Canadian-Money-Advisor.ca BLOG
What is Loans for People? 2
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.
Pls See: en.wikipedia.org
The article talks about the following:
- Payday Loans
- Benefits of Short-term Loans
- Disadvantages of Pay Day Loans
What are Payday Loans?
A payday loan or cash advance is an excellent way to get immediate funds directly deposited into your bank account. With no credit check required, simply fill out our application online and your loan can be approved and deposited into your bank account. Once the funds are deposited and the loan is accepted, the loan plus the fees will be debited from your bank account. Once your loan has been paid in full, you can request a new loan by logging into the members’ area of our website. All fees are explained and you can view a full copy of the terms and conditions as well as the contract in the company website. A payday loan is intended for a short period of time and therefore, higher fees may be involved. it is not intended as a resolution to solve long term financial difficulties. Those who need assistance should seek the services of a credit counselling program.
Pls See: zippycash.ca
What are the Benefits of Short-term Loans?
If you run into a financial emergency and are short on money until your next payday, then getting a short term loan may be the most solution. Some emergencies will cost much more if you wait until your next payday to take care of them. Some of the benefits of short term loans secured through the Canada Cash Advance network include:
Short term loan providers in the Canada Cash Advance network will not check your credit.
Payday loan providers will never check your credit. If you have bad credit, it will not affect your chances of getting a payday loan. Your most recent pay check stub is your credit. As long as you have been employed at least 90 days, earn at least $1,000 a month and have an active checking account and working phone number, you will qualify for a payday loan.
Banks will not only check your credit, but will also ask you to provide extensive documentation to verify your income. Usually you must provide your tax forms for the last several years to qualify for a bank loan.
You can get short term loans faster than bank loans.
It takes about an hour to secure a payday loan through the Canada Cash Advance network, whereas a loan secured through your bank can take days or even weeks. Time is money in an emergency. You may not have a few days to wait for approval on a bank loan. Maybe your water pipe just burst and water is pouring into your living room. You need to get it fixed right now. You can get a payday loan through the Canada Cash Advance network within minutes.
Your application for short term loans through the Canada Cash Advance network is kept private.
Payday loan providers in the Canada Cash Advance network will never contact your friends, family, employer, bank or anyone else to discuss your financial situation. No references are required to get a payday loan through the Canada Cash Advance network.
Repayment for your short term loan is automatic.
You don’t have to worry about when your payday loan is due. On your loan’s due date, which is usually your next payday, your lender provider will automatically debit your checking account for either the full amount of the loan, or your instalment payment, depending on whichever you agreed to when you signed your loan contract.
If you think you might not be able to repay your payday loan on the due date, just contact your payday loan provider ahead of time and request an extension. Most payday loan providers in the Canada Cash Advance network will provide you an extension until your next payday, as long as you pay at least the interest that has accrued on your loan
Pls See: cashadvance.ca
What are the Disadvantages of Pay Day Loans?
When applying for the payday loan, make it a point to pay special attention to the agreement. Rates range from 10% - 30% which are considered high, and failing to fulfill the repayment on time will consequence in doubling the interest for the next repayment schedule. You have 30 days maximum to pay back the loan with the interest, depending on your repayment plan. People in debt are recommended not to use a payday loan as a debt consolidation loan because they will find themselves deeper in debt. Borrowers should pay extreme caution when dealing with online lenders due to fraud issues and reading the fine print is essential.
If you don't have a fixed workplace or salary you will not get the payday loan no matter how much you beg and promise for it. If you don't have a checking account you can't write a check meaning you cannot secure the loan and the lender will not process your order. If you need cash advance but don't qualify for a payday loan for any reason, ask friends and family to lend you the money. Anyway a payday loan only supports small amounts of money therefore, asking your close ones shouldn't be too difficult
Pls See: ehow.com
Importance of Loans
Loans are important to people particularly during difficult economic times. However, you need to be very careful in obtaining many loans that you are not capable of paying. This will only destroy your credit reputation.
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What is Collection Agencies Act? 2
Wikipedia says that a collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. There are many types of collection agencies. First-party agencies are oftentimes subsidiaries of the original company the debt is owed to. 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, then attempt to collect it. Each country has its own rules and regulations regarding collection agencies.
Pls See: en.wikipedia.org
This article gives information regarding the following:
- Information about Collection Agencies in Canada
- Rights of Consumers
- Rights of Collection Agencies
What is Information about Collection Agencies in Canada?
The Office of Consumer Affairs says that the collection agency is a company that intervenes to recover money owed by people in debt. Your creditors — the people to whom you owe money — pay these agencies to recover the amounts you owe them. If you owe money to a company or a supplier and have not recently sent in your payment, that company or supplier can turn your file over to a collection agency.
Here are some useful tips about collection agencies:
- You must be notified in writing that your file has been given to a collection agency. Don't panic. The agency is trying to recover the money you owe its client.
- If possible, pay the amount you owe.
- If you are unable to pay it all at once, contact the agency and explain.
- If you reach an agreement with the agency, get it in writing.
- Never send cash. Make sure that you obtain a receipt for your payment from the agency.
Do you feel you have been treated unfairly by a collection agency? Although the regulations differ slightly across Canada, a collection agency is usually only allowed to do certain things. Find out more so that you will be able to protect yourself from aggressive debt collectors The complete list of what debt collectors can and cannot do, as well as contact information, are available in the Canadian Consumer Handbook.
Pls See: ic.gc.ca
What are the Rights of Consumers?
Canada maintains a rightful balance between creditors and debtors by implementing the Collection Agencies Act. This Act ensures the rights of consumers to be protected and governs the actions of collection agencies when attempting to collect a debt. Consider the following rights of consumers under this Act:
Consumers have a right to dispute any debts they are allegedly believed to owe to a creditor appointed collection agency.
Consumers have a right to seek a lawyer to handle contact with collection agencies. Once a lawyer is appointed, collection agencies must seize contact with the consumer and only contact the attorney.
Consumers have a right to receive notice of a debt owed and notice that legal action may be taken via mail before further action can be taken by the collection agency.
Consumers should not be abused through intimidation, threats and the use of profane language directed toward them from the collection agency.
Consumers should not be contacted more than three times over a seven day period once the consumer has spoken with you in person unless it is via mail.
What are the Rights of Collection Agencies?
All Collection Agency employees must be licensed in accordance with their province's regulatory laws regarding debt collection agencies. Penalties could result in a fine of not more than $1,000 per unlicensed employee.
Collections Agencies have a right to contact any party or parties responsible for accruing outstanding debt once permitted and appointed by the original creditor. However, collection agencies must first send a notice to the debtor(s) and wait a period of 6 days upon sending the notice to initiate further contact.
Likewise, collection Agencies have a right to seek necessary legal action against the debtor or debtors in order to collect adequate monies owed to creditors.
Pls See: ehow.com
Proper Balance
The Collection Agencies Act is a protection both for consumers and collections agencies. This is meant to give both parties the opportunity to resolve these problems in payment collections without having to undergo unpleasant incidents.
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What is High Interest? 2
Wise Geek explains that choosing a high interest bank account may help you earn money on your deposits rather than having them sit in your account earning little or no interest. You may take some time comparing the interest rates offered by several different banks.
Pls See: wisegeek.net
A term deposit is a type of savings account that has a predetermined time period for investing or saving money. A certificate of deposit is an example of a time deposit because the money is deposited for a specific time frame.
Pls See: wisegeek.com
This article talks about the following:
- Personal and Business Accounts
High Interest Savings Accounts
Canada Interest Rate
What are Personal and Business Accounts?
It is advisable keep your money is in a bank account with a company that is well-known among financial advisors for prudent management of your finances. There are banks that have several deposit account versions available so you can choose the one that's right for you.
There are two options, namely personal and business accounts:
- Advantage Account –High-interest checking account
- Tax-Free Savings Accounts – Tax-free growth for your savings
- $US Advantage Account
- Registered Advantage Account - Low-risk portion of your RRSP
- Investment Savings Account - Investment managed by your financial advisor
- Business Advantage Account - Excess business cash
- $US Business Advantage Account
- Investment Savings Account - Investment managed by your financial advisor
It is important to get in touch with your financial advisor before opening any account. If you do not have a financial advisor, bank officers can help you get the professional advice to make well-informed choices about your financial future.
Pls See: manulife.ca
What are High Interest Savings Accounts?
The high interest savings account can take different forms but one common feature is the high interest rate.
There are several reasons to opt for the high interest savings account.
- High Interest: These accounts earn a lot more interest than the usual bank account.
- Accessibility: With GICs, your money is locked away for a definite time (90 days to 5 years). With high interest savings accounts, you can access your money whenever you want.
- Investing Small Sums: Buying stock or Mutual Funds are only profitable when you're investing a lot of money for a long time.
- Safety: All of these banks are insured, meaning that this money is perfectly safe. The interest rate may go down but you will never lose any money.
When is it a bad idea to use High Interest Savings Accounts?
If you have lots of money, you should probably try your hand at stock trading or mutual funds. The high fees do not matter as much with higher sums, and you never know how much you're going to make.
What do you need to open an account?
You need a personalized cheque and valid Canadian Social Insurance Number. Some banks do not require cheques such as Scotia Bank, PC Financial, and BMO. PC Financial checking account includes unlimited free cheques so that may be another route for you.
Pls See: /web.ncf.ca
What is Canada Interest Rate?
The benchmark interest rate in Canada was reported at 1.00 percent recently. From 1990 until 2012, Canada Interest Rate averaged 6.0700 %. It reached an all time high of 16.0000 % in February of 1991 and a record low of 0.2500 % in April of 2009. In Canada, interest rate decisions are taken by the Bank of Canada's Governing Council. The official interest rate is the standard bank rate. Since 1996, the bank rate was set at the upper limit of an operating band for the money market overnight rate. From March 1980 until February 1996, the bank rate was set at 25 basis points above the weekly average tender rate for 3-month Treasury bills.
Economic momentum in Canada is more stable nowadays. The problems facing Canada have dissipated with U.S. economy more resilient and financial conditions slightly better. As a result, business and household confidence are improving faster than forecasted in January. Household spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk. Business investment is projected to remain robust, reflecting solid balance sheets, very favourable credit conditions, continuing strong terms of trade and heightened competitive pressures. The contribution of government spending to growth is expected to be quite modest over the projection horizon, in line with recent federal and provincial budgets. The recovery in net exports is likely to remain weak in light of modest external demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.
Pls See: tradingeconomics.com
Economic Forecast
Canadian economy is expected to grow by 2.4 per cent in 2012 and 2013 before going back to 2.2 per cent in 2014. The degree of economic slack has been somewhat smaller than what was anticipated in January. The economy is now expected to return to full capacity by the first half of 2013.
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What is an Executor? 2
Wikipedia says that an Executor is a person named by a maker of a will, or nominated by the testator, to carry out the directions of the will. The Executor is responsible for offering the will for probate, although it is not absolutely required that he or she do so. The executor's duties also include the disbursement of property to the beneficiaries as designated in the will, obtaining information about any other potential heirs, collecting and arranging for payment of debts of the estate and approving or disapproving creditors' claims. An executor also makes sure estate taxes are calculated, necessary forms are filed and tax payments made, and in all ways assists the attorney for the estate. Also the executor makes all donations as left in bequests to charitable and other organizations as directed in the will.
Pls See: en.wikipedia.org
The article gives a short explanation about the following concerns:
- Responsibilities of Executors in Canada
- Probate an Estate in Canada
- Executory Contract in Canada
What are the Responsibilities of Executors in Canada?
An executor in Canada has the important responsibility of finding the estate's assets, notifying the government, paying bills, cancelling the driver's license and charge accounts, closing bank accounts, paying taxes and carrying out the final wishes of the deceased. If the deceased has requested a certain type of burial or cremation, it is your role as executor to carry out those directions out to the letter.
In Canada, you must provide personal identification, an original copy of the will and several copies of the death certificate to prove that you are the true executor. The executor has the legal right to accept a specific percentage of the estate in return for his duties as executor. The lawyer handling the estate will advise you what that percentage will be. You can decline this fee, and then those fees would be included in the remainder of the estate to be distributed to heirs.
Pls See: ehow.com
What is Probate an Estate in Canada?
There is no estate tax in Canada. Thus, there is less reason to avoid probate than compared to other countries especially because of the significant expenses. One way to do this is put up a family trust even it entails expenses. If the estate is moderately big it can be worth the effort.
The person who establishes the trust must first decide which assets you want to contribute to the trust. You can contribute cash, real estate or other property and gradually add assets as you get older. If you are 65 or older, you might want to consider a large initial contribution.
The trustees decide how the assets of the trust are to be distributed among the beneficiaries. Although most jurisdictions allow the settlor to become a trustee, a trustee who is not a family member should be appointed as well in order to prevent the trust to be considered fraudulent in the event of litigation or a government audit.
Name the beneficiaries of your family trust. Beneficiaries can be anyone in your immediate or extended family. Beneficiaries have no say in how the trust assets are distributed. If the trust deed requires the unanimous consent of the trustees for any distributions, you will have veto power over them.
Have an attorney draft the trust deed for you. The trust deed is the foundational document of the trust and must set forth trust assets as well as the name of the settlor, the trustees and the trust beneficiaries. It should also spell out the authority and duties of the trustees; clarify trustee voting rules and regulations concerning the investment of trust assets; and establish financial management rules. Sell your assets to the trust on a gradual basis.
Pls See:ehow.com
What is an Executory Contract in Canada?
One of the main differences between Canadian and U.S. bankruptcy law is that there is more certainty regarding the rights of the parties to executory contracts (contracts that contain on-going obligations between both parties) in the U.S. because of specific rules in the U.S. Code.
Although Canadian contract law recognizes the concept of this legal agreement, the country’s bankruptcy and insolvency laws currently do not provide specific rules for dealing with the parties’ rights under such a contract.
For example, both the CCAA and the BIA are silent on the right to assume or assign executory contracts. In Ontario, however, there have been cases in which a court permitted assignment of such contracts (even where the specific wording of the contract prohibited assignment) in the context of a CCAA proceeding involving the sale of a business.
In Canada, therefore, while a creditor may obtain the same results concerning an insolvent debtor as a creditor under U.S. bankruptcy laws, as a general rule, the end result is far less predictable because Canadian courts have broad discretion under the CCAA to grant orders affecting the substantive rights of the parties.
Pls See: outsourcing-center.com
Executor’s Difficult Tasks
The executor is the representative of the estate for all purposes, and has the ability to sue or be sued on behalf of the estate. The executor also holds legal title to the estate property, but may not use that property for the executor's own benefit unless expressly permitted by the terms of the will.
DISCLAIMER: The interest rates, fees, rewards details, benefits and other details of the Capital One product(s) described in the article may have changed since the time of publication. Please consult the product information pages on the Capital One website for accurate product details. In the event of any conflict between the product details in this article and the Capital One website, the details on the Capital One website shall prevail.
Article Created: July 09, 2012
Article Updated: 2013-08-05
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What is an Equifax Credit Report? 2
The consumer’s credit report is financial information based on past credit history. Creditors and lenders use this report as basis for approval of credit and loans. Employers and landlords also use the credit report it to base their decision to hire or lease property. Federal law gives you the right to view your own credit report. You should check it at least once a year to detect identity theft and make sure the correct information is being reported.
Pls See: credit.about.com
This article discusses the following:
- Equifax Canada
- Meaning of Credit Reports
- FCAC Tips for Consumers
What is Equifax Canada?
Equifax Canada offers information and frequently asked questions about its credit reports and credit scores for Canadian Consumers. At Equifax Canada, your Canadian credit report is critical. Yet, many Canadians have never looked at their own credit report, so it's not surprising that it is often overlooked when individuals assess their financial situation.
If you would like to obtain a copy of your credit report immediately from Equifax Canada, for a fee, you can receive real-time on-line access to your personal credit report, credit score and a full explanation of your score and how lenders view your credit history. You just need to visit Credit Scores as your Internet gateway to Equifax Consumer Services Canada in English and Francais.
Pls See: canadiancreditcenter.com
What is the Meaning of Credit Reports?
The consumer’s 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 FCAC Tips for Consumers?
Annualcreditreport.com is the centralized website to order your free credit report granted by the Fair and Accurate Credit Transactions Act (FACTA). This is the only place to get a free credit report from the three major credit bureaus without obligation. You can order your credit reports from each of the credit bureaus individually. Each bureau offers its own credit report as well as 3-in-1 reports with all three credit reports.
http://credit.about.com/od/creditreportscoring/qt/ordercredreport.htm
The FCAC says that, if your credit score is not as high as you think it should be, make sure that the information in your credit report is correct. If it is correct, read your report carefully to find out which factors are most likely having a negative influence on your score, and then work to improve them.
Here are some tips from the Financial Consumer Agency of Canada on how to improve your credit score:
- Always pay your bills on time. Although the payment of your utility bills, such as phone, cable and electricity, is not recorded in your credit report, some cell phone companies may report late payments to the credit-reporting agencies, which could affect your score.
- Try to pay your bills in full by the due date. If you are not able to do this, pay at least the required minimum amount shown on your monthly credit card statement.
- Try to pay your debts as quickly as possible.
- Avoid going over the credit limit on your credit card. Try to keep your balance well below the limit. The higher your balance, the more impact it has on your credit score.
- Reduce the number of credit applications you make. If too many potential lenders ask about your credit in a short period of time, this may have a negative effect on your score. However, your score does not change when you ask for information about your own credit report.
- Make sure you have a credit history. You may have a low score because you do not have a record of owing money and paying it back. You can build a credit history by using a credit card.
Pls See: ic.gc.ca
Correct Practices
The government makes it a point to remind consumers to learn about the complete details about credit reports, credit scores, credit repair and credit card payments. This is to ensure that they cannot be fooled by unscrupulous individuals or firms.
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What is a Bankruptcy Trustee? 2
In Canada, a trustee in bankruptcy is an individual or a corporation licensed by the official superintendent to hold in trust and, subsequently, to distribute bankrupt’s property among the creditors in accordance with the distribution scheme under the Bankruptcy and Insolvency Act . The bankrupt and all other persons holding bankrupt’s property must transfer the property to the trustee. The trustee may also assist individuals in preparing and submitting consumer proposals to creditors. The trustee must arrange mandatory counseling of the bankrupt. The trustee must follow the procedures under the Act, call creditors meetings and send the parties required notices of proceedings and documents. The trustee is responsible for preparation of pre-discharge report and may oppose the bankrupt’s discharge.
Pls See: en.wikipedia.org
The article discusses the following points:
- Bankruptcy Trustees in Canada
- Reliability of Debt Consultants
- Bankruptcy
What are Bankruptcy Trustees in Canada?
A trustee in bankruptcy is a person licensed by the Superintendent of Bankruptcy to administer proposals and bankruptcies and manage assets held in trust. The trustee can give a debtor information and advice about both the proposal and bankruptcy processes and make sure that both the debtor's rights and the creditor's rights are respected.
When you file an assignment in bankruptcy, a trustee is appointed. The trustee has two main tasks:
- To take your assets and sell them.
- To take whatever money they recover, and distribute it to the creditors at the end of your bankruptcy.
A person has to use a trustee if he or she goes bankrupt. However, trustees are not just for filing bankruptcy. They are also Professional Debt Consultants and can do the following:
- provide debt counseling
- help you make a proposal to your creditors to avoid bankruptcy
- make arrangements with your creditors on your behalf
- negotiate settlement agreements
If a trustee feels you need the protection of independent legal advice, the trustee will refer you to an insolvency lawyer. In some cases the trustee will be able to advise you of a solution that will cost you nothing and have you avoid bankruptcy.
What Makes Debt Consultants Reliable?
Trustees are the most highly trained and educated Debt Consultants in Canada. Almost all trustees have both an accounting designation and a university degree. In addition, all must complete and pass a rigorous three-year bankruptcy and law course and be investigated by the RCMP before being granted a trustee license. Ongoing professional development is mandatory.
In most cases, it will cost you less to use a trustee than other Debt Consultants since trustees have their fees regulated by the government.
Your trustee will explain your duties in detail, to ensure that you complete your bankruptcy as quickly as possible.
When dealing with a trustee you are protected as follows:
- The fact that the federal government regulates trustees
- The stringent code of ethics to which all trustees are subject
- The mechanism in place to mediate any dispute you may have
What is Bankruptcy?
Bankruptcy is a complex and confusing legal process and should not be attempted alone. There are numerous bankruptcy options available and selecting the appropriate one could be challenging.
We strongly advise you to contact a bankruptcy trustee in your area, as he or she can point you in the right direction and help you determine which option is best for you and your family. Your first consultation will be free.
Pls See: bankruptcy-canada.ca
Bankruptcy in Canada is regulated by the Bankruptcy and Insolvency Act and remains relevant to business enterprises and private individuals. Individuals and corporations may file for bankruptcy after becoming insolvent and are not capable of paying their debts.
Wikipedia described that a federal agency, the Office of the Superintendent of Bankruptcy is responsible for overseeing that bankruptcies are administered in a fair and orderly manner by all licensed Trustees in Canada. Trustees in bankruptcy actually administer the bankruptcy estates and are governed by the Bankruptcy and Insolvency Act of Canada.
Pls See: en.wikipedia.org
Consumer Proposal
In Canada, a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors. A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors.
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What Is Pipeda? 2
The Personal Information Protection and Electronic Documents Act is a Canadian law relating to data privacy. It governs how private sector organizations collect, use and disclose personal information in the course of commercial business. In addition, the Act contains various provisions to facilitate the use of electronic documents. PIPEDA became law on 13 April 2000 to promote consumer trust in electronic commerce.
The act was also intended to reassure the European Union that the Canadian privacy law was adequate to protect the personal information of European citizens. In accordance with section 29 of PIPEDA, Part I of the Act (Protection of Personal Information in the Private Sector) must be reviewed by Parliament every five years. The first Parliamentary review occurred in 2007.
Pls See: en.wikipedia.org
The article defines the following:
Major Provisions of PIPEDA
Privacy for Business in Canada
PIPEDA and the Privacy Principles
What are the Major Provisions of PIPEDA?
PIPEDA incorporates and makes mandatory provisions of the Canadian Standards Association's Model Code for the Protection of Personal Information, developed in 1995. However, there are a number of exceptions to the Code where information can be collected, used and disclosed without the consent of the individual. Examples include reasons of national security, international affairs, and emergencies. Under the act, personal information can also be disclosed without knowledge or consent to investigations related to law enforcement, whether federal, provincial or foreign. There are also exceptions to the general rule that an individual shall be given access to his or her personal information. Exceptions may include information that would likely reveal personal information about a third party, information that cannot be disclosed for certain legal, security, or commercial proprietary reasons, and information that is subject to solicitor-client privilege.
Pls See: ehow.com
What is Privacy for Business in Canada?
The use of personal information in Canadian commercial activities is protected by federal legislation under the Personal Information Protection and Electronic Documents Act (PIPEDA). It can also be protected by provincial legislation that is substantially similar to the federal legislation.
PIPEDA applies to both traditional, paper-based business as well as on-line commercial activities. Privacy is a deeply-rooted, strongly-held public value. PIPEDA was enacted to alleviate consumer concerns about privacy and to allow Canada's business community to compete in the global digital economy. Organizations able to demonstrate their respect for and protection of, personal information will gain a cutting edge on the competition. Complying with PIPEDA will build trust in the digital marketplace and create opportunities for Canadian businesses. As a result, Canadian organizations need to develop and implement privacy policies.
What are PIPEDA and the Privacy Principles?
PIPEDA applies to organizations that are federally regulated and fall under the legislative authority of the Parliament of Canada. These are the telecommunications and broadcasting industry, and all local businesses in Yukon, Nunavut, and the Northwest Territories.
PIPEDA also applies to the private sector of each province unless a province has enacted its own privacy legislation that is substantially similar to PIPEDA. Only British Columbia, Alberta, and Quebec have privacy legislation that has deemed to be substantially similar to PIPEDA. However, even if an organization is located in BC, Alberta, or Quebec, if in the course of a commercial activity personal information crosses borders, PIPEDA may apply to that information.
The 10 Privacy Principles of PIPEDA
All organizations subject to PIPEDA must follow a code for the protection of personal information which consists of ten privacy principles. These principles are:
- Accountability
- Accuracy
- Identifying Purposes
- Safeguards
- Consent
- Openness
- Limiting Collection
- Individual Access
- Limiting Use, Disclosure and Retention
- Challenging Compliance
Pls See: privacysense.net
Importance of Privacy
Canada places so much importance on privacy as shown by the PIPEDA.
The main purpose of the PIPEDA was to reassure the faith of people in e-commerce and completely eliminate the problems of information theft on the net. It has greatly succeeded in this matter. Although it cannot be used directly to sue an organization it has helped in safeguarding the rights of individuals and has assured the European Union that Canadian laws are adequate.
Pls See: canadian-money-advisor.ca
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What are Taxable Capital Gains? 2
The capital gains tax is a tax on capital gains with profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and have different rates of taxation for individuals and corporations.
For equities, an example of a popular and liquid asset, national and state legislation often have fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction.
Pls See: en.wikipedia.org
This article talks about the following:
- Purpose of the Capital Gain Tax in Canada
- Exemptions from Tax Gains
- Computation of Capital Gains Tax
What is the Purpose of the Capital Gain Tax in Canada?
Capital gain tax was introduced by the Canadian government in 1972 with the purpose of financing social security payments and establishing a more equitable taxation system in the country.
Inclusion rate refers to the amount of capital gains that is subject to taxation. Between 1972 and 1988, the rate was 50 percent. However in 1988, it increased to 66.66 percent. In 2000, the government established a rate of 66.67 percent. This was implemented as part of the Five-Year Tax Reduction Plan. This cut was the largest in the tax history of the country. The tax rate percentage was actually two percent lower than the capital gains tax in the United States. At present, 50 percent of one’s capital gains are subject to taxation in Canada. If your capital gains are $1000, only half of the sum or $500 is taxable. Individuals in the top tax bracket are taxed at approximately 43 percent. The capital gain tax amounts to $500 x 0.43 or $215. The reduction of the inclusion rate is especially beneficial for start-up businesses because it increases their chances to raise financing. Risk-taking and investment is more rewarding because the investors are allowed to retain a larger portion of their gain. Furthermore, international businesses also benefit from investing in Canada.
What are the Exemptions from Tax Gains?
Canadians are exempted from tax gains under certain circumstances. Money from home sales and profits from registered education and registered retirement savings plans are not subject to taxation. Canadian citizens, who aim at reducing their capital gains tax, have to determine if they qualify for deductions. Residents of Canada who have been taxpayers during the current tax year are eligible for deductions. Individuals, who lease or rent a property in Canada or have resided in the country for at least 183 days, are also considered full-time residents.
There is a lifetime capital gains exemption in the amount of $750,000 while the deduction for property sale is up to $375,000. If you sell corporate shares to make a profit, the first $750,000 are received tax-free. Deductions may be claimed on capital gains from dispositions of stocks of small business entities or fishing and farming properties. Unincorporated business entities such as partnerships and sole proprietorships do not qualify for tax exemptions, which is among the major benefits of corporations. In order to qualify for deductions, persons should have been Canadian residents at the time of disposition. It is also advisable to determine the amount of capital losses during the taxable year, if any.
Pls See: canadafaq.ca
What is the Computation of Capital Gains Tax?
50.00% of realized capital gains are taxed in Canada at an individual's tax rate. Some exceptions apply, such as selling one's primary residence which may be exempt from taxation. Capital gains made by investments in a Tax-Free Savings Account (TFSA) are not taxed.
For example, if your capital gains amount to $100, you are only taxed on $50 at your marginal tax rate. That is, if you were in the top tax bracket, you would be taxed at approximately 43%. The formula for this example using the top tax bracket would be as follows:
Capital gain x 50.00% x marginal tax rate = capital gain tax
= $100 x 50.00% x 43%
= $50 x 43%
= $21.50
In this example your capital gains tax on $100 is $21.50, leaving you with $78.50.
The formula is the same for capital losses and these can be carried forward indefinitely to offset future years' capital gains; capital losses not used in the current year can also be carried back to the previous three tax years to offset capital gains tax paid in those years.
For corporations as for individuals, only 50% of realized capital gains are taxable. The net taxable capital gains (this can be calculated as 50% of total capital gains minus 50% of total capital losses) are subject to income tax at normal corporate tax rates. If more than 50% of a small business's income is derived from specified investment business activities, they are not even allowed to claim the small business deduction.
Capital gains earned on income in an RRSP are not taxed at the time the gain is realized but they are taxed when the funds are withdrawn from the registered plan. These gains are then taxed at the individual's full marginal rate.
Pls See: en.wikipedia.org
Net Capital Gains Tax
It is essential to understand that it is net capital gains that are subject to tax. If an investor sells two stocks during the year, one for a profit and an equal one for a loss, the amount of the capital loss incurred on the losing investment will counteract the capital gains from the winning investment.
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What is a Self Directed Investment? 2
Canadian Money Advisor states that in Canada, you are provided with a number of different self directed investments. Some of them prefer to have market leaders over their followers while the others use discount brokerages as they have a reduced fee. This reduced fee is about a dollar or may be two sometimes. The self directed investment provides you good savings and maximum flexibility at the same time. In a directed investment, you can purchase a package for trade of about fifty electronic equities and also opt for transactions for the year instead of the monthly payments.
Pls See: canadian-money-advisor.ca
This article explains the following concepts:
- Self-Directed Investing
- Advantages and Disadvantages of Self Directed Investments
- Self-Directed RRSP
What is the Concept of Self-Directed Investing?
The concept of self-directed investing comes with a multitude of misconceptions and fears but with the correct information and knowledge. You make your own decisions to produce significant results. It is not uncommon for self-directed investors to outperform managed money. With a good strategy, you can produce well above average returns on a consistent basis.
