pls See: cindydavid.ca
Comments (0)
CMA Blog Home
Notes on Personal Finance and the Need for Safety Training:
Canadian Money Advisor says there is a need for Personal Finance Safety Standards for Canadians. There should be safety practice just like in the oil mines, says Monty Loree. In personal finance, this can be likened to controlling debt or saving money in the bank.
Pls See: canadian-money-advisor.ca
Personal Finance Strategies
In Canada, there are several personal finance strategies and each has its own benefits and weaknesses.
The Registered Education Savings Plan provides that for each dollar you invest in the RESP, the government will add 20 per cent matching grant of up to $500 every year or $7,200 for the life of the plan. However, if your children do not proceed to take any postsecondary education, you stand to lose the grant.
On the other hand, investments in a Registered Retirement Savings Plan ensure that contributions are tax-deductible and the growth of your money is shielded from tax. You can get a substantial tax refund depending on your contributions. The disadvantage is that RRSPs can still
Tax-free savings account allows you to set aside $5,000 a year tax-free throughout your life but there is no forthright tax deduction. Guaranteed Investment Certificates have relatively low rates of return but are secured by the government since these are secured by the government.
Equities garner higher returns and perform well the risk is when the market becomes unstable, investing in equities is adversely affected since investors tend to pull out.
Pls See: canadianliving.com
The Best Investment Strategy
There are different modes of achieving your retirement goals. Choose the right ones depending on your cash flow, personal priorities and objectives. It may be wise to work with investment advisers.
According to the Cindy David Financial Group, segregated funds and Guaranteed Minimum Withdrawal Benefits (GMWBs) combine the security of guarantees with potential for growth.
- • Predictability – Your investment is guaranteed and you will receive payments over a minimum period of 20 years. If you choose to delay the withdrawal period, you obtain a 5% increase in your guaranteed withdrawal balance each year that you put off making withdrawals, up to a maximum of 10 years.
- • Growth Potential – As your portfolio grows, you can lock in your guaranteed balance every three years.
- • Estate Benefits – Your investment proceeds pass directly to your named beneficiaries, avoiding the delay and expense of probate.
- • Flexibility- You can switch between funds or fund managers at any time.
Saving for your Children’s Future
Registered Education Savings Plans (RESPs) provide a special incentive to save for educational purposes. Consider the following:
• The federal government will match 20% of your annual RESP contribution to send your kids or grandchildren to school, via the Canada Education Savings Grant (CESG). As much as $500 per year, per child is available up to the beneficiary’s 17th birthday.
• Families who qualify for the Canada Child Tax Benefit also qualify for Additional CESG. Beneficiaries can accumulate $100 (20% of $500) of Additional CESG annually, to a maximum lifetime CESG (Basic and Additional) limit of $7,200. Unlike the basic CESG, unused Additional CESG can’t be carried forward to future years, so it’s important to capitalize on it every year it’s available.
• The Canada Learning Bond (CLB) is another grant of up to of $2,000 (lifetime maximum) available to modest-income families. The CLB amount pays into the RESP and does not affect the lifetime RESP contribution limit. If the beneficiary chooses not to pursue post-secondary studies, you may be able to transfer the balance to a registered retirement plan.
Pls See: cindydavid.ca
Comments (0)
CMA Blog Home
Personal Finance Safety:
Emergency Funds
The concept of setting up and maintaining an emergency fund is not unattainable!
In fact, this can be the solution to paying off bills and acquiring extra money.
Smart Money Daily describes it as “an important piece of living a stable and sound financial life.” Emergency conditions come in many forms so you have to be prepared for it.
How Much Emergency Fund should you own?
Owning an emergency fund is essential.
The question is how much should your emergency money be worth?
Personal finance experts say that this should be enough to pay your bills for at least three months.
It should be accessible to you at all times and yet safe from any hazards. The more important thing is that it should not just be kept away in some steel safe or buried in your backyard. The more appropriate term is “You need to put it to work for you.” In other words, it should be generating some kind of revenue while you are waiting for the day when you might need it.
There must be minimal interest even if it is just very small.
The emergency fund can be in several places. It can be a high-interest checking account that can earn at least 4% in interest. This account allows the saver liquidity, accessibility, and virtually zero risk since the account is insured. It can be a certificate of deposit which guarantees almost 5% in interest or bond investment that gives roughly 6% annual returns.
What it means to Canadians?
Get started if you have not even started an emergency fund. Emergencies in life can happen anytime and take many shapes and forms. It will be imprudent of you not to have some money saved for these kinds of situations.
Place it somewhere where it is working for you. Just because it’s an emergency fund does not mean that it is not gaining interest for you. There are a million places where you can put it. Keep it in a safe and low-risk type of account even if it only allows you to earn less than one percent in interest. These gains are still very important.
Pls See: smartmoneydaily.com
Entrepreneurship is a Good Option
It is not too late to become an entrepreneur.
Most people reach a certain age and think that they simply can’t do it (whatever it may be) anymore. This is simply not the case. Yes, when you’re young and fresh, starting a new business or running a marathon can be a lot easier. However, it doesn’t mean that you can’t start a business and be successful when you’re more than 60 years old!
Pls See: smartmoneydaily.com
The following are some benefits of entrepreneurship:
- You will do something you love and you can do it very well.
- You have freedom when you become an entrepreneur.
- There is recognition and self-fulfillment.
- There is balance in this kind of activity.
- Income potentials are good especially if the entrepreneur has drive and passion.
Pls See: financialplanninginfoguide.com
Comments (0)
CMA Blog Home
Heads Up on Financial Safety
The book, “Money and Your Mind: Understanding and Taking Charge of the Ways You Spend” talked about “Secret Meanings of Money”
It described that “short-term and long-term choices about your money begins with understanding your own approach to earning, spending, saving, and investing.” It is important to find out the “secret meanings that money, risk, and reward have for you.” When you have accomplished this, you can start building up a constructive and inspirational method of financial management that you can cope with through “easy and difficult financial periods.”
Understand your own point of view towards Money
The vital step in understanding your own attitudes toward money is to recognize your capacity in fund management. “The bad news is that many people are subject to self-delusions about their spending habits. The good news is that there's a simple process you can use to do away with your distorted views no matter what they are.”
Monitor your daily expenses on a regular basis.
The author states that you need to document credit card spending at the time you make the purchase, not the day you pay the bill. “Create a checklist so you don't overlook online, telephone, or catalogue purchases. Make a note of the day you pay mortgage, utilities, insurance premiums, and other bills. If you're married or have commingled finances with a partner, housemate, or family member, you and your partner should each keep a separate diary. Then combine the information from each diary to form a single document. Does this sound like "too much trouble"? Well, that feeling is your first psychological checkpoint. If you believe you don't have fifteen to thirty minutes available to write down your daily expenses, you're building up excuses for remaining financially disorganized and out of control.”
This technique will make you keenly aware of the fact that money that seems to "disappear" because you spend it stupidly and have nothing to show for it.
Pls See: books.simonandschuster.com
Achieve Financial Independence
You also need to attain financial independence.
Money Sense revealed that, “Financial Independence is not about getting rich quick but about getting rich slowly and surely.”
It is essential to change human capital into financial capital!
People complete their college education and embark on their profession while still young. Then majority settle down, get married, start families and buy real estate property. You can make use of human capital with the chance to earn money working but with very minimal financial capital.
The article Financial Independence Begins Here spells out that “Depending on the situation with student loans and credit cards, many may be mired in debt throughout their 20s. Job one is to get debt-free, or arrange our affairs so the only major debt is the mortgage on our home. As I’ve written elsewhere, the foundation of financial independence is a paid-for home. As the decades pass, we endeavour not only to eliminate all debt, including the mortgage, but to build wealth. The process to do this I’ve called “guerrilla frugality,” a sort of super-frugality that makes a lifelong habit out of creating a surplus between what we earn and what we spend. When we’re in debt, we practice frugality and apply that surplus to paying off the debt. That’s because the game doesn’t end once we’re free of debt. Being debt-free isn’t the finish line. It just means you’ve left the starting gate.”
Pls See: moneysense.ca
People need to spend ample time to generate wealth. The best way to do that is to continue to be thrifty. On the personal finance safety side, you should apply the excess now not to debt repayment but to invest in financial securities. This can be the kind of equity and fixed-income investments that are usually discussed in financial publications and forums.
Comments (0)
CMA Blog Home
Money and Financial Safety Pointers
An expert in personal finance (Alvin Hall) wrote about the whys’ and how’s’ of financial safety in an online article entitled Your Money or Your Life: A Practical Guide to Managing and Improving Your Financial Life
The author emphasized the need to own an emergency fund since everybody will encounter financial emergencies at any point in his or her life.
Hall said that “most people will suffer a significant loss of income at some point in their lives — losses that can plunge them into near poverty if there’s no financial cushion to fall back on.”
These emergency situations include:
- • Being fired from a job at a time when unemployment is a nationwide concern
- • An injury that will cripple you or prevent you from working again
- • A serious accident
- • Mental or emotional problems that afflicts a member of the family
- • A fire that destroys your home
- • An unexpected lawsuit
What must you do?
Even before any of these things take place, start saving money!
Hall pointed out “the problem most people have with saving is that they mentally spend their income before they get it.”
He explained that people should start by setting a target. You must know how much you want to save.
This was the example given by the author: “A good target is 10 percent of your take-home pay. (Ten percent will allow you to build your six-month fund in less than five years.) But if that amount seems like a daunting goal, don’t make that into an excuse to do nothing. Take this money out of your pay check up front even before you spend a penny on anything else. Better still, arrange for automatic withdrawals from your checking account into a savings account. Most banks will be happy to set up such a plan for you.
Deposit this “top 10 percent” into your account and then pretend that this account doesn’t exist; don’t even get an ATM card for it. If the bank sends you one anyway, cut it up. And when making your spending plans, don’t factor this money into your income. You know the old saying: Out of sight, out of mind. Keep your savings account out of sight, and soon it will slip out of your mind… except when you look up your balance, to congratulate yourself on how nicely it’s growing.”
Pls See: tipsoncareerandmoney.com
A blog post in Canada mentioned the following:
Interest rates fluctuate with the changes in the economic situation of a country and that of the whole world. This can be bad as well as good news for people depending on how they choose to view the situation as. Low interest rates can lead you to take steps that can benefit you in the short run as well as in the long run.
Try to refinance your loan
If the interest rates become significantly lower than the rate at which you had borrowed your loan it is time to refinance your loan. Once your credit score has improved, you will have another factor contributing to a lower interest rate. Pay off your older higher-interest loan with the newer one and continue to enjoy a lower rate of interest until the entire loan is paid back.
Get a Loan
Low interest rates are perhaps what those in need of loans pray for. If you have been unable to consider getting a loan before because of high interest rates, this is the time now. If interest rates have lower, it is the perfect time for you to re-consider your options. Whether it is a home loan, car lease or a student loan, your dreams stand a better chance of being fulfilled than ever before.
Transfer your Savings
Since your bank account is most likely to follow the federal interest rate in a matter of a few months, it is preferable that you transfer your savings from your current account and invest in a place with a relatively better rate of return.
Pay off Debt
If your debt follows the current interest rate, lowered interest rates give a reason to pay back that loan as soon as possible. However, do keep an eye on speculations. You don’t want to pay off all the debt and watch the interest rate go even lower. Seek professional advice about the extent to which your debt repayment schedule should be sped up.
Open a Regular Savings Account
Banks usually do not follow the federal interest rate, but after a few months their rates do reflect the changes in the economy. When interest rates falling, there is usually on guarantee on how much they might end up falling. If you have a significant saving, consider it a good time start a regular savings account. Such accounts give you returns based on a fixed interest rate.
Pls See: blog.budgetpulse.com
Financial Markets
It is advisable to monitor closely financial markets to find opportunities particularly during difficult economic times. Make it a point to keep track of issues on loan refinancing, savings strategies and retirement.
Comments (0)
CMA Blog Home
Principles of Personal Finance Safety Training
The Canadian Centre for Occupational Health and Safety says that in Canada’s construction sector, the “Material Safety Data Sheet or MSDS is a document that contains information on the potential hazards (health, fire, reactivity and environmental) and how to work safely with the chemical product. It is an essential starting point for the development of a complete health and safety program. It also contains information on the use, storage, handling and emergency procedures all related to the hazards of the material. The MSDS contains much more information about the material than the label. MSDSs are prepared by the supplier or manufacturer of the material. It is meant to identify what the hazards of the product are, how to use the product safely, what to expect if the recommendations are not followed, what to do if accidents occur, how to recognize symptoms of overexposure, and what to do if such incidents occur.”
Pls See: ccohs.ca
This principle can and should be applied as far as personal finance safety is concerned.
Financial Outlook of Canadians
Canadians need to widen their financial awareness.
They need to know how to use the information available to them in building a financial safety net or to get trained in harnessing personal finance safety techniques.
According to the Task Force on Financial Literacy:
One of the challenges of raising financial literacy levels is to ensure that people know about targeted education initiatives available for their benefit and are able to clearly understand and utilize them. Many Canadians are either unaware of the considerable amount of financial information readily available across the country, are unsure of its credibility, or simply do not understand it. Moreover, some people underestimate their need for financial education.
There has to be a focus on delivery in a broader sense: reaching Canadians on a mass scale. A variety of awareness-building tactics is needed: a single source website; a broad public education campaign, as well as one specifically geared to financial fraud awareness; a self-assessment tool to help Canadians evaluate how savvy they are about their own money; and financial literacy awards and contests. As another “building block” for making lasting improvements in financial literacy, we also emphasize the importance of clear communication.
To become financially literate, Canadians across the country need to be able to readily find reliable, trustworthy information. The Internet can be a powerful tool in this regard, given that Canada has one of the highest rates of Internet use in the world: 80 percent of Canadians aged 16 years and older used the Internet for personal reasons in 2009, up from 73 percent in 2007.
Pls See: financialliteracyincanada.com
The Essence of Public Information
Creative and effective awareness-building is indispensable to any public information campaign. Individuals, families and those involved in the delivery of financial education need to be enlightened about how to access trustworthy financial education resources.
The Government of Canada works with stakeholders and marketing communications experts to mount a dedicated national campaign to increase awareness and inform the public about financial literacy issues.
The campaign should catch the attention of Canadians of all ages, social groups, economic situations and locations. To reach a diverse population, the campaign should use an extensive range of communications media and technologies, including the Internet, social media (Facebook, Twitter, You Tube), television, radio and print (brochures, ads and outdoor banners).
Pls See: financialliteracyincanada.com
Comments (0)
CMA Blog Home
Personal Finance Planning: An Overview
Personal financial planning can consist of two basic goals:
The first is to control your daily finances that will allow you do things that bring contentment and financial gains.
The second is to choose and follow a course towards enduring financial objectives.
In other words, a financial safety net is needed to prevent financial adversities caused by sicknesses and personal misfortunes.
Entitlement to Pensions, Benefits and Personal Finances
In Ontario, when someone dies, the family is entitled to pensions, benefits and personal finances.
If somebody passes away, there are many different organizations and levels of government that need to be notified. Also, some of these organizations and levels of government may have compensations and benefits to which the deceased person’s family or dependents may be entitled.
There are federal and provincial benefits such as:
Federal
- • Canada Child Tax Benefits and Universal Child Care Benefit
- Canada Pension Plan and Old Age Security Program
- Canada Savings Bonds
- Goods and Services Tax (GST) Credit
- National Defense Disability and Death Benefits
- Veterans Affairs Disability Program Benefits
- Veterans Affairs Funeral, Burial and Grave marking Assistance
Provincial
- Guaranteed Annual Income System
- Ontario Disability Support Program
- Ontario Drug Benefits
- Ontario Savings Bonds
- Ontario Works
- Quebec Pension Plan
- Trillium Drug Program
- Workplace Safety and Insurance Board Benefits
This may be the same or similar for other provinces and cities in Canada.