Self-directed investing means taking the responsibility and control of the decisions surrounding your investments. By opening a self-directed online trading account, you retain the authority to choose the type of investments you want in your portfolio such as mutual funds and individual shares. This is different from managed accounts where these decisions are made by a financial planner. The fee for managed accounts in Canada is about 2½% of your portfolio per year.
What are the Advantages and Disadvantages of Self Directed Investments?
If self-directed investing is for you, you need to know the benefits and drawbacks of this approach. For self-directed investing, you need to consider the following:
- Positive Side - More control and the potential for better returns, reduced fees, increased liquidity and greater capital appreciation.
- Downside - Investors assume the risk and the emotional stress. There is also a deficiency in time, knowledge, and discipline.
If you list out your pros and cons then you can work towards getting the answers you need to make an informed decision.
Many people believe that to self-direct an account, you need a big amount of money. However, this is not true. You can self-direct any amount. One example is the new Tax Free Savings Account or TFSA that allows Canadians over 18 years of age to deposit $5,000 each year beginning in 2009. These are eligible to be self-directed. People with a large portfolio such as $250,000 and above often start by self-directing only a portion of it. There is nothing wrong with using the TFSA as a starting point. As you become more knowledgeable over time, you can transfer a portion of your retirement savings plan account to a self-directed account without forgoing the tax deferral status.
Pls See: ezinearticles.com
What is the Self-Directed RRSP?
A Registered Retirement Savings Plan is a financial account that complies with the requirements of Canada's retirement savings laws. Using such an account has two main tax benefits.
- Any money a person pays from his income into the account is exempt from tax at that time. The money is taxed when the person eventually withdraws it upon retirement.
- Any growth made by investing the money in the account is completely tax-free. Only the original money put into the account is taxed upon withdrawal.
A self-directed RRSP is one in which the account holder makes the decisions about how the money in the account should be invested, and uses the services of a broker rather than a financial advisor to make the investments.
If a person has built up a large balance in a self-directed RRSP, she can use the money to provide a mortgage loan to a home buyer. As with the profits from other forms of investment through a self-directed RRSP, the interest received from the mortgage borrower is not taxed. The main advantages of investing in a mortgage include the flexibility of negotiating your own interest rate and repayment schedule, and the predictability of the level of return as compared to something like stocks. Of course, the risk is that the borrower will default and the property will not raise in value enough to pay off the loan.
Pls See: ehow.com
Need for Strategy
Part of your education should include the development of goals and a strategy including a trading plan that matches your risk profile. Setting goals means you can quantify your success at any given time against where you want to be. A good strategy will help you achieve your goals no matter what the market conditions are. Understanding your risk profile will protect you from making decisions that go against your tolerance level. Most novice investors get excited about making money because of course that is the point; however that by itself is not a good plan. A good education will teach you three important principles:
- Capital Preservation - Keeping your money so you can invest it tomorrow and beyond
- Money Management - Knowing how to segregate your portfolio and your individual decisions
- Risk Management - Learning how to protect your capital if you make a mistake
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What are Corporate Bonds? 2
Wikipedia says that acorporate bond is a bond issue by a corporation. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. Sometimes, the term "corporate bonds" is used to include all bonds except those issued by governments in their own currencies. Strictly speaking, however, it only applies to those issued by corporations. The bonds of local authorities and supranational organizations do not fit in either category. However, despite being listed on exchanges, the vast majority of trading volume in corporate bonds in most developed markets takes place in decentralized, dealer-based, over-the-counter markets. Some corporate bonds have an embedded call option that allows the issuer to redeem the debt before its maturity date. Other bonds, known as convertible bonds, allow investors to convert the bond into equity.
Pls See: en.wikipedia.org
The article talks about the following:
- Corporate Bonds Work in Canada
- Buying Corporate Bonds
- Unsecured Debt
How do Corporate Bonds Work in Canada?
There are different kinds of corporate bonds. Some are secured by specific assets which you can seize if the company fails to pay interest or return the original principal amount when the bonds mature. Those that are not secured are called debentures. Corporate bonds often also have added features. You might be allowed to convert your bonds into the company's stock, or the company might have the right to buy back the bonds before they mature.
You can buy corporate bonds through an investment dealer. As with government bonds, a corporate bond's return is described as the yield. It is made up of interest payments and any profit or loss you make when the bond matures or when you sell it on the open market. People sell bonds on the open market because you can't turn them in to the company for cash until the maturity date. You can make a profit on a bond when you buy it for less than its face value. When it matures, the difference between your cost and the face value is your profit. This mostly happens when the interest on a bond is not attractive to other investors. Corporate bonds often come with added features.
Pls See: info.nbf.ca/fbn
What is buying of Corporate Bonds?
Investors may purchase bonds individually or choose to purchase shares in a bond fund holding large numbers of bonds. Canadian corporations issue corporate bonds to fund major strategic initiatives such as mergers or technology upgrades. Other bond issues are designed to provide working capital. Though bonds from large, healthy companies may not match returns provided by stock investments, bonds are safer investments that should generate a steady stream of income. The bonds or funds may be purchased through a broker or bank.
Decide whether you prefer to purchase individual bonds issued by a company or shares in a bond fund, which will provide exposure to a large number of corporate bonds. Individual bonds may in some cases offer higher returns, while funds offer greater protection, as the default of one bond is unlikely to lead to catastrophic losses.
Consider how much risk you are willing to assume with your investment. There is no correct answer to how much risk you should assume, as each investor has different needs. Select the bond or bond fund that most closely matches your risk tolerance. Make your purchase through a licensed broker or bank.
Pls See: ehow.com
What is Unsecured Debt?
In finance, unsecured debt refers to any type of debt or general obligation that is not collateralised by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment.
In the event of the bankruptcy of the borrower, the unsecured creditors will have a general claim on the assets of the borrower after the specific pledged assets have been assigned to the secured creditors, although the unsecured creditors will usually realize a smaller proportion of their claims than the secured creditors. In some legal systems, unsecured creditors who are also indebted to the insolvent debtor are able to set-off the debts which actually put the unsecured creditor with a matured liability to the debtor in a pre-preferential position.
Pls See: ehow.com
Canadian Money Advisory says that corporate bonds can be said to include all types of bonds except the government-issued bonds, but to be precise, a corporate bond refers to one that is issued by a corporation. A number of diverse corporations in Canada issue corporate bonds.
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What are Finances? 2
Finance is the study of how investors allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money. It states that a unit of currency today is worth more than a unit of currency tomorrow. Finance measures the risks vs. profits and gives an indication of whether the investment is good or not. Finance can be broken into three different sub categories: public finance, corporate finance and personal finance.
Pls See: en.wikipedia.org
This article explains the following:
- Public Finance in Canada
- Canada’s Financial Status
- Personal Finance Tips
What is Public Finance Canada?
The biggest expenditure item of the federal government is for social services, including universal pension plans, old age security, veteran’s benefits, unemployment insurance, family and youth allowances, and assistance to disabled, handicapped, unemployed, and other needy persons.
Through the early 1970s, federal budgets remained relatively in balance, fluctuating between small surpluses and small deficits. Since then, the budget has been characterized by growing deficit. The federal debt rose from 18% of GDP in 1974 to 70% of GDP in 1993, and about 65% in 1999. Government options to reduce the deficit are constrained by the high level of non-discretionary spending in the federal budget.
Sources of provincial revenue include various licenses, permits, fines, penalties, sales taxes, and royalties, augmented by federal subsidies, health grants, and other payments. Federal grants and surpluses and federal payments to the provinces under the federal-provincial tax-sharing arrangements constitute a major revenue source of the provinces.
Corporation and personal income taxes provide a considerable portion of the revenue of Québec. The largest provincial expenditures are for highways, health and social welfare, education, natural resources, and primary industries. Real property taxes account for more than two-thirds of revenue for municipalities and other local authorities. Almost one-third of their expenditures go to supporting local schools.
In 2000 until 2001, Canada's central government took in revenues of approximately US $178.6 billion and had expenditures of US $161.4 billion. Overall, the government registered a surplus of approximately US $17.2 billion. External debt totalled US $1.9 billion.
Pls See: nationsencyclopedia.com
What are Canada’s Finances?
Global News reported that while departmental budget cuts and the discontinued penny are at the top of the agenda after the 2012 federal budget, they represent only a drop in the bucket when it comes to Canada’s overall financial outlook. Both government expenditures and revenues are expected to grow over the next five years. However, the budget is eventually expected to become balance by 2015-2016. Government expenditure increases are mostly driven by the aging population. Elderly benefits and the Canada Health Transfer will both see increases of over 30 per cent by 2016-17. Public debt charges will also increase by 16.45 per cent. Revenues from personal income tax, corporate income tax and the GST are also projected to increase by 2016-17, accounting for a large portion of revenue growth.
Pls See: globalnews.ca
What are Personal Finance Tips?
Here are some tips on how you can live within your means while enjoying your lives:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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
Live within your Lifestyle
Majority of Canadians are aware 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.
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What is an Income Tax Return? 2
Tax returns in the United States are reports filed with the Internal Revenue Service or with the state or local tax collection agency containing information used to calculate income tax or other taxes. Tax returns are generally prepared using forms prescribed by the IRS or other applicable taxing authority.
Pls See: en.wikipedia.org
The article talks about the following:
- Income Tax Returns in Canada
- ITax Refunds
- IFiling an Income Tax Return
What are Income Tax Returns in Canada?
Canadian individual tax returns for any specific year must be filed by April 30 of the following year. There is no provision for generally extending this deadline, but there are a few exceptions.
- Tax returns for self-employed individuals and their spouses must be filed by June 15 of the following year. However, any GST/HST owing for the period is due April 30.
Tax returns for deceased individuals must be filed by the normal filing deadline or 6 months after the date of death, whichever comes later. This provision is also extended to the surviving spouse.
Tax returns for non-residents electing to file under section 217 are due June 30 of the following year.
By virtue of the Interpretation Act the due date of all individual returns is moved to the next business day when the normal due date falls on a Sunday or Holiday. Although ministerial orders are also used to apply this to Saturday due dates, it is not a legal requirement.
The Federal Finance Minister may extend the deadline in cases of emergency situations such as floods.
Canadian federal tax returns are filed with the Canada Revenue Agency. In addition, the return plays a role in voter registration by including a checkbox asking if the signee if they are willing to have their personal contact information included on a national voter registry which is accessible by Elections Canada and its provincial equivalents.
Pls See: en.wikipedia.org
What are Tax Refunds?
The Canada Revenue Agency does not start processing Canadian income tax returns until the middle of February. No matter how early you file your income tax return, you will not be able to get information on the status of an income tax refund until the middle of March. You should also wait until at least four weeks after you file your return before checking on the status of an income tax refund. If you file your return after April 15, wait six weeks before you check.
Processing Times for Tax Refunds
The length of time it takes the Canada Revenue Agency to process your income tax return and refund depends on how and when you file your return.
Information required checking on your tax refund:
- your Social Insurance Number
- the month and year of your birth
- The amount entered as Total Income on line 150 of your income tax return for 2010 or 2011. (Before May 1, 2012 you'll need the amount entered on line 150 of your 2010 return
On or after May 1, 2012, you'll need the amount you entered on line 150 of your 2011 return.)
Check on Your Tax Refund Online
Use the Quick Access tax service provided by the Canada Revenue Agency to get immediate access to information on your income tax refund.
You can also check on the status of your income tax refund using the My Account tax service.
Check on Your Tax Refund by Automated Phone Service
You can use the Tele-refund service on the Tax Information Phone Service (TIPS) to find out if your return has been processed and when to expect your refund cheque.
Pls See: ehow.com
What is Filing an Income Tax Return?
If you work in Canada, you will likely have to pay Canadian income tax. Starting at 15% of your gross pay, this constitutes the largest deduction from your income. Those earning higher annual incomes (i.e. over $30,000) will be taxed at a higher rate.
Canada’s taxation year is from January to December. You must file a Canadian income tax return by April 30th the year proceeding the year you worked in Canada.
The CRA provides the following steps:
Step 1: Determine Your Canadian Residency Status
Most participants of International Experience Canada are considered “non-residents” for Canadian income tax purposes. However, if you lived in Canada for more than six months during the taxation year, you may file your income tax return as a resident. While in Canada, call the International Tax Services Office at 1-800-267-5177 to find out if your home country has a tax treaty or agreement with Canada - this can affect your income tax status.
Step 2: Obtain Your Canadian T4 Form
Canadian employers are required by law to provide you with a T4 form summarizing your total Canadian earnings and deductions for the taxation year. T4s are mailed out any time between January and the end of March the following year. If you worked for more than 1 employer during the tax year, make sure you receive T4s from each. Be sure to provide each employer with your permanent mailing address so that you receive your T4 in time to submit your income tax return by April 30th.
Step 3: Obtain The Income Tax Forms
The forms you need are available from any Canada Post outlet, along with a step-by-step help guide. You can also download the T1 General form and guide from the Canada Revenue Agency website for the province where you worked.
The tax package for Canadian non-residents includes the following:
- Schedule 1 Federal Tax, and the 428 form for the province where you worked
- Schedule A (under Non-Residents of Canada)
- T1234 (use the search function on the site to locate this form)
If you qualify as a Canadian resident for taxation purposes, you only need: Schedule 1 and Form 428
Step 4: Completing Your Tax Forms
If you don’t feel comfortable filling out the forms yourself, you can hire an accountant or tax service to help you. Their services cost between $40 and $60. You can find them in the Yellow Pages business directory, or online at Canada411.com. If you have access to a computer, you can also use tax preparation software like Quick Tax.
If you are filing from overseas, help is available online at TaxBack.com. You will be charged a processing fee.
Step 5: Mail In Your Completed Tax Package
Send completed forms, along with the original copies of your T4 slips, to:
International Tax Services Office
102A 2204 Walkley Road
Ottawa, Ontario
K1A 1A8, Canada
Pls See: canadainternational.gc.ca
Special Considerations
If you file as a non-resident, you don’t need to declare income you earned outside of Canada. If you are filing as a resident, you must claim your total world income.
If you file as a resident, you are entitled to the basic personal exemption, which is the amount of income you can earn tax-free, as detailed in Schedule 1. Non-residents are also entitled to this amount if they earned 90% of their total annual income in Canada. In this case, however, the basic personal amount must be adjusted to reflect the amount of time you spent in Canada.
If you earned less than the threshold amount (set by the Canada Revenue Agency), you may qualify the following year for a refund of a portion of the tax paid. Alternatively, you may owe more tax if an insufficient amount was deducted from your pay.
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What is Third Party? 2
Wikipedia states that Third party is often used to refer to a person or entity who is not involved in an interaction or relationship.
Pls See: en.wikipedia.org
This article discusses points about the following:
- Third Party Canada
- Federal Third Parties
- Provincial Third Parties
What is Third Party Canada?
In Canada, a third party usually refers to a relatively small federal or provincial political party that is not usually considered to have a realistic chance of forming a government. However, it has representation in the federal House of Commons or the provincial legislature. Due to the parliamentary form of government, during minority government situations, third parties may hold the balance of power, and thus exercise significant control over the government's policy. In some cases, such a party has swept to power by coming through the middle, as with the emergence of the Social Credit Party of British Columbia in 1952-53.
In Canadian politics, the term third party is also sometimes used to refer to agents other than candidates and voters who participate in elections. For example, campaign advertisements funded by groups other than the parties and candidates running may be called third party advertising. This term has become more prevalent recently, since the current Canadian Parliament has seated members from four different parties, making usage less meaningful.
Pls See: en.wikipedia.org
What are Federal Third Parties?
Since the formation of Canada in 1867, the political scene has been dominated by the Liberal Party and the Progressive Conservative, and its successor, the modern Conservative Party. The first notable third party was the Progressive Party, which appeared in 1920 and had a strong showing in the 1921 elections coming second after the Liberal party. Its success did not last long. During the following election of 1925, the Progressive Party came only third although it did hold the balance of power in the resulting minority government. By the mid-30s, it already disappeared.
After the Great Depression, two new third parties emerged: the democratic socialist, Co-operative Commonwealth Federation (CCF), formed from the remnants of the Progressive Party, and the right-wing, Social Credit Party of Canada, which sought reform of monetary policy. Both parties persisted for several decades with varying degrees of success. After a gradual decline Social Credit lost its remaining seats in the 1980 federal election and never recovered. The CCF was reorganized into the social democratic, New Democratic Party (NDP) in 1961 and officially aligned itself with the Canadian Labour Congress. The NDP played a significant role in both Liberal and Conservative led minority parliaments afterwards, particularly from 1963-1968 and 1972-1974.
Following the 1993 election, the division between the "main" and the "third" parties started to break down, due to the poor showing by the Progressive Conservative Party and the rise of the Reform Party and the Quebec-based Bloc Québécois. While the Bloc could never form a government because it never contested ridings outside Quebec, the Reform Party and its successor Canadian Alliance had some modest success and eventually merged with the Progressive Conservative Party to form the new Conservative Party which forms the current federal government.
The federal election of 2011 saw a further realignment of Canadian party politics as the New Democratic Party made significant gains, allowing it to emerge as the official opposition. For the first time in Canadian history the Liberal Party was reduced to third party status. The Bloc Quebecois which had been the third largest party in the House of Commons since 1997 was reduced to only four seats while a new party, the Greens made their debut in the House after winning a single seat.
What are Provincial Third Parties?
A number of provinces in Canada have a two-party system (that is, the two major political parties alternate governing, though the identity of these parties may change over time). Provinces west of Quebec have, for most of the 20th and 21st centuries, had a three-party system, though the identity of these parties may have changed over time. For the most part, these are the provincial Liberals, provincial Progressive Conservatives and the NDP.
Provincial parties that may currently be considered third parties are:
- In Newfoundland and Labrador, the New Democratic Party of Newfoundland and Labrador.
- In Prince Edward Island, the Green Party of Prince Edward Island.
- In Nova Scotia, the Progressive Conservative Association of Nova Scotia
- In New Brunswick, the New Brunswick New Democratic Party.
- In Ontario, the Ontario New Democratic Party.
- In Manitoba, the Manitoba Liberal Party.
- In Saskatchewan, the Saskatchewan Liberal Party.
- In Quebec, Action démocratique du Québec
Pls See: en.wikipedia.org
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What is Refinance? 2
Wikipedia describes refinancing as the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage. If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.
Pls See: en.wikipedia.org
This article explains the following points:
- Refinancing Mortgage in Canada
- Financing
- Home equity line for credit loans
What is Refinancing Mortgage in Canada?
Refinancing is the process that pays the existing mortgage and or any other legal claims against the property and sets-up a completely new mortgage. There are many reasons as to why you should consider refinancing your mortgage. Changing your current mortgage depends on several factors. If the current rates are lower or new mortgages have been introduced from when you obtained your mortgage, it pays to compare the total costs to the total savings of changing your mortgage. There is a comprehensive calculation and review process to help you make the best decision possible. Every year Canadians needlessly spend thousands of dollars on their mortgages that could otherwise be saved. Do not allow savings on your mortgage go to the lender's shareholders. The mortgage management program gives you the peace of mind to know that you are building value.
Pls See: calumross.com
What is financing?
There are several areas of financing and these are:
Financing to Buy Investments:
You can put the equity in your home to work and finance the purchase of investments and avail of a debt swap to transfer non tax deductible debt to become tax deductible.
You may benefit not only from lower carrying costs but also make all (or a portion of your interest tax deductible). For high income earners, this can cut the after tax cost of interest nearly in half.
Financing the Purchase of an Investment Property:
If you have home equity and are interested in further real estate investing, you could take equity out of your current property by refinancing the mortgage and using the increase as the down payment for the purchase of an investment property. This may also allow for additional interest deductibility that can be avoided by using current savings instead.
Financing Education:
The best thing we can do for our children is be good role models to them, teach them to be responsible citizens, and give them as strong a foundation possible, and in many cases this includes helping them obtain a good education. With higher tuition costs in many schools and programs today, many have not set aside enough to adequately assist in the financial burden of schooling. Home equity may be the cheapest way to bridge the gap.
Financing a Renovation:
If you are doing major renovations (spending over $15,000), it could be less painful monthly with a mortgage as opposed to a loan or line of credit. Your current mortgage may also no longer be the most suitable or competitive in today's market.
Debt Consolidation:
If your monthly bills have gotten out of control, you might be able to refinance your home and pay them off. The advantage of doing this is to lower your total monthly payments. You should have a mortgage specialist review your situation and make a recommendation
Pls See: calumross.com
What is the best home equity line for credit loans?
Home Finance Coach.com published the following for the benefit of consumers:
The Home equity line is not the same as home equity loan. This kind of loan comes with a maximum amount that is based upon the available home equity of the consumer. Note that equity is defined as the difference between the value of the property and the outstanding mortgage. HELOC is described as a credit line and may not an advancement of the whole sum at once.
Before you start looking for the best home equity line of credit loans, you should learn that HELOC comes with known benefits and drawbacks. One of the noted advantages is that the interest is tax-deductible (if the money is being used for investment purposes), in which people who list deductions on tax returns can slash the yearly interest paid on the loan. It must be clearly noted that a HELOC loan is not similar to a second mortgage when the point to be considered is overall debt. Nonetheless, just as any kind of loan, this one can come with its set of drawbacks.
One of these is the fact that this kind of loan deals with variable interest rates. It is most likely the case and in virtually all situations, the interest associated with the loan would increase as time goes by. The rate at which the interest takes on an increasing or decreasing trend depends upon the prime lending rate and also upon the credit rating of the borrowing person. To troubled borrowers, this kind of aspect never leaves quite a good impression. On the other hand, HELOC loans may be dealt with by making interest only payments so that the original amount owed will never increase or decrease.
Pls See: homerefinancecoach.com
Refinancing of Loan Debt
The loan debt can be refinanced for the following reasons:
- To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
- To consolidate other debt into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)
- To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)
- To reduce or alter risk
- To free up cash (often for a longer term, contingent on interest rate differential and fees)
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What is Online Banking? 2
Online banking refers to 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. However the advent of technology has made it much easier for such technology to reach people of all classes.
The article talks about the following:
Online banking in Canada
Benefits of Online Banking
Downside of this System
What is online banking in Canada?
Canada is said to be the world’s most developed market for online banking with more than 60 percent of Canadian internet users banking. Look at the research results:
- 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 Benefits of Online Banking?
There are various benefits of online banking:
- You do not have to line up for so long and plan your day around the banking hours.
- You can look at your balance anytime. As a young bank customer, you're just learning how to manage your money and observe your spending patterns.
- This allows you to watch your money on a daily basis. 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 is 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 Downside of this System?
Online banking has its disadvantages too. 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.
Pls See: ehow.com
Online Banking is Highly Popular
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.
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What is Refinance? 2
Wikipedia describes refinancing as the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation.
In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage. If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.
Pls See: en.wikipedia.org
This article explains the following points:
- Refinancing Mortgage in Canada
- Financing
- Home equity line for credit loans
What is Refinancing Mortgage in Canada?
Refinancing is the process that pays the existing mortgage and or any other legal claims against the property and sets-up a completely new mortgage. There are many reasons as to why you should consider refinancing your mortgage. Changing your current mortgage depends on several factors. If the current rates are lower or new mortgages have been introduced from when you obtained your mortgage, it pays to compare the total costs to the total savings of changing your mortgage.
There is a comprehensive calculation and review process to help you make the best decision possible. Every year Canadians needlessly spend thousands of dollars on their mortgages that could otherwise be saved. Do not allow savings on your mortgage go to the lender's shareholders. The mortgage management program gives you the peace of mind to know that you are building value.
Pls See: calumross.com
What is financing?
There are several areas of financing and these are:
Financing to Buy Investments:
You can put the equity in your home to work and finance the purchase of investments and avail of a debt swap to transfer non tax deductible debt to become tax deductible.
You may benefit not only from lower carrying costs but also make all (or a portion of your interest tax deductible). For high income earners, this can cut the after tax cost of interest nearly in half.
Financing the Purchase of an Investment Property:
If you have home equity and are interested in further real estate investing, you could take equity out of your current property by refinancing the mortgage and using the increase as the down payment for the purchase of an investment property. This may also allow for additional interest deductibility that can be avoided by using current savings instead.
Financing Education:
The best thing we can do for our children is be good role models to them, teach them to be responsible citizens, and give them as strong a foundation possible, and in many cases this includes helping them obtain a good education. With higher tuition costs in many schools and programs today, many have not set aside enough to adequately assist in the financial burden of schooling. Home equity may be the cheapest way to bridge the gap.
Financing a Renovation:
If you are doing major renovations (spending over $15,000), it could be less painful monthly with a mortgage as opposed to a loan or line of credit. Your current mortgage may also no longer be the most suitable or competitive in today's market.
Debt Consolidation:
If your monthly bills have gotten out of control, you might be able to refinance your home and pay them off. The advantage of doing this is to lower your total monthly payments. You should have a mortgage specialist review your situation and make a recommendation
Pls See: calumross.com
What is the best home equity line for credit loans?
Home Finance Coach.com published the following for the benefit of consumers:
The Home equity line is not the same as home equity loan. This kind of loan comes with a maximum amount that is based upon the available home equity of the consumer. Note that equity is defined as the difference between the value of the property and the outstanding mortgage. HELOC is described as a credit line and may not an advancement of the whole sum at once.
Before you start looking for the best home equity line of credit loans, you should learn that HELOC comes with known benefits and drawbacks. One of the noted advantages is that the interest is tax-deductible (if the money is being used for investment purposes), in which people who list deductions on tax returns can slash the yearly interest paid on the loan. It must be clearly noted that a HELOC loan is not similar to a second mortgage when the point to be considered is overall debt. Nonetheless, just as any kind of loan, this one can come with its set of drawbacks.
One of these is the fact that this kind of loan deals with variable interest rates. It is most likely the case and in virtually all situations, the interest associated with the loan would increase as time goes by. The rate at which the interest takes on an increasing or decreasing trend depends upon the prime lending rate and also upon the credit rating of the borrowing person. To troubled borrowers, this kind of aspect never leaves quite a good impression. On the other hand, HELOC loans may be dealt with by making interest only payments so that the original amount owed will never increase or decrease.
Pls See: homerefinancecoach.com
Refinancing of Loan Debt
The loan debt can be refinanced for the following reasons:
- To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
- To consolidate other debt into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)
- To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)
- To reduce or alter risk
- To free up cash (often for a longer term, contingent on interest rate differential and fees)
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What is Income Tax Owing? 2
An income tax is a tax levied on the income of individuals or businesses, corporations or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual along with some deductions. On the other hand, corporate income taxes often tax net income which includes the difference between gross receipts, expenses, and additional write-offs. Various systems define income differently, and often allow notional reductions of income such as a reduction based on number of children supported.
Pls See: en.wikipedia.org
This article talks about the following:
- Federal Taxes
- Personal Income Taxes in Canada
- Corporate Income Taxes
What are Federal Taxes?
Federal taxes are collected by the Canada Revenue Agency formerly known as Revenue Canada or the Canada Customs and Revenue Agency. Under the tax collection agreements, CRA collects and remits to the provinces:
- Provincial personal income taxes on behalf of all provinces except Quebec, so that individuals outside of Quebec file only one set of tax forms each year for their federal and provincial income taxes.
- Corporate taxes on behalf of all provinces except Quebec and Alberta.
The Ministère du revenu du Québec collects the GST in Quebec on behalf of the federal government, and remits it to Ottawa. The provincial governments of Nova Scotia, New Brunswick, Newfoundland and Labrador, and Ontario no longer impose a separate provincial sales tax and in those provinces the federal government collects goods and services tax at a rate higher than in the other provinces. The additional revenue from this Harmonized Sales Tax is paid by the federal government to the five provinces.
Pls See: en.wikipedia.org
What are Personal Income Taxes in Canada?
Both the federal and provincial governments have imposed income taxes on individuals, and these are the most significant sources of revenue for those levels of government accounting for over 40% of tax revenue. The federal government charges the bulk of income taxes with the provinces charging a somewhat lower percentage, except in Quebec. Income taxes throughout Canada are progressive with the high income residents paying a higher percentage than the low income residents. However, a study conducted by Canadian Centre for Policy Alternatives released on November 8, 2007, found out that the richest pay is the lowest rate of all income groups. Where income is earned in the form of a capital gain, only half of the gain is included in income for tax purposes. The other half is not taxed. Federal and provincial income tax rates are shown at Canada Revenue Agency's website. Personal income tax can be deferred in a Registered Retirement Savings Plan and tax sheltered savings accounts which may include mutual funds and other financial instruments are intended to help individuals save for their retirement.
What are Corporate Income Taxes?
Corporate taxes include taxes on corporate income in Canada and other taxes and levies paid by corporations to the various levels of government in Canada. These include capital and insurance premium taxes; payroll levies (employment insurance, Canada Pension Plan, Quebec Pension Plan and Workers' Compensation); property taxes; and indirect taxes, such as goods and services tax; sales and excise taxes levied on business inputs.
Corporations are subject to tax in Canada on their worldwide income if they are resident in Canada for Canadian tax purposes. Corporations not resident in Canada are subject to Canadian tax on certain types of Canadian source income (Section 115 of the Canadian Income Tax Act).
The taxes paid by a Canadian resident corporation may be influenced by the type of corporation:
- It is a Canadian-controlled private corporation, which is defined as a corporation resident in Canada and incorporated in Canada or resident in Canada from June 18, 1971 to the end of the taxation year.
- It is not controlled directly or indirectly by one or more non-resident persons and directly or indirectly by one or more public corporations (other than a prescribed venture capital corporation, as defined in Regulation 6700).
- It is not controlled by a Canadian resident corporation that lists its shares on a prescribed stock exchange outside of Canada.