Pls See: ontario.ca
However, this may not be sufficient. Thus, the individual needs a form of financial safety net and personal finance training to achieve and sustain their existence.
This may be the essence of personal finance safety training.
However, before we even start to consider this unique approach, it is necessary to be familiar with the benefits of personal financial options such as:
Continuing Disability Insurance
Long-term disability insurance is a replacement for income if a worker is not capable of working due to sickness or injury. Many people consider this coverage a luxury. The truth is this can be considered a necessity for those who do not possess sufficient financial resources. Even if you do have other financial resources, do you want to use them in paying monthly bills? If you saved 5% of your income annually, disability for six months can consume 10 years of savings.
Life Insurance is a Must
Life insurance is necessary if you have dependents who will suffer financially if you die unexpectedly. Many people utilize insurance as part of their estate planning and cash acquisition regardless of their dependent status.
If you plan to buy insurance other than term insurance provided by your employer, you should educate yourself about the advantages and disadvantages of this program.
Pls See: financialplan.about.com
Financial Safety Net
The financial safety net should be in place not only to accumulate wealth but to achieve stability.
Comments (0)
CMA Blog Home
What is the Repair of Credit Scams?
The www.encyclopedia.com refers to credit repair scam as common illegal activity found on the Internet. Users who have a poor credit record and may have defaulted on a credit card payment—are encouraged to pay for a service which will allegedly restore their credit ratings. The architects of this scam will just keep the money that is sent to them without doing anything. Such schemes are conveyed to users usually through Spam Mail.
Pls See: encyclopedia.com
This article identifies the popular credit repair scams; distortions made by credit repair companies; and, repairing bad credit.
What are the Popular Credit Repair Scams?
The common credit repair scams are the following:
- Acquiring a new Social Security Number - Citizens are only permitted to have one Social Security number. It is against the law to use a different Social Security number to create a false identity.
- Getting a Federal Employer Identification Number - Proponents of this "file segregation" scam claim that you can obtain a federal tax ID number, as if you are a business, then get a clean credit record under that tax ID number. It is against the law to use an EIN to set up a false identity. A new credit report under an EIN will not show any credit history. It is unlikely that a creditor would regard a new business with no credit history as a good credit risk.
- Challenging Every Negative Entry on a Credit History - As a general rule, it is lawful for credit agencies to keep accurate records of negative entries on your credit history for up to seven years, and to keep records of any bankruptcy for up to ten years. There are certain circumstances where truthful negative information may be reported beyond those time periods. As much as you do not like having negative information on your credit report, your ability to object to inaccurate information is not meant to be a license to harass honest creditors in an effort to remove accurate negative entries.
Pls See: expertlaw.com
What are Distortions Done by Credit Repair Companies?
It is not true that if you have declared bankruptcy, it is not possible to get credit for the next ten years. The reality is that you can start building a positive credit history as soon as your bankruptcy is resolved. While creditors will be cautious at first, you can gradually demonstrate your fiscal responsibility, and build a history that can lead lenders to view you as a good credit risk long before the bankruptcy drops from your credit history.
Pls See: eexpertlaw.com
There are also indications about a questionable credit repair agency. Consumers are advised not to enlist the services of credit repair companies that do not adhere to industry standards or regulations. Likewise, it is not advisable to use credit repair firms that propose to "wipe out bankruptcies", remove accurate negative information from your credit history, or obtain credit for you regardless of your credit history. also reminds consumers of the following:
- Do not use a credit repair company that promises to exploit "secrets" or "little known" loopholes in the system to remove information from your credit history.
- Do not use a credit repair company unless it provides a written disclosure of your rights in relation to your credit history before asking you to sign a contract. The contract should include all the terms and conditions of payment, a detailed description of the services to be provided, including any guarantees of performance and an estimate of how long it will take to perform the contract. The agreement should also include a right to cancel lasting at least three days, in case you have second thoughts.
- Do not use a credit repair company that attempts to charge money before it has performed the credit repair services.
- Do not use a credit repair company that discourages you from directly contacting the major credit bureaus.
What are the Steps to Repair Bad Credit?
Obtain a credit report. First, you need to do a credit check on yourself. In most cases you can obtain your own credit report for free, or for a nominal charge. There are two main credit bureaus in Canada: Equifax and Trans Union.
Review your credit report for any errors or negative comments.
Save Money
Having cash in the bank is the best strategy to ultimately repair your credit. Cash can be used as a down payment or a security deposit when you are borrowing money, which is very important after bankruptcy.
Pay off debts
Pls See: moneyproblems.ca
Vigilance
You need to be alert to avoid being victimized by scams being perpetrated by unscrupulous individuals and groups passing themselves as legitimate credit repair companies. Aside from following these suggestions, it is important to remain alert and report any irregularities that you learn about.
Comments (0)
CMA Blog Home
What is Credit Card Insurance?
Credit card payments are important and should be made promptly. The value of credit card insurance comes along in times of bereavement, accidents, major sicknesses or loss of employment
The article provides information on the following:
- Credit Card Insurance Policies
- Credit card protection insurance
- Credit Card Outstanding Balance Insurance
What are Credit Card Insurance Policies?
Credit card insurance policies protect the cardholder in case of unforeseen events such as serious injury, disability, accidental death or unemployment. It is relied on to meet the minimum payments on your credit card.
However, while credit balance insurance policies can deliver peace of mind during tough times, there are a few factors consumers should keep in mind when deciding whether or not it's worth paying the premiums.
There are some pointers offered to consumers:
1. You may already have enough credit card coverage and not even know it. Many life and disability insurance policies include covering your credit card payments. Pricing on credit card insurance may vary so be sure to shop around.
2. If the amount of your outstanding credit card balance fluctuates, expect your premiums to do the same. Premiums are typically charged directly to your credit card every month and will change depending on your outstanding balance: the lower the balance, the lower the premium. If you carry a large balance from month to month on your credit card, the credit balance insurance premiums can quickly skyrocket.
3. Not sure if credit card insurance is right for you? Ask an issuer about a 30-day trial. Often you can cancel at any time or even obtain a refund for any premiums you have already paid. Just make sure you cancel the policy before it becomes an automatic monthly expense on your credit card bill. Better yet, take a long, hard look at your credit card statements.
The common limitations include:
- The company will pay off your credit card debt but only up to a maximum amount (usually between $5,000 and $50,000).
- Coverage is often limited to critical illnesses such as cancer, multiple sclerosis, paralysis and other serious conditions.
- Most policies will only make your minimum payments until you return to work.
Credit card insurance can lend a helping hand in the event of a job loss or serious injury.
Pls See: canada.creditcards.com
What is Credit card protection insurance?
Canadian Finance Blog says that Credit card protection insurance is another case of paying too much in premiums for very little protection. Many people signing up for this expect that it will pay off their credit card if they lose their job or become too sick to work.
The truth about credit card protection insurance is that it will only pay the minimum payments, and often only for up to one year. As far as the coverage for illness, you will not be covered if you already have the condition when you sign up. The cost for this insurance can be as high as 1.5% of your credit card balance.
These are some of the interesting findings from a recent market survey:
- 23% with credit balance insurance say they were not given full disclosure when it was sold to them.
- 22% with the insurance say it was never explained the policy was optional.
- 51% with the insurance say it was never explained that policy would not pay their entire balance if they lost their job or fell ill.
- 56% with the insurance said it was never explained the insurance wouldn’t cover pre-existing medical problems
While it is a good idea to make sure your minimum payments are covered for times when you’re unable to pay them, you would likely come out ahead by using the money paid on premiums to fund an emergency savings fund.
Pls See: canadianfinanceblog.com
What is Credit Card Outstanding Balance Insurance?
Credit card outstanding balance insurance pays your credit card balance or minimum payment up to a pre-determined maximum amount, in the event of your death, accidental dismemberment or critical illness. This insurance can help you maintain a good credit rating in the event of a covered accident or illness that leaves you unable to work, or your involuntary unemployment.
The credit card outstanding balance insurance can cost less than $1 per $100 of your previous month's statement balance (plus provincial sales tax where applicable). The details and benefits of coverage vary by lender and product. Benefits are paid directly to your lender.
- Disability, involuntary job loss, strike or lockout – In the event of your disability, job loss, strike or lockout, the insurance can pay your minimum monthly outstanding balance, up to a pre-determined maximum.*
- Critical illness, life, accidental death or dismemberment – In the event of your critical illness, death or accidental dismemberment, the insurance can pay your entire outstanding balance, up to a pre-determined maximum.*
All benefits are subject to conditions that are fully described in the certificate of insurance that you receive when you enrol for the insurance.
Pls See: canadalife.com
Awareness of Limitations
Many credit card insurance policies come with several conditions and limitations. Reading a contract's fine print is an excellent step towards understanding what you can and cannot expect from a policy.
Comments (0)
CMA Blog Home
What is the Economic Concept of Consumerism?
Consumerism is a theory in economics explaining that the market is shaped by the choice of the consumers. It outlines the fundamental rights of the consumers including right to safety, right to choice and right to information. Consumerism is a phenomenon that has existed since the earliest of civilizations and continues to shape the modern market.
It principally describes the inclinations and tendencies of consumers towards various products and brands. This is mainly shaped by what the people perceive as a status symbol. For instance, if a car is advertised as a luxury vehicle, then consumers will tend to buy it simply for the status it seems to offer. It is the same with designer labels in the clothing industry. The concept involves proper marketing of various products so that it appeals to a particular group of consumers.
The article talks about the following:
- Issues that Help Enhance Consumerism
- . Consequences of Consumerism
- Current Developments
What Issues Help Enhance Consumerism?
In Canada, consumerism is not that prominent since people choose to buy products that they need rather than what is important for status although it is difficult to make a generalized statement.
There are four factors that drive consumerism in today's society: easy access to consumer credit, aggressive and intrusive advertising, lack of financial education, and a shift in personal values. This is according to
Pls See: startingovertoronto.com
The most prominent is Easy Access to Consumer Credit. Why is it so easy to get a credit card? Because credit card companies make a lot of money from interest revenue and credit card fees. With this type of profitability, it is in their interest to issue as many credit cards as they can.
What are the Consequences?
In a market that is largely capitalistic in nature, sellers aim to increase their sales by using proper advertising campaigns. Also in such a society, the sellers try not to fulfill the wishes of the buyers completely so that they keep coming back for more. This is done by making products with a short shelf life or limited usability.
Compared to twenty years ago, Canadians now spend two and a half times more on goods and services. It is reported that in the eighties, most Canadians saved 20 percent of their disposable income. Today, those savings have dived under one percent. Canadians are ranked first in debt-to-asset ratio according to Certified General Accountants (CGA) Association of Canada report. Slovak Republic, Greece and the U.S. were behind respectively. The report states that "it is clear that Canadian households rely much more heavily on consumer credit than their counterparts in other countries."
Pls See: digitaljournal.com
What are Present Developments in Consumerism?
Consumerism is now based on values and globalization. The Office of Consumer Affairs ( Pls See: ic.gc.ca) says that the “growth of international trade in goods has, in part, also spurred the emergence of values-based consumerism. Many consumers now want to know not only what they are buying, but also how it was made. Concerns about environmental protection, health risks, the nutritional content of food, animal welfare and exploitative labour practices have led to a growing market demand for products, many imported from the Third World, that are produced according to certain values-based standards. Examples include “fair trade” coffee, wood and paper products from sustainable forests, organic food, and clothing and footwear manufactured in “fair wage” factories.”
It has now become common practice to make such products that are designed especially to break after a fixed amount of time thus requiring the consumers to invest more in them. Another practice that sellers in such societies use is to constantly keep updating the market with newer models that seem more fashionable thanks to proper advertising. In this way they can exploit consumerism to get the maximum possible profits.
Many critics claim that overexploitation of consumerism has lead to economic degradation, increase in debts and even stops progress in many cases. Many environmentalists have also blamed consumerism for the degradation of the environment. Over consumption and wastage of products have led to dwindling of natural resources that has in turn sparked off a huge array of problems for the earth’s natural environment.
Consumerism is Evolving
Consumerism in most countries increased mainly due to industrial revolution. This led to the development of luxury products that have become status symbols. Also, some of these products such as clothes tend to go out of fashion very soon and therefore they are underused and a waste. This has led to many socio-economic as well as environmental problems. Consumerism has seen a small decline in the recent years largely thanks to widespread education of the consumers. However, markets still continue to flourish with buys overindulging themselves. It is a practice that consumers will continue to practice unless they are given some incentive to stop.
Comments (0)
CMA Blog Home
What is the Concept of Online Banking?
Online banking has become the purveyor of convenience. It is the conduction of transactions such as paying bills, transferring money and creating new accounts online using a website that belongs to the particular financial institution. The users are generally given a username and password without which they cannot view their account details or perform any transaction to make the procedure very secured. For years many banking operations were automated using large computers. However the advent of technology has made it much easier for such technology to reach people of all classes.
The article describes the following:
- Online Banking in Canada
- Benefits of Online Banking
- Handicap of Online Banking
What is Online Banking in Canada?
Canada is acknowledged as the world’s most developed market for online banking, with 67.1 of Canadian internet users banking online in April 2008 - significantly more penetration than in other English-speaking countries.
Among the key findings of the study are:
- Adoption of online banking in other English-speaking countries was 17-25 percentage points lower: UK (49.5%), US (44.4%), and Australia (41.7%).
- Canadians also led the world in online banking frequency, with an average of 8 usage days and 10.5 online banking visits per visitor in April.
- Canadians spent an average of 46 minutes on banking sites in April, viewing approximately 121 pages per visitor.
“The Canadian online banking sector is so developed and competition already so fierce, banks need to closely examine how they are meeting the needs of their consumers online if they are to achieve customer growth and retention through this increasingly important channel.”
Pls See: marketingcharts.com
What are the Benefits of Online Banking?
There are various advantages for consumers who resort to online banking:
- You don't have to line up for so long and plan your day around the bank's hours.
- You can look at your balance whenever you want, not just when you get a statement.
There are some hidden benefits too. As a young bank customer, you're just learning how to manage your money and observe your spending patterns.
- Online banking allows you to watch your money on a daily basis if you want to. By keeping close tabs on your funds, you'll always be aware of what's happening in your bank account.
- For those experienced spenders, this option is far more appealing than the sudden discovery that you're broke!
- It's also helpful to watch how much interest you're gathering on investments and savings or what service charges you have incurred.
Pls See: cibc.com
What is the System’s Handicap?
Online banking also has weaknesses. The initial process is time consuming. The banks require you to go through a long process just to set up an account in order to make it safe. Even someone with good computer skills can find it annoying with new technology coming up every single day. Therefore quite a few people find it much more convenient to deal directly with the people at their banks than a computer. However with enough patience and time you can overcome this hurdle easily and discover all the amazing features it has to offer.
Before you begin to use online banking for your transactions, familiarize yourself with all the information available so you make no mistakes. Take print outs and maintain a hard copy till an account of the transaction occurs on your balance sheet. Also check your account regularly to ensure that you haven’t made any mistakes such as clicking on a button twice when it’s not required. Small steps such as these will certainly help you use your account more efficiently.
Popularity
The biggest reason for popularity of online banking is the convenience it offers. Now you can transfer money to another account with a simple mouse click from anywhere in the world. It is fast, much less tedious and way more convenient than paper based banking. No more waiting in long queues or spending bank holidays worrying about your money. Online banking has made it possible to get everything you want and more anywhere, anytime. Not only that, it is also highly efficient and effective.
Comments (0)
CMA Blog Home
What is Security of Credit Cards?
According to Wikipedia, a credit card is secured by a deposit owned by the cardholder. The cardholder must deposit between 100% and 200% of the total amount of credit desired. The deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid. The cardholder is still expected to make regular payments similar to a regular credit card. Once there is a default payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus to build positive credit history.
Pls See: en.wikipedia.org
This article discusses the following:
- Safety of Credit Cards
- Steps Undertaken by Credit Card Companies
- What is Credit Card Protection
What is the Safety of Credit Cards?