- It is not controlled directly or indirectly by any combination of persons described in the three preceding conditions; if all of its shares that are owned by a non-resident person, by a public corporation (other than a prescribed venture capital corporation), or by a corporation with a class of shares listed on a prescribed stock exchange, were owned by one person, that person would not own sufficient shares to control the corporation; and
- It has no class of its shares of capital stock that is listed on a prescribed stock exchange.
- It is not controlled by one or more public corporations other than a prescribed venture capital corporation, as defined in Regulation 6700.
- It is not controlled by one or more prescribed federal Crown corporations as defined in Regulation 7100.
Pls See: ehow.com
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What is Emergency Fund?
Investopedia defines emergency fund as an account that is used to set aside funds for an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort. Most financial planners suggest that an emergency fund contain enough money to cover at least three months of living expenses.
Note that financial institutions do not carry accounts labeled as emergency funds; it is up to the individual to set up this type of account. Most emergency funds are highly liquid, such as checking or savings accounts. This allows quick access to funds, which is vital in emergency situations.
Pls See: investopedia.com
This article explains the following:
- Building an Emergency Fund
- Spending your Emergency Fund
- Tax Free Savings Account
What is Building an Emergency Fund?
If you have settled all your debt, you may want to start building your savings and investments. Before you start working on your Registered Retirement Savings Plan, your savings priority should be an emergency fund.
If your debts are paid off, an emergency fund acts as a form of insurance. The money is there if you truly need it, without having to go into debt or withdraw from your RRSP. Most often, emergency funds are described as a safety net in case of job loss. This is due to the question of how big your emergency fund should be, which you might hear back anything from 3-12 months worth of expenses. Another good use for an emergency fund would be to use it for your home or auto insurance deductible. Having the money saved in advance gives you the ability to raise your deductible to reduce your insurance premiums.
You want to be able to get your money out quickly in the event of an emergency, maybe not so easily as having it linked to your debit card though. A high interest savings account, possibly within a tax-free savings account would be a good choice. Keep in mind, this account is for true emergencies, not for a car, vacation or other unnecessary expenses. If you already have an emergency fund, you can now start up separate savings accounts for these items as well.
How should you spend your emergency fund?
The emergency fund is important for Canadians. However, it appears that many people are not using this money for its original purpose. The funds should be set aside for real emergencies. Nonetheless, many folks are using these finances for day-to-day expenses completely defeating their real goal.
Your emergency fund should not be touched unless a true emergency takes place. The purpose of having these funds is to give you peace of mind in knowing that if your financial circumstances dramatically change. Thus, you and your family will still be able to stay afloat, at least for a few months.
It is wise to place your emergency funds into a high interest savings account or a Tax Free Savings Account. The key is to make sure the funds can be available to you when you need them. You need easy access to the money in the event of an emergency, so make sure you do not lock these funds into a non-redeemable investment.
Pls See: pennysaverblog.com
What is a Tax Free Savings Account?
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to $5,000, any unused TFSA contribution room from the previous year, and the amount you withdrew the year before. All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It is considered an effective way to save for short and long-term goals.
Pls See: cra-arc.gc.ca
Save for a Rainy Day
You will never know what will happen in the future. It is always a prudent move to save some amount for emergencies. You will never know when these situations will occur. It pays to be ready all the time.
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What is an Installment Loan? 2
Wikipedia says that an installment loan is a loan that is repaid over time with a set number of scheduled payments. The term of loan may be as little as a few months and as long as 30 years.
The term is most strongly associated with traditional consumer loans, originated and serviced locally, and repaid over time by regular payments of principal and interest. These installment loans are generally considered to be safe and affordable alternatives to payday and title loans, and to open ended credit such as credit cards.
Pls See: en.wikipedia.org
This article talks about the following:
- Personal Loans with Bad Credit
- Payday Loans
- Consolidation Loans
What is Getting Personal Loans with Bad Credit?
Bad credit is a burden but it does not have to be an obstacle. Unpaid student loans, missed credit card payments or credit report mistakes are common reasons for a low credit score. If you have been turned down for a loan because of your bad credit history don't be discouraged. With a bit of effort and financial knowledge it is possible for someone with bad credit to get approved for a personal bank loan in Canada.
Order a copy of your credit report from each of the two top Canadian credit agencies Equifax and Trans Union. Canadians can receive one free credit report from each agency each year. A mail request is free. Instant credit card reports can be ordered online for a fee.
Read your credit report to ensure it is accurate. Your credit report lists your credit history and is what lenders look at when considering your loan application. If there is outdated information or other mistakes, request a change from the credit bureau. You can add a statement explaining your situation to your credit file.
Reduce your debt-to-credit ratio by paying off outstanding debts such as your car loan, student loan and credit card accounts. Limit use of retail credit cards as they can be damaging to your credit.
Find someone to co-sign a personal loan for you. A co-signer agrees to be responsible for loan payments if you default. Paying off the loan on time and within the terms of the agreement will increase your credit score.
Apply for a secured credit card from a trustworthy bank. You will have to deposit funds equal to your credit limit to get the card, but if you make payments on time, your card may convert to an unsecured credit card.
Pls See: ehow.com
Ask a friend or family member for a personal loan. Draw up a contract specifying the terms of the loan, including interest rate and loan due date.
What are Payday Loans?
Payday loans are possible solutions for small financial problems. Most payday loans are released within 24 hours and may even be directly deposited into your bank account. Payday loans should not be used for things that you do not need because they have very high interest rates.
The loan is a cash advance until your next payday. If you do not pay the loan when you receive your next pay check, you can extend the loan for a fee. The longer you extend the loan the more money you add to the loan that you will have to pay back to the lender. When you apply for a payday loan, you will be asked for personal information like complete name, phone number, and place of employment. Some lenders ask for copies of your last pay stubs. Take your time when searching for your lender. Some charge higher interest rates than others. If you are in a financial emergency a payday loan can be a quick fix. Just keep in mind the high interest rates and extension fees that come along with this loan.
What are Consolidation Loans?
Consolidation loans are meant for people in debt primarily because of imprudent use of credit cards. The consolidation loan helps by putting all of your debt payments into one payment. The interest rate on a consolidation loan can be lower than that of the rate on your credit cards, making the payments easier to manage. When you consider a consolidation loan, make sure that payment instalments are reasonable in comparison to your budget so that you can pay the loan off as arranged. If you are a student trying to consolidate student loans, keep in mind that the Canadian government is offering different types of aids and grants to help consolidate student’s loan payments.
Pls See: canadianfinanceblog.com
Loan Acquisition
In Canada, there are a variety of options for those in debt and this can be done through different loan companies. Choose wisely when looking for a consolidation loan. Make sure to find one that fits your needs.
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What is an Installment Loan? 2
Wikipedia says that an installment loan is a loan that is repaid over time with a set number of scheduled payments. The term of loan may be as little as a few months and as long as 30 years.
The term is most strongly associated with traditional consumer loans, originated and serviced locally, and repaid over time by regular payments of principal and interest. These installment loans are generally considered to be safe and affordable alternatives to payday and title loans, and to open ended credit such as credit cards.
Pls See: en.wikipedia.org
This article talks about the following:
- Personal Loans with Bad Credit
- Payday Loans
- Consolidation Loans
What is Getting Personal Loans with Bad Credit?
Bad credit is a burden but it does not have to be an obstacle. Unpaid student loans, missed credit card payments or credit report mistakes are common reasons for a low credit score. If you have been turned down for a loan because of your bad credit history don't be discouraged. With a bit of effort and financial knowledge it is possible for someone with bad credit to get approved for a personal bank loan in Canada.
Order a copy of your credit report from each of the two top Canadian credit agencies Equifax and Trans Union. Canadians can receive one free credit report from each agency each year. A mail request is free. Instant credit card reports can be ordered online for a fee.
Read your credit report to ensure it is accurate. Your credit report lists your credit history and is what lenders look at when considering your loan application. If there is outdated information or other mistakes, request a change from the credit bureau. You can add a statement explaining your situation to your credit file.
Reduce your debt-to-credit ratio by paying off outstanding debts such as your car loan, student loan and credit card accounts. Limit use of retail credit cards as they can be damaging to your credit.
Find someone to co-sign a personal loan for you. A co-signer agrees to be responsible for loan payments if you default. Paying off the loan on time and within the terms of the agreement will increase your credit score.
Apply for a secured credit card from a trustworthy bank. You will have to deposit funds equal to your credit limit to get the card, but if you make payments on time, your card may convert to an unsecured credit card.
Pls See: ehow.com
Ask a friend or family member for a personal loan. Draw up a contract specifying the terms of the loan, including interest rate and loan due date.
What are Payday Loans?
Payday loans are possible solutions for small financial problems. Most payday loans are released within 24 hours and may even be directly deposited into your bank account. Payday loans should not be used for things that you do not need because they have very high interest rates.
The loan is a cash advance until your next payday. If you do not pay the loan when you receive your next pay check, you can extend the loan for a fee. The longer you extend the loan the more money you add to the loan that you will have to pay back to the lender. When you apply for a payday loan, you will be asked for personal information like complete name, phone number, and place of employment. Some lenders ask for copies of your last pay stubs. Take your time when searching for your lender. Some charge higher interest rates than others. If you are in a financial emergency a payday loan can be a quick fix. Just keep in mind the high interest rates and extension fees that come along with this loan.
What are Consolidation Loans?
Consolidation loans are meant for people in debt primarily because of imprudent use of credit cards. The consolidation loan helps by putting all of your debt payments into one payment. The interest rate on a consolidation loan can be lower than that of the rate on your credit cards, making the payments easier to manage. When you consider a consolidation loan, make sure that payment instalments are reasonable in comparison to your budget so that you can pay the loan off as arranged. If you are a student trying to consolidate student loans, keep in mind that the Canadian government is offering different types of aids and grants to help consolidate student’s loan payments.
Pls See: canadianfinanceblog.com
Loan Acquisition
In Canada, there are a variety of options for those in debt and this can be done through different loan companies. Choose wisely when looking for a consolidation loan. Make sure to find one that fits your needs.
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What is a Small Claims Action? 2
Small-claims courts have limited jurisdiction to hear civil cases between private litigants. Courts authorized to try small claims may also have other judicial functions, and the name by which such a court is known varies by jurisdiction; it may be known as a county or magistrate's court.
These courts can be found in Australia, Brazil, Canada, England and Wales, Ireland, Israel, New Zealand, Scotland, South Africa, Hong Kong, and the United States.
This article talks about the following:
- Functions of Small Claims Courts
- Rules of Civil Procedure
- Small Claims Courts in Canada
What are the Functions of Small Claims Courts?
The jurisdiction of small-claims courts typically encompasses private disputes in which large amounts of money are not at stake. The routine collection of small debts forms a large portion of the cases brought to small-claims courts, as well as evictions and other disputes between landlords and tenants, unless the jurisdiction is already covered by a tenancy board.
A small-claims court will generally have a maximum monetary limit to the amount of judgments it can award, often in the thousands of dollars or pounds. By suing in a small-claims court, the plaintiff typically waives any right to claim more than the court can award. The plaintiff may or may not be allowed to reduce a claim to fit the requirements of this venue. "Court shopping", where a plaintiff seeks to reduce the amount of damages claimed in order to fit a trial into a court that would otherwise not have jurisdiction, is strictly forbidden in some states. Thus, even if the plaintiff is willing to accept less than the full amount, the case cannot be brought to small-claims court. To bring the case to small-claims court, the plaintiff must prove that the actual damages were within the court's jurisdiction. In some jurisdictions, a party who loses in a small-claims court is entitled to a trial de novo in a court of more general jurisdiction and with more formal procedures.
What are Rules of Civil Procedure?
The rules of civil procedure, and sometimes of evidence, are typically altered and simplified in order to make the procedures economical: one guiding principle usually operating in these courts is that individuals ought to be able to conduct their own cases and represent themselves without lawyer in court. Even though rules are relaxed, they still apply to some degree. In some jurisdictions, corporations must still be represented by a lawyer in small-claims court. Expensive court procedures such as interrogatories and depositions are usually not allowed in small-claims court, and practically all matters filed in small-claims court are set for trial. Under some court rules, should the defendant not show up at trial and not have requested postponement, a default judgment may be entered in favour of the plaintiff.
Separate family courts may exist to hear simple cases in family law. For reasons having more to do with history than with the sort of case typically heard by a small-claims court, most US states do not allow domestic relations disputes to be heard in small-claims court.
What are Small Claims Courts in Canada?
All provinces have procedures for small claims in Canada. In general, there are two different models. In most provinces, including British Columbia, Alberta, and New Brunswick, small-claims courts operate independently of the superior courts. In other jurisdictions, the small-claims court is a branch or division of the superior court. In Ontario, the Small-Claims Court is a branch of the Superior Court of Justice, and in Manitoba, the Small-Claims Court is under the jurisdiction of the Court of the Queen's Bench.
Small-claims cases are heard by judges of the Provincial Court in British Columbia, Alberta, and Saskatchewan, by judges or deputy judges of the Superior Court of Justice in Ontario, and by Hearing Officers in Manitoba.
The small-claims courts are meant to be easier and less expensive ways to resolve disputes than the higher courts. Small-claims court procedure is regulated both by provincial legislation and rules in most provinces. Small-claims procedure is simplified with no strict pleadings requirements and no formal discovery process, and parties' costs may be limited.
Monetary limits for small-claims courts in Canada vary by province:
- Alberta: The Provincial Court—Civil hears civil claims up to $25,000.
- Nova Scotia: The maximum claim that may be recovered in the Small-Claims Court cannot exceed $25,000.
- British Columbia: The maximum claim that may be recovered in the Small-Claims Division of the Provincial Court is $25,000.
- Manitoba: Small-Claims Courts adjudicated claims up to $10,000.
- New Brunswick: Claims to the Small-Claims Court of New Brunswick must be less than $6,000.
- Newfoundland and Labrador: The Provincial Court of Newfoundland and Labrador hears civil claims up to $25,000.
- Ontario: The new limit for small-claims is $25,000.
- Quebec: Claims to the Small-Claims Court of Quebec cannot exceed $7,000.
- Saskatchewan: Claims within the Civil Division of the Saskatchewan Provincial Court cannot exceed $20,000 in value.
Pls See: en.wikipedia.org
Winning in small-claims court does not automatically ensure payment in recompense of a plaintiff's damages. This may be relatively easy, in the case of a dispute against an insured party, or extremely difficult, in the case of an uncooperative, transient, or indigent defendant. The judgment may be collected through wage garnishment and liens. Most courts encourage parties with disputes to seek alternative dispute resolution, if possible, before filing the suit.
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What is a Second Mortgage? 2
A second mortgage typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property. Second mortgages are subordinate because, if the loan goes into default, the first mortgage gets paid off first before the second mortgage. Thus, second mortgages are riskier for lenders and thus generally come with a higher interest rate than first mortgages.
In real estate, a property can have multiple loans or liens against it. The loan which is registered with county or city registry first is called the first mortgage or first position trust deed. The lien registered second is called the second mortgage. A property can have a third or even fourth mortgage, but those are rarer. In most cases, a second mortgage takes the form of a home equity loan and the two are synonymous, from a financial standpoint. The difference in terminology is that a mortgage traditionally refers to the legal lien instrument, rather than the debt itself.
Pls See: en.wikipedia.org
This article talks about the following:
- Functions of a second mortgage
- Home Equity Loans
- Home Equity Line of Credit
What are the functions of a second mortgage?
A second mortgage is another mortgage, smaller in size that is given to the homeowner when the home or property in question already has a first mortgage. In some cases it’s actually cheaper to obtain the Equity Line Visa or even refinance your entire mortgage.
To borrow money against a second mortgage you are required to have equity in your home. Home equity is the value of your home, minus any money owed against it. For example, if your home is worth $200,000 with a $130,000 mortgage, then your home equity is $70,000.
- Second mortgage closing costs can range from 2% to 5% of the amount you borrow, depending on the lender.
- You can use a second mortgage for debt consolidation or for major purchases.
- Your credit score affects your second mortgage interest rates.
- A higher credit score will result in lower mortgage interest rates while a lower score means higher mortgage interest rates.
- Second mortgage loan interest rates are higher than first mortgage loan interest rates – but are still lower than most credit card and car loan interest rates.
- Second mortgage terms can be from 1 to 35 years, depending on the lender.
- The second mortgage will be secured by your home.
Pls See: mortgagescanada.ca
What are Home Equity Loans?
Home equity is the difference between the market value of your home and what you still owe on the mortgage. So if your house is valued at $300,000 and you still have $260,000 outstanding on your mortgage, your equity would be $40,000.
Home equity loans enable you to borrow against that equity. These loans are also known as second mortgages because they are a second loan (the primary mortgage being the first) that uses your house as collateral. With most home equity loans you can borrow anywhere up to 85% of the amount of your home equity. For the case above, with $40,000 in equity, the homeowner could borrow $34,000. Some lenders have more generous options, even offering to lend 100% of the amount of equity in your home.
A HELOC is much the same as a standard line of credit, but it uses your home's equity for security. With a HELOC you can typically borrow up to 90% of your home's equity. You do not necessarily have to use all of the credit at once. You can use it as needed and pay back what you borrow, just like a standard line of credit. On the other hand, home equity loans are one-time, lump sum loan. If you need more money, you'll need another loan. The general guideline is that a HELOC is best for those who need access to varying amounts of money for ongoing expenses, whereas a home equity loan is better suited to those needing a specific amount for one large expense, like a home renovation.
Pls See: streetdirectory.com
What is Home Equity Line of Credit?
TD Canada Trust explains that a Hom/e Equity Line of Credit lets you use the equity in your home to borrow money. It’s a flexible alternative to a traditional mortgage that lets you pay at your own pace – making payments as low as interest only, or as much as you want.
You may never need to apply for credit again.
• Access up to 80% of the appraised value or purchase price of your home (whichever is lower), less any prior outstanding mortgages or other charges
• As your outstanding balance decreases, your available credit increases.
Convert to the Fixed Rate Advantage Option any time
You can always convert all or any portion of your Home Equity Line of Credit balance to the Fixed Rate Advantage Option which locks in a fixed interest rate for a closed term of 1-5 years to protect yourself from interest rate increases and establish regular fixed payments to help you plan your budget (subject to minimum amounts).
Online Statements are now available through Easy Web. Like paper statements, these documents are acceptable for tax and legal purposes and can be saved to your computer or accessed on our secure site for up to 7 years going back to January 2010 and onwards
Varying Terms
The term length of a second mortgage varies. Terms can last up to 30 years on second mortgages, though repayment may be required in as little as one year depending on the loan
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What is a Privacy Commission? 2
The Privacy Commissioner of Canada is a special ombudsman and an officer of parliament who reports directly to the House of Commons and the Senate.
The article is a discussion about the following:
- Privacy Commissioner
- Privacy Act
- PIPEDA
What is the Privacy Commissioner?
The Privacy Commissioner has the authority to investigate complaints filed by Canadian citizens, and report on whether there has been a violation of the Privacy Act, which deals with personal information held by the government of Canada, or the Personal Information Protection and Electronic Documents Act (PIPEDA), which deals with personal information held in the private sector. The Privacy Commissioner also has the power to audit, publish information about personal information-handling practices in the public and private sector, conduct research into privacy issues and promote awareness and understanding of privacy issues by the public.
Its functions include:
- Investigate complaints and conduct audits under two federal laws, Section 29 of the Privacy Act, and the Personal Information Protection and Electronic Documents Act
- Publishing information about personal information-handling practices in the public and private sector
- Conduct research into privacy issues promoting awareness and understanding of privacy issues by the Canadian public
Pls See: en.wikipedia.org
What is the Privacy Act?
Canadian privacy law has /evolved over time. The first instance of a formal law came when, in 1977, the Canadian government introduced data protection provisions into the Canadian Human Rights Act. In 1982, the Canadian Charter of Rights and Freedoms outlined that everyone has "the right to life, liberty and security of the person" and "the right to be free from unreasonable search or seizure", but did not directly mention the concept of privacy. In 1983, the federal Privacy Act regulated how federal government collects, uses and discloses personal information. Throughout the late 1990s and 2000s, privacy legislation placed restrictions on the collection, use and disclosure of information by provincial and territorial governments and by companies and institutions in the private sector.
The Privacy Act, passed in 1983 by the Parliament of Canada, regulates how federal government institutions collect, use and disclose personal information. It also provides individuals with a right of access to information held about them by the federal government, and a right to request correction of any erroneous information.
Under the Act, the Privacy Commissioner has powers to audit federal government institutions to ensure their compliance with the act, and is obliged to investigate complaints by individuals about breaches of the act. The Act and its equivalent legislation in most provinces are the expression of internationally accepted principles known as "fair information practices." As a last resort, the Privacy Commissioner of Canada does have the "power of embarrassment", which can be used in the hopes that the party being embarrassed will rectify the problem under public scrutiny.
Pls See: en.wikipedia.org
What is PIPEDA?
The Personal Information Protection and Electronic Documents Act governs the topic of data privacy, and how private-sector companies can collect, use and disclose personal information. The Act also contains various provisions to facilitate the use of electronic documents. PIPEDA was passed in the late 1990s to promote consumer trust in electronic commerce, as well as was intended to assure other governments that Canadian privacy laws were strong enough to protect the personal information of citizens of other nationalities.
PIPEDA includes and creates provisions of the Canadian Standards Association's Model Code for the Protection of Personal Information, developed in 1995. Personal Information is specified as information about an identifiable individual who does not include the name, title or business address or telephone number of an employee of an organization.
PIPEDA allows for similar provincial laws to be in effect. Quebec, British Columbia and Alberta have subsequently been determined to have similar legislation, and laws governing personal health information only, in Ontario and New Brunswick, have received similar recognition. They all govern:
- What personal information can be collected from individuals (including customers, clients and employees)
- When consent is required to collect personal information and how consent is obtained
- What notice must be provided before personal information is collected
- How personal information may be used or disclosed;
- The purposes for which personal information may be collected, used or disclosed by the organization
- How an individual may get access to and request correction of his or her personal information held by the organization
Pls See: ehow.com
Along with the Privacy Commissioner, the Office has an Assistant Privacy Commissioner and the External Advisory Committee, which was created in February 2004.
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What is a Loan Payment? 2
Wikipedia describes a loan as a form of debt which, like other debt instruments, requires the redistribution of financial assets over time between the lender and borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal from the lender, and is obligated repay an equal amount to the lender at a later time. The money is paid back in regular instalments, or partial repayments. In an annuity, each instalment is the same amount. The loan is generally provided at a cost, referred to as interest, which provides an incentive for the lender to engage in the loan.
Pls See: en.wikipedia.org
This article discusses the following:
- Loan Categories
- Secured, Unsecured Personal and Consolidation Loans
- Loan Calculator
What are the various loan categories?
The thought of taking a loan, the reason whatever it may be can be a pretty daunting one. There are several types of loans available to people depending on their eligibility and requirement. There are car loans, personal loans, housing loans. However the interest rates and reparability option vary from bank to bank and from one type of loan to another. In Canada, there are personal secured and unsecured loans, payday loans and consolidation loans.
What are Secured, Unsecured Personal and Consolidation Loans?
An unsecured personal loan can be very easy to obtain. An unsecured loan requires no collateral and credit score. Usually the amount of an unsecured loan ranges from $100 to $500 dollars. Some lenders may require your credit score and those with a low score will usually pay higher interest rates on their loans.
These have a lower interest rate than that of the unsecured loan. Lenders are more likely to give lower interest rates. With both the secured and unsecured personal loans you will have monthly instalments to pay back the money. If the loan is not paid back, the collateral will be collected in payment to the lender.
These are made for those who have found themselves in debt particularly for credit cards. A consolidation loan helps by putting all of your debt payments into one payment. The interest rate on a consolidation loan can be lower than that of the rate on your credit cards, making the payments easier to manage. If you are planning to apply for a consolidation loan watch for lenders who claim that you can pay a fee and automatically be approved.
Pls See: canadianfinanceblog.com
What is the Loan Calculator?
The next most important thing is to learn about calculations. For better clarity and understanding, it is advised that the loan taker does his calculations. There are several loan calculators that are available online for free. They are available for each and every type of loan and for different interest patterns. However a loan calculator is only as good as the information you give it so make sure you have all the information you need. Some loan calculators will give you a graphical representation of your repayment details and best possible interest you can get. If you use a good loan payment calculator you should be able to get an idea of what is in store for you in terms of repayments, interest and the total amount paid.
For Canadian borrowers, it is important to learn about the loan calculator that you can use to calculate your monthly payments and loan interest costs for different kinds of loans. For example if you want to get a $10,000 personal loan from Royal Bank of Canada, and you know that the bank will charge you 7% yearly interest rate on the loan over 5 years you can calculate your loan monthly payments (including principal and interest) using our loan calculator below.
Pls See: canadabanks.net
Paying your Loans
You have to pay your loans. You need to know the rules in making loans and loan calculator details, you are now ready to apply for the loan you need and one which will fit your repayment capacity. The key here is to be prompt in paying back what you owe so as to maintain integrity and avoid affecting your credit ratings.
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What is a Letter of Demand? 2
A demand letter, or LOD is a letter stating a legal claim (usually drafted by a lawyer) which makes a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.
Pls See: en.wikipedia.org
This article offers information to readers about the following:
- Demand Letters in Canada
- Contents of the Demand Letter
- Pointers in Writing Demand Letters
What are Demand Letters in Canada?
A demand letter is a formal notice demanding that the addressee perform a legal obligation, such as rectifying a problem, paying a sum of money or honouring a contractual commitment, on specific terms and within a specified time. The letter gives the recipient a chance to perform the obligation without being taken to court.
In certain types of legal proceedings, a demand letter is mandatory. A person who fails to send it could lose his or her case. It is always best to send a demand letter before instituting legal proceedings; in many instances, it encourages the recipient to settle the matter out of court. Sending a demand letter will not require the sender to actually sue the recipient. The decision on taking the matter to court is made when the recipient does not respond within the allowed time or refuses to perform the legal obligation.
A demand letter may be written by the person seeking redress or by a lawyer on that person's behalf. After a copy has been made, the original must be sent in a way that provides proof of delivery. The demand letter can be sent by registered mail, since a confirmation of delivery will be provided. It is important for the sender to keep a copy of the demand letter and the confirmation of delivery provided by Canada Post to be able to prove that the demand letter was delivered to the intended recipient.
A demand letter can also be served by a bailiff, who will provide a document stating when and to whom the letter was delivered. This document can then be used to prove that the demand letter was, in fact, delivered. Before asking a bailiff to serve a demand letter, it is important to check the cost of the service, since this can depend on the distance involved.
Pls See: justice.gouv.qc.ca
What are the Contents of the Demand Letter?
The demand letter contains the following information:
- The date, the recipient's contact information, and the legal phrase WITHOUT PREJUDICE to protect the sender with regard to the contents of the letter
- Summary of the issue
- Demand for a specific relief or payment
- Deadline by which the matter must be settled
- Sender's contact information and signature
- Term demand letter stated in the body of the letter to direct the recipient to act accordingly
Pls See: justice.gouv.qc.ca
What are Pointers in Writing Demand Letters?
The Rights and Remedies website gives the following pointers in writing a demand letter:
1. Imagine you are writing to a judge...because that’s who may end up reading your letter. In some cases, demanding payment from the other side is a prerequisite for bringing a claim, so your demand letter may be evidence that you fulfilled this requirement. Also, in many cases, the demand letter is useful evidence that you told the other side of the problem and gave them an opportunity to rectify it. Since the letter may end up in court, keep the language and tone of your letter firm, professional and unemotional. Be careful to consider whether you are admitting anything in the letter which may be used against you by the other side in a trial. Write the letter on a computer rather than by hand, and keep it to a page or two at the most.
2. Include details. While it is important to keep the letter brief, you should still set out the history of the dispute, including all the important details, such as the dates of a contract, exact dollar amounts owing, details of building deficiencies, etc.
3. What do you want? Set out specific actions that you want the other person to take; “I demand that you pay me the $1,234 owing to me for fixing your car.” or “I demand that you repair my fence which you damaged with your lawnmower.”
4. When do you want it? Set a deadline, but make it reasonable. Two or three weeks is generally a good time frame, since it allows time for the other person to get the letter through the mail and make arrangements to remedy the situation.
5. Or else what? Include consequences for failing to perform the legal obligation. For example, “If I am not in receipt of a certified cheque in the amount of $1,234 by August 14, 2009 then I will commence an action in Small Claims Court (or the British Columbia Supreme Court, depending on the type of claim and the amount) without further notice to you.”
6. Contact information should always be included, along with your name and signature. Make sure that the other person has a way to get in touch if they would like to discuss the claim or settlement with you.
7. Send it by registered mail. Registered mail costs less than $10 and allows you to get a receipt proving that the other side received the demand letter. Keep this receipt as evidence in case you eventually go to court.
Pls See: rightsandremedies.blogspot.com
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What is Bank of Canada Interest Rate? 2
Interest rate refers to the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage of the principal for a period of one year. They also target monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.
Pls See: ehow.com
This article talks about the following:
- Bank of Canada
- Prime Rate
- Effect of Prime Rate on Consumers
What is the Bank of Canada?
The Bank of Canada is Canada's central bank and lender of last resort. The Bank was created by an Act of Parliament which is the Bank of Canada Act. In 1938, the Bank became a Crown corporation belonging to the Government of Canada. The role of the bank is to promote the economic and financial well-being of Canada. Its responsibilities are the following:
- Monetary policy
- Sole issuer of Canadian banknotes and currencies
- Promotion of a safe, sound financial system within Canada
- Funds management and central banking services for the federal
government, banks and other clients
For many years, Canada did not have a central bank. Each of the nation's large banks issued its own currency and there was little government regulation of the nation's money supply. The federal finance department issued small and very large denomination bank notes ($5 and under, and $500 and higher.) The Bank of Montreal, then the nation's largest bank, acted as the government's banker. Canada, with its extensive branch banking, had a very stable banking system. The banking system was regulated by the Canadian Bankers Association that worked in close concert with the government.
Pls See: en.wikipedia.org
What is Prime Rate?
Canada’s prime rate is influenced primarily by Canadian economic conditions. The Bank of Canada adjusts it directly, depending on the state of the economy. The Bank of Canada decides what interest rate prime should be set at and for how long. This is vital to the growth and stability of the country.
When inflation is high, the Bank of Canada must act quickly to avoid an overheated economy. In this case, they react by increasing the prime rate, thereby making the act of borrowing money more expensive. This has the effect of cooling off the economy so as to control the rate of inflation. Likewise, in cases where inflation is low, the Bank of Canada will decrease the prime rate, so as to heat up the economy.
The prime rate only changes when the Bank of Canada decides it is necessary to boost the economy or to slow it down. In November of 2000, the Bank of Canada introduced eight fixed dates each year where they would announce any rate changes. Announcements for changes of many other Bank of Canada-influenced rates, such as the overnight rate target, also share the same dates. These dates do not necessarily guarantee any movement of the prime. They are simply dates on the calendar where the prime rate can be changed if required.
What is the Effect of Prime Rate on Consumers?
Canadian consumers and enterprises cannot always pay cash all the time. Therefore, they need to borrow in order to purchase more costly goods or services. This is where the prime rate is vital to the operation of any household or business. In one way, shape, or form, this interest rate affects almost everyone’s daily life, not just a borrower.
When you are in the market for a particular product built by mass manufacturing, it is highly probable that companies creating these products used borrowed funds. These borrowed funds typically come from a bank or lender where the prime rate is used as the most basic and proportionate factor for calculating interest charged on the loan. If you choose to finance your vehicle, the dealership's financing department base their auto loan rates on a calculation using the prime rate.
In the Canadian mortgage market, the prime rate is used for calculating and lending money on variable rate or line of credit mortgages. A variable rate is typically a closed term which is 3 or 5 years in length. Today, the prime rate is set at 3.00% and the best variable rate is 3.10%. The line of credit will typically be based on prime rate plus a percentage or basis point count. A line of credit in Canada is a very popular form of borrowing and regardless of the lender you deal with. They all follow the prime rate lending model so there is very little variance from institution to institution.
Pls See: canequity.com
Economic conditions in a country like Canada directly affect the ability of banks, companies and consumers to spend money or to provide goods and services. These ups and downs are driven by various factors in employment, manufacturing and exports. All of these things, taken together, affect the inflation rate.
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What are Tax Treaties? 2
Many countries have agreed with other countries in treaties to mitigate the effects of double taxation (Double Tax Avoidance Agreement). Tax treaties may cover income taxes, inheritance taxes; value added taxes, or other taxes. Besides bilateral treaties, also multilateral countries are in place: Countries of the European Union have also entered into a multilateral agreement with respect to value added taxes under auspices of the EU, while a joint treaty of the Council of Europe and the OECD exists open to all nations. Tax treaties tend to reduce taxes of one treaty country for residents of the other treaty country in order to reduce double taxation of the same income.
This article talks about the following:
- Provisions and goals of most tax treaties
- Effects of Canada Tax Treaty on Residency Status
- Tie-Breaker Rules
- Define which taxes are covered and who is a resident and eligible for benefits
- Reduce the amounts of tax withheld from interest, dividends, and royalties paid by a resident of one country to residents of the other country
- Limit tax of one country on business income of a resident of the other country to that income from a permanent establishment in the first country
- Define circumstances in which income of individuals resident in one country will be taxed in the other country, including salary, self employment, pension, and other income
- Provide for exemption of certain types of organizations or individuals
- Provide procedural frameworks for enforcement and dispute resolution
The stated goals for entering into a treaty often include reduction of double taxation, eliminating tax evasion, and encouraging cross-border trade efficiency. It is generally accepted that tax treaties improve certainty for taxpayers and tax authorities in their international dealings.
Several governments and organizations have proposed model treaties to use as starting points in their own negotiations. The Organization for Economic Cooperation and Development (OECD, an inter-governmental organization) model treaty is often used as such a starting point. The OECD members have from time to time agreed on various provisions of the model treaty, and the official commentary and member comments thereon serve as a guidance as to interpretation by each member country.
Pls See: en.wikipedia.org
What are the Effects of Canada Tax Treaty on Residency Status?
CRA magazine published that some readers may have heard of the situation where an individual is a deemed resident of Canada.
Deemed resident status under Canadian domestic law would typically occur in the following instances: where an individual has sojourned in Canada for more than 183 days; where the individual is employed under certain situations with the government of Canada or a province and the individual was resident in Canada within the three-month period prior to their departure from Canada; where the individual is employed with the Canadian Armed Forces; where the individual is providing services under a prescribed international development assistance program and the individual was resident in Canada within the three-month period prior to their departure from Canada. There are also a few less common situations which should be considered when determining residency status for Canadian tax purposes which are beyond the scope of this article.
Assuming an individual is not a deemed resident of Canada and is clearly considered a non-resident of Canada based on having no or limited ties to Canada (as well as resident of the foreign country based on their ties), no further analysis is required.
However, where an individual is considered a deemed resident of Canada or a factual resident of Canada based on their ties, it will be necessary to determine whether they are also resident in the foreign country based on the definition of residence in the relevant tax treaty, where one exists. Where a treaty does not exist with the particular country, the individual will be considered a resident of Canada for tax purposes by default.
If the individual is considered a resident of the foreign country under the particular treaty, in addition to being a resident of Canada, a review of the residency “tie-breaker” rules contained in the relevant treaty will be warranted. It is these tie-breaker rules that will ultimately determine an individual’s residency status since the treaty overrides the domestic law of both countries. In fact, an individual is deemed to be a non-resident of Canada under domestic law where they are considered a resident of another country under one of Canada’s tax treaties based on the tie-breaker rules.
Pls See: cramagazine.com
What are the Tie-Breaker Rules?
The tie breaker rules are in place to determine an individual’s country of residence for tax purposes in the case of dual residency status which then determines which country gets the first right to tax certain types of income. The rules will depend on the particular treaty but typically they apply in the following order in cases of dual residency:
1. An individual will be considered resident in the country where they have a permanent home available to them.
2. Where the individual has a permanent home available in both countries, and neither country, the individual will be considered a resident of the country where their personal and economic relations are closer (referred to as centre of vital interests).
3. Where the centre of vital interests cannot be determined, the individual will be considered a resident of the country where they have a habitual abode (generally where the individual spends the majority of their time).
4. Where the individual has a habitual abode in both countries, the individual will be considered a resident of the country where the individual is a national.
5. Where the individual is a national of both countries and neither country, the individual’s residence will be determined by the competent authorities for each country.
Pls See:cramagazine.com
Tax treaties are an important part of the financial and economic dealing between two countries and can even end up affecting the lives of individuals as well. It is vital that people take their time in understanding the nuances of these policies so they can be fully informed about all their duties and benefits as well.
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What is Total Debt Service Ratio? 2
Wikipedia clarifies that in economics and government finance, debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country’s export earnings. A country's international finances are healthier when this ratio is low. The ratio is between 0 and 20% for most countries. In contrast to the debt service coverage ratio, which is calculated as income divided by debt, this ratio is inverse and is calculated as debt service divided by country's income from international trade.
Pls See: en.wikipedia.org
The article can be a source of information about the following:
- Debt and Family Type in Canada
- Total Debt Service Ratio in Canada
- Good Budget
What is Debt and Family Type in Canada?
According to Statistics Canada, after several years of impressive economic growth, the world faced an economic slowdown in 2008. The housing market collapse in the United States raised concerns around the world about the sustainability of current levels of household debt. Although the Canadian economy fared better than that of many other countries, increasing levels of household debt remain a concern.
There are several reasons house hold debt has been increasing. Historically, low interest rates, combined with several other factors, contributed to current household debt levels. These factors include: increased household income from women’s rising labour market participation; a cultural shift towards consumerism; increasing demand in the housing market from baby boomers and the echo generation; increased competition and deregulation in the financial sector; financial product innovation; and the relaxing of credit constraints. While debt has been studied at the broad household level, little research has examined the relationship between debt and family type to determine if certain family types are more likely to face financial instability as a result of their debt.
What is the Total Debt Service Ratio in Canada?
Total debt service ratio refers to total debt service payment (principal and interest repayment of a loan) is defined by the Bank of Canada to be 40% or more of pre-tax household income. Households with high debt service ratios are more financially vulnerable and are more likely to have problems meeting debt obligations. Since only aggregate debt data is available in the financial capabilities survey, this is converted to a debt repayment figure. For mortgage debt, this would be a household’s yearly payment towards principal and interest. Since the vast majority of household debt is from a mortgage,3 the average interest rate for conventional mortgages from the chartered banks between 2006 and 2010 (6.45%) is used to calculate a repayment figure for each household. In this sense, the definition is conservative, as households with other forms of debt will have payments at higher rates. Households without debts or income are excluded from this analysis.
Pls See: statcan.gc.ca
What is a Good Budget?
The first step to building a positive financial future is to have a budget and to understand your debt service ratios. A debt service ratio is a measurement used by the bank to determine if your bills represent an acceptable proportion of your income. The two primary debt service ratios are your gross debt service ratio and your total debt service ratio.
Your gross debt service ratio represents your monthly house payment divided into your gross monthly income, expressed as a percentage. The maximum acceptable gross debt service ratio is 30%. Your total debt service ratio represents your monthly housing payment plus your monthly payments to all loans and credit cards, divided into your gross monthly income and expressed as a percentage. The maximum total debt service ratio is 40%. GDS and TDS are two components of a budget. A good budget involves reasonable housing payments and reasonable payments of debt and expenses with surplus income left over to contribute to savings. A good budget should factor in all of your expenses. One key to positive money management is awareness. There are three primary budget related factors that contribute to families that live pay cheque to pay cheque. The first is unrealistic housing payments, the second is over spending and the third is too much debt.
Pls See: debtcarecanada.blogspot.com
Mortgage Market Regulation of October 2008
Canadian Money Advisory published recently that the Canadian Government passed on a regulation to tighten the hold on the mortgage market so that the home loan environment does not become like the United States mortgage market with the housing bubble. This regulation became effective last October 28, 2008.
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What is Credit Card Debt? 2
Wikipedia refers to credit card debt as unsecured consumer debt that is accessed through credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. It accumulates and increases through interest and penalties. This happens when the consumer does not pay the company for the money he or she has spent.
The results of not paying this debt on time are that the company will charge a late payment penalty and report the late payment to credit rating agencies. Being late on a payment is sometimes called "default". The late payment penalty itself increases the amount of debt the consumer has. When a consumer has been late on a payment, it is possible that other creditors may increase the interest rates the consumer is paying. This practice is called universal default.
Pls See: en.wikipedia.org
This article discusses the following:
- Eliminating Credit Card Debt
- Debt Relief
- Consolidated Payment with Low or No Interest
What is Eliminating Credit Card Debt?
There is way out of credit card debt.
For many people, careful management and planning can eliminate credit card debt while some consider consumer proposal or filing for bankruptcy. Credit card debt consolidation loans may not always be a good idea. You may not be able to take out a loan against your home or other assets to pay off your credit card debt. Look at these facts:
• If your financial condition becomes serious, you will not be able to include your secured consolidation loan in a consumer proposal which may force you into bankruptcy.
• When you get your first consolidation loan, it is possible to fall back into credit card debt because you have not dealt with the real issue which is spending beyond your means.
The steps that you can come up with are the following according to David Sklar and Associates:
Stop Using Your Credit Cards! This is the most important of all the steps. Put your credit cards away and start using budgeted cash instead.
Step 2 - Know the Facts
Write down exactly what you owe in Credit Card Debt – find out from your credit card companies what your current interest rates are, and what the minimum monthly payment is for each card. While you are speaking with your credit card companies – check to see if they are willing to lower the interest rate they are currently charging you.
Step 3 - Plan Your Attack
a. Set up a budget that will work for you and identify how much you can pay towards your credit card debt each month.
b. Sort your Credit Card Debt by card from highest to lowest interest rate. If possible, move balances from higher percentage cards to lower percentage cards.
c. Plan to pay off your Credit Cards by applying all the money your budget allows to the card with the highest interest rate. When that card is paid off – then pay off the card with the next lowest rate and so on. It is very important that you continue to make the required minimum monthly payments on all your other outstanding cards throughout this pay-down plan.
d. Depending on your requirements – choose two credit cards to keep for future ‘emergency only’ use. Most people at this point decide to drop the high-interest department store cards and keep major bank cards.
e. Once you have paid off those credit cards that you do not plan on keeping – cancel them in writing.
Do it now and keep doing it!
Pls See: davidsklar.com
What is Debt Relief?
If your credit card debt is so high, take steps to get relief from your credit card debt to ease your financial worries. Given the correct advice, you should be able to put together a plan to get your finances back on track and get out of debt. You may be able to negotiate a better interest rate for yourself. However, you may need someone to negotiate relief from credit card debt for you.
Personal Negotiation
Negotiating credit card debt relief means asking your credit card companies to lower their interest rates. With a lower interest rate, if you are carrying a balance you end up paying less interest. That means that with every payment you make, more of your balance gets paid off.
The best time to negotiate the interest rate on your credit cards is when you are still up to date with your payments
Get an Agency
When your credit card debt has gotten to a point where it is not possible to keep up with your minimum payments, it is time to get help. The sooner you get help; there will be more alternatives for you. Regardless of which option is right for you, it is important to seek help from a reputable agency. Any agency will still have to work with your creditors, so the sooner you get them on board, the more likely they can find the least painful solution for you.
Debt Management Program or Debt Repayment Plan
What is Consolidated Payment with Low or No Interest?
The Debt Management Program allows you to get help from a credit counselling organization to consolidate your debts into one manageable payment. It is also called a Debt Repayment Plan. This type of consolidation works with your budget so that you don’t have to borrow more money to try to get yourself out of debt. As part of this program a Credit Counsellor works with you to help you establish a realistic budget so that you can afford a reduced payment to your creditors as you pay off your unsecured debt in full.
Consolidated Payment at 5% Interest
If you are a resident of Alberta, Nova Scotia or Saskatchewan you may qualify to enter into a consolidation order known as an Orderly Payment of Debt program. Through this program, you pay back the full amount that you owe on your unsecured debts typically over a period of 3 years. The interest rate is set at 5% and you are able to keep your assets. Your creditors must agree to your OPD program and the courts must approve it.
Pls See: ehow.com
Credit Card Debt
Credit card debt said to be highest in industrialized countries such as Canada. Thus, it is really important for Canadian consumers to have options if getting out of credit card debt.
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What are Retail Discounts? 2
Wise Geek defines retail or price discounts as incentives offered to customers, usually as a means of attracting repeat business from those customers. While the implementation of some type of discount on price will vary from one situation to another, the basic idea is to provide customers with a sense of receiving some type of additional value by not having to pay the standard or published price for goods and services. While many think of a price discount as a tool used mainly by retailers, the fact is that this type of strategy is often utilized to attract business clients and entice them to make long-term commitments to a specific vendor.
Pls See: wisegeek.com
The article discusses the following topics:
- SPC Loyalty Card
- Internet Shopping in Canada
- State of Retail Industry in Canada
What is the SPC Loyalty Card?
SPC Card is Canada’s most popular student loyalty program providing students with discounts and deals at thousands of retail and restaurant locations across Canada. Students can show their cards at participating locations to receive instant savings every time they shop. Offers vary by participating partner locations; the most common offers are 10-15% off.
Make sure you sign the front of your card. Merchants will not accept the card if it is not signed or if it is an expired card. SPC Card discounts and deals vary from 10-15% off regular or sale priced merchandise. Offers vary by participating businesses and some restrictions do apply SPC Card is an exclusive student membership program. Any aged student may use an SPC Card including any elementary, junior high school, secondary school, CÉGEP, college, university, private and public academies and schools of special focus or interest. Students, who are 16 years of age or older, may be asked to provide valid student ID in order to be eligible to receive applicable savings. Merchant locations have the right to refuse any discount if student ID is not shown. Parents may not use the SPC Card on behalf of their student. If a parent is paying for the purchase then the child must be present and only the child’s items are eligible for applicable discounts.
Pls See: spccard.ca
What is Internet Shopping in Canada?
Statistics Canada stated that before the Internet was launched commercially in 1993, few people outside of the scientific and academic worlds knew anything about this new technology. However, some of the expected impacts of electronic commerce, such as the potential detrimental effects on traditional retail, have not yet come to fruition. It appears that the impact of the Internet on retail shopping depends on the specific product category as well as other factors such as consumer behaviour and concern for online security. You can always refer to internet shopping data, trends and patterns in Canada from 2001 to 2007. It begins with a brief description of e-commerce measurement at Statistics Canada, followed by the number and value of Internet orders made from 2001 to 2007. Online purchases by type of product are then examined to illustrate how the Internet has become both a complement to, and a substitute for, traditional retail. The relative concentration of online shopping among certain Canadians is also examined, while the final section identifies the determinants of online shopping during 2007 and the extent to which concern for online credit card security remains an impediment.
What is the State of Retail Industry in Canada?
The retail sector plays a key role in bridging production and consumption, and as a result has significant direct and indirect effects on the Canadian economy. While directly contributing $74.2B to Canada's gross domestic product in 2009, the retail sector affects other industries as well through its pioneering of innovative practices.
The retail sector's productivity growth and success are spurred by innovation in critical areas, including key performance indicators measurement, customer relationship management, e–commerce, and supply chain mandates. While retail supply chain mandates have directly improved retailers' bottom lines, they have also contributed to business benefits in other industries. Whether through collaborative planning, forecasting and replenishing or sustainability initiatives, the competitiveness of other industries has increased by adopting practices developed within the retail sector.
The ability to access and utilize strategic information and performance indicators in decision making enables retailers to focus on initiatives that deliver a strong return on investment. For this reason, Industry Canada has partnered with the Retail Council of Canada to undertake the first Canadian State of Retail report. This unique analysis is intended to help Canadian retail sector executives as well as decision makers enhance their understanding of current market trends, the strategic significance of retail sector innovation and practices that improve business competitiveness across industries.
Pls See: ic.gc.ca
Retail discounts motivate consumers. However, you need to consider all the factors about these discounts just to make sure that these will cause you benefits more than problems.
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What are Home Equity Loans? 2
Wikipedia defines a home equity loan as a type of loan in which the borrower uses the equity in their home as collateral. Home equity loans are often used to finance major expenses such as home repairs, medical bills or college education. It creates a lien against the borrower's house, and reduces actual home equity. Home equity loans come in two types: home equity term, which is a fixed term, and home equity line of credit which is variable. Most home equity loans require good to excellent credit history, and reasonable loan-to-value and combined loan-to-value ratios.
Pls See: en.wikipedia.org
The article supplies information about the following:
- Benefits of a Home Equity Loan in Canada
- Difference between a Home Equity Loan and Equity Line of Credit
- Use of the Home Equity Loan
What are the Benefits of a Home Equity Loan in Canada?
You can enhance your financial security with a home equity loan. Because of the security on property, home equity loan rates are lower than unsecured loans and considered essential financial planning tools.
A Home equity loan makes your financial life easier in the following ways:
- Extend cash reserves.
- Home equity loans consolidate multiple debts into one monthly payment.
- A home equity loan transfers your illiquid home equity into a pool of liquid cash to use as needed.
- Adapt repayment terms to suit your needs
- It enables you to access up to 90% of your home equity.
- The loan rates save money.
Canadian mortgage brokers can help you find the best rates and terms.
Rates are not the only factor when shopping for a home equity loan. Canada has numerous ways to access the equity in your home – a home equity line of credit (HELOC) , second mortgages, etc. The kind of home equity loan you use depends on your circumstances. There are different types of home equity loans and alternate ways to access your home equity. Choose a home equity line of credit if you don’t need a lump sum right away. For a major expense or to consolidate multiple debts, second mortgages may make sense.
Pls See: canadianmortgagesinc.ca
The difference between a home equity loan and a home equity line of credit is that as soon as you have used a percentage of the loan, you will not be able to access it again. If you took out a $5,000 loan for a vacation, you have to re-apply to get another loan whether you have paid the whole amount or just a portion of the loan. With a home equity line of credit, once you have used it, you can spend as much as you have paid back. With the reduced interest, many people use a home equity loan to consolidate their debts. They utilize it to settle their other arrears (credit cards and lines of credit) and combine their entire debt load and refinance it at one reasonably low interest rate. The home equity loan or line of credit must be tied to your principal residence; banks don't normally secure such loans to rental properties. The loan is generally repaid in monthly instalments, and must be entirely settled when you move out of the house.
Pls See: bankrate.com
What is the Use of the Home Equity Loan?
Many people take advantage of this financial instrument for renovations or the purchase of a car. This type of loan allows for a longer amortization. The typical car loan is amortized for a maximum of seven years. With a home equity loan, you can amortize it up to 25 years. You can make smaller payments over an extended period, but that also means it generates more interest.
After 25 years, you are mandated to renegotiate your loan.
In most cases, Canadian regulations stipulate that the combination of a primary mortgage plus a home equity loan on a given residence cannot exceed 75 percent of the home's market value. If your house is worth $400,000, and you have a $200,000 mortgage, your home equity loan will not be greater than $100,000. However, there are ways of accessing more cash. In the last six months, some banks have introduced a product called a high-ratio home equity line of credit. It is intended for borrowers who may not be able to pay much more than the interest in the short term, but will be capable of bigger payments at a future date.
Pls See: ehow.com
Ideal Option
Why do consumers prefer home equity loans? The interest is lower. Credit card rates are pegged at approximately 17 percent. A home equity loan or line of credit has the prime business rate set by the Bank of Canada. It is called "prime" (currently 4.25 percent), to prime-plus-three which would be 7.25 percent.
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What is a Student Loan? 3
Wikipedia asserts that student loan is meant to help students pay for school expenses such as tuition, books, and living costs. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in education. It also differs in many countries in the strict laws regulating re-negotiating and bankruptcy.
Pls See: en.wikipedia.org
This article reviews the following:
- Scholarships and Grants
- Student loan programs in Canada
- Canada Student Loan
What are Scholarships and Grants?
Scholarships and grants are resource/s that can help students support their education. The funds need not be reimbursed and granted by governments, schools or private organizations. These are usually awarded based on merit rather than financial need, academic achievement, athletic skills or special abilities.
The following are some of the grants and bursaries available to Canadian students:
- Canada Student Grants
- Provincial and Territorial Grants and Bursaries
- Learn more on the Apprenticeship Incentive Grant (AIG)
- Funding for studying abroad
If you are a graduate student, you can also check out the Canada Graduate Scholarship Program - Master’s Scholarship, which provides funding to students who are pursuing full-time studies at the master's level in the field of social sciences and humanities. Canada Student Grants help students and their families cope with the costs of post-secondary education. Grants do not need to be paid back, foreseeable, easy to apply for, and given to students at the beginning and middle of the school year. These are available to students from most provinces and territories except Northwest Territories, Nunavut and Quebec which operate their own student financial assistance programs.
What are various Student Loan Programs?
There are various student loan programs in Canada such as the following:
Ontario Student Assistance Program -
Full-time students are qualified for government student loan funding through the Ontario Student Assistance Program. It is a need-based program available to Canadian citizens and landed immigrants who are Ontario residents. Information and application forms for assistance programs administered by the Province of Ontario are available at http://osap.gov.on.ca. Part-time students may apply for a government student loan through the Part-time Canada Student Loanprogram.
Out-of-Province Government Student Loans -
Students who are residents of other Canadian provinces may apply for a government loan from their home province. For information regarding other provincial student loan programs, consult the Web site of the provincial student assistance office. Out-of-province student assistance information and website links are available at www.yorku.ca/osfs/outofprovince.
International Students -
International students studying on a student visa are not eligible for bank loans or government student loans in Canada. If planning to apply for landed immigrant status, students may become eligible for loans once landed status has been received.
Royal Bank Student Line-of-Credit Program -
Schulich students who are Canadian citizens or landed immigrants may apply for the Royal Bank’s Student Line-of-Credit Program. The Royal Credit Line for Students provides students of the Schulich School of Business with a personalized loan to help finance their education. Students may apply for a credit line before the academic year begins. The Royal Bank provides one-on-one professional financial advice to Schulich students through a Relationship Account Manager, helping students to manage their loans while at Schulich and following graduation. Representatives from the Royal Bank are available to meet with students on an individual basis during the first two weeks of the fall and winter terms.
Pls See: schulich.yorku.ca
What is Canada Student Loan?
When you apply for a Canada Student Loan, your eligibility will be evaluated automatically. You may be qualified to earn more than one grant at the same time.
The following Canada Student Grants are available:
- Grant for Students from Low-Income Families
- Grant for Students from Middle-Income Families
- Grant for Students with Dependants
- Grant for Part-Time Studies
- Grant for Part-Time Students with Dependants
- Grant for Students with Permanent Disabilities
- Grant for Services and Equipment for Students with Permanent
Disabilities
To find out about bursary programs offered in your province or territory of permanent residence, or to complete an application for full-time or part-time student loan funding, visit your province or territory’s student financial assistance office Web site.
Pls See: canlearn.ca
Academic Excellence
Both Canadian and international students are aware that there are many opportunities open to them to further enhance their learning experience. The federal and provincial governments have joined hands with the private sector to support the advancement of academic excellence in Canada. It is a chance that should not be ignored or missed.
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What is a Collection Agency? 2
Wikipedia defines collection 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 See: en.wikipedia.org
This article explains matters about the following:
- Policies on Collection Agencies
- Canada Collection Agencies Act
- Correct Way to Deal with Collection Agencies
What are Policies on 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.
• 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.
Pls See: ehow.com
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 See: en.wikipedia.org
What is the Correct Way 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.
- 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.
Pls See: ehow.com
Be sure 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.
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What is Public Auction? 2
Wikipedia says that a public auction is an auction held on behalf of a government in which the property to be auctioned is either property owned by the government, or property which is sold under the authority of a court of law or a government agency with similar authority.
Government property sold at public auction may include surplus government equipment, abandoned property over which the government has asserted ownership, property which has passed to the government by escheat, government land, and intangible assets over which the government asserts authority, such as broadcast frequencies sold through a spectrum auction. Private property may be sold in a public auction for a number of reasons. It may be seized through a governmental process to satisfy a judgment rendered by a court or agency, or to liquidate a mortgage foreclosure, tax lien, or tax sale. Usually, prices obtained at a public auction to satisfy a judgment are distressed - that is, they are much lower than the price which would be obtained for that property if the seller were free to hold out for an optimal time to sell.
Pls See: en.wikipedia.org
The article talks about the following:
- Canadian Supreme Court Ruling on Bidding
- Auction Details in Canada
- Private Property Auctions
What is the Canadian Supreme Court Ruling on Bidding?
The legal rules of bidding and tendering in Canada consist primarily of judge-made law. In particular, the basic framework of bidding and tendering law in Canada was set out in a landmark Supreme Court decision in 1981 which fundamentally altered the common law of contracts as it had previously applied to analysis of tendered contracts.
That decision, R. v Ron Engineering, created the Contract A / Contract B framework which is at the core of Canadian bidding and tendering law. Following that decision owner/developers and bidders found themselves subject to a new set of rights and obligations when engaged with each other in formal bidding processes. Because the decision represented a radical reformulation of the law, it predictably led to questions about its particular implications, the scope of the rights and obligations created under the scheme, and the extent to which it was actually binding on parties to a bidding process (that is, if you didn’t want to be bound by the new rules for some reason, was it possible to get around them?). To a significant extent this discussion is still ongoing, and the law of bidding and tendering in Canada continues to evolve as the courts are faced with novel situations, particular contractual provisions, and new arguments about why the rules should or should not apply in a particular way to a particular set of facts.
Pls See: ehow.com
What are Auction Details in Canada?
Canadian Money Advisor states that public auction refers to an auction that is conducted by a government or by an organization on behalf of a government. In such an auction, properties and other movable items are set for selling. These properties may either be owned by the government or can be properties that are sold with the authority of a court of law. These properties can also belong to any government agency that possesses appropriate authority to hold the event for selling off. In Canada, these auctions are held quite frequently. Most of the government properties that come in for auction come under one of the following criteria. These properties may be a surplus or excess equipment, or may be an abandon property on which the government has secured ownership. Like many other countries it is not necessary that only government properties are to be auctioned in a public manner with no restrictions on entry.
Pls See: canadian-money-advisor.ca
What are Private Property Auctions?
According to Canadian Money Advisor, private properties step into Public auction due to it seizure by the government that obeyed a court order, or to provide tax sale or tax lien. Most of the private properties enter these auctions so as to provide liquidation of the asset that has been placed as a mortgage. Generally, in such an event the properties are sold at very nominal and affordable prices. Sometimes the prices are even less than the actual worth of the property. Since these auctions are organized by the government, they believe in offering subsidized rates. This system of selling properties in lower prices distresses the owner in case of sale of private properties. The property could have fetched the owner more than the public auction quoted price if he or she were to sell the property independently. This event in Canada is usually conducted in presence of a government authority and the Sheriff of that particular province. In any auction the most important aspect is bidding. It is necessary that any individual, before going to an auction, understands the process and customs of bidding.
Pls See: canadian-money-advisor.ca
After the auction, when a buyer finds out that there are no successors, the property is finalized for that price. The buyer then immediately is entitled for the purchase of the corresponding property.
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What is Online Bill Payment?
Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society.