Cash has its obvious benefits. There is always a lingering fear of identity theft when it comes to credit cards. When you buy a sandwich for $3.95 and you hand the cashier a $5 bill, you know for sure you haven't been ripped off when he gives you $1.05. However, when you give your card to a waitress, you can never be sure she hasn't taken a moment to copy your card number and signature. Credit card fraud has become very rampant.
In Canada, the total credit card fraud losses are approaching $150 million per year. About 250,000 credit cards were fraudulently used in Canada in 2005. Counterfeiters use fake identities to get government assistance, personal loans and unemployment insurance benefits. It is the most common type of credit card fraud and is responsible for 37% of the yearly credit fraud in Canada.
What are Steps Undertaken by Credit Card Companies?
It has an adverse effect on credit card companies. In response to the issues of credit card security, the bigger and more stable credit card companies have come up with secure ways to do business. One security practice is to require the billing address on your credit card for shipping goods. If a thief steals your account number, there is no way he or she will have access to your billing address. Hence even if your card is stolen, it can be used to make purchases that are delivered to your address. Card Code Verification or CVV is debit or credit card security feature during transactions. It is encoded on the metallic strip and is used to verify the validity of the data stored on the card.
Several financial organizations and credit card service providers have come up with various ways to improve credit card security. MasterCard International and Visa have come up with a set of guidelines known as the Payment Card Industry Data Security Standards. It comprises of a list of 12 guidelines imposing strict regulations on transactions taking place between the card company and the merchants. Other methods of credit card security include using firewalls, Secure Socket Layer, using passwords, data verification, credit monitoring and purchase monitor.
Pls See: en.wikipedia.org
What is Credit Card Protection?
The Canadian Bankers Association has been very aggressive to protect consumers as well as their own institutions. Banks and the credit card companies take credit card fraud very seriously, and have highly sophisticated security systems and teams of fraud experts in place to monitor transactions, protect customers and prevent and detect credit card fraud. Customers are protected when using credit cards issued by banks and are not responsible for fraudulent transactions made on their cards. Banks and the major credit card companies are now moving to chip technology for debit and credit cards. In addition to the magnetic stripe on the back, cards now also have a microchip – really a small computer – in the card. When making a purchase, rather than swiping your card and signing a receipt, you now insert it in the store payment terminal, punch in a personal identification number (PIN) and leave your card in the terminal while the transaction is processed. These cards use a technology called “cryptography” that allows the card and the store terminal to communicate with each other during the transaction and carry out security checks to ensure the card is valid. The microchip is state-of-the-art in payment card technology and is extremely difficult for criminals to duplicate. In fact, chips cards have reduced fraud in a number of other countries where they are currently used.
Pls See: cba.ca
Watchfulness is Necessary
Consumers, credit-card holders, credit card firms, banks and law enforcement agencies need to collaborate to resolve these issues. With the emergence of technology and stricter laws, credit card fraud can be minimized and the welfare of each sector fully protected.
Comments (0)
CMA Blog Home
What is Mortgage Insurance - part 2?
Wikipedia defines mortgage insurance as an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer. The policy is also known as a mortgage indemnity guarantee, particularly in the United Kingdom.
Pls See: en.wikipedia.org
The article talks about the following:
- Mechanics of Mortgage Insurance
- Benefits of Mortgage Insurance
- Key Component of Canada’s Mortgage Insurance
What are the Mechanics of Mortgage Insurance?
If mortgage insurance were actually sold in a fair way, it would just be a bad deal. However, mortgage insurance is sold without qualifying the purchaser. After you claim, the insurance company steps in to compensate you, so that you can compensate the bank. That is, if you are lucky. Often, the bank does not really take good care to sign you up properly and the insurer may back out of the deal claiming that the client has lied on the initial application form.
Pls See: lsminsurance.ca
You can still enjoy the comfort of home ownership. Insured mortgages can help people with enough cash flow to manage the debt load of home ownership but who find it difficult to save for a down payment. Eligible borrowers include anyone who buys a home in Canada intending to occupy it as his/her principal residence. Purchasers can use up to 32% of their gross family income for payments of mortgage principal and interest, property taxes and heating. A buyer's total debt load (including consumer loans) cannot exceed 40% of the gross family income.
Pls See: tdcanadatrust.com
What are the Benefits of Mortgage Insurance?
With a direct impact on your ability to purchase or refinance a home, mortgage insurance is one of the most cost-effective solutions for Canadian homebuyers. It allows borrowers to take advantage of more flexible financing options, including lower down payments and extended amortizations. Each year, more Canadians are benefiting from the choices mortgage insurance offers, including:
- The ability to purchase a home without having to save for a 20 per cent down payment.
- A comprehensive product suite designed to meet your unique financial and homeownership needs.
- Greater flexibility through affordable premiums, lower down payment options and longer amortizations.
- The ability to port or transfer your mortgage insurance from one home to another, anywhere in Canada.
- The opportunity to refinance and take advantage of available equity to effectively use funds to pay down debt or make sensible financial investments.
Pls See: canadaguaranty.ca
What is the Key Component of Canada’s Mortgage Insurance?
The key component of Canada’s solid mortgage insurance system is the requirement that high loan-to-value mortgages be insured with significant government backing. The system can be improved by pursuing the move to a fully competitive model. Removing the punitive differential in the guarantee rate would be a major step in creating a more homebuyer-friendly marketplace.
The MacDonald-Laurier Institute says that:
Canada’s mortgage insurance system gives our housing market a solid foundation. Home buyers who cannot make a 20 percent down payment are required to insure their mortgages against default and government, in turn, guarantees against a default on that insurance. This system encourages sound loans while protecting lenders, borrowers and the entire financial system from unreasonable risk.
It served us admirably in the recent financial crisis. But it has one important failing: it denies consumers benefits from full competition by giving the public Canada Mortgage and Housing Corporation an unfair advantage over private firms.
The policy contradicts the 2006 federal budget which sought to encourage greater competition within the MI sector. The decision to allow private competitors to the CMHC, beginning in the 1960s, has been fully justified by innovations in lending practices and reductions in mortgage insurance rates that have taken place especially since Genworth Financial Canada, the other major player, entered the market in 1995.
The failure of other firms to gain or maintain a foothold, and the sharp drop in Genworth’s business after 2008, indicate that the unfair guarantee differential edge given to the CMHC is depriving consumers of the benefits of competition and discouraging new private insurers from entering the market.
The most plausible argument in favour of its special treatment is that the CMHC pursues other important social or environmental goals through its mortgage insurance business. But a so-called “cross-subsidy” of social objectives from the commercial operations of a public entity is the wrong way to pursue such goals. It deprives home buyers of the benefits of competition, it obscures accountability and it is unfair.
Pls See: macdonaldlaurier.ca
Complex Issues
There are complicated issues and concerns in the matter of mortgage insurance.
However, consumer should know these things since this is of essence to their financial lives.
Comments (0)
CMA Blog Home
What is Debt Management?
Wise geek says that debt management involves a designated third party assisting a debtor with repayment of his or her debt.
Many companies specializing in credit counseling offer debt management plans to help people with heavy debt and damaged credit get their financial situation under control. A simpler definition of debt management could be the routine practice of spending less than one earns. However, for all intents and purposes, debt management is a structured repayment plan set up by a designated third party, either as a result of a court order or as a result of personal initiation.
Pls See: wisegeek.com
This article consists of the following:
- Debt Management Plans Canada
- What can Credit Counsellor do for you?
- What is Managing Debt?
What is Debt Management Plans Canada?
Debt management plan is a service provided by a credit counselling agency. It gives you a simplified payment plan for your debts and some relief from interest costs. Most Credit counsellors are not-for-profit agencies created to help individuals experiencing financial distress.
In a debt management plan, these are the possible scenarios:
- • You must usually repay your entire debt, although creditors may forgive some debts.
- • Your creditors agree to take payments over a period usually no longer than four years, occasionally up to five years.
- • Your creditors, in many cases, agree to reducing or eliminating the interest on your debt.
- • Some of your creditors may not be included.
- • Agreement by your creditors is voluntary and not legally binding.
- • A wage garnishment is not stopped, unless the creditor agrees to stop it.
The debt management plan is best suited for you if:
You cannot get a debt consolidation loan, because your credit rating is poor.
You owe no more than $5,000.
You have five or fewer unsecured creditors.
You can afford to pay the full amount of your debts, but need an extended time to do so without accumulating more interest.
What can Credit Counsellor do for you?
The credit counsellor meets with you to assess your situation, help you make a budget, and give you some advice about dealing with your money problems. This can be a great help if money management skills will be enough to get your finances in order.
Then, if your debts are so large that you can’t handle them on your own through budgeting and expense reduction, the credit counsellor will work out a debt management plan with your unsecured creditors. You will then give the agency a regular payment, which they will distribute to your creditors.
If you can repay only a portion of your debt, a consumer proposal may be a better option.
If you cannot reasonably be expected to make any significant payments toward you debt, a bankruptcy may be necessary. We recommend that you contact us today, to review your situation and help you decide which option is best for you. If money management skills and a debt management plan look like a feasible solution, we will put you in touch with a credit counsellor in your area.
Pls See: bankruptcy-canada.ca
What is Managing Debt?
Service Canada gives this information about managing your debt.
- Understand Your Credit Report and Credit Score
The Understand Your Credit Report and Credit Score publication provides key information on how to obtain and understand your credit report and score, as well as what to do if you find errors on your credit report.
- Take Charge of Your Debts
Canada’s Office of Consumer Affairs provides an online tool to help consumers deal with debt. The Take Charge of Your Debts tool brings together many sources of information about debt in one place. It offers Canadians some suggestions and options for getting out of debt.
The Office of the Superintendent of Bankruptcy Canada also provides answers for the particular needs of debtors. The Web site also provides information about avoiding debt and improving your financial condition. If you are unable to pay back what you owe, these links will help you understand the bankruptcy process and what bankruptcy will mean to you.
- Dealing with Mortgage Payment Difficulties
Canada Mortgage and Housing Corporation provide information to prepare and educate homeowners so that they may confidently approach their lender and discuss ways to address financial difficulties in the repayment of their mortgage loan.
- Manage Your Student Loan Debt
It provides information about repaying your student loan, including the repayment process and assistance.
Pls See: servicecanada.gc.ca
Debt Management is Necessary
Debt management calls for a series of steps, which the third party service works on with the help of the debtor. It involves compiling a list of all creditors and the amounts owed to each. Some creditors are not eligible to be included in a debt management plan.
Comments (0)
CMA Blog Home
What is a Credit Statement?
Canadian Money Advisor defines credit statement as a document that furnishes details of the customer’s payments and purchases using his or her credit card. It normally provides complete information about different transactions for certain duration. The minimum period for the generation of a complete document with the information is approximately 30 days. This document also contains a section showing the customer’s purchase during that particular period as well as the amount borrowed by the consumer.
Pls See: canadian-money-advisor.ca
This article talks about the following:
- Monthly Credit Statement
- Minimum Payment Due
- Credit Score
What is your Monthly Credit Statement?
Understanding the monthly credit card statement will help you determine whether your spending fits into the household budget. By reading and understanding your statement, you practice proper credit card management. This prevents overspending and helps you understand the entire credit card program.
By studying carefully the credit card statement, you will discover a lot of information. Consolidated Credit Counselling Services of Canada, Inc. has prepared a manual that can assist you in recognizing the most essential elements of the statement and the skills of credit card management.
The Annual Percentage Rate is a measure of how much your debt is costing you. It is expressed as an annual rate or by the amount of interest you would pay annually. It is a means of calculating your monthly finance charges. If the annual percentage rate is higher, the more chances that you will use the credit card. On most credit card statements, it is presented both as an annual and daily periodic or monthly rate. The better your credit card management is, the lower the APR will be.
What is the Minimum Payment Due?
The minimum payment is the amount of money you must pay on your credit card each billing cycle to remain in good standing with your creditor. The minimum payment is usually determined by your monthly balance and it varies according to the formula each creditor uses. Minimum payments usually cover the finance charges and fees for the month plus a small amount of principle.
It is essential for you to make at least the minimum payment by the due date. If you fail to make the minimum payment, you place your financial standing at risk. Creditors can raise your annual percentage rate even if you are one day late.
Remember that making minimum payments on your credit card bills just extends the life of your debt. The new balance on your credit card is the unpaid amount or what you still owe. It is usually determined by:
- • Starting with the previous month's balance
- • Subtracting any payments or credits
- • Adding new charges, miscellaneous fees and finance charges for the current billing cycle
Pls See: consolidatedcredit.ca
What is Credit Score?
The consumer’s credit score is used by various Canadian financial institutions to decide whether to lend you money, and if ever the corresponding interest rate. Various factors, such as your level of current debt and credit card usage, are used to calculate this credit score. Occasionally, information on your Canadian credit report may be inaccurate and negatively affect your credit score. Learn how to read a Canadian credit check to verify your financial data and protect your credit rating.
Go through your Canadian credit check. Canadian credit reports are several pages long. Verify that no pages are missing, and note the four main sections of the Canadian credit report: identifying information, public records, financial inquiries and credit history. If you do not have a Canadian credit report on hand, you may order a credit check from Equifax Consumer Services Canada for $15.50.
Read the identifying information section. This is your personal data, such as your name and mailing address, provincial driver's license number and spouse's name (where applicable). Depending on your personal data file, it may also list your Canadian Social Insurance Number (SIN), used by all Canadian employers. Jot down any discrepancies for future reference.
Review your personal credit history on the report. Some Canadian credit checks call this "trade lines." This section of the Canadian credit report will identify each instance in which you were lent money from a Canadian bank or financial institution. Check that the list of financial institutions and account numbers match your records. Look for important errors such as credit cards being listed that you have since closed. This section of the Canadian credit check will also include information such as when the credit account was opened and what type of loan it is.
Pls See: ehow.com
Maintain your Good Credit Record
There are no excuses for late card payments. Remember that credit card companies are very strict when it comes to paying your bills on time. Do not ignore this fact since it is your credit reputation at stake.
Comments (0)
CMA Blog Home
What is More Rewards MasterCard?
The More Rewards credit card is for consumers who qualify for an additional credit card account. The process is easy. You just need to make a qualifying purchase, cash advance, access cheque and deposit transaction.
This article discusses the following:
- The basic requirements of More Rewards MasterCard
- Bonus Points Scheme
- Eligibility Requirements
What are the Basic Requirements?
Consumers should allow for eight to ten weeks from the first transaction date for the bonus points to be posted to the account. There is a one-time 25,000 bonus point offer with no cash value for every new account. This promotion is offered by MBNA and may be cancelled at any time without further notice.
To qualify for this offer, cardholders must use their new account for a single or combination of qualifying purchase transactions. The total amount is a minimum of $3,500 within the first six billing cycles of the account open date.
There is a limited one-time bonus point offer with no cash value per new account provided it is approved for a More Rewards credit card account. Cardholders will earn three More Rewards Points for each qualifying $1 in net purchase transactions charged to their More Rewards credit card account pursuant to the terms and conditions.
Cardholders will be eligible to earn 1 additional More Rewards Point for each qualifying $1 in net purchase transactions by presenting their More Rewards loyalty card when making their purchase with their More Rewards credit card account. Please visit www.morerewards.ca for the More Rewards Program terms and conditions including expiration of points and items that are excluded from earning points.
Pls See: morerewards.ca
What is the Bonus Points Scheme?
At present the More Rewards credit card is offering a 35,000 points sign up bonus with a CDN $3,000 minimum spend and no annual fee.
Study the following features:
- • Get 35,000 points - 25,000 points upon your first qualifying transaction PLUS 10,000 bonus points B when you spend CDN $3,500 in qualifying purchases within the first 6 months
- • Earn 3 Points for every $1 everywhere you shop using your More Rewards credit card.
- • Earn four Points for every $1 when you shop at Save-On-Foods, Over Wait Tea Foods, Cooper’s Foods, Price Smart Foods or Urban Fare stores using your More Rewards credit card and More Rewards loyalty card.