Pls See: en.wikipedia.org
The following are the topics discussed in this article:
- Online Payment System in Canada
- What are the Benefits of Online Banking?
- Steps in Online Payments
What is the Online Payment System in Canada?
There is a distinct online payment system in Canada that is available to consumers.
All major Canadian banks have CMC Markets Canada as a bill payment payee. Online bill payments generally take up to 24 hours to be received making bill payments the quickest and cheapest way to fund your account. Please look for CMC Markets Canada or CMC Markets in your bank’s bill payment payee list in order to make a payment. Charges for bill payments will depend on your bank, CMC Markets does not charge for receiving bill payments.
Pls See: cmcmarkets.ca
What are the Benefits of Online Banking?
This concept is offered by companies and financial institutions that think about the future. Paying bills online saves the company and the payer a lot of paper work. It is also a faster way of paying for services or purchases. It usually takes only 2-3 business days before the payee receives the payment.
There are several advantages such as faster, easier and more convenient transactions. Otherwise, bills are paid by writing numerous checks and sending them to the payee’s address. Sometimes, the payments are carried out at the actual address of the recipient. Due to the convenience brought by the Internet, many consumers can now take advantage of their credit or debit accounts, as well as electronic funds to send payments to their payees. Another benefit this payment option offers is payment from multiple locations. Bills can be paid online from any location provided that Internet connection is available. This can be done at the comfort of one’s home or office. There are companies that can organize all your bills and send them to you. You can pay for all of them from one location with ease.
It also saves on a lot of time and resources, comes with enhanced security levels since unscrupulous persons cannot gain access to any printed documents unless they are capable of hacking your accounts and passwords.
Pls See: ehow.com
What are the Steps in Online Payments?
The procedure is relatively simple. Follow these steps and everything will turn out right:
- Go to an Online Bill Payment Centre.
- Add the payees.
- Enter all necessary Payee Information.
- Verify the information.
- Select payment information.
- Monitor your accounts.
Pls See: ehow.com
There is less to worry about and you are spared of difficulties in paperwork and time when you resort to making online bill payments. This system is a big help for consumers and service providers as well.
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What are Credit Card Services? 2
The definition given by Wikipedia to a credit card as a plastic card with a metallic strip containing data of the card holder's account that allows him to buy goods and services on credit. Credit cards allow people to buy goods immediately and settle the bill at a later date. Most of the local banks and credit unions have credit card services. They have emerged to be one of the most popular, secure and convenient way of payment.
Pls See: en.wikipedia.org
The article explains the following:
- Advantages of Using Credit Cards in Canada
- Protection for Credit Card Users
- Credit Card System
What are Advantages of Using Credit Cards in Canada?
Credit cards are convenient and adaptable payment tools both for consumers and retailers. Majority of credit card companies offer interest-free credit from the time purchases are made until the end of the billing period. The interest rate for most credit card holders is virtually zero since Canadians pay their balance on a full monthly basis.
There are various benefits that credit card customers enjoy such as access to unsecured credit (the amounts charged are not typically secured with collateral), interest-free payments, fraud protection, instant payment for goods and services allowing for immediate receipt of the purchased item, and a 24/7 access to funding. Further benefits include bonus travel points, extended warranty and various insurance packages (Damage and Loss Insurance, Travel Accident Insurance). On the other hand, retailers who accept credit cards enjoy fast and guaranteed payments, together with reduced cash handling costs and time. By giving clients a wider selection of payment options, retailers increase their total volume of sales and profits.
Pls See: ehow.com
What is Protection for Credit Card Users?
Holders of credit cards are protected under the Bank Act. Wikipedia explains that the Bank Act is an Act of the Government of Canada respecting banks and banking. The Act groups banks in three schedules. Schedule I banks are banks allowed to accept deposits that are not a subsidiary of a foreign bank, Schedule II banks are banks allowed to accept deposits that are a subsidiary of a foreign bank with branches in Canada, and Schedule III banks are foreign banks with certain restrictions that can do banking business in Canada. The Bank Act was originally passed in 1871. The terms of the Act provide that it is renewed decennially to ensure that legislators will periodically update the Act in order to keep pace with developments in the financial system. The Canadian banking industry includes 20 domestic banks, 24 foreign bank subsidiaries and 22 foreign bank branches operating in
Canada.
Pls See: en.wikipedia.org
It is further clarified that consumers who use credit cards issued by banking institutions are protected by the Bank Act. Under this piece of legislation, banks are required to disclose interest rates at the time of application or solicitation and on all monthly statements sent to customers. Second, statements should include information about the amount payable on or before the date due, together with itemized transactions. The disclosure of current monthly purchases, last month’s payments, non-interest and interest charges, and credit advances is also required. As an additional protection to customers, limits are set on the consumer liability in the event of fraudulent and unauthorized use of one’s account.
Pls See: creditcardreview.ca
What is the Credit Card System?
When a purchase is made on a credit card, the card holder agrees to pay the issuer at a later date by signing a receipt with details of the purchase made or by entering a PIN. A card holder can make purchases within a prescribed limit. The validity of the card is verified electronically. Credit card statements are received regularly indicating the purchases made over a fixed period of time and the total money the card holder owes the card issuers. The card holder can either pay the entire amount or pay a minimum prescribed amount to the issuer. In the latter case, an interest is charged on the outstanding amount till the balance is paid. For instance, if a card holder owes the issuers $5000, and repays the entire sum within the grace period, he would not be charged any interest.
Credit Card Services
Almost all leading banks in Canada offer credit card services. The advantages are varied, starting from low interest to frequent flier miles. The services are based on the profile of users, such as businessmen, students, retailers etc. More than 200 credit card services exist in Canada, varying from store cards, reward cards, Master Card, low interest rate cards to airline cards. Being one of the world's most developed financial and banking services worldwide, Canada has a comprehensive and well established range of credit card service providers, which are well suited for any type of customer.
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What is Voiding a Contract? 2
Wikipedia explains that a contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation. This may have elements in writing although contracts can be made orally. The remedy for breach of contract can be damages or compensation of money. In equity, the remedy can be specific performance of the contract or an injunction. The parties may be natural persons or juristic persons. A contract is a legally enforceable promise or undertaking that something will or will not occur.
Pls See: en.wikipedia.org
The topics explained in this article are the following:
Canadian Contract Law
Voidable Contracts
Breach of Contract
What is the Canadian Contract Law?
Contract law has its foundation in the English legal tradition of the 19th and early 20th century. It remains largely rooted in the old English common law and equity. Individual provinces have codified many of the principles in a Sale of Goods Act, which was also modeled on early English versions. Quebec, being a civil law jurisdiction, does not have contract law, but rather has its own law of obligations that is codified in the Quebec Civil Code.
In following the common law tradition, a contract requires offer, acceptance, and consideration. The parties themselves must be capable of contracting and must have the intention to create legal relations. An offer must be some indication of the person making an offer that he or she is prepared to form a binding legal agreement. Intention is measured objectively.[1] Commercial deals are presumed to be of a legal nature while an agreement made between family members or in a social engagement is presumed not to be of a legal nature. An offer must also be distinguished from an invitation to treat, which is where one party invites another party to consider a deal.
Pls See: en.wikipedia.org
What are Voidable Contracts?
During the contract drafting process it is important for both parties to determine if they are creating a voidable contract. Contract laws have defined voidable contract as a contract that one or both parties may cancel at their discretion.
If contract drafting results in a voidable contract, it means a contract has been created which a party is able to annul at their pleasure. Contract laws have stated that an voidable contract is a contract that is otherwise legal, except that one of the parties has released the other from its obligations.
A contract can be voided in several different circumstances. If a minor was entered into a contract by a legal guardian they may elect to void the contract upon reaching the age of majority. The minor usually has two years in which to void the contract. If an individual has been defrauded by a contract, the defrauded individual will be allowed to avoid the contract.
In order to reduce confusion between voidable contracts and void contracts, the United Kingdom, Australia, and other common law jurisdictions outside of the United States and Canada used the word "avoid" to describe the when one party is released from their obligations.
A voidable contract is only considered an enforceable contract against the party which cannot void the contract. A voidable contract cannot compel action against the party which is allowed to void the contract.
Pls See: contract-law.laws.com
What is Breach of Contract?
Breach of contract involves the failure of the breaching party to perform his or her contractual obligations, such that the non-breaching party is necessitated to take remedial action so as to address the breach. Terms essential to the substantial performance of a contract are referred to as conditions. Terms which are insignificant or peripheral to the central obligations of the contract are called warranties. The failure to perform a condition of the contract generally permits the other party to treat his or her obligation as at an end and sue for breach of contract. But the improper performance of a warranty does not relieve the other party of the obligation to fulfil his or her side of the agreement. The victim of such a failure to perform has a right to sue the other party for whatever it cost to overcome the deficiency in performance.
Although the breach of a condition will normally allow the victim of the breach to treat the contract as discharged, there is an obligation to perform if the breach is accepted. Acceptance of a breach means the party has accepted some benefit under the agreement, knowing that the agreement has been breached. A breach of condition in a contract that has been accepted by the other party is treated as a breach of warranty. Meanwhile, terms that might normally be considered insubstantial or unimportant can be upgraded to the stature of conditions by the parties so declaring in their agreement. http://www.lawyercontract.ca/enforce.htm
Voidable Contract
A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a Voidable Contract. A contract become voidable when the consent of one or more of the parties to a contract is obtained by coercion, undue influence, misrepresentation or fraud an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract.
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What is Right of Possession? 2
Wikipedia states that the right of possession means that someone currently holds something in hand and this person may be the temporary keeper or the long-term owner of an object. This term is most commonly used in regards to property and is a land-backed asset. This legal tradition holds that whoever occupies property and uses it for its social function has the right to possess it.
Pls See: ehow.com
This article expounds on the following:
- Property Laws in Canada
- Adverse Possession in Canada
- Probate
What are Property Laws in Canada?
It is important to understand the complicated intersection of real estate development and property law in Canada – before the deal is done. Property laws in Canada govern the rights and responsibilities of those who use and dispose of land in the country. They include owners, landlords, mortgage- and lease-holders, tenants and real estate development. Canadian real estate laws are mostly governed by provincial statutes, whereas British Columbia real estate law regulates so-called real property in this province. Municipal governments are responsible for laws on property development in their communities, along with the collection of property taxes. The federal government regulates property infrastructure, such as airports and railways. Canadian real estate law is complicated for small businesses or investors planning to buy or sell property, expand their premises, or for those merely looking for the best deal on a rental or lease. There is a wealth of expertise to guide those with questions on real estate development through the thicket of rules and regulations.
Pls See: bcbusinessonline.ca
What is Adverse Possession in Canada?
Laws regarding adverse possession or squatters’ rights vary across Canada, and adverse possession is not possible under some jurisdictions. In most Canadian provinces and territories, certain factors must be present for adverse possession to take place. The squatter must occupy the land for a minimum period of time, which differs across the country. Ontario allows adverse possession after 10 years of occupation, while the time period is 20 years in some other states. If a squatter replaces another in occupying the land, the time period of both squatters might be able to be accumulated as long as there is continuity of possession.
Adverse possession cannot be claimed on land owned by the government. Moreover, there are two systems of land registry in Canada: land titles and registry. You can claim squatter's rights only on land registered under the Registry System. The squatter has to occupy the land in an actual, continuous, open, visible, notorious and exclusive manner. The squatter does not have to stay during the winter if it would be impractical to do so. The occupation has to be peaceable, with no physical or legal attempts to remove the squatter from the land. Visits by the legal owner to assert his ownership is not sufficient to interrupt the occupation period. However, the trespasser must not have the legal owner's permission to occupy the land.
Pls See: ehow.com
What is Probate?
When a person dies in Canada, he or she leaves a legal statement regarding distribution of property to the executor (estate trustee in Ontario, liquidator in Quebec). Although your executor is legally entitled to do so, when the time comes to redeem or transfer certain assets registered in your name such as investments with financial institutions, publicly traded shares and, in some instances, real estate probate is usually required. Probate serves as proof to financial institutions, financial advisors and the land registry office that your will has been certified by the court and that your executor is authorized to represent your estate. This process of obtaining court certification is known as probate.
Probate taxes have been in existence since 1358, when they were launched in England. In Canada, the first legislation dealing with this issue was enacted in 1793. In 1950 the legislation was amended and the tax was designated as a service fee. Although services provided are identical across the provinces (with the exception of Quebec), the cost varies under the laws of each province. Some provinces vary the terminology used in the probate process. Ontario now calls the cost of probate an Estate Administration Tax while other provinces call the cost of probate a fee or a tax. The actual grant of probate in Ontario is now known as a "Certificate of Appointment of Estate Trustee with a Will".
Pls See: gpcapital.com
The right of possession is the right enjoyed by a person who currently holds something. This right is more relevant in the context of real estate. A person will have such rights regarding a piece of property. Canada has laws governing the use of this right.
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What is Interest in Assets? 2
Canadian Money Advisor says that the transfer of the assets that are owned by the state the administrative measures in the financial enterprises came into effect in May, 2009. The interest in assets caused many changes and affected enterprises. The measures are publicized by the Finance Ministry of Canada.
Pls See: canadian-money-advisor.ca
This article explains the following:
Tax Policies in Canada
Money Borrowed against Property
Property Tax in Canada
What are Tax Policies in Canada?
Federal taxes are collected by the Canada Revenue Agency formerly known as Revenue Canada or the Canada Customs and Revenue Agency. Under Tax Collection Agreements, CRA collects and remits to the provinces:
Provincial personal income taxes on behalf of all provinces except Quebec, so that individuals outside of Quebec file only one set of tax forms each year for their federal and provincial income taxes.
Corporate taxes on behalf of all provinces except Quebec and Alberta.
The Ministère du revenu du Québec collects the GST in Quebec on behalf of the federal government, and remits it to Ottawa. The provincial governments of Nova Scotia, New Brunswick, Newfoundland and Labrador, and Ontario no longer impose a separate provincial sales tax and in those provinces the federal government collects goods and services tax at a rate higher than in the other provinces. The additional revenue from this Harmonized Sales Tax is paid by the federal government to the five harmonizing provinces.
Pls See: en.wikipedia.org
Under Canadian law, money borrowed against property is tax-deductible. There are instances wherein people actually double their money using this law wisely. However, there are inherent risks involved in investing in the stock market. No one can predict how much and for how long any stock is going to be increasing in value. Unless one has a very reliable broker or an intimate knowledge of the workings of the stock market, it is better to invest in real estate. The asset may appreciate at a lower rate but there is virtually no risk. There is a very favorable climate for people looking to invest and thereby increasing assets. There are no taxes levied on capital gains resulting from the sale of one’s principal residence.
Pls See: ehow.com
What is Property Tax in Canada?
Property tax in Canada is the tax which the individual property owner is liable to pay. It is also known as millage tax. Mill levy is another name for property tax in Canada. There are two factors which are the basis of the property tax in Canada. One is the assessed value of the property, which is evaluated by the local authorities. The other factor is the property tax rate, which is fixed by the municipality or the local authorities handling taxes. The special assessment tax is sometimes mistaken for the property tax in Canada. The two are different with regard to taxation. Property Tax is determined by the existing value of the property in the market. On the other hand, Special Assessment Tax encompasses the special assessment.
For imposition of Property Tax, three types of property are recognized.
- Land
- Personality and
- Land Improvements
Real property, Realty and real estate are terms, which denote land and its improvements. Property tax law is different for each province.
Pls See: ehow.com
Tax Basis
To estimate as to how much tax a particular property would attract, the assessed value of the property is multiplied with the tax rate. Equal distribution of tax as per the property value is the main aim of municipal taxation. If the property value is assessed correctly, it would ensure that the property tax would also be justified.
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What is Credit Card Security? 2
Wikipedia states that 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. In some cases, credit card issuers will offer incentives even on their secured card portfolios. 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
How safe are 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 Credit Card Companies Doing?
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
How do you protect your Credit Card?
It is not only the service provider’s responsibility, but also the customer’s duty to ensure credit card security and reduce frauds. Here are some principles you can adopt in order to protect your card: Sign your new card as soon as you receive it. Never lose sight of your card while making purchases to reduce the chance of someone skimming your details. Check your receipts against your statements regularly. Never give your card to anyone or share your card details with anyone.
The Canadian Bankers Association (http://www.cba.ca/en/consumer-information/42-safeguarding-your-money/58-credit-card-fraud) 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.
Stay Vigilant
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.
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What is Child Tax Credit? 2
Wikipedia defines child tax credit as tax credits issued in some countries that depend on the number of dependent children in a family. The credit may depend on other factors as well: typically it depends on income level. In the United States, only families making less than $110K annually may claim the full credit. In the United Kingdom, the tax credit is only available for families making less than £42,000 per year.
Pls See: en.wikipedia.org
This article talks about the following:
- Canada Child Tax Benefit
- Canadian Children’s Fitness Tax Credit
- Amount that can be received for each child
What is the Canada Child Tax Benefit?
The Canada Child Tax Benefit is a tax-free monthly payment given to eligible Canadian families to help them in raising children under 18 years old. The funds coming from this benefit can be used for any expenses but most families allocate it for the Registered Education Savings Plan.
The CCTB may also include the National Child Benefits Supplement which is the monthly benefit for low-income families or BABY BONUS. On the other hand, the Child Disability Benefit is a monthly benefit providing financial assistance to eligible families caring for kids with lingering mental and physical ailments.
Parents, who qualify for the NCBS, receive the money every month based on the yearly income of the household and number of children. The amount you get is bases on your income tax returns and changes each June to reflect the most current income. Eligible families are those classified as permanent and temporary residents which have lived in Canada for 18 months. The NCB is a joint initiative of the federal, provincial and territorial governments to help prevent and reduce child poverty. It is also intended to ensure that families will be better off as a result of working and reduce duplication and overlap of programs and services.
Pls See: ehow.com
What is the Canadian Children’s Fitness Tax Credit?
The Canadian Children's Fitness Tax Credit is a non-refundable tax credit begun in 2007 which lets parents claim up to $500 in eligible fees for enrolling a child under 16 in an eligible program of physical activity. For children with disabilities, an additional amount of $500 can be claimed if the child is under the age of 18.
Eligible Physical Activity Programs
To qualify for the Children's Fitness Tax Credit, programs of physical activity must be and last at least eight weeks with at least one session a week or, in the case of camps, run for five consecutive days.
These must be supervised; suitable for children; include a significant amount of physical activity contributing to cardio-respiratory endurance and to at least one of muscular strength, muscular endurance, flexibility, or balance.
To be eligible for the Children's Fitness Tax Credit, fees must be paid for a child who is under 16 at the beginning of the income tax year; children with disabilities must be under 18 at the beginning of the income tax year and must also be eligible for the disability tax credit; cost of registration or membership in an eligible program of physical fitness activity and related costs such as accommodation, travel or food do not qualify for the income tax credit.
For families to claim the disability amount, the amount of at least $100 must be paid for registration or membership in the physical activity program and during the year the physical activity takes place.
Pls See: ehow.com
What is the Amount for each Child?
The Canada Revenue Agency has some calculators to help you determine this. The CCTB is adjustable based mostly by your net income during the past fiscal year. That means that when you just arrive, your CCTB will be high and when you start going up on your Income, the CCTB will be adjusted.
Family net income is one of the factors used in the calculation of your CCTB entitlement. Family net income is your net income at Line 236 of the tax return. If you have a spouse or common-law partner, their net income from their tax return is added to your net income to determine your family net income.
In order to maximize the benefits payable to low and modest income earners, the family net income is adjusted to exclude the Universal Child Care Benefit (UCCB) you receive. However, any UCCB amount you have to repay will be included as part of your adjusted family net income.
Pls See: ehow.com
The Federal Government has something called Universal Child Care Benefit. It’s a lump sum that is supposed to help parents with Child Care costs but it hardly pays a week of the total cost.
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What is a Lease? 2
A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset.
A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program similar to a license, but with different provisions, or use of a radio frequency such as a contract with a cell-phone provider. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewels.
Pls See: en.wikipedia.org
This article discusses the following:
- Contracts in Canada
- Binding Promises
- Real Property Association of Canada
What are Contracts in Canada?
A contract is a legally binding agreement between two or more persons for a particular purpose. In general, contracts are always formed on the same pattern. A person offers to give another person something; provide a service; or refrain from doing something. If the offer is accepted, the contract is then valid in principle. A contract is, above all, an instrument for the economic exchange of goods and services.
The most common types of contracts are the contract of sale, whereby a person acquires the ownership of property in return for payment of a certain price; lease and hire of services, whereby a person offers his services to another in return for remuneration; and lease and hire of things, whereby a person is temporarily granted the enjoyment of property in return for a price (rent); and mandate whereby a person gives another the power to represent her.
Pls See: thecanadianencyclopedia.com
What are binding Promises?
Unlike other agreements, a contract is a legally binding promise; if one of the parties fails or refuses to fulfil its promise to pay the agreed price, to provide the rented space or to pay the employee's salary without a valid reason recognized by law, the party suffering the consequence of this breach of promise may call upon the courts either to force the defaulting party to carry out its promise (specific performance) or to demand compensation in the form of damages.
Québec Civil and Canadian Common Law generally follow similar rules in this regard. A contract legally entered into represents a legal bond between the parties. Parties are free to contract whenever and for whatever reason they wish. The only limits to absolute contractual freedom are certain restrictions imposed by legislation and by accepted ethics. Contracts contrary to a statutory law such as the Canadian Criminal Code are null and void. The same is true for a contract that goes against accepted ethics or, what is called in civil law, public order.
Civil code regulations governing contracts in Québec are derived mainly from French civil law, which in turn draws its sources from Roman law. In other provinces, regulations governing contracts are based mostly on jurisprudence and on the traditional British common law. Many provinces, however, have adopted legislation codifying the rules of certain contracts, particularly sales and consumer contracts. Although Canada's two major legal systems differ in certain respects for contract law, the practical solutions they provide are very similar when not identical.
Pls See: thecanadianencyclopedia.com
What is the Real Property Association of Canada?
This association consists of the leading forces in the real estate industry of Canada. Their main purpose is to guide the real estate industry and making it better in catering to the general public as well as the government. These organizations provide guidance in framing of rules and regulations regarding lease agreements. They also help in making property lease agreements for tenants and landlords. These organizations help in regulating the real estate industry in Canada. They are also involved in creating awareness among the public regarding real estate industry and help them in managing their resources better.
Pls See: canadian-money-advisor.ca
You have to review carefully all relevant documents before signing the legal agreement in Canada by the tenant to avoid unnecessary complications. The term of the document should be agreeable to both tenant and the landlord.
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What is a Bank Account? 2
Wikipedia says that a bank account is a financial account recording the financial transactions between clients and their bank as well as the resulting financial position of the customer with the bank. Bank accounts may have a positive, or credit balance, where the bank owes money to the customer. The negative or debit balance is a case of the customer owing the bank money. Accounts opened with the purpose of holding credit balances are referred to as deposit accounts. Accounts opened with the purpose of holding debit balances are referred to as loan accounts. Some accounts are defined by their function rather than nature of the balance they hold. Bank accounts designed to process large numbers of transactions may offer credit and debit facilities and therefore do not sit easily with a polarised definition.
Pls See: en.wikipedia.org
This article discusses the following:
- Tax free savings account
- Status of banking system in Canada?
- Bank Database
What is a Tax Free Savings Account?
The Tax-Free Savings Account is an account that provides tax benefits for saving in Canada. Contributions to this type of account are not deductible for income tax purposes. Investment income, including capital gains and dividends, earned in the tax-free savings account is not taxed, even when withdrawn.
This concept was introduced by Jim Flaherty, Canadian finance minister, in the 2008 federal budget. It was a significant measure in the budget and came into effect on January 1, 2009. This measure was supported by the C.D. Howe Institute which stated, “This tax policy gem is very good news for Canadians, and Mr. Flaherty and his government deserve credit for a novel program”. The Canadian Federation of Independent Business, Canadian Bankers Association, Bank of Montreal economist Doug Porter, Canadian Chamber of Commerce, and the Canadian Taxpayers Federation also supported this tax policy.
The TFSA is an investment option for Canadian residents 18 years and older wanting to save for the future. The flexible structure allows the holder to be able to withdraw money from the account at any time, free of taxes. The allocations into the account are non-deductible. However, this represents a lucrative opportunity for individuals with left-over income to invest in a savings vehicle without the pressure of time constraints. The account also alleviates the burden of the capital gains tax. The interest-income will be able to compound tax-free. In essence, the account-holder can withdraw any amount out of the account, free from capital gains and withdrawal taxes. One mechanism in the design of the TFSA is the carry-over aspect. Any unused space under the $5,000 cap can be carried forward to subsequent years, without any upward limit. It also allows income splitting to an extent, because a higher-earning spouse can contribute to the TFSA of a lower-earning spouse.
Pls See: en.wikipedia.org
What is the Status of the Banking System in Canada?
Wikipedia explained that Banking in Canada is widely considered the most efficient and safest banking system in the world, ranking as the world's soundest banking system for the past three years according to reports by the World Economic Forum. Released at October 2010, Global Finance magazine put Royal Bank of Canada at number 10 among the world's safest bank and Toronto-Dominion Bank at number 15. According to the Department of Finance, Canada’s banks, also called chartered banks, have over 8,000 branches and almost 18,000 automated banking machines (ATMs) across the country. In addition, "Canada has the highest number of ABMs per capita in the world and benefits from the highest penetration levels of electronic channels such as debit cards, Internet banking and telephone banking
Pls See: en.wikipedia.org
What is the Bank Database?
The Government of Canada maintains a database of the fees and features of bank account packages offered by various financial institutions operating in Canada. The information is periodically incorporated in comparative tables and published in booklet form. The tables are also published in PDF form on the website of the Financial Consumer Agency of Canada. The database also feeds into an interactive online tool that allows consumers to compare various bank-account packages online.
Pls See: en.wikipedia.org
The bank is a financial institution licensed by the government to lend to and borrow money from the people. These institutions are also used for savings and serve as the backbone of a country’s financial status. Banks are the main sources of funds for various business and industrial activities by lending money for their investment purposes.
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What are Bankruptcy Laws? 2
Wikipedia clarifies that a federal agency, the Office of the Superintendent of Bankruptcy is responsible for overseeing that bankruptcies are administered in a fair and orderly manner by all licensed Trustees in Canada. Trustees in bankruptcy actually administer the bankruptcy estates and are governed by the Bankruptcy and Insolvency Act of Canada.
Pls See: en.wikipedia.org
This article explains the following
- Bankruptcy and Insolvency Act
- Companies’ Creditors Arrangement Act
- Concept of consumer proposal
What is the Bankruptcy and Insolvency Act?
The Bankruptcy Laws in Canada include the Bankruptcy and Insolvency Act and remains relevant to business enterprises and private individuals. Individuals and corporations may file for bankruptcy after becoming insolvent and are not capable of paying their debts.
Incidentally, the legislation that governs bankruptcies in Canada is the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act. The first was instituted by the federal government to assist unlucky but sincere individuals recover from their financial predicament. The law underscores responsibilities and rights of all the people involved in solving debt problems – the Superintendent of Bankruptcy, official receivers who represent the Superintendent of Bankruptcy, the court, licensed bankruptcy trustees, and consumers.
What is the Companies’ Creditors Arrangement Act
The Companies’ Creditors Arrangement Act is a federal bankruptcy law that governs insolvency of companies and corporations. It preserves the rights of companies and creditors, or people they owe money to, and details responsibilities of the court, corporation, and creditors.
It has three components, namely:
- Compromises and Arrangements govern agreement between the company and creditors for debt repayment.
- Jurisdiction of Courts controls powers and responsibilities of the court, and discusses the court’s role in international insolvencies.
- General discusses how this act interacts with others and other information not covered in the other sections.
Provincial laws deal with bankruptcy and debt solutions in provinces. These acts of legislation are more about property and how to handle your assets and income during the period of bankruptcy.
Pls See: bankruptcy-canada.cam
What are the Exemptions?
Some assets are exempted from bankruptcy in Canada. The Bankruptcy and Insolvency Act defines these exemptions:
Pls See: bankruptcy-canada.ca
- Property held in trust for other persons.
- GST credit payments and prescribed payments relating to essential needs of families.
The provinces and territories generally define “other exempt property” to include the following, up to limited values, which vary greatly from province to province:
- Food, clothing and heating fuel needed by you and your dependants
- Household furnishings and appliances
- One motor vehicle
- Medical and dental requirements
- The tools of your trade: tools, equipment, and books needed to earn money from your non-farming occupation.
- Farm property: and required operating equipment, livestock, and other property.
- Your principal residence (house or mobile home).
- Sentimental items, including pets.
- Pensions or retirement savings.
- Miscellaneous categories in some provinces.
What is a Consumer Proposal?
In Canada, a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors. A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors. Even though most proposals call for payments of less than the full amount of the debt owing, in most cases, the creditors will accept the deal. If they do not, the next alternative may be personal bankruptcy, where the creditors will get even less money. The creditors have 45 days to accept or reject the consumer proposal. Once the proposal is accepted by both the creditors and the Court, the debtor makes the payments to the Proposal Administrator each month (or as otherwise stipulated in their proposal), and the general creditors are prevented from taking any further legal or collection action. If the proposal is rejected, the debtor is returned to his prior insolvent state and may have no alternative but to declare personal bankruptcy.
Pls See: bankruptcy-canada.ca
Understanding the Concept of Bankruptcy
It is imperative that consumers get to know the legislation on Bankruptcy as well as the important concerns and issues surrounding the BIA. The Consumer Proposal is another vital aspect in Bankruptcy since it is a way of resolving this problem. The bottom line for consumers is to be very careful to avoid the pitfalls of this economic failure.
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What is Personal Finance? 3
Personal finance is the application of the principles of finance to the monetary decisions of an individual or family. It addresses the ways in which individuals or families obtain, budget, save, and spend monetary resources over time, taking into account various financial risks and future life events. When planning personal finances, there are many financial products one might consider. These are banking products such as checking, savings accounts, credit cards and consumer loans. These can also be investment and insurance products which include stock market, bonds; mutual funds; life insurance; health insurance; disability insurance; participation and monitoring of individual or employer sponsored retirement plans; social security benefits; and, income tax management.
Pls See: en.wikipedia.org
These articles talk about:
- Significance of Personal Finance for Canadians
- Personal Finance and the Value of Money
- Personal Finance Information
What is the Significance of Personal Finance for Canadians?
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.
What are Personal Finance and the 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
What is Personal Finance Information?
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.
These are essential points to consider:
1. 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.
2. 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.
3. 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.
Pls See: canadamoney.ca
Credit Scores
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.
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What is Income Tax Preparation? (Version - 2)
Tax preparation, Wikipedia says, is the process of preparing tax returns, often income tax returns, often for a person other than the taxpayer, and generally for compensation. Tax preparation may be done by the taxpayer with or without the help of tax preparation software and online services. Tax preparation may also be done by a licensed professional such as an attorney, certified public accountant or enrolled agent, or by an unlicensed tax preparation business. Because United States income tax laws are considered to be complicated, many taxpayers seek outside assistance with taxes. Some states have licensing requirements for anyone who prepares tax returns for a fee and some for fee-based preparation of state tax returns only. The Free File Alliance provides free tax preparation software for individuals with less than $58,000 of adjusted gross income for tax year 2010.
Pls See: en.wikipedia.org
This article explains the following:
- Tax Preparation Software in Canada
- Basics in Filing Income Taxes
- Income Tax Package, Forms and Information Guide
What is the Tax Preparation Software in Canada?
Today's tax preparation software does more than just allow taxpayers to calculate income taxes and send in returns. Most tax software programs include tax planning features so you can analyze different income tax scenarios. If your business is a sole proprietorship or partnership, you will be able to use any of the Canadian tax software. If your business is incorporated, your options are more limited. All these Canadian tax software programs are approved by the Canada Revenue Agency.
1. Turbo Tax Canadian Tax Software (Quick Tax)
This user-friendly Canadian tax software program lets you prepare your income taxes easily and quickly. The Easy Step Interview leads you through the tax preparation process by asking questions in plain English, and tax planning is a snap because of the ability to run multiple tax scenarios, and features such as the capital gains analyzer and incorporation analyzer. Three business versions are available for Windows, TurboTax Business, TurboTax Prior Year Business and TurboTax Business Incorporated. There is also an Online Edition available, TurboTax Home & Business.
2. Genu Tax Canadian Tax Software
This Canadian tax software program has two things going for it that really appeal to me. The first is that you purchase Genu Tax once and future annual updates are free. The second is that you can prepare and file up to 20 tax returns for the current tax year and the past tax year. (Some other tax preparation software programs designed for public use allow you to do fewer returns.) You cannot use this tax software if you live in Quebec or for preparing corporate tax returns. A separate tax planning software, Genu Tax Planner, is also available.
3. Tax Tron Canadian Tax Software
Tax Tron used to be Griff Tax and is still the only fully functional user-friendly Canadian tax preparation software available in both individual (T1) and corporate (T2) versions for Macintosh OS. However, there is a version of this tax software available for Windows, too, that you can use to do your individual and/or business income tax. (All versions are quick, easy, and fully bilingual, using a step-by-step approach to guide you through the tax preparation and filing process.
Vendor's Site
4. Cantax Canadian Tax Software
Originally designed as software for tax professionals, Cantax has evolved into a line of tax preparation software for every need. Two of this Canadian tax software's features that I really like in the T1Plus edition are the Quick Entry screen where you can enter the data from different forms onto a single screen and the Pathfinder that makes it easier to move between form(s) and the return. If you want to prepare only a small number of returns, look for the low volume products such as T1Plus Home Office, or, for corporate returns, Cantax T2.
Vendor's Site
5. U File for Windows Canadian Tax Software
Essentially with this tax preparation software, you enter your income tax information using an interview interface. Currently this Canadian tax software program only offers personal income tax preparation (T1), but it has the capability to handle any kind of self-employment income and calculate capital gains - and can be used by Quebec residents. U File also offers online income tax preparation and filing.
Pls See: sbinfocanada.about.com
What are the Basics in Filing Income Taxes?
The deadline for filing your Canadian income taxes is midnight April 30. If you owe income tax and file your income tax return after the deadline, the Canada Revenue Agency will charge a penalty and interest on the unpaid amount.
Most Canadian residents have to file a Canadian income tax return for the previous year. They should also do the following:
- Pay the accurate amount of income tax owed
- Pay back overpayment of benefits such as Employment Insurance
- Claim certain benefits, such as the GST/HST Credit or the Guaranteed Income Supplement under the Old Age Security Program. Some international and non-resident individuals must also file a Canadian income tax return.
Before you prepare Your Canadian Income Tax Return and tackle your income tax return, make sure you have the following information:
- Social insurance number
- Tax information slips sent by employers, banks and businesses to tell you and the Canada Revenue Agency how much income you received and the amount of income tax that was deducted.
- Information on other income, including self-employment income
- receipts for tax deductions
- Personal income tax information you might need from the Quick Access and My Account services, such as your RRSP contribution limit.
- NETFILE access code if you plan to file online or your TELEFILE access code if you plan to file by phone.
Pls See: canadaonline.about.com
What are Income Tax Package, Forms and Information Guide?
To file your taxes, you need an income tax package for the province in which you lived on December 31 of the previous year. The package includes a return form, federal tax worksheet, schedules, a provincial or territory tax worksheet and an information guide.
In early January, the CRA mails income tax packages to those who filed a return the previous year. The type of income tax form they send you is based on your last income tax return. If your tax situation is different this year, then use a general package.
The Canada Revenue Agency is increasing the number of ways you can file your income taxes - online, by phone, by mail, or hiring someone to do it for you. Here are 6 Ways to File Your Canadian Income Taxes. Select the one that's most appropriate for you and your income tax situation. There are a variety of sources available to answer your specific tax questions. Here are some good places to find help with your Canadian income taxes. For many, the hardest part of doing their income taxes is waiting for their refund. There are several ways to check on your income tax refund. You can make some changes to your income tax return online; others you have to make by mail. If you need them, you can get the income tax packages for past years online.
Pls See: canadaonline.about.com
Know more about income tax preparation by going to the nearest office of the Canada Revenue Agency and checking its website.
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What is Commission Income? (Version - 2)
Commission income or salary is the money paid to sale agents who sell a product or service for a company. Instead of paying you a guaranteed hourly or weekly salary, most companies pay the workers for what they sell. When you apply for the job position, the company will explain your salary so you know how much money you will receive on every sale you make.
Pls See: ehow.com
The article gives information about the following:
- Employees Paid by Commission
- Salespersons Expenses
- Tax Tips in Canada
What is Employees Paid by Commission?
The Canada Revenue Agency (CRA) made it clear that if an employee is paid a commission or a salary plus commission, you can deduct taxes in the following ways:
Employees who earn commissions without expenses
• If you pay commissions at the same time you pay salary, add this amount to the salary and use the Payroll Deductions Online Calculator or the table method.
• If you pay commissions periodically, or the amounts fluctuate, you may want to use the bonus method to determine the tax to deduct from the commission payment.
Employees who earn commissions with expenses
• Employees who incur expenses to earn commission income can choose to complete Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions, if they want you to adjust their tax deductions taking into account their commission expenses.
• To calculate the amount of tax to deduct, you can use the Payroll Deductions Online Calculator, the formula method or the manual calculation method.
Employees who claim employment expenses on their income tax and benefit return must have their employer complete Form T2200, Declaration of Conditions of Employment.
Pls See: cra-arc.gc.ca
What are Salespersons Expenses?
Canadian Tax Resource says that if you receive a T4 slip and most of your income is from employment, there are few deductions available beyond RRSP’s. Businesses are allowed more deductions than employees. This is because businesses incur their expenses to earn income. Few employees are required to incur expenses directly in order to earn employment income and the income tax act places limits on the types of deduction available. However, under certain conditions, some expenses may be deducted from employment income.
Salespeople who are paid on commission may deduct certain expenses paid to earn commission income, including travel, automobile, and other types of expenses. The expenses claimed must be reasonable but there are no deductions available for capital purchases (equipment or property) with the exception of aircraft and automobiles.
To deduct salesperson expenses you must meet all of the following criteria:
- You are required by your employer to pay your own expenses.
- You are normally required to work away from your employer’s place of business.
- You are paid fully or partially by commission.
- You did not receive an expense allowance that was included in your income.
- You retain a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
Other Limits on Salesperson Expenses:
Meals may only be deducted if you were away from your home community or metropolitan area for a period of 12 hours or more. The Canadian income tax act only allows you claim deductions against commission income and as such a non-capital loss is not allowed and any loss incurred cannot be used to reduce other income. However, there is an alternative if commission expenses exceed commission income: Claim only for automobile expenses and travel under separate provisions of the Canadian income tax act which permit non-capital losses to be deducted against other forms of income.
Pls See: blog.taxresource.ca
What are Tax Tips in Canada?
The Canadian Credit Center mentioned that there are limited expenses that can be written off in Canada to reduce income taxes. For example, the cost of commuting, meals and other purchases, which can really add up, are all considered personal expenses. However, under certain circumstances, some expenses incurred to earn employment income are tax deductible. Examples include business travel, meals and lodging while out of town on business, parking, office supplies, salaries for an assistant or substitute, home work space, and automobile expenses.
If you are paid, at least in part, by commission, you may be able to deduct more expenses than those listed above. Sales persons are allowed to deduct advertising and promotion expenses, as well as 50 per cent of the cost of entertaining clients. Deductible home office expenses include insurance and property taxes, as well as the utilities, rent and maintenance.
Although you can deduct more expenses than other employees, you are also subject to additional restrictions. As a sales employee, your claim for expenses is limited to the total commissions you receive, plus any automobile depreciation and interest claimed. If your commission income is low, therefore, it may be better to claim only regular employment expenses, since they are not subject to these restrictions.
Finally, in order to deduct employment expenses, you must have Form T2200 Declaration of Conditions of Employment, verifying that you are eligible to deduct the expenses. The CRA-ARC form must be signed and certified by your employer in Canada.
Pls See: canadiancreditcenter.com
It is important to review the rules and regulations set forth by the government regarding payment of income taxes, employment expenses, commission income and exemptions for your own welfare.
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What is AARP Life Insurance? (Version - 2)
AARP refers to American Association of Retired Persons.
Wise Geek says that AARP defines itself as a non-profit and non-partisan group for people over the age of 50, but has been plagued with accusations that it does lobby for the passage of laws, like the 2003 Medicare Prescription Act, which may not always be in the best interest of all of its members. There are over 30 million members of the AARP, which makes it one of the largest nonprofit membership organizations in the US.
Pls See: wisegeek.com
What is the History of AARP?
Wikipedia gave a vivid account of the history of the AARP, formerly the American Association of Retired Persons, is a United States-based non-governmental organization and interest group, founded in 1958 by Ethel Percy Andrus, PhD, a retired educator from California, and based in Washington, D.C. According to its mission statement, it is a non profit, nonpartisan membership organization for people age 50 and over which is dedicated to enhancing quality of life for all as we age. It provides a wide range of unique benefits, special products, and services for our members.
AARP operates as a non-profit advocate for its members and as one of the most powerful lobbying groups in the United States. AARP has two affiliated organizations: AARP Services Inc. which is managed wholly for profit, and the AARP Foundation, a charity that operates on a non-profit basis.
AARP Services Inc. offers: Medicare supplemental health insurance, discounts on prescription drugs and consumer goods, entertainment and travel packages, long-term care insurance and automobile, home and life insurance. It provides quality control over the products and services made available by AARP-endorsed providers. According to AARP's 2008 Consolidated financials, it was paid $652,000,000 in royalties from insurance companies that sold products referred by AARP. AARP also received an additional $120,000,000 for the ads placed in its publications. The organization claims approximately 38 million members, making it one of the largest membership organizations in the United States.
http://en.wikipedia.org/wiki/AARP
What are Home Care Priorities for the Elderly in Canada?
The Canadian Association of Retired Persons or CARP is a national, non-partisan, non-profit organization committed to a New Vision of Aging for Canada.
It promotes social change that aims to bring financial security, equitable access to health care and freedom from discrimination. The CARP mandate is to promote and protect the interests, rights and quality of life for Canadian senior citizens.
Pls See: carp.ca
CARP’s advocacy on the importance and cost-effectiveness of homecare and caregiver support as part of an integrated system of continuing care helping seniors to age at home. Despite the increase in the use of homecare, the homecare systems in place are lacking. These services will need to grow as the population of seniors does. According to this report, some aspects that need improving include:
• The care of one third of seniors who are in need of higher care;
• The help provided to the 2.7 million caregivers aged 45 above who care for seniors with long-term health conditions, and their financial, emotional, physical stresses;
• The interprovincial discrepancies in eligibility, types and amounts of services provided, and pricing, all pointing to geographical inequities in access and quality of homecare.
The report argues that we need to provide better homecare support to the growing number of seniors who want to age at home. Using data collected on seniors who receive publicly funded homecare in Canada, it provides a snapshot of the ways in which homecare is inadequate and varies across the country. According to the report’s findings, while Canadian governments have expanded their homecare programming considerably in the last decade, many seniors with complex health conditions still do not have their needs granted.
Pls See: carp.ca
What is AARP Life Insurance Policy in Canada?
Canadian Money Advisor explained that an AARP life insurance policy cannot be cancelled without the explicit consent of the policy holder unless there is defaulting on his premium payments or there are misrepresentations in his data at the time of the policy purchase. In cases of rate increase, the policy holders automatically get a 30 day review period where you can cancel the policy with no prejudice and avail a full refund of premiums paid till date.
A permanent life insurance policy under this program can be paid off to a surviving policy holder at 95 years of age. With memberships crossing 35 millions, this non-profit organization has become a very powerful lobby to be reckoned with, benefiting many people in their later stages of life. The organization also provides medical insurance cover to its members. Though a life insurance policy is neither a savings tool nor an investment opportunity, it has become essential to offset a family’s financial problems in case of unexpected death or accident of its bread winner.
It is always better to take the advice and guidance of an experienced Canadian broker to choose the most beneficial AARP life insurance plan as he will be better informed of the prevailing market practices and advantages that come with various plans.
Pls See: canadian-money-advisor.ca
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What are Foreclosed Homes? (Version - 2)
A foreclosed home is one where the property used to secure a dept is sold to pay off that debt because the borrower has defaulted, or failed to make timely loan payments. When the borrower does not make payments for a time specified in the mortgage contract, the lender can sell the property to pay off the loan. Because the lender wants to recover its investment in the foreclosed home promptly, foreclosed homes often sell at a reduced value.
The laws involving foreclosed homes vary from state to state. The purchase of a foreclosed home requires different procedures and legal requirements than a normal home sale. Some foreclosed homes go up for auction; in these cases it may not be possible to inspect the property in advance.
Pls See: ehow.com
The article talks about the following:
- Foreclosure in Canada
- Missing Mortgage and Making Late Payments
- Foreclosure Process
What is Foreclosure in Canada?
Foreclosure is a legal action that a moneylender can take if a person who borrowed money using a mortgage stops paying back the mortgage. Foreclosure allows the lender to take or sell the person’s house by first getting a court’s permission to do so.
The mortgage is made possible by a contract between a borrower and a lender to repay a loan. It gives the lender some assurance that the borrower will pay back the borrowed money. When you get a mortgage to buy a house, you borrow money from a person or company and you promise to pay back that money, usually with interest and in regular payments. The lender makes sure you will repay the loan with a mortgage against your house. This is registered at the Land Title Office. You may have the right to pay off the mortgage and get the charge on your house removed.
You do not automatically lose your house. Lenders do not want to foreclose if not needed because it is expensive and takes a lot of time. A lender will probably not start to foreclose until two or three months after you stop paying. Normally, a lender will first send letters demanding payment. If you do not reply, the lender will usually start to foreclose and sue you at the same time.
If you have a short-term problem, like a temporary layoff, you may be able to make a deal with the lender to make smaller payments for a time, and add the amounts you fall behind to the total amount of your mortgage. Or you may be able to make smaller payments for a while and a larger catch-up payment later. Most lenders would rather make some sort of deal and keep the mortgage in good standing, instead of starting expensive foreclosure proceedings in court.
The law tries to help you if you have a good chance of paying what you owe and if you try to get your finances in order. Only in the worst case may you lose your house and any equity you have built up in it. Equity is the amount that your house value exceeds your mortgage loan and any other debts that other lenders have registered against your house.
http://www.cba.org/bc/public_media/housing/415.aspx
What is the Foreclosure Process?
The word “foreclosure” is a nightmare for the property owner as well as for the lender. It happens all the time, regardless which cycle the market is going through, although the numbers do tend to go up during the real estate bust cycle.
Foreclosure is a legal action that a money-lender can take if the person who borrowed money using a mortgage stops paying back that mortgage. Foreclosure allows the lender to take or sell that person’s house by first getting a Court’s permission to do so.
There are ways for lenders to recover mortgage debt in Canada:
- Judicial Sale
- Conducted under the supervision and authority of the Court
- Lender must apply to the court to get permission to sell property
- Extensive Court involvement in every step
- Process involves lawsuit against borrower and other liable parties
Pls See: ehow.com
Canadian Foreclosure Sales
To facilitate viewing of foreclosed homes by people who might be interested in them, the Canadian Foreclosure Sales Inc. has created a database of all such homes that are up for sale across the country.
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What is Buying Penny Stocks? – (version – 2)
Penny stocks, also known as cents stocks in some countries, are common shares of small public companies that trade at less than $1.00 or similarly small amounts in other countries. For example, in the United Kingdom, stocks priced under £1 are called penny shares. In the case of many penny stocks, the market price has previously fallen dramatically and the company's market capitalization is very small compared to the total size of the balance sheet, such stocks are considered to be highly speculative and high risk being comparable to options that are close to being at-the-money or are out of the money, and which thus will prove to be worthless except in the event of a better-than-expected recovery by the company but may have a large potential for profit.
Pls See: en.wikipedia.org
- Buying Canadian Penny Stocks
- Top Penny Stocks
- List of Canadian Penny Stock Companies
What is Buying Canadian Penny Stocks?
In Canada, penny stocks are those investments that trade for less than $5 on the market. Even though such an investment seems like a waste of time, penny stocks can grow rapidly and produce quite a bit of money in a return. The country's economy is now growing and many consumers are purchasing penny stocks from Canada.
According to reliable sources, if you are inclined to pursue this option, you can do the following:
Contact your investor and explain to them that you are interested in investing in penny stocks from Canada. He will then contact a stock broker that is capable of purchasing them. These stocks will be bought through the Toronto Stock Exchange.
Speak with the investor and stock broker about what stocks are stable and growing. These will be the areas in which you want to invest. Never invest in a company whose records indicate a roller-coaster success. These are not stable companies and you could lose every cent of your money investing in them.
Invest as little or as much money as you want to in the penny stock of your choice. With penny stocks, you can receive much more for your money than with traditional stocks and the payoff can be just as profitable.
Check the Toronto Stock Exchange website on a daily or weekly basis to stay up to date on your stocks. Stocks are a fun way to make money, and it's even better when a stock goes from almost nothing to extreme success. Watch your penny stocks grow and flourish in the Canadian economy and you will definitely enjoy the proceeds when you sell all your stock.
Pls See: ehow.com
What are the Top Penny Stocks?
Investment Advisor Tips revealed that Canadian penny stocks are deemed as good investment by some experienced penny stock traders due to the positive economy in Canada. If you are a foreign investor, you need to contact your penny stock broker or online trading company to verify that they do in fact have access to purchase Canadian penny stocks.
Canadian penny stock trading is successful only if you try to stick to stable companies with increasing sales, good management and interesting product ideas. Choosing highly volatile penny stock companies is almost always a recipe for financial disaster especially if you are an inexperienced penny stock trader.
What are these Companies?
Below you can find the Canadian Penny Stocks Listing to help you get started with your investment portfolio.
1. Hinterland Metals, Inc is a Canadian company involved in precious metal mining in Quebec, Ontario and Yukon areas.
2. Bell Haven Copper & Gold, Inc. is another Canadian penny stock company focusing its attention on gold and copper exploration in Columbia and Panama.
3. Rock Ridge Capital Corp. is based in Vancouver and is deeply involved in gold mining in the gold richest areas around the world.
4. Mineral Hills Industries, Inc. is involved in gold mining projects using unique lithium carbonate exploration techniques. Sea Green Capital is working on developing base metal exploration in Quebec and Ontario.
5. Resin Systems Inc. supplies composite materials for utility and infrastructure industries.
6. Nuinsco Resources Ltd. is a growing multi-commodity mineral exploration company with projects scattered across Canada and Turkey.
7. Energy Fuels Inc. is a company highly involved in supplying US nuclear power industry through a number of uranium mines located in Utah and Colorado.
8. High River Gold Mines Ltd. is a gold mining company with special interest in areas of Burkina Faso and Russia.
9. South American Gold & Copper Co. Ltd. is a gold, copper and industrial mineral exploring company with mines located across Chile.
The hot penny stock picks listed above are for your consideration and further research. Canadian penny stock companies continuously show great promises and could become great initial investments that can grow exponentially in the future.
Pls See: investmentadvisortips.com
As consumers you can buy penny stocks online or through your stock broker as long as have the ability to trade Canadian penny stocks.
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Canada – The New Land of Promise for Foreign Workers
Canada may soon be the new land of promise for foreign workers as the federal government and private sector have been working to bring in more skilled workers from other countries.
By employing foreign workers, companies can fill up current labor vacancies and shortages in Canada. At the same time, newer skills and additional expertise are gained to help fuel the country’s economic growth.
Human Resources and Skills Development Canada and Citizenship and Immigration Canada are working closely to ensure that the employment of foreign workers responds to regional, occupational, sectored skills and labor demands, while protecting employment opportunities for Canadians and permanent residents.
Foreign workers, including temporary foreign workers, have the same rights and protections as all Canadian workers.
An employer who wants to hire a foreign worker must first apply with the Human Resources and Skills Development Canada and Service Canada for a Labor Market Opinion. This opinion assesses what impact the worker would have on Canada’s labor market or, in other words, how the offer of employment would affect Canadian jobs.
Once a positive LMO is issued, the foreign worker must be assessed by Citizenship and Immigration Canada and a work permit must be issued before the worker is allowed to work and reside in Canada. In the provinces of Quebec and Manitoba, employers must also obtain a separate certificate issued by the province. You can refer to the following website:
Pls See: hrsdc.gc.ca
How should employers go about this concern?
It all starts with either a permanent or a temporary job offer from you.
If you would like to hire foreign workers for full-time permanent positions, your future employees will need to complete the Canadian Immigration (Permanent Residency) process. There are several fast-track options to choose from.
If your business operates in a province that has a Provincial Nomination Program for foreign workers, this may be an important fast-track option for you.
Another option is Arranged Employment under the Federal Skilled Worker Program.
- • If you are looking to hire foreign workers on a temporary basis, your future employees can obtain Temporary Work Permits.
- • If you have been employing foreign workers on temporary work permits and would like to offer them full-time employment, they may be able to obtain Canadian Immigration (Permanent Resident) Visas through the Canadian Experience Class, a Nomination Program or Arranged Employment.
Pls See: canadavisa.com
Recruit-Foreign-Workers is willing to extend assistance to employers who have manpower requirements. Please see our website or call telephone numbers:
Pls See: recruit-foreign-workers.com
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What is Trans Risk Score Range?
The Trans Risk score is an unofficial "credit score" that consumers can purchase from Trans Union. Trans Risk is a type of "educational score," and has no relation to your actual credit score.
Pls See: ehow.com
The article discusses the following points:
- Score Range Credibility Scale
- FCIO Details
- Satisfactory FICO Scores
What is the Score Range Credibility Scale?
Canadian Money Advisor provides information regarding this concern. Trans Union is one of the most popular and most relied upon credit reporting agency in Canada. The credit report generated by Trans Union is used by most firms to decide the credibility of consumers. The Trans Risk score is a proprietary range or method of measurement present in the credit report. It is generated by Trans Union and serves as deciding factor of loan sanctions for banks and various organizations involved in financial businesses. If a person is to avail of a new credit card, the company which issues the credit card would go through the credit report and check the credibility scale or the Trans Risk Score before setting the credit limit on the card.
Pls See: canadian-money-advisor.ca
What are details about FICO?
In Canada, you can acquire information regarding the FICO Score Range from the Government of Canada’s publications ‘Understanding Your Credit Report and Credit Score’. However, what concerns many is that individuals do not know what are the criteria involved. The consumer, 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. 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.
What are Satisfactory FICO Scores?
This credit rating of an individual is done using comprehensive reports of that person’s credit history. It is also called a Beacon score as the largest rating company, Equifax, has been selling its scoring system under the brand name Beacon. Generally the range of FICO can be anywhere from 300 to 900; the higher your FICO, the healthier it is. One’s FICO Score Range will impact the rates at which the future loans are granted and the fees charged for the same by the financier.
Lenders will consider your Fair Isaac Company score when you approach them for loans – for cars, study, homes, etc. If one has a FICO of 700 and upwards, it is very healthy and one can easily avail of any loans, at very nominal rates, too.
Some lenders may even offer special rates / discounts if your FICO is around 720 – 740; please check their website for such offers as the processing employee may not be impart such information; but might just pocket the same. Any FICO ranging from 680 – 699 means your rating is good, but could be improved a bit; it also means that you can avail any loan you need, in most cases. In case of scores ranging from 620-679, you are likely to get any loan you want, but it is going to cost you.
Pls See: canadian-money-advisor.ca
Score Range
The FICO Score Range will decide your suitability as a borrower, your interest rates and documentation required before approval of the loan.
Scores between 620 and 450 may pose difficulty in getting a good deal on any loans; it essentially means you will get the loan, but on their terms. Any score below 450 makes you a bad credit risk and you are unlikely to get a loan, unless at exorbitant rates.
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What is Employment Insurance?
Economic recession has seen a lot of movements such as cost cutting measures. There was a growth in unemployment with many major companies and organizations filing for bankruptcy. The situation of unemployment and no money would start tightening his financial situation with a new situation of him not being able to pay off his various debts. To guard against this situation the government of Canada has introduced regulations that were present previously for unemployment insurance, to accommodate the people who have lost their jobs.
The article talks about:
- Employment Insurance Benefits in Canada
- Current Initiatives in Employment Insurance
- Canadian Government Assistance
What are Employment Insurance Benefits in Canada?
There are several types of benefits available to Canadians, depending on their situation:
Employment Insurance regular benefits are available to individuals who lose their jobs through no fault of their own (for example, due to shortage of work, seasonal layoffs, or mass layoffs) and who are available for and able to work, but can’t find a job.
On the other hand, employment insurance maternity and parental benefits provide support to individuals who are pregnant, have recently given birth, are adopting a child, or are caring for a newborn. Employment insurance sickness benefits are for individuals who are unable to work because of sickness, injury, or quarantine.
1. Employment Insurance Compassionate Care Benefits are available to people who have to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death.
Pls See: servicecanada.gc.ca
What are Current Initiatives in Employment Insurance?
The following are Employment Insurance Initiatives:
- Registered and qualified self-employed Canadians can access Employment Insurance (EI) special benefits: maternity, parental, sickness, and compassionate care.
- Self-employed people
- Extension of EI Regular Benefits for Long-Tenured Workers
- EI eligible long-tenured workers may be eligible to additional benefits if they have contributed to the Employment Insurance (EI) program for a significant period of time and have previously made limited use of EI regular benefits.
- Extension of Eligibility Period for Employment Insurance Parental Benefits for Military Families
- If your parental leave has been deferred or interrupted because of an imperative military requirement, the parental eligibility period during which Employment Insurance (EI) parental benefit can be paid may be extended by one week for every week that you are unable to collect EI parental benefits
Pls See: servicecanada.gc.ca
What is the Canadian Government Doing?
In Canada, the system now known as Employment Insurance was formerly called Unemployment Insurance. The name was changed in 1996, in order to alleviate perceived negative connotations. In 2011, Canadian workers pay premiums of 1.78%[ of insured earnings in return for benefits if they lose their jobs. Employers contribute 1.4 times the amount of employee premiums. Since 1990, there is no government contribution to this fund. The amount a person receives and how long they can stay on EI varies with their previous salary, how long they were working, and the unemployment rate in their area. The EI system is managed by Service Canada, a service delivery network reporting to the Minister of Human Resources and Social Development Canada (http://en.wikipedia.org/wiki/Unemployment_benefits).
The concept of employment insurance grants short-term financial aid to unemployed citizens who were terminated from unemployment due to the financial failure of the companies that used to employ them. This is a temporary assistance while they try to find another job or enhance their skills. It also provides temporary financial assistance to unemployed Canadians who have lost their job through no fault of their own, while they look for work or upgrade their skills.
Regulations and Assistance in Canada
There are different regulations that describe scenarios in Canada regarding insurance coverage for unemployment in the country. This includes pregnancy, layoff and loss of part-time employment. Canadians who are sick, pregnant, or caring for a newborn or adopted child, as well as those who must care for a family member who is seriously ill with a significant risk of death, may also be assisted by Employment Insurance.
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What is Average Life Insurance Cost?
It has been written that the average cost of life insurance varies depending on many factors, including the type of policy and the coverage that was selected. The two basic types of life insurance policies are term life and whole life. The cost of these polices will vary because a whole life insurance policy has a savings benefit and a term life insurance policy does not. However, the average costs of these policies depend on what an insured person needs for coverage.