- • Redeem your points for travel, merchandise, gift cards, charitable donations and select in-store grocery merchandise
- • 1.99% promotional annual interest rate plus balance transfers, access cheques and deposits for the first six full months
- • Free online access to your credit card account
- • Free round-the-clock fraud protection
What are the Eligibility Requirements?
If you want to avail of this card, you need to be a Canadian resident and maintain a Canadian credit file. You must be of rightful age with a good credit history that is clear of bankruptcies and serious delinquent accounts as well as a total household income of $35,000 or more.
There is more information about redeeming your points as well as other rewards that are available to consumers.
Pls See: milesmomma.com
Credit Cards in Canada
MBNA places a lot of emphasis on exceptional standards of service. It is one of the reasons why it has built a good standing in Canada. If you study MBNA credit cards, you will also discover that the features of MBNA credit cards that are meant to benefit the card holders.
Comments (0)
CMA Blog Home
Personal Finance: All about Debt
The debt problem in many countries seems to be getting out of hand.
CBC News published six years ago the following facts:
In Canada, personal bankruptcies are near record highs. Nine years ago and for the first time ever, the average Canadian household owed more than its annual take-home pay. There are 74 million credit cards – three for every Canadian over the age of 18. Credit counselling agencies say they're busier than ever. Students are often graduating with accumulated debt of $25,000 or more. Consumer debt levels are rising much faster than incomes and have been for years. Savings rates are at record lows.
What is the situation now?
Is this bad news?
Can Canadians handle this situation?
This would depend on the amount of debt that people have. This includes repayment terms, the interest rates and our income. It also depends on the kind of debt people have. For one thing, financial planners like to distinguish between good debt and bad debt.
Good and Bad Debts
You may think all debt is bad. In reality, some debt is good. Good debt is used to buy things that tend to increase in value such as houses or stocks. Those hard assets can be used to secure the debt so you will pay less interest. Interest on money borrowed for investment purposes (like a rental home or mutual funds outside of an RRSP) can be tax-deductible, making the effective interest rate even lower. You can also make a good argument that borrowing to go to college or university is good, if painful, debt because you will make more money in the long run as a graduate. Many financial advisors also say borrowing to contribute to an RRSP is considered a good debt, especially if this is paid off within a year.
Bad debt, on the other hand, is used to acquire things that depreciate in value (cars, clothes, big-screen TVs) or for day-to-day personal consumption. That makes most credit card debt bad. And bad debt is never deductible.
Many financial advisers also advise consumers to distinguish between needs and wants and to ask questions every time they're about to take on a significant new debt. Beware of impulse buying. Do they really need that new plasma TV or luxury vacation? Do they really need to charge it? Should they borrow every mortgage dollar that the bank says they can? What would happen if they lost their jobs? What will happen if mortgage rates will grow by three percentage points higher in five years' time?
What are the Extremes?
Consumers, who have applied for a mortgage, know there are strict guidelines banks use to judge the ability of someone to handle a six-figure loan. The monthly mortgage payment must not be more than 32 per cent of the applicant's gross monthly income. The total monthly debt payments including the mortgage cannot come to more than 40 per cent of gross income.
However, with the increasing use of lines of credit and credit cards, people can easily end up with monthly obligations that pinch the financial waistline. Debt-servicing costs assume that you are paying the minimum required to service the loan or credit card.
The evidence also shows that credit grantors will often give people who are in debt up to their eyeballs even more credit. They will increase credit limits without being asked. They will approve new credit cards for someone who already has six. Simply put, do not expect a company that is in the business of lending money to look after a borrower's best interests. That's the borrower's job.
Pls See: cbc.ca
What will happen next? Canadians should learn to manage their debt as part of personal finance safety.
Comments (0)
CMA Blog Home
Personal Finance: Training in Budgeting Aspects
Personal finance encompasses an extensive assortment of money topics.
These include the following:
- Budgeting
- Expenses
- Debt
- Savings
- Retirement
- Insurance
It is important to understand how each of these factors work together and affect your daily lives. Thus, it is vital to establish the foundations for a solid financial foundation for you and your loved ones.
Budgeting
You deal with and manage a budget at the very basic level of personal finance. You earn money and spend that money. Budgeting is done on a daily basis. When you are faced with spending money on something, you think about it and realize that by spending that money you will not be able to spend that same money on something else.
There is a problem in not having a detailed budget. All of us are confronted with so many financial decisions that it is nearly impossible to monitor and remember everything. This lack of understanding can lead to overspending, debt problems or even the inability to adequately plan for your future.
When you create a budget you begin to see a clear picture of how much money you have, what you spend it on and how much, if any is left over. Once you can see the inflows and outflows of your money, you can optimize your spending so that necessary items are covered while cutting back on wasteful spending. This will enable you to save money.
Reduce Expenses
Once you have created a budget, you can begin to see that expenses may need to be reduced to meet your goals. Whatever the situation is, everyone has an area or two where money can be saved by reducing some basic expenses.
Solving Debt
You may still find yourself with lingering debt to get rid of even if you have started to reduce expenses. There are two kinds of debt: good debt and bad debt.
Getting out of debt does not have to be difficult but it is essential in reaching a state of financial independence. The first thing to do when you find yourself in debt is to pay more than the minimum monthly payment. If you only pay the minimum each month it will often take decades to repay the debt and cost a small fortune in interest. Once you are paying more than the minimum you should look to lower your interest rate. High interest rates will make getting out from under the debt even more difficult.
Save for your Retirement
With fewer companies offering full pension plans and the uncertainty of Social Security, it has become more important than ever to save and plan for your own retirement. Unfortunately many people feel that they simply don’t have enough money left over each month to save. Retirement savings needs to become a priority instead of an afterthought. The Internal Revenue Service has made saving for retirement even more attractive with special tax-advantaged accounts such as employer plans, individual retirement accounts and special retirement accounts for the self-employed. These allow for tax deductions, credits and even tax free earnings on retirement savings.
Insurance
Insurance is essential because you have worked hard to build a solid financial footing for you and your family so it needs to be protected. Accidents and disasters can and do happen and if you aren’t adequately insured it could leave you in financial ruin. Some insurance policies are required and everyone should have these types of coverage but there are many other types of insurance policies that are probably not needed and you could be wasting precious dollars that could be put to work elsewhere.
Pls See: financialplan.about.com
Comments (0)
CMA Blog Home
What is the Sony MasterCard?
The Sony MasterCard courtesy of MBNA Canada is a unique rewards card that gives Canadian gamers and technology lovers an exclusive rewards program through Sony.
The article gives useful information regarding the following:
- Distinct Perks of the Sony Card
- Interest Rates and Minimum Payments
- Eligibility Criteria
What are the Distinct Perks of the Sony Card?
Card holders can shop at Sony Stores, SonyStyle.ca, or the Sony catalogue and earn rewards. You can also acquire instant Sony Points such as the 2,000 Bonus Sony Points after you make your first qualifying transaction with your card.
You will earn Sony Points on every net retail purchase made on your card.
When you make a qualifying purchase of Sony products at SonyStyle.ca or the Sony Store/Maison Sony, you will enjoy double points.
This will move you one step closer to redeem Sony products.
Upon redemption, you can browse through the Sony catalogue and choose from Play Station games, VAIO wireless notebooks, BRAVIA LCD televisions, MP3 Walkman Digital Music Players, movies, software and media. The more points you have, the more you can redeem.
MBNA Canada ensures your security and protection with Chip & PIN technology and Pay Pass. You will have online access to your account and round-the-clock protection to keep you safe and secure. If you are a gamer or a technology enthusiast and shopping for a credit card, the Sony Card MasterCard is the card for you. It has no annual fee and exclusive rewards redeemable for tech products.
Pls See: lowcards.com
What are Interest Rates and Minimum Payments?
There are no annual fees for the Sony MasterCard. The annual percentage rate is 19.99 percent on purchases, balance transfers and cash withdrawals. A balance transfer fee of 1% is charged with 25 days of grace period for new purchases. There is purchase protection and extended warranty as well as online access to your credit card account. Likewise, there are no supplemental cards and a minimum credit limit of $500. Applicants need to fill up certain requirements such as a Social Security Number, an age proof, income proof, and valid address of the card holder. One can use this Sony Card at numerous locations in different countries where Master Card acceptance is exhibited.
If you make payments on time, it is most certain that you will be given increases in your credit limit
Pls See: creditcardhelpline.xisblog.com
What are the Eligibility Criteria?
The Sony MasterCard has only two specific criteria:
- Applicant should be residents of Canada.
- They must possess a Credit file in the country without any record of serious delinquency payments and bankruptcies.
However, Sony customers, who do not meet the qualifications for this specific credit card, can be considered for other cards. If you are a patron of Sony products, you can earn points for merchandise on regular everyday purchases with the Sony Card MasterCard. You can redeem the Sony Points for other gadgets and electronics. Those looking for a credit card with no annual fee and an opportunity to participate in a rewards program for their favorite Sony products may want to try out the MBNA Sony Card.
Pls See: applyonlinenow.com
Pls See: economywatch.com
MBNA Offers
This credit card is one of the primary offerings of MBNA.
MBNA is one of the widely-preferred credit cards in Canada. It is issued by MBNA Canada and available to Canadian residents.
Comments (0)
CMA Blog Home
What is the Smart Cash MasterCard?
The MBNA Canada Smart Cash MasterCard offers a fairly generous cash back program on all purchases. There are certain purchases for gas and groceries that earn additional MBNA dollar points. The card also offers a low introductory interest rate on balance transfers, including cheque cash advances, as well as an interest free grace period on new purchases.
The article provides details about:
- Cash Back Scheme
- Cash Back on Purchases
- Card Security Options
What is the Cash Back Scheme?
You can earn up to 5% cash back on qualifying retail gas and credit cards for an introductory period and 3% cash back thereafter.
There is no annual fee.
The cash back cheque will be returned once you have earned a minimum amount.
The MBNA credit card comes with a low introductory APR on cheque cash advances and balance transfers for many months. You will not be charged interest on your new purchases for a minimum grace period of 21 days. This will give you more time to pay your bill. It is free and easy to access your account online, where you can view your transactions and make payments. The MBNA Smart Cash MasterCard comes with up to $1,000,000 in common carrier travel accident insurance, giving you one less thing to worry about when you travel. Other travel benefits include lost document and ticket replacement, lost luggage assistance, and pre-trip information. The card also gives you purchase protection against damage or theft made with the card for up to 90 days. This cash back credit card features continuous fraud protection and 24/7 customer service
Pls See: canada.creditcardguide.com
What are Cash Back on Purchases?
Card holders get cash back percentage on all other purchases with cash back cheques issued in regular set increments. However, some restrictions do apply to the Smart Cash Program. There is a maximum rate of accumulation of MBNA Dollar Points Rewards for each calendar month. This means that you can collect the highest rate of cash back on how much is spent each month during the introductory period. The MBNA Dollar Points will be awarded at the standard rate of point per dollar spent for the remainder of that calendar month.
Aside from the generous cash back program, the Smart Cash MasterCard also offers a low introductory interest rate on both balance transfers and cheque cash advances after the credit card account is opened. However, the interest rate can be increased before the introductory rate expires in the event of late payment exceeding the credit card limit. When the introductory period has expired, balance transfers and cheque advances will be subject to the card's standard rate of interest.
The card also carries default rates. This means that the interest rate will be increased if payment is late more than once within 12 consecutive billing cycles. This default increase will be removed if payments are made on time for the next 12 billing cycles. The card has an interest free grace period on new purchases. If the balance is paid off in full by the due date, no interest will be incurred. The interest free grace period does not apply to balance transfers or cash advances.
What are Card Security Options?
Customers may sign up for the optional MBNA Credit wise Coverage. There is an additional fee based on the average balance held on the card. Credit wise coverage helps to protect the cardholder's credit rating in the event of an unexpected unemployment or disability. It can also relieve the financial burden placed on the family in the event of death or critical illness.
MBNA Canada customers can also enjoy free online access to their credit card account, which allows easy management of the Smart Cash MasterCard. This allows customers to keep a close eye on card balances and payment dates in order to avoid additional account fees which can be incurred by going over the agreed credit limit on the card, having returned payments, or having returned cheque cash advancements.
Online access also means that if a customer misplaces any monthly statement, rather than having to pay for a replacement statement for that billing cycle, he or she can simply view transactions online.
The Smart Cash MasterCard is subject to several types of transaction fees. All transactions are billed in Canadian dollars. Any transactions made in foreign currencies are converted to Canadian dollars at the conversion rate established by MasterCard on the date of processing. All foreign currency transactions are therefore subjected to an additional fee, which is calculated as a small percentage of the transaction amount. Additional transaction fees are also added for cash advances, balances transfers and wire transfers.
Pls See: creditcardsbay.ca
A Smart Card...
The Smart Cash MasterCard offers cardholders a high rate of cash back on purchases with no fuss cash back program. Cheques are automatically issued when cash back totals reach a prescribe amount. This means that customers do not need to worry about claiming their rewards.
Comments (0)
CMA Blog Home
Challenges for Canadians on Personal Finance Safety Matters
There is one aspect in life that Canadians should understand. The sooner they start investing in their financial future, the better. Statistics have shown that Canadians contribute a mere six to seven percent of the maximum allowable contributions to Registered Retirement Savings Plans annually. Although nobody seems to follow data on new Canadians, there seems to be sufficient unreliable evidence to suggest the numbers for immigrants are even lower.
Since interest rates have gone down, the return on guaranteed savings products is insignificant so Canadians are starting to opt for stocks, bonds and mutual funds in their RRSP preferences.
Immigrants to Canada may find it difficult to perceive an investment strategy nowadays simply because they have not experienced the ups and downs of bull and bear markets. The market turmoil adds an additional layer of complexity for those who are trying to familiarize themselves with new investing rules.
Pls See: cbc.ca
What is the RRSP in Canada?
In Canada, the Registered Retirement Savings Plan (RRSP) is considered most efficient way to save for retirement. An RRSP also offers one of the best ways to reduce the amount of tax you pay. The benefits of RRSPs are the following:
When you open an RRSP, you basically make a deal with the Canadian government. By registering your retirement savings plan, you agree to put money away for your retirement and not spend it. In return, the government gives you two valuable benefits:
- Money that you contribute to your RRSP is deductible from your taxable income. This means that any income you contribute to your savings plan is not taxed. Say you made $50,000 and contributed $5,000 to your RRSP. If you claimed that $5,000 as a deduction on your tax return, your income tax would be calculated as though you had made only $45,000 that year.
- The government lets the savings in your RRSP grow tax-free. Any profits you earn on investments inside your RRSP are not taxable until you collapse your plan and withdraw the funds. When interest and earnings on investments aren’t taxed, the full value of your gains is added to the original amount. This new, larger amount then earns further gains, which again are added to, or compounded with, your existing investments. This phenomenon is called compound growth, and over time it will lead to your retirement savings growing exponentially.
You can maximize the growth of your RRSP in two simple steps:
- Begin contributing as early as you can in life. The longer you have money in an RRSP, the more time your savings have to compound. Even if you’re just 25 and have only $1,000 to spare, put it in an RRSP. If you earn an average of 10 percent a year, you will have an extra $45,000 in your plan when you retire at 65.
- Try to maximize your RRSP’s returns. Choosing appropriate investments is critical to maximizing the growth of your RRSP. The more years you have before you have to collapse your plan, the larger the impact of boosting your returns by even just 1 or 2 percent
Pls See: dummies.com
Comments (0)
CMA Blog Home
Venturing into Personal Finance Training
Personal finance training will go a long way in terms of teaching people the best approaches in managing their money. Your initial priority is to learn about finances.
There are many blogs and financial sites that will help you get vital information. Remember not to be afraid to read them. The worst scenario is to succeed in anything without any knowledge of the subject. There are websites that provide training classes in personal finance.
Some are free while others charge minimal fees. Learn as much as you can about personal finance to avoid many of the mistakes and to help you through to problems you will encounter.