Pls See: ehow.com
The article explains the following:
- Right Amount of Life Insurance in Canada
- Benefits of Life Insurance
- Life Insurance Premium
What is the Right Amount of Life Insurance in Canada?
Life Insurance Direct Canada states that the cost of life insurance may vary between insurance policies, but an IDC insurance broker can help you sort through the many types of life insurance plans available and find one that fits your budget and needs.
The cost of life insurance is determined by your individual needs and budget. Consulting an insurance broker or managing general agent and obtaining online life insurance quotes for various types of life insurance policies will help you make an informed decision. It will also ensure that you get a low-cost life insurance policy with enough coverage to meet your needs.
One way to avoid getting an overpriced insurance plan is to compare the cost of life insurance online. Like most insurance companies, IDC offers online quotes by using a simple form that you can complete in a matter of minutes.
Another aspect that dictates the cost of life insurance is the “type” of life insurance policy. There are several different available types of life insurance to choose from including:
- Permanent Life Insurance
- Temporary Life Insurance
Pls See: lifeinsurancequote.com
What are the Benefits of Life Insurance?
There are not many investment options for a person to choose from. Life insurance is one unique investment that helps you to meet your dual needs - saving for the future and protecting your assets.
Here are some benefits, according to a major life insurance firm:
Asset Protection
From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.
The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.
Goal based savings
Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.
Pls See: iciciprulife.com
What is Life Insurance Premium?
Canadian Money Advisor explains that an insurance policy premium and type of policy are generally based on various factors like the person’s age, lifestyle, smoking and drinking habits, family medical history, occupation, and health. It is not easy to calculate the average life insurance cost. However, different policies and premiums are calculated based on the coverage offered and the type of the policy and the age of the insured. In term insurance, the average cost can be arrived at by taking into account the number of years and the premium per annum. It is fairly straight forward as there are no other parameters to be considered as it is pure insurance covering only the event of death of the policy holder. The age of the policy holder also plays a
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What is Private Sale?
Wikipedia defines a sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity.
Pls See: wikipedia.org
The article talks about the following:
- Difference between Private and Normal Sales in Canada
- Selling Real Estate in Canada
- Sales and Marketing Regulations in Canada
What is the Difference between Private and Normal Sales in Canada?
Canadian Money Advisor explains that a private sale is one wherein there is no broker, agent or third party involved. All transactions take place between the buyer and the seller. There are advantages in a private sale over a normal sale. The most important advantage is that one does need to not pay any commission to the agent or broker. This is primarily the reason why many Canadian sellers prefer to make a private sale than to let the agents find them the right buyers. The agents charge up to 5% of the property value and this could turn out to be a very significant amount if the value of the property is high.
There is a downside to private sale also. The buyer will have to look for the right property himself. He or she might not have the time to do this as there might be several aspects which one needs to look into before deciding on buying a property. The same thing applies to the seller. He will have to be on the lookout for the right buyer. If the job was entrusted to a broker, it would be his duty to make sure that both the sides get what they want.
Pls See: canadian-money-advisor.ca
What is Selling Real Estate in Canada?
When it comes to selling a property in Canada, there is usually a third party involved. This third party is usually an agent or a broker. What the agent or the broker does is they show the interested party the property which is for sale. If in case the party decides to buy it, they get a commission. Sometimes, the seller might also hire an agent or a broker, in which case the work of the agent will be to find a suitable buyer for the property. If the agent brings a buyer, who is interested and if the deal goes through, then the seller will have to pay a commission to the agent. Sometimes, both the seller and the buyer will have to pay the broker a commission. This is how most of the sales take place in the real estate industry.
Pls See: canadian-money-advisor.ca
The seller or salesperson (provider of the goods or services) completes a sale in response to an acquisition or to an appropriation or to a request. There follows the passing of title (property or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership. Ideally, a seller agrees upon a price at which he willingly parts with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay.
Pls See: wikipedia.org
In the real estate industry, if the seller completes the first two above stages which are consent and passing ownership of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay.
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What is Debt Crisis?
A debt crisis deals with countries and their ability to repay borrowed funds. It deals with national economies, international loans and national budgeting. The definitions of debt crisis have varied over time, with major institutions such as Standard and Poor's or the International Monetary Fund offering their own views on the matter. The most basic definition that all agree on is that a debt crisis is when a national government cannot pay the debt it owes and seeks, as a result, some form of assistance.
This article talks about the following:
- Bond Markets, Default and Rescheduling
- Managing Debt
- Debt Settlement, Consolidation and Management
What are Bond Markets, Default and Rescheduling?
Economic entities are rated according to their credit worthiness. Credit worthiness can be measured according to the discrepancy between long-term and short-term bond prices adhering to a specific country. Standard and Poor's defines debt crisis formally as the divergence between long and short-term bonds of 1000 base points or more. Ten base points equals one percent rate increase. Therefore, if the interest rate on long-term bonds is 10 percent above short-term bonds, the country is in a debt crisis. This means that investors in international bonds see a country as failing economically. Therefore, the long-term prospects of the relevant national economy are bleak, meaning that the rate for long-term bonds rises quickly. The International Monetary Fund rejects the concept of default as an important part of a debt crisis. Banks are interested primarily in avoiding default, which would mean the total write off of the loan. Instead, banks want to see at least a portion of their money returned. Therefore, the IMF sees debt rescheduling as the main ingredient in debt crises. More formally, if a debt is renegotiated or rescheduled at terms less advantageous than the original loan, then the country is formally in a debt crisis.
Pls See: ehow.com
What is Managing Debt?
It is quite difficult to get your finances in order. Service Canada has prepared this list to provide you with general information about managing your debt.
1. 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.
2. 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.
3. 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.
4. Manage Your Student Loan Debt
Can Learn provide information about repaying your student loan, including the repayment process and assistance that may be available to help you repay your loan?
Pls See: servicecanada.gc.ca
What are Debt Settlement, Consolidation and Management?
Debt settlement is often confused with debt consolidation or debt management. In debt consolidation and debt management, the consumer makes monthly payments to the debt consolidator. The latter gets a fee and passes the rest on to the creditors. Through this system, creditors continue to receive payments each month. In debt settlement, the consumer makes monthly payments, out of which the debt settlement company takes its fees for the legal work or negotiation. All payments are paid to the creditor. There are usually no monthly management fees but the debt settlement company may get the creditor to accept financial settlements.
Pls See: wikipedia.org
Debt settlement in Canada is a better and preferred alternative to bankruptcy. Borrowers negotiate with crediting institutions or collection agencies to pay less than the amount they owe.
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What is Third Party?
Wikipedia states that Third party is often used to refer to a person or entity who is not involved in an interaction or relationship.
Pls See: wikipedia.org
This article discusses points about the following:
- Third Party Canada
- Federal Third Parties
- Provincial Third Parties
What is Third Party Canada?
In Canada, a third party usually refers to a relatively small federal or provincial political party that is not usually considered to have a realistic chance of forming a government. However, it has representation in the federal House of Commons or the provincial legislature. Due to the parliamentary form of government, during minority government situations, third parties may hold the balance of power, and thus exercise significant control over the government's policy. In some cases, such a party has swept to power by coming through the middle, as with the emergence of the Social Credit Party of British Columbia in 1952-53.
In Canadian politics, the term third party is also sometimes used to refer to agents other than candidates and voters who participate in elections. For example, campaign advertisements funded by groups other than the parties and candidates running may be called third party advertising. This term has become more prevalent recently, since the current Canadian Parliament has seated members from four different parties, making usage less meaningful.
Pls See: ehow.com
What are Federal Third Parties?
Since the formation of Canada in 1867, the political scene has been dominated by the Liberal Party and the Progressive Conservative, and its successor, the modern Conservative Party. The first notable third party was the Progressive Party, which appeared in 1920 and had a strong showing in the 1921 elections coming second after the Liberal party. Its success did not last long. During the following election of 1925, the Progressive Party came only third although it did hold the balance of power in the resulting minority government. By the mid-30s, it already disappeared.
After the Great Depression, two new third parties emerged: the democratic socialist, Co-operative Commonwealth Federation (CCF), formed from the remnants of the Progressive Party, and the right-wing, Social Credit Party of Canada, which sought reform of monetary policy. Both parties persisted for several decades with varying degrees of success. After a gradual decline Social Credit lost its remaining seats in the 1980 federal election and never recovered. The CCF was reorganized into the social democratic, New Democratic Party (NDP) in 1961 and officially aligned itself with the Canadian Labour Congress. The NDP played a significant role in both Liberal and Conservative led minority parliaments afterwards, particularly from 1963-1968 and 1972-1974.
Following the 1993 election, the division between the "main" and the "third" parties started to break down, due to the poor showing by the Progressive Conservative Party and the rise of the Reform Party and the Quebec-based Bloc Québécois. While the Bloc could never form a government because it never contested ridings outside Quebec, the Reform Party and its successor Canadian Alliance had some modest success and eventually merged with the Progressive Conservative Party to form the new Conservative Party which forms the current federal government.
The federal election of 2011 saw a further realignment of Canadian party politics as the New Democratic Party made significant gains, allowing it to emerge as the official opposition. For the first time in Canadian history the Liberal Party was reduced to third party status. The Bloc Quebecois which had been the third largest party in the House of Commons since 1997 was reduced to only four seats while a new party, the Greens made their debut in the House after winning a single seat.
What are Provincial Third Parties?
A number of provinces in Canada have a two-party system (that is, the two major political parties alternate governing, though the identity of these parties may change over time). Provinces west of Quebec have, for most of the 20th and 21st centuries, had a three-party system, though the identity of these parties may have changed over time. For the most part, these are the provincial Liberals, provincial Progressive Conservatives and the NDP.
Provincial parties that may currently be considered third parties are:
- In Newfoundland and Labrador, the New Democratic Party of Newfoundland and Labrador.
- In Prince Edward Island, the Green Party of Prince Edward Island.
- In Nova Scotia, the Progressive Conservative Association of Nova Scotia
- In New Brunswick, the New Brunswick New Democratic Party.
- In Ontario, the Ontario New Democratic Party.
- In Manitoba, the Manitoba Liberal Party.
- In Saskatchewan, the Saskatchewan Liberal Party.
- In Quebec, Action démocratique du Québec
Pls See: ehow.com
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What is Reduction of Debt?
Debt reduction is a legal way to reduce one’s debt.
This article talks about the following:
- Debt Reduction Process
- Debt Consolidation
- Debt Settlement
What is the Debt Reduction Process?
A Canadian citizen, who is confronted with financial difficulties, can turn to debt reduction as one solution. The condition of being out of school for a minimum of five years will also add to the advantage of this debt reduction that you can make use of in the country. You can avail debt reduction repayments as student loans only for those in the country of Canada if the total reduction goes up to something around twenty six thousand dollars.
eHow.com defined debt reduction as the process of reducing your debt balance through a systematic approach to repaying your debt or the use of a financial manoeuvre to improve your debtor position. Refinancing and reorganization of debt are two strategies used by companies and individuals to reposition debt for more efficient payoff. Debt relief companies also assist those in over their heads with debt by negotiating with creditors.
Pls See: ehow.com
What is Debt Consolidation?
One of the common debt solutions is called debt consolidation which is merely transferring the debt from many loans into one new loan. This will possibly have lower monthly payments than the ones you made before but the amortization period will be longer and that is how the debt consolidation company makes their money, interest collected over time.
Consumer proposal is another popular method. It allows you to to merge all of your debt into a single monthly payment while also lowering what you owe overall. A licensed trustee will approach your creditors with a proposal to reduce your debt and monthly payments to achieve debt reduction for you. You should have a minimum of $5000.00 in unsecured debt or maximum of $250,000.00 to take this course of action. Additionally, you are required to prove insolvency and maintain the payments, which are generally set up over a three to five year period. Your monthly payment will typically be 2% of the principle allowing you to achieve debt relief quickly.
Credit counselling is another option available to those who are looking to leave their debt behind without climbing farther in or increasing their monthly payments. It allows you to sit down with a financial professional to evaluate your economic viability and how much you can really afford to pay on what you owe. This form of debt management is more educational than anything else and many consumers benefit from the consolidation of payments. However, consumers often find that this process does not offer a significant enough reduction in their monthly payments to be a viable debt relief option.
Pls See: debtsettlementcanada.ca
What is Debt Settlement?
Choosing debt settlement as a debt relief option may be a good alternative because it features a lower monthly payment and the opportunity to reduce debt principal and not just interest rates. Attempting to setup a debt settlement yourself is feasible but is a risky proposition since most Canadians do not have a close relationship with creditors while debt settlement companies do. A good debt settlement company maintains close relationships with the majority of major creditors and knows when to negotiate and how to maximize the savings for you. It is an agreement between you and the bank whereby the bank agrees to reduce the principal in exchange for an agreed upon payoff, either in a lump sum or over the course of an agreed payment plan. The bank agrees to the settlement because they realize that you are in a position of hardship and that the alternative could mean they get nothing through a bankruptcy. http://www.debtsettlementcanada.ca/debt-solutions/
Credit and Money
In today’s world, money and credit are a part of a person’s daily life. If you fall past due with your creditors, your credit rating will suffer and it will become very difficult to secure financing for the purchase of a vehicle or real estate. Your problems do not stop there. You will never know when a financial emergency may arise.
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What is Emergency Fund?
Investopedia defines emergency fund as an account that is used to set aside funds for an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort. Most financial planners suggest that an emergency fund contain enough money to cover at least three months of living expenses. Note that financial institutions do not carry accounts labeled as emergency funds; it is up to the individual to set up this type of account. Most emergency funds are highly liquid, such as checking or savings accounts. This allows quick access to funds, which is vital in emergency situations.
Pls See: investopedia
This article explains the following:
- Building an Emergency Fund
- Spending your Emergency Fund
- Tax Free Savings Account
What is Building an Emergency Fund?
If you have settled all your debt, you may want to start building your savings and investments. Before you start working on your Registered Retirement Savings Plan, your savings priority should be an emergency fund.
If your debts are paid off, an emergency fund acts as a form of insurance. The money is there if you truly need it, without having to go into debt or withdraw from your RRSP. Most often, emergency funds are described as a safety net in case of job loss. This is due to the question of how big your emergency fund should be, which you might hear back anything from 3-12 months worth of expenses. Another good use for an emergency fund would be to use it for your home or auto insurance deductible. Having the money saved in advance gives you the ability to raise your deductible to reduce your insurance premiums.
You want to be able to get your money out quickly in the event of an emergency, maybe not so easily as having it linked to your debit card though. A high interest savings account, possibly within a tax-free savings account would be a good choice. Keep in mind, this account is for true emergencies, not for a car, vacation or other unnecessary expenses. If you already have an emergency fund, you can now start up separate savings accounts for these items as well.
How should you spend your emergency fund?
The emergency fund is important for Canadians. However, it appears that many people are not using this money for its original purpose. The funds should be set aside for real emergencies. Nonetheless, many folks are using these finances for day-to-day expenses completely defeating their real goal.
Your emergency fund should not be touched unless a true emergency takes place. The purpose of having these funds is to give you peace of mind in knowing that if your financial circumstances dramatically change. Thus, you and your family will still be able to stay afloat, at least for a few months.
It is wise to place your emergency funds into a high interest savings account or a Tax Free Savings Account. The key is to make sure the funds can be available to you when you need them. You need easy access to the money in the event of an emergency, so make sure you do not lock these funds into a non-redeemable investment.
Pls See: pennysaverblog.com
What is a Tax Free Savings Account?
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to $5,000, any unused TFSA contribution room from the previous year, and the amount you withdrew the year before. All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It is considered an effective way to save for short and long-term goals.
Pls See: cra-arc.gc.ca
Save for a Rainy Day
You will never know what will happen in the future. It is always a prudent move to save some amount for emergencies. You will never know when these situations will occur. It pays to be ready all the time.
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What is Financial Agreement?
The financial agreement or contract requires the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset. These are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.
Pls See: investopedia.com
This article provides information regarding the following:
- Binding Financial Agreements
- Loan Agreement
- Different Types of Mortgage Agreements in Canada
What are binding Financial Agreements?
Financial agreements can be entered by any two people who are married or are preparing to marry. Financial agreements are binding. They are very difficult to reverse but they should fulfil the formal requirements specified in section 90G of the Family Law Act 1975. You can only achieve this status if the agreement is written. An oral agreement is not enough. These are complex documents and uniqueness is vital.
Each party must receive independent legal advice from a legal practitioner. These suggestions must tell each of you what the agreement means for you, in terms of your rights, and the benefits and downsides of the agreement. It is suggested that you get this advice in writing. The agreement must have a clause stating you have each obtained such advice. There should be a signed certificate from the legal practitioner attesting to these tips. Each party must sign the agreement and acquire either a copy or the original document of the financial agreement. These steps essentially avoid either party from saying they were not conscious of the implications of the agreement when they entered into it.
When is a Financial Agreement Not Binding?
Although they offer relative guarantee, financial agreements are not dependable and they can be overturned in some very specific occasions. Section 90K of the Act lists the first few situations, notably where: any of the above official steps have not been satisfied; you have not disclosed, or have concealed or misrepresented, the extent of your assets and resources at the time you entered into the agreement. This means that it is impossible for the agreement to be performed
Pls See: articlesforcanada.ca
What is a Loan Agreement?
When a business or company is either starting up or wishes to expand, it likely requires additional money or capital. Additional funds can be obtained from either a bank or a third party willing to loan the money to the business. Where money is loaned to a business, the lender will want to have the borrower sign a loan agreement that details certain key issues regarding the loan. In other cases, an individual may want to lend money to another individual for personal reasons
The essential aspects to be included in a loan agreement include:
- the amount of the loan
- when funds are to be advanced
- amount of interest to be charged
- documentation to evidence advancement of funds such as a promissory note
- repayment terms and rights of prepayment if any
- how and when payments are to be made
- various promises made by the borrower
- issues surrounding when a lien will be granted to secure the funds against any assets
- events that would be considered default under the loan
- remedies available to the lender in the event the borrower default or fails to repay the loan
- provisions dealing with any other issues of concern to the lender or borrow
- general legal terms
Pls See: canadalegal.com
What are Mortgage Agreements in Canada?
Canadian Money Advisor enumerates the different /kinds of mortgage agreements available to lenders:
• Promissory note - This is a document that you as the borrower sign promising to pay back your loan by a certain date, or whenever the lender calls it in. It is binding, but it does not place any of your assets at risk, since they are not placed as security for your loan.
• Realty mortgage - This is the type of loan most people get to finance a new house, business, or other property. It is registered with the Province and there can be legal ramifications if you default on it, including having your property repossessed.
• Chattel mortgage - This is a loan that you take out using any property that is not your house, business or land. This can include equipment, vehicles, stocks, bonds, or other valuable assets.
• Pledge - This is similar to a chattel mortgage, in that your assets become security, but you are allowed to keep the titles and rights to them during the course of the loan.
• Floating charge - This is a loan which uses any of your assets that are not already being used to guarantee another loan to guarantee the loan in question. The borrower keeps the titles, but the debt and the assets guaranteeing it are registered with the Province.
• Personal guarantee - With this type of agreement, you promise that if your company or business is unable to make good on the loan, you will promise to use your own personal assets to pay it off. This kind of loan should be a last resort, since your family’s financial security would be at risk if your business went bankrupt or was otherwise unable to pay its debts.
• Postponement of a claim - This is an option taken by the lender, rather than the borrower. It says that once you have taken out a loan, you will take current assets and profits and pay off your debt to the lender before you meet your obligation to the shareholders of your company. This protects the lender if they feel you are a high-risk loan and might not be able to repay your debts.
Pls See: canadian-money-advisor.ca
Loans for Businesses
Enterprises in Canada can seek loans or mortgages from banks, insurance companies, pension funds, loan specialists, or mortgage brokers. These can be used to provide additional funding for your business venture.
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What is Non Profit Entity?
A non profit entity or organization is an organization that makes use of surplus revenues to achieve its goals rather than to distribute them as profit or dividends. Although not-for-profit organizations are permitted to generate surplus revenues, these must be retained by the organization for its self-preservation, expansion, or plans. These organizations have board members and paid staff including management. Other entities employ unpaid volunteers and even executives who work with or without compensation. Where there is a token fee, it is used to meet legal requirements for establishing a contract between the executive and the organization.
Pls See: en.wikipedia.org
The article discusses the following:
- Non Profit Corporation in Canada
- Not-for-Profit Guide of Canada Business Ontario
- NFP Act
What is a Non Profit Corporation in Canada?
The non-profit corporation in Canada is a legal entity separate from its members and directors formed for purposes other than generating a profit to be distributed to its members, directors or officers. While, a non-profit corporation can earn a profit, the profit must be used to further the goals of the corporation rather than to pay dividends to its membership. Non-profit corporations are formed pursuant to federal or provincial law.
A non-profit corporation can be a church or church association, school, charity, medical provider, activity clubs, volunteer services organization, professional association, research institute, museum, or in some cases a sports association. Non-profit corporations must apply for charitable status to benefit from tax-exempt status and to issue tax deductible receipts to donors.
b>Pls See: corporationcentre.ca
What is the Not-for-Profit Guide of Canada Business Ontario?
Not-for-profit corporations are organizations that provide products or services without making profit. They are generally dedicated to activities that improve or benefit a community. A not-for-profit may generate revenue, but only if the revenue goes back into the organization to further its aims and projects. The social club may hold an art sale or craft fair in order to raise money for the services it provides to the community. The money made by a not-for-profit must not be made for the personal gain of its directors, members, or officers.
There are several kinds of not-for-profit organizations such as:
- General (professional or community organizations)
- Sport or athletic
- Social clubs
- Service clubs (Kiwanis or Lions)
- Charities
Pls See: cbo-eco.ca
What is the NFP Act?
The Canada Not-for-profit Corporations Act (NFP Act) is now in force. Federal not-for-profit corporations are required to transition to this Act. Until they have made the transition, the provisions of the old legislation, the Canada Corporations Act will continue to apply to them. Ultimately, the old legislation will be repealed.
Pls See: ic.gc.ca
The new Act received Royal Assent on June 23, 2009 and was proclaimed in force effective October 17, 2011. Federal NFPs need to be proactive and take certain steps to ensure they are in compliance with the requirements of the CNCA. Federal NFPs currently existing under Part II of the CCA will have a three-year period from October 17, 2011 to apply for a continuance under the new CNCA. If a federal NFP existing under Part II of the CCA is not continued under the CNCA before October 17, 2014, Corporations Canada will, upon first giving notice to the corporation, dissolve that corporation. In order for a federal NFP to continue under the CNCA, that corporation must file Articles of Continuance using the form provided by Corporations Canada. Applying for a continuance in this manner is mandatory for NFPs, and therefore no fee is associated with the application.
Pls See: nelligan.ca
Strengthening Non-Profit Entities
The Government of Canada has already strengthened legislation about non-profit entities. These non-profit corporations are distinct from business corporations which are formed to make a profit and to distribute the profit to its shareholders. Business corporations are regulated by either federal or provincial laws
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What is Loan from Banks?
A loan is defined as a financial transaction in which one party agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.
Pls See: wisegeek.com
Bank loans represent the extension of money from a bank to another party with the agreement that the money will be repaid. A bank loan occasionally is called a bank advance. Nearly all bank loans are made at interest, meaning borrowers pay a certain percentage of the principal amount to the lender as compensation for borrowing. Most loans also have a maturity date, by which time the borrower must have repaid the loan.
Pls See: financial-dictionary.thefreedictionary.com
This article discusses the following topics:
- Equity Home Loans
- Personal Loans
What are Equity Home Loans?
Home Loans are a secured type of loans given to homeowners. Generally, the home property you wish to buy is the loan collateral. Because it is secured, the interest rate for a home loan is lower and the terms of payment are flexible. In Canada, home loans can have a fixed term of payment which can be as short as 6 months to as long as ten years. Variable rate loans can have three, four and five year terms. There are two types of home loans: fixed rate mortgages and variable rate mortgages. In Fixed rate mortgages, the interest rate never changes regardless of how the economy moves. The monthly payment for amortization is the same all throughout the completion of the loan. This feature can work to your advantage as you already know how much to prepare monthly regardless of how the economy moves. On the other side, fixed rate mortgages usually have higher interest rate. The higher interest rates in fixed rate mortgages is due to the risks involved on the part of the lender, especially when you choose longer term of payment such a thirty or forty years. During this term, the prime interest rate may go up, but you will not be responsible for paying the difference. The lending institution is. In contrast, adjustable rate mortgages, another term for variable mortgages, have an adjustable interest rate all throughout the loan term. In most cases, the adjustable rate mortgages kick off with a fixed rate for an initial period of time like three, five or seven years. This phase is called the introduction period. The interest rate never changes.
Pls See: bankloansca.com
What are Personal Loans?
Personal loans come in two types: the secured and unsecured. Secured personal loans require security which is often in collateral. The collateral can be tangible or intangible possessions. They are also easily available on account of the collateral, which makes the lenders willing to grant the loan. The secured personal loans are cost-effective because their interest rates are lower than unsecured loans. There are also easy options for terms of payments. Having collateral to secure the loan does not give many worries to the lending institutions and banks in the event of non-payment.
In contrast, unsecured personal loans have strict terms of payment, and the interest rates are higher because the lender’s risks are higher as well. The two bases for its approval are the credit worthiness of the borrower and his capacity to pay. Personal loans are commonly granted to tenants, to those who do not own home properties, and to those who are not in a position to offer any collateral. In case of default in payment, the lender holds nothing to guarantee payment of loan, except, those which are stipulated on the clauses of credit agreement, and legal approaches.
Pls See: bankloansca.com
What are Business Loans?
A Business loan is a loan granted for the purpose of conducting business. One of the challenges every business owner faces is to arrange a business credit, and this is not always easy to accomplish especially for small businesses.
There are many different types of business loans, depending on the various business factors. Below we describe the most common business loans:
Term Business Loans
Term business loans are loans usually used to obtain working capital. These types of business loans are repaid monthly over the life of the loan. The term business loans are used for big loans. If your business needs a small amount of cash, you can apply for a short-term business loan (usually less than a year), which has to be repaid in full at the end of the loan term.
The term business loans can be secured or unsecured. The secured small business loans usually use company’s assets as collateral for the loan. The unsecured business loans, are provided depending on the credit history and worthiness of the business, but they are harder to get.
Business Startup Loans
Business start-up loans are specially designed to serve new businesses. Most of the big Canadian banks and US banks offer business start-up loans, but you can obtain business financing from smaller financial market players or from venture capital firms. If you apply for business start-up loan, make sure that you have a sound business plan.
Business Lines of Credit
The business lines of credit are loans which purpose is to ensure that a business doesn’t have cash flow problems. While with most business loans, the business gets a cheque for the full amount of the loan on closing, the business line of credit allows the business to borrow up to a certain pre-approved amount when needed. Again the purpose of the business line of credit is to solve cash shortage problems, not to use the credit as working capital.
Pls See: bankloansca.com
Lending Regulations
Lending regulations have been instated in Canada mostly to provide borders and guidelines to payday lenders. The Canadian government has determined that over the years, payday lenders have been charging over 60% interest, which is a criminal offence as the Criminal Code of Canada states. For Canadians with bad credit sometimes payday lenders are the only place they can turn to. Getting a loan with bad credit can be extremely challenging especially when dealing with the wrong payday store.
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What is Loan Default?
Wise Geek states that when you take out credit or a loan with a lender, there will be a repayment plan set in place. The repayment terms detail when money is to be paid back to the lender, usually on a monthly or weekly basis. If you miss these payments, then the lender may consider the credit or loan as a defaulted loan. This status can have serious effects on your chance to gain credit in the future. It can give you an adverse credit history and lower your credit rating and score. Financial establishments use these ratings to assess whether you will be a good enough risk to warrant them lending you credit.
Pls See: wisegeek.com
What is the Canada Student Loans Program?
The Canada Student Loans Program provides financial assistance in the form of loans and grants to post-secondary students who demonstrate financial need. The following are the conditions:
• Students must first apply for a provincial or territorial student loan. Students are automatically considered for a Canada Student Loan when they apply for a provincial or territorial student loan.
• Loan application forms are available from provincial and territorial student assistance offices and at financial aid offices in educational institutions.
• Students must apply every year in order to receive funding.
• Students must give loan providers proof of enrolment within six months of finishing their last study period in order to maintain interest-free status while studying. Confirmation of Enrolment forms are issued by educational institutions.
• The governments of the Northwest Territories, Nunavut and Quebec do not participate in the Canada Student Loans Program but offer their own financial assistance programs for students.
• Additional information is available from the National Student Loans Service Centre.
• The Canada Revenue Agency is responsible for the collection of repayments for defaulted Canada Student Loans.
Pls See: servicecanada.gc.ca
What are Student loans in Canada?
Student Loans in Canada help post-secondary students pay for their education in Canada. The federal government funds the Canada Student Loan Program and the provinces may fund their own programs or run in parallel with the CSLP. In addition, Canadian banks offer commercial loans targeted for students in professional programs. Canadian citizens, permanent residents of Canada living in any province for over a year, and protected persons are normally eligible for loans provided by the federal government in addition to loans provided by their province of residence.
Loans issued to full-time students are interest free while a student is in full-time studies. Students receiving a Canada Student Loan for the first time on or after August 1, 1995, are eligible for up to 340 weeks of interest-free assistance. Students in doctoral programs are eligible for an additional 60 weeks, up to 400 weeks (7.5 years). Students with permanent disabilities and students who received their first CSL prior to August 1, 1995 are eligible for up to 520 weeks of assistance (10 years).