Here are some tips that you can follow:
Reduce your expenses.
You cannot expect to become debt free or save enough for retirement if you do not change your lifestyle.
Eliminating some of your unnecessary expenses will free up more money to put toward savings or overdue bills.
Be prudent in using credit cards.
Credit Cards could be your best or worst friend depending on how you use them. Many people just swipe their cards without knowing how it affects them financially. There are many types of credit cards. If you fly frequently having one that gives you flier miles could be of more beneficial to you.
Understand savings and checking accounts.
The bank you are using now might not be the right bank for you. There are many types of accounts. Hence, you must be sure your money is in the one that will give you the most benefits.
Learn about long term investments
Saving for retirement is not an option any more. Companies are cutting back on everything they can, in order to stay afloat. This leaves retirement planning in your hands and learning about long term retirement goals more effectively.
Many colleges have personal financial training courses that you can sign up for. You local library has many books on the subject that you can borrow at no cost. There are many ways to learn how to manage your money. The more you know the better off you will be.
Pls See: jinij.com
Financial Literacy Training in Canada
Canada Education stated recently that several Canadian provinces have added financial literacy into core curriculum for high school students.
In his 2009 budget, Federal Finance Minister Jim Flaherty announced the creation of a Task Force to evaluate current financial literacy initiatives. Typically, these initiatives focus on “individual responsibility”, implying that if Canadians learn to handle their personal finances better, they do not need to rely on governments to protect them.
Financial markets will work better, and the whole country will be stronger. However, it is fantasy to hope that greater knowledge on the part of individual investors could somehow stabilize the workings of macro financial markets. Financial literacy can be a welcome addition to curriculum. And yet, it should focus on the causes and potential solutions to Canadians’ financial problems. This includes an honest look at the financial industry, rather than encouraging them to accept an unfair, unequal world, and then adjust themselves to it.
Pls See: cea-ace.ca
Comments (0)
CMA Blog Home
What is the MBNA True Line Master Card?
Consumers need to get the correct credit card for their needs.
The appropriate credit card is something that Canadians can use in their country or anywhere around the world. The MBNA True Line MasterCard provides consumers with good benefits. It is easy to apply for and grants card holders a lot of buying power.
The article gives information about the following:
- Application Procedures
- Platinum Benefits of the Card
- Value of the True Line MasterCard
What is the Application Process?
First and foremost, the MasterCard logo guarantees card holder’s extensive purchasing power. You can use this privilege to make purchases anywhere you want to. Use the card online to buy from millions of merchants globally. It is even possible to make travel reservations through the phone. You can even use the MasterCard to fuel up at any gas stations. If you are in need of cash, just use the provided PIN number to visit an ATM machine for any cash advance.
Since you can make purchases anywhere, you have the convenience of doing all of your shopping with a single card. In case you lose your card, it is easy to make a call to customer service and have your card replaced whether you are in Canada or elsewhere around the globe.
What are the Platinum Benefits of the Card?
If you opt for this card, you obtain benefits such as:
- Assurance of Purchase
- Insurance Coverage
- Travel Protection
- Extended warranty benefits
- Online account management
Insurance coverage is very important. You can pay hundreds of dollars in travel insurance when you go anywhere. The option is to choose the right credit card. When you book travel on this card, you are protected for accidental death and dismemberment, rental car protection and much more. In the event of any accident, you just call customer service and they will take care of everything. This is a complementary service as a cardholder.
Travel protection is also included. Travel can be unpredictable. When you book your travel plans using this card, you have a certain amount of protection. Use customer service for ticket replacement, pre-trip assistance and even legal assistance in foreign countries should you encounters problems.
With all purchases, you get an extended warranty. Your items will last longer with a longer than manufacturer warranty. Managing your card is also important. With online account management, you get 24/7 access to your account. A username and password will be created for you. Then you can log on anywhere there's an internet connection to find out what's going on with your account. You can download statements and make payments on your account. You can look up your account balance and your available credit. It is even possible to check past transactions and dispute unauthorized charges on your account.
Pls See: creditcardsbay.ca
What is the Value of the True Line MasterCard?
It is marketed as an everyday credit card for everyday people. It comes with one of the lowest interest rates on balances. With a 9.99% interest rate and no annual fee, the MBNA True Line MasterCard is one of the best options for people who carry a balance on their credit card. Here are some other features of this card:
- 9.99% annual interest rate on all your purchases
- No annual fee
- Exclusive Platinum benefits and peace of mind
- Add authorized users at no additional cost
- Around the clock fraud protection
- Enhanced security and protection with Chip & Pin technology
Platinum card benefits
With the MBNA True Line MasterCard, you’ll get exclusive Platinum benefits from MasterCard and MBNA. When you have questions or concerns about the terms, conditions and policies of your card, MBNA and MasterCard can help.
- 24- hour customer service
- 1 hour Credit Line Increase Decisions
- Cash Advance Emergency Card Replacement (7-10 days)
- Emergency Cash through Western Union
- Emergency Cash Transfer (up to 5,000)
Pls See: rewardscardscanada.com
Long-Term Benefits
Using a credit card should come with a lot of benefits. It helps set one card apart from the rest. With this card, you are able to get benefits in a number of categories, making it a very versatile card for your wallet. The ultimate objective is what you get from this card in the long-term.
Comments (0)
CMA Blog Home
What is the Importance of Learning Personal Finance?
For most people all over the globe, personal finance is one of the most essential aspects of their lives. Unfortunately, these concepts are not taught in academic institutions and until now, a lot of people are financially illiterate. Personal finance relates directly to the daily lives of ordinary people. By definition, personal finance is the management of money.
The important thing to realize is that money affects the lives of people. If you do not have money, you will not be able to do many of the things you want in life. Money is simply a tool that gives you choice along the way. Nevertheless, this does not mean that people’s choices will always be correct. Without money, you will not be able to buy food, pay rent, purchase clothes and travel wherever you like.
Personal Finance and Time Value of Money
Without learning personal finance, you will surely lead a completely different life than someone with personal finance knowledge. Learning about personal finance gives you the knowledge and understanding to make smart money choices. Thus, you become more in control of your own life and are empowered to do the things that matter most to you. Learning how to manage your money means learning how to become free. It also means learning how to become smarter and more aware of opportunities in your life. Money is power and learning personal finance will teach you how to become more powerful. One of the cornerstone concepts of personal finance is the concept of the time value of money.
Pls See: plantingdollars.com
Personal Finance Information for Canadians
Many Canadians realize that they cannot afford to sustain the lifestyle that they have grown accustomed to living. However, there are a number of ways to live within your means without hurting your quality of life. With a little planning and knowledge, you can live on budget without feeling the financial strain.
The following are a number of ways to live within your means while making life more enjoyable:
- You have to be able to bring in more money than you are spending to live within your means. Create a monthly budget that includes how much you spend on essential items such as home and vehicle insurance, utilities, food, cable, phone, mortgage payments and gas. Compute how much you earn monthly. Subtract your monthly income from necessary expenses to determine how much extra money you have to work with.
- List extra expenses such as entertainment, recreation, and products you shop for in the home and on yourself such as clothing and personal care products. Calculate how much you spend monthly on these items. You will then need to come up with ways to control your spending habits. This can include cutting down on the number of times you dine out each month, shopping for discounts at large department stores, second hand stores and surplus stores. When shopping, look for deals, coupons, and sales. Never pay full price for an item.
- Credit card debt is a major source of financial hardship. If you have several credit cards with high outstanding debt, you should at least pay the monthly minimum for each card, and then start to pay off the card with the highest interest rate. Owning fewer credit cards will make it easier to manage and remember. Always pay your bills on time to avoid having to pay any interest at all. To help wean yourself off of credit cards, start carrying cash with you at all times and pay using cash. Seeing the physical money literally change hands will help you consider needs vs. wants on a more regular basis.
- If you are having trouble keeping up with debt payments, then maybe you should consider consolidating your debt in order to manage it better. Instead of making multiple monthly payments to several creditors, you can consolidate your debt and only need to make a single monthly payment. In addition to helping you get organized, this can also alleviate stress that is often associated with debt.
- Clean up your credit score. Request a copy of your credit report from one of the following two major credit bureaus: Equifax, or Trans Union. Check it over for any inaccuracies. Look to see what debt is affecting your credit rating and work with a creditor to establish a repayment plan. Never ignore your creditors as they will send your debt to a collection agency.
Pls See: canadamoney.ca
Comments (0)
CMA Blog Home
What is the Choice Privileges MasterCard Credit Card?
The Choice Privileges MasterCard offers a flexible rewards program as well as savings and security features. This MBNA credit card offers up to 15 points on the dollar as well as savings and security benefits without an annual fee.
The article talks about the following:
- Choice Privileges Rewards Program
- Card Redemption Program
- MBNA’s Position in the Canadian market
What is the Choice Privileges Rewards Program?
The name of the card speaks for itself. Earning points is easy.
Cardholders acquire bonus points good enough for a night's stay or airfare for signing up.
You can earn the most points for $1 at over 5,000 Choice Privileges lodging establishments around the world including hotels in Canada, the United States, Mexico, Europe, Central America and the Middle East. At the same time, you can get double points from qualifying gas and grocery purchases
.
You have to use your Choice Privileges card and make a reservation with any of the following affiliates:
- Comfort Inn
- Comfort Suites
- Quality Inn
- Clarion
- Sleep Inn
- Cambria Suites
- Ascend Collection
You will earn points in the 10-point bracket by checking in at the following inns:
- Rodeway Inn
- Econo Lodge
- Suburban Extended Stay
- Main Stay Suites
What is the Card’s Redemption Program?
It is very easy to earn points. However, you need to be aware of the point redemption scheme that includes:
- Free nights with 6,000+ hotels worldwide
- Free nights with 500+ luxury hotels worldwide with no blackout dates
- Airfare with at least 15 affiliated partner airlines to destinations globally
- Gift cards and gift certificates at several retail establishments in Canada
Although it is easy to be attracted to the many travel and shopping benefits that you can get from this MasterCard, it is equally important to note that this card may also be cost-effective and secure. This card has no annual fee, which is obviously a great benefit that you can enjoy immediately. There is a low introductory interest rate on balance transfers, which is something that could help you get control over the balances on other cards that probably have substantially higher interest rates.
The interest-free grace period on all purchases can help you avoid the extra costs of interest when you make regular payments. There is a low foreign exchange fee that gives you more options for travelling without converted cash or traveller's cheques.
There are also minimal fees on wire transfers as well as cash advance options which lets you get the cash you need whether you are close to home or travelling abroad.
Pls See: creditcardsbay.ca
What is MBNA’s Position in the Canadian Market?
MBNA Canada has become the largest issuer of MasterCard’s in Canada by using affinity marketing techniques. This is part of their strategy to obtain the endorsement of more than 5,000 organizations, including sports teams, charities, financial and educational institutions. MBNA Canada markets its Master Card products aggressively through direct selling. It also makes use of telemarketing and point-of-sale techniques.
MBNA is a division of The Toronto-Dominion Bank. It is currently the largest MasterCard issuer in Canada. It dominates the field of affinity marketing and works to develop a mutually rewarding relationship with its members. MBNA regularly invests in initiatives that help enhance the country’s environment and integrates environmental policy into the company's products and operations at all levels.
Pls See: mbna.ca
MBNA Commitment
MBNA has made the commitment to provide top quality customer service. The number of credit cards that the company has introduced is proof of the company’s goal of providing benefits to Canadian consumers and residents.
Comments (0)
CMA Blog Home
Canadians Need to Value Standards about Personal Finance Safety
Canadian Money Advisor says that there should be personal finance safety standards for Canadians.
This can be likened to the oil mines in Fort McMurray where there is extensive, safety training and safety practice for understandable reasons. It is true that there is zero tolerance for unsafe behaviours in the oil mines.
CMA is right! There should be the same type of thinking and training for personal finances. Take a look at the daily vehicle safety example given by CMA. A daily safety check was required for the coach buses for the fluids, belts, lights, tires and other spare parts. This is meant to reduce the risks for both drivers and passengers. In short, personal finance safety is needed.
Pls See: anadian-money-advisor.ca
What is the Value of Private Financial Training?
Money Matters Expo will explains that private financial training will prepare individuals with the understanding required to make intelligent financial choices. The primary purpose behind any kind of personal financial training is that will help you pay the things for you to do and simultaneously permitting to complete individuals things while still remaining financially secure.
This is what Canadians need to understand and apply in their daily lives.
Once you have carried out with the private finance course, it is important to do something about the learning process.
This kind of training has long-term benefits for people who experience working out and make use of this training.
Individuals, who complete this kind of training, are inclined to save, invest, stay away from debt, and generate more income for retirement purposes.
What is Personal Financial Training?
If you have financial problems, all of your existence may be hard to manage. Your associations are strained. You are afflicted with stress. Productivity can be reduced since the thoughts are focused on cash problems.
With personal financial training, you gather together weapons to create mature choices relating to your money. These choices can prevent you from being swallowed in debt. You can prevent unnecessary emotional distress. Personal Financial Training Goals indicate that the primary purpose of any personal financial training is to keep you financially secured. Personal financial training is essential. It should be made mandatory in all senior high schools.
Pls See: training.ezinemark.com
What is the Personal Financial Plan?
It is important to create a personal financial plan.
This will determine the financial progress of a person.
It may also serve as a form of training for personal finance stability.
Take a look at these steps:
- Prepare a Net Worth Statement
- Calculate Your Debt-to-Income Ratio See Debt-to-Income Ratio
- Prepare a Cash Flow Analysis
A Cash Flow Analysis, "budget" or "spending plan", lists your income and expenses by month. Subtract your expenses from your income to obtain your net cash flow. If it's positive, plan what to do with the excess. If it's negative or you break even, either find ways to increase your income or cut your expenses (or both, for even better results).
Manage Your Risk.
Review the following components:
Business insurance
Homeowners insurance
Health insurance
Long-term disability insurance
Pls See: financialplan.about.com
Comments (0)
CMA Blog Home
What is the CAA Quebec MasterCard?
The CAA Quebec MasterCard of MBNA Canada makes it easier for cardholders to save every dollar they spend at the gas pump as well as regular daily purchases.
The article talks about the following:
- Principal Features of the CAA Quebec MasterCard
- The Uniqueness of this MBNA Credit Card
- Interest Rates and Interest-Free Grace Period
What are the Principal Features of the CAA Quebec MasterCard?
When you use your CAA Quebec MasterCard, you will earn a .5% rebate in CAA-Quebec Dollars on the net value of each retail purchase. By buying gas at participating Couche-Tard outlets using the CAA Quebec MasterCard, you will earn 2¢ of CAA-Quebec Dollars for every liter of gas when you show your CAA-Quebec membership.
Cardholders also receive an additional 2% rebate on all other qualifying purchases made with this card, including gas, at participating Couche-Tard outlets - for a total rebate of 2.5%. This credit card requires CAA Quebec membership before your application can be approved.
In addition to a great rewards program, the CAA Quebec MasterCard also offers l other benefits. These are the following:
- A low 3.99% introductory interest rate for 6 months on Cash Advances and Balance Transfers.
- No annual fee, online access to your credit card account, and unparalleled 24-hour customer service. Y
- International acceptance in millions of locations, cash access in 430,000 ATM machines
- High credit line, around-the-clock fraud protection, and emergency credit card replacement.
Pls See: ncbuy.com
What Makes this Card Unique?
It is known and recognized in the global market.
Your MBNA card is affiliated with the Canadian Automobile Association, which allows savings at Couche-Tard, one of the largest company-owned convenience store operators in the world with up to 6,000 stores across Canada, the United States, Mexico, Japan, China, Indonesia and Guam.
In Quebec alone, there are nearly 600 Couche-Tard stores called Tabatou with 300 affiliated outlets. Meanwhile, there are also more than 600 corporate stores and 214 affiliated shops in Ontario.
Pls See: cardoffers.com
What are the Interest Rates and Interest-Free Grace Period?
The CAA Quebec credit card has a standard rate 19.99% for purchases. If you avail of its balance transfer feature, the rate is at 19.99% including cheque advances. The same rate goes for cash advances as well as cash equivalents. For the default rate, the interest will increase by 5% if you are late in paying off the balance within the 12 consecutive billing cycles. However, if you pay off the minimum amount on time for 12 consecutive billing cycles, your current interest rates will be reduced by 5%. This means that it is necessary for you to take note of your due date and pay off your balance to keep away from interest rate increase. The following interest rate will be applied on the day your account has been activated.
The cardholder is given an interest-free grace period on new purchases that have been made for at least 21 days. This will be implemented if you can pay off the total balance found on your billing statement before or on the due date itself. For balance transfer, cash advances or cash equivalents, the interest-free grace period is not available. Every cardholder must take advantage of this grace period since it does not charge you interest which in turn can be considered as a savings for you.
Pls See: canadian-money-advisor.ca
CAA Quebec
Canadian Money Advisor says that “CAA Quebec is really a not-for-profit organization that gives their members the security and composure by offering them exceptionally high quality automotive, travel and residential products.” CAA Quebec is acclaimed for its well-known emergency road service and maintenance. You simply have to call CAA Quebec and they will gladly assist you with your car problems.
Comments (0)
CMA Blog Home
What is the Best Western MasterCard Credit Card?
The Best Western MasterCard credit card issued by MBNA is a hotel rewards card designed exclusively for Canadian residents. Cardholders are qualified to receive rewards such as hotel accommodations, gift cards, elite status upgrade and no annual fee.
This article discusses the following:
- Features of the Best Western MasterCard
- Earning Points in the Best Western Rewards Program
- Card Member Perks
What are the Features of this Card?
The Best Western MasterCard has an excellent reward points program and comes with the premium benefits of a Platinum MasterCard. Accrued points can be used for some of desirable aspects of the Best Western Rewards program.
Look at these features:
- 20,000 Bonus Best Western rewards points after 1st purchase
- Earn 1.5 Best Western rewards points for every $1 spent
- Earn a one-tier elite status upgrade for spending $6,000 in one year
- No Annual Fee
- 24/7 fraud protection and unparalleled 24-hour customer service with online access to your credit card account
Members who are approved and possess the Best Western MasterCard credit card are automatically enrolled in the Best Western rewards program. Earning points for your hotel accommodations is a given. With this rewards card, you will earn points with every purchase.
What is Earning Points in the Best Western Rewards Program?
Card holders can earn 20,000 Bonus Best Western rewards points.
New customers will earn a one-time amount of 20,000 bonus points.
Look at the Points System:
Earn 1.5 Best Western rewards points per $1 dollar spent - For every $1 you spend using your card to pay for purchases, you'll earn 1.5 Best Western rewards points.
Earn 50 Best Western rewards points for cash advances - Every time you take out a cash advance for $50 or more, your account will be credited 50 Best Western rewards points.
Earn a one-tier elite status upgrade for spending $6,000 annually - When your yearly spending reaches or exceeds $6,000 in a single calendar year, you will earn an elite status upgrade good for one level above your current status. This can be applied towards even greater rewards and hotel perks within the Best Western rewards program.
What are Card Member Perks?
You already know about the rewards that can be accrued towards free hotel rooms, merchandise, services, upgrades and more at the 4,000+ locations in over 100 countries. However, the perks, customer service and inherent protections are that of the Platinum MasterCard.
You are assured of excellent customer service which is 24 hours a day and seven days a week.
1-hour Credit Line Increase Decisions - Call during regular business hours and receive a quick answer to your requests for credit card increases.
Cash Advance - Get cash where and when you need it from over 400,000 ABMs globally. Emergency Card Replacement - If your Best Western MasterCard® credit card gets lost or stolen, you can have a new one delivered to you...usually within 48 hours of reporting the loss.
Pls See: cardoffers.com
What is the Basis for Approval?
Not all applicants will qualify for this card. Benefits vary depending on the approval. Upon approval and completion of your first eligible purchase or balance transfer using your Best Western MasterCard, sixteen thousand (16,000) bonus points will be awarded at the close of the first billing statement in which you make your first purchase or initial balance transfer.
Card members will earn 15 points per dollar spent on Best Western purchases based on the standard 10 points per dollar spent earned through Best Western Rewards membership for qualified stays, and 5 points per dollar in Net Purchases spent with the Best Western Rewards MasterCard linked to the same membership that are not later returned, disputed or rescinded. One point will be awarded for every one dollar of Net Purchases made anywhere else on a Card member's Best Western Rewards MasterCard. "Net Purchases" shall mean purchases of goods and services made by the Card members or authorized user of such account minus any returns or refunds. The following transactions are excluded from "Purchases" and do not earn Rewards unless stated: interest or finance charges, balance transfers, convenience checks, cash advances and credit card fees. A "qualified stay" is defined as one or more consecutive nights at the same Best Western hotel at a qualifying rate eligible for earning points through Best Western Rewards, regardless of the quantity of check-ins/check-outs.
Pls See: barclaycardus.com
Reasons Why You Should Apply for Your New Card
One of the major reasons to sign up for the Best Western MasterCard is the Free stays based on earned points in selected hotels and resorts around the globe.
Comments (0)
CMA Blog Home
The Value of Financial Literacy
Wikipedia says that financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances. Raising interest in personal finance is now a focus of state-run programs in countries including Australia, Japan, the United States and the UK.
Pls See: en.wikipedia.org
This should also hold true for Canada.
What is the Status of Financial Literacy in Canada?
Majority of Canadians were described as reading too poorly to operate in today’s complex world. In fact, their numeracy scores are getting worse. Debt levels are going up and savings decreasing. Financial products are becoming harder to understand just as individuals are forced to take more responsibility for their social safety net. Too many Canadians have limited or no pension coverage. Financial fraud is a large and growing problem.
The most basic definition of financial literacy is having the knowledge, skills and confidence to successfully carry out the financial transactions encountered in everyday life.
The Financial Literacy Continuum moves from the simplest forms of financial awareness to higher levels of capability and up to sophisticated investor education.
Efforts to Resolve Financial Literacy Issues
There are efforts being conducted to solve financial literacy and the industry is growing along multiple lines:
- Each province has its own efforts, some of them quite considerable.
- The Federal Government has launched a national task force on financial literacy and funds several agencies working in the field.
- Non-profit agencies do some important work regionally and nationally.
- Financial service companies devote considerable time and money to provide basic financial education to their consumers.
Perhaps Canada must do the following:
- Make financial literacy a national priority.
- Teach these skills to adults and young people when they need it most.
- Coordinate efforts of public, private and non-profit organizations.
- Test to see what financial literacy training programs work best.
- Benchmark with specific targets to allocate funding.
- Learn from best international practices.
What is FAIR Canada’s Program of Action?
Fair Canada clamours for calls for political leadership. It is high time for all levels of governments and the civil service to the private industry and non-profit sector to establish a national financial literacy strategy and to devote the resources necessary to see it implemented. An early test of political will is to ensure that financial literacy education is added to curriculums at high schools and throughout the formal and adult education systems.
Financial literacy education is not enough. Although individuals must assume more responsibility for their financial affairs, the financial services industry must be accountable for products that harm consumers. Regulators must become more proactive in their efforts to protect consumers and to punish fraud, misleading advertising and other violations of the public trust.
Enough work has been done to build a growing consensus about some key points:
Financial literacy andcapability must be a national priority. All Canadians need the skills and confidence to properly manage their financial affairs, in order to participate fully as citizens. Individuals must be better prepared to take more responsibility for their own financial security.
It is in the interest of all employers and financial service providers to have a more informed workforce and consumer.
Basic financial literacy should be a requirement to graduate from high school: students should demonstrate a basic understanding of savings, compound interest, the effect of debt, and other personal finance essentials. Courses should at least introduce students to the basics of savings, investments and financial markets, including the wide range of investment vehicles.
Pls See: faircanada.ca
Comments (0)
CMA Blog Home
What is Platinum plus MasterCard - 0 for 10?
The Platinum plus MasterCard credit card - 0 for 10 is a superb card from MBNA Canada that gives cardholders 0% AIR for the first 10 months of card membership.
The article deals with the following concerns:
- Customers expectations from the Platinum plus MasterCard credit card
- The 0 for 10 Concept
- Recent reviews about the Card
What can Customers expect from the Platinum plus MasterCard credit card?
There are several benefits that customers can enjoy if they avail of the Platinum plus MasterCard credit card - 0 for 10:
- There is no annual fee and round-the-clock protection; 0% APR; 0% interest on balance transfers, access cheques, and deposits for the first ten months of card membership.
- You will not be charged any interest on several on the aforementioned transactions for almost a full year.
- Other exciting cardholder benefits include emergency services and convenient travel; protection program; and, exclusive security and protection program with Chip & PIN technology featuring Pay Pass.
- Part of the program includes fraud protection services along with 24-hour customer care. As a MBNA card member, you can access your account online and manage your finances right from your computer.
Pls See: lowcards.com
What is the 0 for 10 Concept?
The 0 for 10 ensures that the cardholder saves money from the time he or she opens an account.
Aside from the 0% APR for the first 10 monthly billing cycles on balance transfers, you need to make all balance transfers within 120 days of opening your account. With regards to cash advances, the introductory grace period includes cash equivalents.
There is a 24-Hour Customer Service. You get the service you need whenever you need it since representatives are standing by 24 hours a day, 7 days a week.
You benefit from 1-Hour credit line increase decisions. Customers get an answer on credit line increase requests during regular business hours.
Likewise, you get cash advances promptly. There is an emergency card replacement for lost or stolen cards usually within 48 hours of reporting it and requesting for a new one. For emergency cash or transfer, if you need funds and you're not near a trustworthy ABM, you can have cash wired to you via Western Union or transferred to an account of your choice.
What are recent reviews about the Card?
The Platinum plus MasterCard has no annual fee. After the 15 month introductory period, it has an APR of 17.99%. There is a fee of 19.99% on balance transfers made after the fifteen month period, so be sure to get all of your bills lined up beforehand. Fees for things like cash advances are average for this sort of credit card at 1% of the total cash advance or $7.50; whichever is more.
The Platinum plus MasterCard credit card is a fairly basic credit card with the perk of a longer introductory period of no interest. You also get platinum member benefits such as top of the line customer service although you need to have a good credit rating to get approved.
Pls See: crediteria.com
MBNA and MasterCard
MasterCard is a global credit card services provider with one of the most recognized brands in the world. With more than 24 million acceptance locations worldwide, MasterCard is a franchisor that enables commerce credit card payment processing on a global scale.
While providing several different convenient ways for customers to pay for transactions including credit cards, pay pass, prepaid cards and debit cards, MasterCard provides systems and services to the institutions that provide these services to their customers.
Through its industry partners such as MBNA, MasterCard card holders enjoy many different reward programs including travel discounts and rewards, diners club and other merchant rewards.
Comments (0)
CMA Blog Home
Field Level Risk Assessment in the Financial Setting
In a workshop in the past, the Construction Owners Association of Alberta described that the FLRA is a method that an individual or crew will use to minimize or eliminate potential losses to people, property, materials or the environment.
Under the Field Level Risk Assessment, the focus should be in developing a practical and common risk assessment process which enables workers to recognize, assess and control risks to people, property, materials and the environment.
The practical process that is available, feasible and useful in everyday application by workers in a field environment.
The common process that is applicable to any worker and is used on a regular basis
Pls See: coaa.ab.ca
The Financial Safety Net
Just like a smart acrobat would never cross a high wire without a balancing stick and a big, strong net stretched out below, you should never go without financial safety nets. The types of safety nets you need depend on your personal and family situation. Here are the questions that one has to answer:
- What if I get fired from my job?
- What if I have a big unexpected expense?
- What if I get sick and am unable to work?
- What if my spouse dies?
- What if someone files a lawsuit against me?
This is what the financial safety net for. Canadians should be trained in just like the Field Level Risk Assessment. There has to be similar FLRA in personal finance.
Pls See: moneygirl.quickanddirtytips.com
Financial Emergencies and the Safety Net
Financial emergencies can happen to any person especially when you least expect them. You can avert an emergency from turning into a disaster by building your own safety net savings. The safety net account is a reserve of savings that allows you to pay your normal expenses in the event of a sudden drop in income. It helps avoid the need to turn to credit as a solution, which can result in a perpetual cycle of debt. Resorting to debt to cover lost income can mean years spent digging yourself out of debt.
The safety net account is the second step in a three-step savings program for financial freedom, that also includes your:
- Anti-emergency fund: Money set aside monthly to pay for the non-monthly expenses that often get left out of our financial equation, such as quarterly insurance, car repairs, appliance replacement, holiday spending, taxes and the family vacation.
- Investment savings: Money set aside for retirement, college and other long-term financial goals.
It is possible to build safety net savings by setting aside a specific amount from your pay check each pay period, with the understanding that the money will not be touched unless a justifiable financial need arises. Safety net savings offers benefits even when you are not using it. This is the benefit of security and peace of mind. You will be glad that you can cope with financial needs and experience a sense of security if you know that safety nets are available to you. Experiencing this level of security may also make you feel more comfortable than taking a few personal risks to enhance your quality of life, like changing jobs or starting your own business.
Pls See: sideroad.com
Comments (0)
CMA Blog Home
What is MBNA Rewards Student Awards Credit Card?
The MBNA Rewards Student Awards credit card provides simple solutions for Canadian students who want to earn rewards from all qualifying transactions. These students can earn both bonus and day-to-day rewards from this exclusive card.
This article explains the following:
- Rewards Schemes
- Appropriate features for students
- Uniqueness of the MBNA Rewards Student Awards
What are the Rewards Schemes?
Students, who make their first qualifying purchase, will receive a total of 1,000 bonus MBNA rewards immediately. They can get an additional bonus rewards upon reaching their one-year account anniversary date.
They can also earn everyday rewards which is equivalent to one MBNA reward for every dollar spent on legitimate retail transactions. These rewards can be redeemed for their favourite merchandise, charitable donations, and gift cards for friends or cash back. There is no maximum limit to how many rewards one can earn from approved purchases.
There is no annual fee just like the other MBNA credit cards and you are assured of continuous fraud protection. The possibility of unauthorized charges appearing on your account is very remote.
Pls See: ncbuy.com
Pls See: creditcardsbyweb.com
What are the appropriate features for students?
Students, who apply for the Student Awards credit card, are assured of a credit card that will conform to their needs and desires.
The features that students can enjoy are the following:
- Zero Liability - You will be reimbursed for any unauthorized transactions if your card is lost or stolen,
- Free Additional Cards – You will get additional cards if you are in need of 2+ cards.
- Free Online Access – You are entitled to online assistance for live transactions and balances.
- Friendly Customer Service Agents - If you have any questions about your account, you will have access to unparalleled customer service 24/7.
Students can enjoy exceptional travel benefits as well as the following:
- Travel accident insurance
- Trip interruption or cancellation insurance
- Travel medical insurance
- Rental vehicle insurance
- Flight delay insurance
- Baggage insurance
- Purchase protection and extended warranty
Pls See: cardoffers.com
What makes the student credit card unique?
The Student Awards credit card is a unique credit card that is issued in collaboration with Studentawards.com.
Studentawards.com is a free scholarship matching service that dedicates itself into helping Canadian high school, college and university students by providing information on scholarships, bursaries and many more types of financial assistances.
With the Student Awards credit card, you can enjoy an unparalleled 24 hour customer service and online access to your credit card. If you are a student looking to build your credit, then the MBNA Student Awards credit card might just be the credit card you are looking for.
Pls See: banknerd.ca
Student Credit Card
The MBNA rewards Student Awards credit card, issued by MBNA Canada, is the ideal card to for students. They can enjoy everyday protection benefits and rewards that will accumulate with every purchase they make.
Comments (0)
CMA Blog Home
Principles of Personal Finance Safety Training
The Canadian Centre for Occupational Health and Safety says that in Canada’s construction sector, the “Material Safety Data Sheet or MSDS is a document that contains information on the potential hazards (health, fire, reactivity and environmental) and how to work safely with the chemical product. It is an essential starting point for the development of a complete health and safety program. It also contains information on the use, storage, handling and emergency procedures all related to the hazards of the material. The MSDS contains much more information about the material than the label. MSDSs are prepared by the supplier or manufacturer of the material. It is meant to identify what the hazards of the product are, how to use the product safely, what to expect if the recommendations are not followed, what to do if accidents occur, how to recognize symptoms of overexposure, and what to do if such incidents occur.”
Pls See: ccohs.ca
This principle can and should be applied as far as personal finance safety is concerned.
Financial Outlook of Canadians
Canadians need to widen their financial awareness.
They need to know how to use the information available to them in building a financial safety net or to get trained in harnessing personal finance safety techniques.
According to the Task Force on Financial Literacy:
One of the challenges of raising financial literacy levels is to ensure that people know about targeted education initiatives available for their benefit and are able to clearly understand and utilize them. Many Canadians are either unaware of the considerable amount of financial information readily available across the country, are unsure of its credibility, or simply do not understand it. Moreover, some people underestimate their need for financial education.
There has to be a focus on delivery in a broader sense: reaching Canadians on a mass scale. A variety of awareness-building tactics is needed: a single source website; a broad public education campaign, as well as one specifically geared to financial fraud awareness; a self-assessment tool to help Canadians evaluate how savvy they are about their own money; and financial literacy awards and contests. As another “building block” for making lasting improvements in financial literacy, we also emphasize the importance of clear communication.
To become financially literate, Canadians across the country need to be able to readily find reliable, trustworthy information. The Internet can be a powerful tool in this regard, given that Canada has one of the highest rates of Internet use in the world: 80 percent of Canadians aged 16 years and older used the Internet for personal reasons in 2009, up from 73 percent in 2007.
Pls See: financialliteracyincanada.com
The Essence of Public Information
Creative and effective awareness-building is indispensable to any public information campaign. Individuals, families and those involved in the delivery of financial education need to be enlightened about how to access trustworthy financial education resources.
The Government of Canada works with stakeholders and marketing communications experts to mount a dedicated national campaign to increase awareness and inform the public about financial literacy issues.
The campaign should catch the attention of Canadians of all ages, social groups, economic situations and locations. To reach a diverse population, the campaign should use an extensive range of communications media and technologies, including the Internet, social media (Facebook, Twitter, You Tube), television, radio and print (brochures, ads and outdoor banners).
Pls See: financialliteracyincanada.com
Comments (0)
CMA Blog Home
Personal Finance Planning: An Overview
Personal financial planning can consist of two basic goals:
The first is to control your daily finances that will allow you do things that bring contentment and financial gains.
The second is to choose and follow a course towards enduring financial objectives.
In other words, a financial safety net is needed to prevent financial adversities caused by sicknesses and personal misfortunes.
Entitlement to Pensions, Benefits and Personal Finances
In Ontario, when someone dies, the family is entitled to pensions, benefits and personal finances.
If somebody passes away, there are many different organizations and levels of government that need to be notified. Also, some of these organizations and levels of government may have compensations and benefits to which the deceased person’s family or dependents may be entitled.
There are federal and provincial benefits such as:
Federal
- Canada Child Tax Benefits and Universal Child Care Benefit
- Canada Pension Plan and Old Age Security Program
- Canada Savings Bonds
- Goods and Services Tax (GST) Credit
- National Defense Disability and Death Benefits
- Veterans Affairs Disability Program Benefits
- Veterans Affairs Funeral, Burial and Grave marking Assistance
Provincial
- Guaranteed Annual Income System
- Ontario Disability Support Program
- Ontario Drug Benefits
- Ontario Savings Bonds
- Ontario Works
- Quebec Pension Plan
- Trillium Drug Program
- Workplace Safety and Insurance Board Benefits
This may be the same or similar for other provinces and cities in Canada.
Pls See: ontario.ca
However, this may not be sufficient. Thus, the individual needs a form of financial safety net and personal finance training to achieve and sustain their existence.
This may be the essence of personal finance safety training.
However, before we even start to consider this unique approach, it is necessary to be familiar with the benefits of personal financial options such as:
Continuing Disability Insurance
Long-term disability insurance is a replacement for income if a worker is not capable of working due to sickness or injury. Many people consider this coverage a luxury. The truth is this can be considered a necessity for those who do not possess sufficient financial resources. Even if you do have other financial resources, do you want to use them in paying monthly bills? If you saved 5% of your income annually, disability for six months can consume 10 years of savings.
Life Insurance is a Must
Life insurance is necessary if you have dependents who will suffer financially if you die unexpectedly. Many people utilize insurance as part of their estate planning and cash acquisition regardless of their dependent status.
If you plan to buy insurance other than term insurance provided by your employer, you should educate yourself about the advantages and disadvantages of this program.
Pls See: financialplan.about.com
Financial Safety Net
The financial safety net should be in place not only to accumulate wealth but to achieve stability.
Comments (0)
CMA Blog Home
What is Hard Credit Inquiry?
The hard inquiry is made on your credit report whenever a business checks your credit report after you made an application for a credit card, loan or other services.
When you check your credit report, you will see both hard inquiries and soft inquiries. However, only hard inquiries will impact your credit score. Ten percent of your credit score is based on credit report inquiries. Soft inquiries do not impact credit scores. Hard inquiries will only impact your credit score for one year.
Pls See: credit.about.com
This article is about the following:
- Hard and Soft Credit Inquiries
- FICO
- Importance of Checking Credit Ratings
What are Hard and Soft Credit Inquiries?
If you are recovering from bankruptcy in Canada in today’s tough economy, it is important to be more vigilant than ever with credit profiles and credit scores. You may not even be aware if a credit check is being conducted on you. Each credit check that is conducted displays credit reports. This can lead to a lowering of credit scores.
The hard inquiry is one wherein your full credit profile and score are obtained by the company that you are getting credit from. It can be a car loan or a mortgage. A soft inquiry is one wherein a company just wants to verify some basic information like your name and address, but without asking for credit information. This may be done with your authorization, like to verify your identity when opening a bank account or by a credit card company wanting to send you a pre-qualified offer. When you submit that application, it goes through a hard inquiry. Requesting your own credit report is classified as a soft inquiry.
Pls See: afterbankruptcycanada.ca
What is FICO?
Here in Canada, the FICO Score Range can be easily understood from the Government of Canada’s publication called Understanding Your Credit Report and Credit Score. But what concerns many is that individuals do not know what is the criteria involved, nor is he informed about his rating; the banks are not obliged to inform the individual about his score – the impetus is on him if he wants to know. A Canadian citizen can order copies of their credit score visiting the Equifax site at: http://www.equifax.ca. You will not receive your credit score with your FREE credit report by mail.
Any bad credit history like delayed repayments of loans and bounced checks will adversely affect their credit score. Student loans, credit cards, home loans and mortgages can all be now decided in hours as the decision is taken on the customer’s FICO Score Range, which is readily available.
Pls See: en.wikipedia.org
What is the Importance of Checking Credit Ratings?
It is important to check your credit rating even once a year to find out any cases of possible identity theft and to determine your credit scores. Almost every adult Canadian has a credit file. This contains information about every loan that one has obtained for the last six years. Each of the accounts includes a notation that includes a letter and a number. The letter "R" refers to a revolving debt, while the letter "I" stands for an instalment account. The numbers go from 0 (too new to rate) to 9 (bad debt or placed for collection or bankruptcy.) For a revolving account, an R1 rating is the notation to have. That signifies that you pay your bills within 30 days, or "as agreed."
Pls See: cbc.ca
The Value of Credit Ratings
Consumers should make it a point to take care of their personal credit rating at all times. It is their scorecard that determines if they will be given additional loans in case of need.
Comments (0)
CMA Blog Home
What is Equifax Dispute?
Equifax Inc. is a consumer credit reporting agency in the United States. It is one of the three largest American credit agencies along with Experian and Trans Union. It was established in 1899 and is the oldest of the three agencies. It collects and maintains information for over 400 million credit holders worldwide. Based in Atlanta, Georgia, Equifax is a global service provider with US $1.5 billion in annual revenue and more than 7,000 employees in 14 countries. The company grew quickly and in 1920 had offices throughout the US and Canada. The Retail Credit Company is one of the nation's largest credit bureaus. It holds the files of millions of American and Canadian citizens.
Pls See-wikipedia.org
This article is about the Equifax Business Marketing Services; Equifax Dispute in Canada; and, Credit Reporting Act in Canada.
What are Equifax Business Marketing Services?
Equifax has been helping business organizations choose the right customers for more than a century by providing them with credit reports and credit risk scores. It has expanded its offerings to assist clients in their sales and marketing efforts.
Equifax Business Marketing Services presents a suite of business-to-business solutions that will help you reach your target customers whether they are large corporations or SOHOs (Small Office Home Office). Equifax can help you pre-qualify potential customers before a mailing is sent, a phone call is made or a sales representative is dispatched. These business
Marketing solutions can assist in doing the following:
- Target new customers
- Increase the base of customers
- Design marketing campaigns
- Develop prospecting strategies
- Do market analysis
Big Canadian enterprises and small businesses alike trust Equifax risk predictor scores to avoid problem accounts. Equifax credit risk scores and business trade data bring a higher level of sophistication to standard marketing lists, enabling you to pre-qualify potential customers. Thus, these objectives are met:
Avoid making sales calls on deadbeat prospects.
Avoid wasting precious advertising dollars sending promotional materials to companies that fail to pass your credit screening.
Improve profitability by avoiding high-risk accounts.
Save time and effort collecting on slow accounts.
Pls See-equifax.com
What is the Equifax Dispute in Canada?
Canadian Money Advisor recalled how Equifax sent out press releases about the rising bankruptcy cases in Canada (by 20%) in 2010. This incident and the exchange of credit information between financial institutions made life difficult for the average to avail an unsecured loan or a mortgage.
Equifax believed it did right in releasing the data about rising bankruptcies. However, given the scope of their data regarding an individual’s credit history, date of birth and social security information, critics felt the protagonists should have been prevented in exchanging such sensitive information.
There are numerous cases where people dispute their rating which is called Equifax dispute. The affected people are justified in their anger and clamor for restrictions on Equifax because this data is compiled with no input from the person involved. Any discrepancies will generate a dispute and the time normally taken to resolve them is anywhere between 60 to 90 days.
Pls See-canadian-money-advisor.ca
What is the Credit Reporting Act in Canada?
The Credit Reporting Act explains the information that credit reporting agencies are allowed to collect. This includes the recipients of the information and for what purposes the reports can be used. By limiting the information that a credit agency can include in credit reports, the act works to guarantee the privacy of Canadian citizens.
Credit reporting agencies are private, licensed businesses that retain and provide credit information. This can be released upon request to employers, banks and other businesses. Activities are overseen by the attorney general's office, which also holds the right to revoke licenses of companies, if they fail to comply with regulations set by the Credit Reporting Act.
Pls See-ehow.com
Mission of Equifax
The mission of Equifax is to assist clients identify and reach the right customers for their business-to-business sales and marketing needs. It also deals with credit reports and credit risk scores.
Comments (0)
CMA Blog Home
Comments (0)
CMA Blog Home
What is a credit card - 2 ?
There are millions of credit cards in Canada, that come in all flavors and sizes. This article will help explain various aspects of what is a credit card.
Who provides credit cards? Plastic money, as it's called, is provided by companies who specialize in managing vast amounts of purchases by millions of people in countries around the world. A credit card companie must have the computer systems and database systems to be able to manage the individuals current personal and credit information, and help perform instant lending transactions.
This "systems lender" makes its money by annual fees charged to the vendor each time a purchase is made, along with interest fees charged, and service fees charge to the individual customers.
Who uses credit cards? Anybody who is of the age of majority who is able to sign legal agreement is able to have a charge card. Business people and individuals alike use credit cards for travel expenses, household purchases, electronics, online purchases, groceries etc. Pretty much everything can be bought with the instant loan card.
What types of credit cards are there? There are high interest cards, low interest cards, travel reward cards, line of credit cards, and other types of reward points cards. Credit cards themselves are usually made of thin plastic that you can fit in your wallet. Each company has a different logo and identifying and security marks to protect the customer. Each card has an electronic strip so that you can swipe it when making a purchase. The electronic strip holds your information which is instantly sent to the credit card processor which either approves or declines your purchase.
Where can I use a credit card? Convenience cards can be used at pretty much every retail store, restaurant, hotel, airline and online store around the world. It's good to ask a retailer which brands they take before making a purchase. Some retailers will take Visa and Mastercard, but not American Express. The beauty of carry a travelling charge card is that you can use them all over the world. Again, if you're travelling, you may want to call ahead to ensure that the countries and retailers, hotels etc use your credit card before you take your trip. I've heard of cases where people have gone on a trip and have been left cashless because they took the wrong credit cards.
When can I get a credit card? All Canadian banks offer their own version of Mastercard or Visa. They even offer American Express. There are other retailers like Canadian Tire, Capital One, MBNA that offer "independent" credit agreements.
Why do people use credit cards? People use credit cards for various reasons: 1) They don't want to carry cash with them. 2) They want to collect rewards points & cash back points. 3) They like other peoples money for as long as possible. 4) They are short of cash and need a loan to make purchases. 5) They want to buy something online in a secure fashion. That is the beauty of this type of loan facility. It offers flexibility and convenience.
How do I get a credit card You can go to a bank or credit union and go through the paper credit card application process. You can apply at retailers that have their own credit cards. You can apply online for cards such as Capital One. You need to ensure that your credit history and credit score will be within the requirements of the creditor. If you're not sure what this means, give your credit card company a call and ask them what qualifications such as credit history they will ask for to be approved for their various plastic money products.
SEE ALSO
References
External Links
Comments (0)
CMA Blog Home
What is a Collection CallA collection call happens when a collection agent, working at a collection agency calls a debtor who is behind on payments as according to the terms and conditions of the credit agreement.
Who Makes Collection Calls?
Only Provincially licensed collection agents who are working at Provincially licensed collection agencies are allowed to make collection calls.
These third party collection agencies should have written agreements with creditors to collect debts that are past due or where payments have stopped
Who Receives Collection Calls?
An individual who is behind in making payments, or stopped payments altogether will receive notifications by telephone, or mail from a licensed firm.
In the agreement the debtor signed, they've allowed the creditor to use a third party bill collector should they not make payments up to date and as agreed to.
Where is a Collection Call Made to?
A collection call can be made to the individual's home, or to their place of employment. Agents will call all sorts of places trying to locate the debtor, if the debtor's contact records are out of date.
Usually a collection call is made to the debtors home, and there are rules and regulations that need to be followed by the debt manager. Each province has regulations that limit where and when a call can be made.
When is a Collection Call Made?
Contacting a debtor should usually be done at reasonable hours. Usually the hours are between 8 am and 9 pm, the same times that telephone solicitors are allowed to call.
Each province has different regulations on when collection calls are allowed. Most times collection personnel are not allowed to call on weekends or holidays and at certain hours.
Why are Collection Calls Made?
There is an agreement set in place between the debtor and the creditor. In short, the debtor borrows money from the creditor and agrees to make interest and principal payments at agreed times.
If these payments are not made, that usually triggers collection activities.
As to why the borrower isn't making payments could range from pure neglect to the fact that they just lost their job, or acquired an illness and their cash income has been cut off.
A creditor's income is the interest it charges to the borrower. It must be able to control the payments coming in from it's customers.
Understanding that it's customers payments are not always going to be smooth and steady, it has to use a system to encourage prompt payments. This ensures that the creditors cash flow is in tact.
How are Collection Calls Made?
When the payments are not made by the debt, the creditor's computer system flags the late payments automatically and then these database records are sent (hopefully securely) to the collection agencies computer system.
These days, collection agencies are usually automated with powerful computer systems and data management systems.
Many times collectors are based in call centers with several employers. Using an automated dialling system, the collection agent makes several calls over the course of a day. The more efficient the telephone and data system, the more calls can be made by the debt management company.
Collection calls are regulated by each province. If you're having more questions or problems please contact your local consumer protection for advice on how to deal with individuals and companies that work for creditors to herd in their payments.
Comments (0)
CMA Blog Home
Michael Jackson - The machine was too much Despite how weird and uninteresting I thought Michael Jackson had become, I watched the news yesterday, as it was interesting on a business and personal finance level. The news agencies reported that Michael Jackson owed $500 million or 1/2 billion dollars, and that these debts were backed up by all of his musical and real estate assets and incomes.
I'm absolutely dumbfounded that an individual can owe $500 million. They had Michael Jackson's business consultant on CNBC this morning and the consultant mentioned that he had helped Jackson from avoiding bankruptcy in 2004.
The Machine is too big for an individual. In my opinion, Michael Jackson was on so many drugs, reports include demerol and morphine, just to avoid his life and his debt responsibilities.
He had a major tour scheduled in London and the revenue was reported at $50 million for 50 days. If the star is on that many drugs, and in that rough of shape, would he be able to even do a tour? The point that I'm getting at is this: business and individuals are great at building structures these days. But we're building things that are too large to handle. The banking system almost failed because it was too large for even the government to handle. In Michael Jackson's case, it seems that his empire was way too large for him to handle.
TOO BIG TO FAIL?!! This is certainly a attribute of our society these days. It seems that there are many companies that are too large to fail, including General Motors and AIG Insurance.
Many individuals have taken on considerable amounts of debt in their lifestyle, and it's causing structural problems for themselves and their families. Too much debt can be a problem if your health suffers, and you begin to lose control on how to make payments on the debt. I think this is definitely the case with Michael Jackson - especially since his debt was an unbelievable $500 million
Comments (1)
CMA Blog Home
What is an annual percentage rate (APR) Annual Percentage rate is calculated on many consumer loans, mortgages and credit cards etc. It's a term that every body who has credit , or is interested in credit should learn about. The reason being is that this is how you're being charged interest on your loans. Just as you should know how to calculate GST & PST on purchases made, you should also know roughly how to calculate the interest costs on your loans.
If you're not a math wizard and do not understand the terms, then it would be prudent to get a friend or professional to help out. The more you understand how annual percentage rate is calculate, the better you can base your decisions on the types of credit you use, the amount of interest you pay, and which creditors are charge the highest, or lowest interest rates.
You could be spending more money on interest costs than you really need to. You could use any extra interest rate costs saved on paying down your debt. It's imporant to know that interest can be calculated daily, monthly, semi annually or annually. It all depends. It is good to ask your creditor how they're charging you, and if there is any more cost effective way you could pay.
Also...If you 're paying a high annual percentage rate, ask the creditor how you can get the lowest APR possible.
DEFINITIONS Who what where when why how?
According to http://www.businessdictionary.com annual percentage rate is Standardized method of quoting the effective interest rate (actual cost of credit) on consumer loans, specially where interest is computed on monthly or other non-annual basis. An APR includes all fees (except penalties), and takes into account the continual reduction of principal amount through amortization. See also add on loan.
According to http://www.mortgagefit.com/apr.html APR (Annual Percentage Rate) to compare mortgage lenders If you're willing to know how much your mortgage costs, the APR or Annual Percentage Rate is what you should watch out for. Lenders are required to disclose the APR as part of the Truth-in-Lending disclosure (as per the Truth-in-Lending Act). What is APR? The APR is not the actual rate or note rate advertised by the lender. It is the effective rate which represents the cost of borrowing a mortgage loan. Lenders calculate APR taking into account the closing costs and the interest rate on a mortgage. As a borrower, you too can calculate the APR using the APR Calculator.
The Annual Percentage Rate is often used to compare mortgage lenders and the programs they offer. However, it is not an effective tool for lender/loan comparison because a mortgage with high APR may often be a better option compared to one with a low APR.
What fees/costs does the APR include? Some of the fees/closing costs that the APR includes are: Points (discount and origination points) Prepaid interest (from closing date to the end of the month) Loan processing fee Underwriting fee Document preparation fee Private mortgage insurance
Comments (0)
CMA Blog Home
What is high interest credit?High interest credit cards, and loans are pretty common these days. They can range from high interest car loans, credit cards, and lines of credit... even mortgages.
As the major source of income for banks, credit card companies and other lenders, high interest is charged as a way to make money, and build a reserve against non-payment of loans and other expenses.
Who, where, when, why, and how
Who Charges high interest
Any credit provider who has high risk clients. Generally, a creditor will charge high interest rates if they are in a higher risk situation.
Payday loan companies are usually the highest interest rates charged as they deal with people with all types of credit situations. Many times people with no credit rating use payday loan companies for loans because they can't get credit with more traditional lenders.
Merchant credit cards like Sears, or HBC, or HomeDepot will charge 29.99% on purchases where a balance is outstanding.. This is called retail interest rates. The retailer makes some of it's profit from the interest charged.
Who pays high interest rates?
There are two kinds of consumers who pay expensive interest rates.
The first are those who have bad or no credit score, and are penalized for their new credit history or less than perfect credit history.
The second are those who pay excessive interest costs because they aren't aware that they could lower their interest just by asking for lower interest rates. The truth is, creditors aren't going to promote their high interest products because this is where they make their money. So... if your credit score has gone from bad to good, they're not going to automatically to move you from a ballooned interest charge to lower interest without you asking.
Ask for a lower interest rate. the best thing that can happen is that you'll learn what the creditor requires to move you away from higher margin products.
Which rates are high interest?
High interest rates are considered to be 14.9% and higher. If you're getting lower than 14.9% you'll need to have a pretty good, low risk, credit story.
If you're paying 29.9%, this means that either you're really bad risk, or you're not really savvy when it is available in the market place.
When do you get charged high interest?
Interest charges are usually calculated monthly. On a credit card, the interest charged will be on the outstanding balance at the time of the statement. Please see your credit card agreement and contract for more explanation.
Some interest is compounding daily, but I'm sure that most interest is accumulating by the month.
Why do you get charged high interest?
As mentioned above, people who pay exhorbitant interest rates are those with little credit history, bad credit history, or people who don't know about asking for low interest rates.
Bad credit comes from not complying with your credit agreement. If you pay your bills late, or do debt settlement, consumer proposal etc, then these types of activities will lower your credit score, and indicate to the creditor that you're a bad credit risk.
A creditor who lends to higher risk clients has to assume that they'll have a certain percentage of clients who default on payments. Defaulting means that the customer doesn't pay the interest and principal amounts uptodate and as agreed.
How do you get charged high interest?
The creditor simply decides that the based on your credit history, and credit score, they'll charge you rates that make sense to them.
In the contract, usually, the creditor is able to increase your interest rate, by first giving you notice, whenever they feel like it. It's as easy as that.
If you get a notice that your interest rate is going to get higher, then I suggest asking them to keep the rate the same , or lower, and / or move the debt to a less expensive credit facility.
Please check the written agreement you received from the creditor . This could be at the time you signed up for the account, or a revision sent to you at a later date.
The creditor has a great deal of power to give you a more expensive interest rate, if they choose to.
Ultimately, a profitable interest rate means that you're paying more money for credit. This allows less money for spending on other necessities.
Comments (1)
CMA Blog Home
What is Making Money?
The idea of making money is as complex as there are people and products and services in Canada.
Who Can Make Money?
Any individual at a responsible age and older can make money. That's a basic fact. Starting from a child of 10 years old with their newspaper carrier route all the way up to a 90 year old who is self employed with a home based business.
What Can Make You Money?
Any product or service that is found to be valuable by an individual or company. If a product or service is valuable and in demand then it is likely to make a return on investment. In the North American market place, there are thousands of products and services that individuals and corporations use in day to day living and operation.
The key to this is to find a product or service that you're passionate about, and that you have a competency in selling.
Making Money - Where Can You do it?
The location of where you make your money can range from an employers place of work, to your own home. While there are millions of employees who commute to work each day from their homes, there are also individuals who work out of their homes. It all depends on the lifestyle that you would prefer.
The place where you make money needs to make sense. If you're working out of your home, you would need to be doing selling a product or service that would lend itself to the home and neighbourhood.
It would not be appropriate to have a heavy manufacturing plant using toxic chemicals in your house. It could be appropriate to sell retail items or even do accounting or advertising out of your house.
Making Money - When Should You Do It?
Obviously there is a need to generate income all throughout our lives. From the time the children are young, til the time we retire, we need to have a source of income to then become wealthy enough support ourselves.
A teenager will usually want to make some extra money with a part time job, so that he/she can have some spending money to buy electronic gadgets, go to the movie, or buy junk food to hang out with their friends.
As adults we need to make money to pay for our basic needs such as food and shelter and transportation, and then afterwards buy the luxuries that we want to enjoy. Our goal should be to thrive and prosper.
By the time we get to retirement age, we'll need to have our retirement funds make money for us, so that we can enjoy our retirement without financial worries.
Making Money - How Can You Do It?
As talked about earlier, there are many different ways to generate income. You can "strike it rich" so to speak, by either being self employed, or by being employed.
If you're employed by a company, they will generally give you a job description and a corporate structure in which to work. They will have products or services that already have a demand to work with. Their marketing department, human resources, financing, software systems etc will already be in place so that you don't have to create them.. All you have to worry about is fulfilling your job description.
Being self employed is alot more complicated way to create dividends. Simply put, being self employed means that you need to create a product and/or service and then the business structure with which to sell & service your product.
There are many things to consider when we talk about the different aspects of What is Making Money?
Comments (7)
CMA Blog Home
Review of www.onlinecasinoreports.caI was asked to do a review of this canadian online gambling guide, and, as it relates to spending money, I thought I would accept.
This is a new Canadian site that relates to: online bonuses
online games, Gaming, Entertainment, Gambling, Personal, Reviews, Sports, Media for Canadians.
This site is a canada gambling directory and it lists software and organizations such as responsible gambling to international trade agreements. It seems to be more of a full featured gambling reference.
Another feature of this site is that is lists canadian dollar online casinos. This page lists many sites that allow you to gamble online in Canadian dollars.
If you've got sufficient funds to gamble, this may be the site you want to check out.. if you're researching online gambling in Canada.
PLEASE NOTE: It is the strong opinion of this site that a person needs to use self control when gambling. Gambling should be treated as entertainment, and as such we recommend that you have a budget allocated for entertainment, and stick to this budget in a strict manner. IE... putting gambling expenses on your credit card when you don't have cash reserves to cover the gambling expense is a bad idea. Gambling is only a good idea if you have sufficient cash to make your expenses and then have enough room in your budget for extra entertainment expenses. This is the opinion of this website.
this is a sponsored review.
canadian online gambling guide
Comments (1)
CMA Blog Home
What is a Collection Agency?
A collection agency is defined by Wikipedia as a business entity that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditor and collect debts for a fee or percentage of the total amount owed. There are many types of collection agencies. Most of first-party agencies are subsidiaries of the original company. Third-party agencies are separate companies contracted by a company to collect debts on their behalf for a fee. Debt buyers purchase the debt at a percentage of its value and then attempt to enforce collections.
Pls. refer to: wikipedia.org
The article talks about the collection agency, the Canada Collection Agencies Act, the recommended process of dealing with collection agencies and how to deal with collection agencies.
What is the Canada Collection Agencies Act?
In Canada, regulation is provided by the province or territory where the collection agencies operate. The law is called the Collection Agencies Act and permits a government ministry to make regulations as needed. Regulations include calling times, frequency of calls and requirements for mailing correspondence prior to making telephone contact. There is a limitation period of two years for debt collection in Ontario and Alberta. The limitation period for other provinces is six years. When the allotted period of the debtor’s formal intention to pay the debt expires, the collection agency nor anyone else has legal authority to collect it. Credit bureaus will still retain the debt and the collection on your credit file for 6–7 years depending on the province. Although the collection agency can continue to collect or attempt to collect the debt, they cannot garnish or place a lien on the debtor past the limitation period. This is the rule unless the court upholds a new date of last activity on the account. In Manitoba, the governing document is the Manitoba Consumer Protection Act. Complaints regarding violations of the Act should be directed to the Manitoba Consumer Protection Board which can mediate or enforce the act.
Pls Refer to: moneyproblems.ca
How to Deal with Collection Agencies?
You are behind in your payments and debt collectors or collection agencies start calling you. What should be your initial response? You will need to formulate the right strategy in dealing with collection agencies.
You should know your rights as a consumer. How do you stop collection calls? What are your responsibilities? How should you be dealing with collection agencies? These are the basic questions that come into your mind. Remember that the people that you owe money from or your creditors have a right to try and collect that money. If they do not talk to you, how will they become aware of and understand your situation. Thus, it is important to be informed about the rules about collection procedures.
What are the Rules regarding Collection Agencies?
Money Problems.ca has outlined the rules that Canadian’s must know about collection agencies. Be aware about what debt collectors can and cannot do. You must also understand fully what you need to do to help you deal with collection agencies. The rules for Ontario and the legislation is similar but not identical in other provinces and territories.
- Collection agencies may not harass you or your family. Calling you once or twice a day is acceptable but doing this ten times a day is harassment. If you believe a collection agency is harassing you, keep a record of the time, date and frequency of the calls. This information is required if you decide to make a formal complaint against the collection agency.
li> Collection agencies may not call you on a statutory holiday, on a Sunday before 1 pm or after 5 pm, or on any day before 7 am or after 9 p.m.
- Collection agencies may not contact you (by phone, voicemail, or e-mail) more than three times in any seven-day period on behalf of the same creditor.
- Collection agencies may not contact your friends, relatives, neighbours or employer for any information other than your address or telephone number, with limited exceptions. These involve special cases, when, for example, someone has co-signed for a good or service you have purchased.
You should deal with collection agencies in a straightforward and professional manner. Try to treat them the way that you like to be treated yourself. Don't allow them to bully you into making commitments that you know you cannot keep. If you do make a commitment - keep it. If you cannot, be certain to explain to the agent why this is not possible. Ignoring collection agencies' attempts to contact you will not help you solve your problems. It might stop the collection calls but they may simply proceed with the legal action.
How should you deal with collection agents?
- Do not ignore them as they will not just walk away. Talk to them and explain your situation. Tell them directly if you are not employed or cannot make any settlement. Avoid a long discussion with them. They want to keep you on the phone and upset you so you will pay them money. Tell them your situation and then hang up.
- If you can pay them, tell them what you can afford, and offer to send them the money. If you can afford $200 per month, offer to send them $200 per month. They may ask for $400, but never commit to pay more than you can afford.
- Finally, if you cannot afford any payment, consider your options. Debt problems will not simply go away. Bill collectors are calling because you owe money. If you eliminate the debt, you eliminate the phone calls.
Use the Debt Options Calculator to estimate your monthly payment if you find a way to actually eliminate your debts.
If your money problems have become too big and dealing with collection agencies is more than you can handle, seek professional help. Each of our consumer proposal administrators and licensed bankruptcy trustees provide free initial consultation. They will analyze your situation, possibly advise you on how to stop the collection calls, and explain the debt management solutions available to you.
Manage the Problem Smartly
Make sue to handle these issues properly and in a clever way. Since the guidelines and pointers have been given, follow the tips so there will be an early resolution of your problems.
Comments (0)
CMA Blog Home
|
Subscribe in a reader
|
|
|
|
|
Enjoy our "What Is This?" articles
• Taxes
• Credit
• Debt
• Bankruptcy
• Credit Repair
• Investing
• Making Money
• Saving Money
• Retirement Planning
|
Comments on our
Blog Posts
|
|
|
|
|
|
|
2012-11-13 23:08:19
Cbv Collection Services Problems
same deal,,these criminals sent a bill saying i owe 18,000$..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
|
|