Student financial assistance is available for students in part-time studies. Beginning January 1, 2012, the Government of Canada eliminated interest on student loans while borrowers are in-study. Student loan borrowers begin repaying their student loans six months after they graduate or leave school, although interest begins accumulating right away. Grants may supplement loans to aid students who face particular barriers to accessing post-secondary education, such as students with permanent disabilities or students from low-income families. Students must apply for the Canadian and provincial loans through their provincial government.
Pls See: en.wikipedia.org
What is Student Loan Repayment?
The following are the fundamental points in Student Loan Repayment:
It is your responsibility to repay your student loans. Protect yourself and your credit rating by doing so in full and on time every month. If you received a student loan in order to go to school, you actually received two loans from two different lenders. 60% of your total student loan amounts are provided by the Federal Government and is called a Canada Student Loan. The remaining 40% is provided by the Provincial Government and is called a Provincial or Newfoundland and Labrador Student Loan.
For repayment purposes, student loans from both lenders will be consolidated and administered as one loan. Your consolidated student loans will be serviced through the National Student Loan Service Centre (NSLSC).
You have 6 months from the last day of your program or your last day of class before you have to start repaying your loan. These 6 months are called a grace period. The grace period allows for borrowers to find employment before they have to begin repaying their student loans. You may, however, make payments on your student loans during your 6-month grace period, as interest begins to accumulate on Canada Student Loans during this time.
You are responsible for ensuring that your loans are in good standing. Campus representatives and your campus Business Office can provide helpful information and reminders, but the responsibility of paying your loans in full and on time belongs solely to you. Your student loans do not and will never go away.
Pls See: academycanada.com
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What are Rewards Points?
A rewards program or rewards points is what many credit card issuers are offering their cardholders. The goal of a rewards program is to encourage credit card holders to use just one credit card to make their purchases. These days, rewards points are the trend. There seems to be a never-ending competition among credit card issuers to see which one can come up with the biggest and best rewards program.
Pls See: creditorweb.com
This article talks about the following:
- Popular Rewards Programs in Canada
- What are Tips for Consumers regarding Marketing Loyalty Programs?
- What are Credit Card Reward Programs?
What are Popular Rewards Programs in Canada?
Take the time to apply for an air miles card online. Air miles have great rewards to buy with your points. Points will add up quickly by having your card handy in all stores. Air miles give tips to consumers to get more points quickly. A great idea for your points is to redeem them for gift cards before the holiday season and use them as gifts or towards a gift purchase.
Fuel Rewards
Everybody needs gas and with the high price of gas, be rewarded for being loyal to a company. Redeem your points a fuel purchase or for an Esso Extra gift card. As well, you are able to transfer your rewards with HBC or RB Rewards program. Keep swiping your Esso Extra card, the points add up.
Petro Canada Points
Gas Company linked with the popular department store, Sears Canada. Transfer your rewards to Petro Canada or vice versa. However, to get the most of your rewards, pay with your Sears Card at the fuel pump and get points for Petro Canada and Sears on one single purchase.
Shell Escape
Unless you are a regular customer at Shell, it is not worth your time to apply for a Shell Escape Reward. The program is weak, outside the points going towards your gas or in-store purchases. If you do visit Shell, take the time for a card, as gas is expensive and a free fill up is worth the effort.
Entertainment Rewards
Scene is a rewards program for Cineplex which includes Famous Players and Cineplex Odeon. Why not earn rewards for watching a movie? Rewards program gives you points for 2 adult and 2 children tickets per day As well, as a member you always receive 10% off those highly inflated concession prices. Scene is a winning rewards program for movie lovers.
AMC Movie Watcher
Sign up for a free AMC Movie Watcher reward card. Every time you visit the theatre you earn points to redeem for rewards. Maximum number of points per visit is four. Only drawback is you do not receive 10% off concessions as you do with Scene Reward program.
Department Stores Rewards
Sears has a great reward program that gives you 1 Sears point for every $1 you spend. Redeem your points for a Sears’s gift card or transfer your points to the Petro Points program. As well, you are able to donate your points to a worthy cause such as Big Brother. Redeem your points online or talking to a Sears customer service associate.
Hudson Bay Canada rewards program partnered with Esso Extra and Air Miles. Move your points around to get the best for your dollar. As well, you can contribute to your child’s RESP or donate to a charity. HBC rewards card is a must in your wallet.
Banking Rewards
President Choice is one of the best rewards program as you can use it right away to pay for your groceries. Every time you use your PC bank card or MasterCard it automatically gives you points, no hassle of carrying another card around. In addition, you can donate or redeem your points for gift cards.
RBC Visa has a rewards program with a gold card. Gold cards can be obtained without a monthly fee if you qualify. RBC rewards has partnered with Esso Extra and other companies to make their reward program worth the effort.
What are Tips for Consumers regarding Marketing Loyalty Programs?
Buy what you need. It was discovered that consumers will buy a lot of merchandise in one place if they feel emotionally attached to a loyalty plan. Buy only those things you would normally purchase, but make sure you always collect any applicable points for that item.
Use credit wisely. Affiliated credit cards yield bonus points, but interest can eat up rewards fast.
Collect travel points.
Diversify. Join at least two programs so that you have lots of opportunities to collect points from partner businesses.
Get web-savvy. Visit program websites for bonus offers and new benefit announcements.
Collect every point. Some retailers let you bring back a receipt to add points if you forget to show your card at the time of purchase.
Use it or lose it. Use those points as quickly as you can, and certainly don't wait more than 18 months.
Choose rewards wisely. Redeeming points for big catalogue items such as electronics may not be worth it.
Trade or top up. You can swap points between programs, and many programs allow you to transfer points to a family member – at a cost.
Think small. Great rewards for loyalty come from small merchants, such as the coffee shop that gives you a free latte after you've bought five or the card store that gives you a free card after you buy 10.
Pls See: canadianliving.co
What are Credit Card Reward Programs?
Most of credit card products available today are credit cards that reward the user for charging on them. Credit card reward programs are very popular, but not always the best choice for the consumer. Rewards programs come in many different flavours. For instance, many consumers are aware of rewards programs that give the consumer free airplane tickets or cash back. There are also reward programs that give free gas, hotel stays, etc.
Before signing up for a rewards card, make sure that you can use the rewards they offer. Many people don’t use the rewards that are offered and that can defeat the entire purpose of owning the card. It is also important that you figure out how much money in purchases you need to charge to receive a set value of rewards. It doesn’t make sense if you need to charge $10K to receive a $25 reward.
Finally, keep up to date with the terms and conditions on your reward credit cards. Terms change and you might be asked to use your rewards immediately or forfeit them. The rewards can also be worth less in the coming months after you received the card, so keep on top of the actual credit card terms and conditions.
Pls See: frequentflierprograms.com
Rewards programs are a hit among consumers. There is no harm in trying them for as long as you exercise prudence in choosing carefully what programs to join.
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What is a Home Buyer’s Plan?
The Home Buyer’s Plan is a program in Canada that allows holders of Registered Retirement Savings Plan to withdraw up to $25,000 from their plan to purchase or build a home. The major benefit of the Home Buyer's Plan is that you are allowed to withdraw the funds tax free as long as this is used to buy or build your first home. You are given 15 years after the second year of withdrawal to pay the money back into your RRSP. The amount you have to pay back per year is 1/15th of the total amount you took out of your plan. Failure to pay back the funds may result in having to declare the funds you withdrew as part of your income.
Pls See: investopedia.com
This article talks about the following:
- Eligibility Requirements for the Home Buyer’s Plan
- RRSP
- Benefits of the RRSP
What are Eligibility Requirements for the Home Buyer’s Plan?
The Canada Revenue Agency states that the Home Buyers' Plan is a program that allows you to withdraw funds from your registered retirement savings plan to buy or build a qualifying home for yourself or for a related person with a disability. You can withdraw up to $25,000 in a calendar year. Your contributions must remain in the RRSP for at least 90 days before you can withdraw them or they may not be deductible for any year.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your savings plan each year until your balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.
Pls See: cra-arc.gc.ca
The Canada Revenue Agency considers the following persons first-time home buyers:
• persons, including former homeowners, who have not owned a home they occupied as a principal place of residence at any time during the four-year period before the date of withdrawal of funds
• disabled persons acquiring a more accessible home
• persons acquiring a more accessible home for a disabled person related to them by blood, marriage, common-law partnership or adoption
• persons providing funds to a disabled person related to them by blood, marriage, common-law partnership or adoption, to build or purchase a more accessible home
Dates and Deadlines
• Participants must begin repayment two years after withdrawing the funds.
• Amounts withdrawn under the Plan must be repaid over a period of no more than 15 years.
Pls See: servicecanada.gc.ca
What is the RRSP?
Many Canadians have the Registered Retirement Savings Plan account through their financial institution. This is different from a regular account because it lets you save money for your retirement and lowers your income taxes. When you put money into your RRSP, you can deduct that amount from your taxable income for that year. You don't pay tax on the money you put into an RRSP account, or any interest you earn on it, until you take the money out. This plan can help you save for the long-term, but in an emergency you can take out the money. The Home Buyers' Plan lets you take money out of your RRSP, without paying taxes on it, in order to buy a home.
Getting started with an RRSP as early as you can is important. This is particularly important for newcomers, since you may be starting this investment later than others.
You are eligible to open an RRSP if you are a Canadian resident for tax purposes and file income taxes in Canada; 71 years old or under; and earn regular income. Residence for tax purposes is different from residence for immigration purposes.
Pls See: settlement.org
What are the Benefits of the RRSP?
While designed specifically as a retirement vehicle, an RRSP has benefits throughout your lifetime. Take a look at the following advantages:
• By contributing to this plan throughout your working career, you will realize immediate tax benefits at a time when your income is generally highest. The total amount of your annual contribution can be deducted from your gross income at tax time, reducing the amount you pay in income tax that year.
• The income earned is not taxed until it is withdrawn. While your investments sit in your RRSP, their growth is tax sheltered and so the total value may grow more quickly.
• By the time you begin to withdraw the funds at retirement, you will probably be in a lower tax bracket than during your earning years. Funds withdrawn at that time will benefit from this lower tax rate.
• Special features of RRSPs allow you to do further tax planning or use your RRSP to fund specific life events.
Pls See: rbcroyalbank.com
Government Initiatives
These initiatives of the Canadian government show that it is very much concerned for the ordinary consumers. It is up to you to take advantage of these perks to plan for your retirement and family interests.
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What is Secured Visa?
The Home Trust Canadian Secured credit card VISA is a charge card that requires a security deposit for eligibility. The cardholder’s credit limit is fixed based on the amount of the deposit. You have the option to settle for a minimum of $1,000 up to $10,000. Your security deposit earns interest, while your Home Trust secured VISA card is open and remains in good-standing.
Pls See: canadian-money-advisor.ca
The article explains the following:
- Secured Visa Credit Card
- Features of the Secured Visa Credit Card
- Secured Credit Cards in Canada
What is the Secured Visa Credit Card?
This credit card is the most viable option for people who have poor credit record. It gives them the benefit of a credit card while in the process of building a good credit record.
A consumer needs a security deposit account with a reputable financial institution before he or she can apply for a secured Visa credit card. Once this is approved, the bank sends the card to the applicant. The money is deposited in a savings account that earns interest.
It has a purchasing limit equivalent to the security deposit. Billings are sent monthly and the billing amount is not deducted from the deposit unless the cardholder defaults on payments. The cardholder is required to pay the minimum amount on due date. Applicants should consider information on processing fees, interest rates and minimum deposit amount before filing an application.
What are the Features of the Secured Visa Credit Card?
The following are the features of this credit card:]
- International acceptance
- Protection against unauthorized charges and payments through lost or stolen cards
- Monthly billing through the phone or internet
- Easy online payment options
- 24-hour assistance and emergency services
Pls See: economywatch.com
What are Secured Credit Cards in Canada?
Secured credit cards in Canada were originally designed to help people who wanted to start building their credit record. If you desire to build your credit from scratch or you want to re-establish your credit, it is important to check out all the secured credit cards in the market. You can find all the reviews and ratings for comparison of terms, features and benefits. This will help you make an informed decision in getting the best rated secured credit cards. All the top credit card companies, including Visa, MasterCard, American Express and Discover will definitely want to help you build your credit. Take a look at their guaranteed credit card offers and you will be on your way to build a solid credit rating.
Pls See: bchighway.com
Rebuilding Credit Reputation
It is the desire of every consumer with negative credit history to rebuild his or her financial reputation. The secured credit card is one way of doing this so it is up to you be prompt with payments to regain this sound financial standing.
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What is Debt Management Plan?
The debt management plan is a formal agreement between a debtor and creditor. Debt Management Plans help reduce outstanding, unsecured debts at a reduced level over a fixed period of time to help regain control of finances. These plans are individually tailored based on what can be realistically afforded on a monthly basis. To achieve an accurate figure, an income and expenditure test will establish what monies are coming into the household and what is being paid out. Income and expenditure includes everything, such as rent or mortgage, secured loans, utility bills, and essential living expenses. Once the income and expenditure is completed, the leftover amount is your disposable income which is divided among creditors through a Debt Management company.
Pls See: en.wikipedia.org
The article explains the following:
- Features of Debt Management Program
- Functions of the Debt Management Program
- Similarities and Differences between Debt Management Plan and Consumer Proposal
What are the Features of Debt Management Program?
Debt management allows you to make one low monthly payment to cover all debts. You are relieved of stress, and can save money on fees and interest, too.
First you should know that a debt management program involves your unsecured debt, which may include your credit card bills, line of credit, unsecured loans – or any other debt that does not require collateral. It can be repossessed if you fail to make payments.
Credit Canada explains that a Debt Management Program is something a credit counselor can put together for your unsecured debt:
- • A counselor will look closely at your situation and develop a plan that you can realistically follow based on your income.
- • Your credit counselor will work with your creditors to arrange for the single, low monthly payment.
- • The people you owe money to are asked to reduce the fees and interest on all your debt, and most agree to do so.
Basically, a Debt Management Program helps you consolidate what you owe, so all your debts are put together in one package. This one-package approach is sometimes called consolidating debt or restructuring debt.
Pls See: creditcanada.com
What are the Functions of the Debt Management Program?
Consolidating debt through a debt management plan could be the answer to all your debt problems. It’s easy to manage, because you’ve got a qualified credit counselor handling the details including:
- A lower monthly payment your creditors agree to.
- Simple, monthly fund transfers by telephone banking, debit card, or money order.
- Placement of your funds in a secure (insured) trust account.
- Timely, automatic payments to creditors, with full tracking.
But following this plan isn’t the whole story about debt management solutions and debt consolidation. Your personal Debt Management Program also includes having a friend on hand to explore your views about money, and teach you new money management skills that can last a lifetime. You will discover how to:
- Build a personal monthly budget and stick to it.
- Track and control spending.
- Set financial goals that you can reach.
- See money positively and treat it with respect.
Pls See: creditcanada.com
What are Similarities and Differences between Debt Management Plan and Consumer Proposal?
Bankruptcy Canada states the following:
A debt management plan is very similar to a consumer proposal. Below we list similarities and differences between them.
Consumer proposal & debt management plan: similarities
- Both consumer proposal and debt management plan involve you making payments to your creditors over a period of time.
- They both combine your unsecured creditors so you only make one payment each month, instead of trying to make payments to many different creditors each month.
- They both have an equal impact on your credit report.
Consumer proposal & debt management plan: differences
- Debt management plan is administered by a credit counselor while a consumer proposal is administered by an Administrator, typically a licensed trustee in bankruptcy.
- In a debt management plan you are required to repay all of your debts in full; all future interest is forgiven. In a consumer proposal you may not necessarily be asked to repay your debts in full. You will make payments based on what you can afford, which may not be the full amount you owe.
- Filing a consumer proposal is a legal process, and it stops wage garnishments and other collection action. Garnishments only stop in a debt management plan if the creditor agrees to stop them.
- In a consumer proposal, debts to Canada Revenue Agency can be included. It is difficult, although not impossible, to include tax debts in a debt management plan.
Pls See: bankruptcy-canada.ca
You can determine the best option for your situation - a consumer proposal or a debt management plan. It is advisable to contact a credit counselor or licensed trustee in bankruptcy for professional advice.
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Wikipedia says that an interest rate is the rate at which interest is paid by a borrower for the use of money borrowed from a lender. Interest rates are normally expressed as a percentage of the principal for a period of one year. Interest rates targets are also a vital tool of monetary policy and taken into account when dealing with variables like investment, inflation, and unemployment. http://en.wikipedia.org/wiki/Interest_rate
Low Interest, especially when it refers to credit cards, indicate that there is either a low fixed Annual Percentage Rate (APR) or a low introductory APR.
http://www.creditcards.com/low-interest.php
The article explains the following:
1. Benefits of Low Interest Rates
2. Weaknesses of Low Interest Rates
3. Long-term Consequences
What are the Benefits of Low Interest Rates?
Low interest rates are good for anyone who wants to borrow money – Consumers, Business organizations and Government Institutions.
When rates are low, it is more affordable for consumers to borrow the money they need to finance homes, cars, education, and other forms of consumption. Consumers can always keep an eye on interest rate trends to decide whether to choose a fixed or variable rate mortgage.
Companies need available credit to invest in their businesses, pay their employees on time, and manage their cash flow effectively.
Most governments at all levels, whether municipal, provincial, or federal rely, to some extent, on the credit markets to finance their operations. With multi-trillion dollar stimulus programs in effect globally, lower interest rates can reduce the cost of borrowing dramatically.
In general, lower interest rates are seen as stimulating for the economy, as consumers tend to buy more, businesses invest more, and governments can afford social programs.
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What is Low Interest? 2
Wikipedia says that an interest rate is the rate at which interest is paid by a borrower for the use of money borrowed from a lender. Interest rates are normally expressed as a percentage of the principal for a period of one year. Interest rates targets are also a vital tool of monetary policy and taken into account when dealing with variables like investment, inflation, and unemployment. http://en.wikipedia.org/wiki/Interest_rate
Low Interest, especially when it refers to credit cards, indicate that there is either a low fixed Annual Percentage Rate (APR) or a low introductory APR.
Pls See: creditcards.com
The article explains the following:
- Benefits of Low Interest Rates
- Weaknesses of Low Interest Rates
- Long-term Consequences
What are the Benefits of Low Interest Rates?
Low interest rates are good for anyone who wants to borrow money – Consumers, Business organizations and Government Institutions.
When rates are low, it is more affordable for consumers to borrow the money they need to finance homes, cars, education, and other forms of consumption. Consumers can always keep an eye on interest rate trends to decide whether to choose a fixed or variable rate mortgage.
Companies need available credit to invest in their businesses, pay their employees on time, and manage their cash flow effectively.
Most governments at all levels, whether municipal, provincial, or federal rely, to some extent, on the credit markets to finance their operations. With multi-trillion dollar stimulus programs in effect globally, lower interest rates can reduce the cost of borrowing dramatically.
In general, lower interest rates are seen as stimulating for the economy, as consumers tend to buy more, businesses invest more, and governments can afford social programs.
What are the Weaknesses?
Low interest rates are usually not so good for lenders and savers like the following:
1. Older or Retired People: These folks usually want to avoid having too much of their money in higher risk assets like stocks, so they stick to fixed income assets like bonds, GICs, and savings accounts. Lower rates mean lower retirement income.
2. Risk Averse Savers: Some people naturally avoid risk. They have very low or no debt and they don’t like to invest in stocks, commodities or real estate. Low interest rate environments provide little or no reward for this kind of fiscal prudence.
3. Insurance Companies and Pension Funds: These large institutions need to achieve a certain level of return in order to ensure they have enough capital to pay out when they need to. They also need to mitigate risk for the same reason. Low interest rates make it very difficult for these institutions to achieve their goals.
Very low interest rates can lead consumers, businesses, and governments to take on more debt. They can also make it very difficult for retirees and other risk averse investors to achieve the returns they need.
What are Long-Term Consequences?
Interest rates that are held too low for too long can lead to unintended consequences like asset bubbles, inflation, and other economic dislocations:
1. Real Estate Bubbles: Housing and commercial real estate prices can rise too high too fast, pricing some buyers out of the market. This can lead to a number of factors that might burst the housing bubble.
2. Commodity Bubbles: When inflation expectations rise (regardless of whether or not there is real inflation), investors tend to pile into hard assets like gold, oil, and base metals.
3. Equity Bubbles: Investors who are looking for higher returns may flock to stocks rather than fixed income instruments, causing equity prices to rise, perhaps out of line with reasonable valuations.
4. Debt Bubbles: Cheap money, especially when offered for extended periods of time, can lead borrowers to become complacent and take on more leverage than they can really afford.
Pls See: canadianfinanceblog.com
Need for Vigilance and Reforms
Low or high levels of interest rates may affect the economy adversely so there is a need for vigilance from both the public and private sectors.
An economist cited that there is a need to institute reforms to prevent a crisis and these are:
- The Federal Reserve must remain independent.
- Credit default swaps need to be regulated and placed on an exchange.
- Too big to fail must go
- Leverage limits on banks must grow as they do. (The larger the bank, the greater the leverage limits.)
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What is Capital One Cash Advance Credit Card?
Introduction: Credit cards have become the main means of money transaction in the present age of trade and commerce. We require the credit cards more than the traditional paper money for more transfers or transactions for the simple reason that they are far more effective and flexible, with much more security than them. The credit cards have also become the major means of transaction handlers in the present day environment. The usage of Credit cards is not just limited to the On-line environment but also in all other fields of trading and marketplaces. In Canada the major credit card issuer is Capital One, which has the major share of the Credit card market in that country. Its popularity and brand recognition is because of the security and lower interest rates with higher credit limits than its competing Credit Card issuers. Let us see much in detail about the Capital One's Cash Advance Credit Card.
Cash Advance Credit Card - What it is: Cash advance is a service provided by most of the credit card issuers and their credit cards. They allow the user to withdraw cash upto a certain limit, which is in most cases the credit limit of the person, or a percentage of it. The Cash Advance that has been acquired has an increased rate of interest than the ordinary transactions that are done using the credit cards. These Cash Advances are also to be given by the banks, if the person provides the proper identification and the credit card. The person need not provide his PIN Number to the cashier who is in-charge of the transaction. This service is provided by the Capital One and the person can get money from the ATM's using this credit card.
Capital One Cash Advance Credit Card: This service is enabled as default in the Capital One standard Platinum Card and in the Capital One No Hassle Cash card. The minimum amount a person can take from an ATM for a Cash advance is ten dollars. The Rate of interest is at three percent of each cash advance that has been withdrawn. There is also a late fee and advance fee for getting this money from a bank. The Capital one's interest rates are far lesser when compared to other Canadian Companies that issue Credit Cards. Also the Capital One Credit Card ensures that the money can be got anytime from any bank in the country. Such is the network of its transactions.
Usage of Cash Advance: Though this Cash advance scheme may sound a little tempting it is advisable to use it with caution. This is because the interest rates differ from the normal transactions, and keeping track of this might get difficult resulting in non-payment of bills that would ensure the credit score of the person to fall. The Cash Advance Credit Card from Capital One is also available to the person with average credit scores unlike other credit card companies that require the person to have at-least a good credit score. Hence these are the possibilities and advantages of the Capital One's Cash Advance Credit Card.
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What is Canadian Tire Master Card compared to Capital One?
Introduction: Credit cards have become the new medium for transactions and are aptly called plastic money. They are, in many ways, a lot better than the traditional paper money. The companies like Capital One and Canadian Tire are the major players in Credit Card market of Canada.
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The two firms offer several products and credit cards that provide reward programs and competitive interest rates. They offer a variety of choices for the user, that allows the person to choose what the product he or she need with an affordable interest rates. The Capital One MasterCard offers better options with lower interest rates and better benefits. Let us see the comparison between the Canadian Tire Master Card and the Capital MasterCard.
Canadian Tire Master Card:
The Canadian Tire Master Card is available in three types the Platinum Card, Gold Card and the Silver Card. The differences between these cards are their credit limits and the interest rates charged in every transactions using the cards. The Platinum Canadian Tire Master Card has a interest rate of 26% with no annual fee.
The Canadian Tire master card has three other types of master cards like the Options Master Card, The Gas advantage Master Card and the Cash Advantage master Card. These cards are issued to the users based on their choice of services and the previously mentioned types are issued based on their credit status or by their credit scores. The latter cards are very much useful if the person is looking out for cash back rewards and incentives for their attachment with the company. Now let us see about the cards and services that are provided by thee Capital One financial services.
Capital One Master Card: The Capital One Master Card has a lower interest rate and a number of low interest cards. These low interest master cards have interest rates of between 16.8% and 19.8% but with zero annual fee. Even if the Capital One doesn't have the annual fee rates, the cumulative expense from the cards differ in favor of the Capital One Master Card. The Capital One Master Card has three main types: the Aspire Travel Platinum MasterCard, Aspire Cash Platinum MasterCard, and Priority Club Platinum MasterCard.
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The Credit limits of these cards vary from highest to the lowest. The Capital One Credit Card also does not require high credit scores like the Canadian Tire Master card. The credit score required only the average. The Capital One Master Card also has excellent rewards programs for the Credit card holders like the Aspire Travel Platinum MasterCard which offer good incentives the card holder. The other types of Capital One master card that are available are the Capital One Guaranteed and Capital One Secured Master Cards. These services and rewards programs offered by the Capital One have made it the better option and it has increased the popularity and reliability of Capital One as a brand. What is Canadian Tire Master Card compared to Capital One?
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What is Credit Card Help?
The advent of credit cards has forever changed the global financial market industry. Its ease of usage and convenience are factors that explain its tremendous popularity amongst consumers of various financial backgrounds. Almost everyone seems to own a credit card from one of the several banks providing the product. Since the concept of credit cards often leaves certain ambiguities on the part of the consumer, most credit card companies offer credit card help through their website or by a customer care service which can be accessed by phone.
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Capital One is one of the highly established credit card profvders that do not compromise its customer service by providing sufficient credit card help to its clients whenever their help is needed. Their FAQ section in their website can reliably answer any general questions that you may ask to learn more about credit cards, how to apply for them, how to choose the appropriate card for you, etc. Their customer service department is very efficient and prompt at answering any queries from their customers and from those interested in getting a credit card. Any report of a lost or stolen card can be made immediately at their toll free number, which is available 24x7, so you do not end up paying any unauthorized purchases.
With hundreds of companies offering several credit cards and with each having unique features, it becomes really difficult for consumers to decide which credit would suit him or her the most. Such credit card help can be provided with ease by the Capital One website itself. It's Find a Card tool is extremely helpful in choosing the card that is best for you. By answering three simple, straight forward questions, one's dilemma can be solved without any hassles.
While choosing the best card for you, the tool will ask you about the feature you are most concerned about, in a credit card. You will also be asked to rate your own credit in terms of being excellent, good, needs improvement and in the process of being established. Also, the first question that you will be asked is whether you already own a Canadian credit card or not. Answer these questions and let the machine decide which the best option is best for you. Such credit card help is rarely seen in any other credit card company in the business.
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If you cannot rely on the credit card help provided by a machine, you can help yourself by visiting the Capital One website and comparing the various credit cards that are offered by Capital One. All the cards offered are listed on the same page and parameters such as interest rate, annual fee, eligibility, etc. can be easily compared for all the cards simultaneously. Special features, such as cash back on certain purchases, are also mentioned with other details. When it comes to credit card help or help in choosing the best credit card, Capital One seems to be the best option for everyone regardless of their credit history. What is Credit Card Help?
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What is a Credit Card Balance Transfer? You might be wondering what this credit card balance transfer is all about if you are a new customer to these credit cards. This is one of the services that are provided by the credit card companies like Capital One that can help you save a lot of money by simply transferring your high interest balances from the other credit cards, loans and also retail cards. All this is transferred to your Capital One master card.
Hence to do this you have to own one of these Capital One master cards. This is applicable to those staying in the country of Canada. So the next question that arises is why you will have to make use of this balance transfer service that is provided by Capital One. The first reason is that you can save a lot of money on all that you have spent. Next you get to transfer all your balances to the low interest rate credit cards of yours that are from Capital One and hence you will be able to consolidate all the debts that you have in to one monthly payment that is really simple.
So how much will you be able to save is yet another question that comes to your mind when you will be applying for this Capital One credit card so that you have easy access to the credit card balance transfer. Capital One also provides you with a calculator that calculates your balance transfer savings. It is now easy to use. You will also find that in a very short period of time you will be able to save much more by transferring the high interest balances to a Capital One card of a low interest. You also have Capital One with their very many services to help you just in case you do not know how to go about things.
Initiating a balance transfer is one thing that most of the new customers have doubts on. All you need to do is to call the customer relations that operate twenty four hours every day of the week. You can also log in to the online banking site and transfer the balance. Online credit card balance transfers are quick and also very easy for you to perform. The best thing is that you can do it at any point of the day. To make sure that your balance is gone to the right place you can also make a quick check on the balance transfer when you log on to the online banking.
You can make use of this credit card balance transfer with Capital One for all personal loans, similar accounts, auto loans plus the credit cards like master card, visa and also American express. In addition to all this you can also use retail cards. Balances from other accounts of Capital One is not allowed to be transferred. This sort of a credit card balance transfer service is available in Canada for all Canadian accounts. All your requests will be processed in Canadian dollars. What is a Credit Card Balance Transfer?
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What is a Credit Card Balance? Credit card balance is something that can really help a lot in improving the rating of your credit. One thing that you ought to keep in mind is that you should never ever be late with your payments when you make use of your credit cards. This is because your credit rating will actually go down and put you in a situation that is bad. There are also many other factors that add to the things that go into the determination of the credit score of yours. Credit card balance is one of those things that make a difference in that credit rating of yours. Credit scores reflect anything and everything that go on from the loan defaults, late payments and go up to foreclosure.
If you are a person who pays your bills on time with your loan payments as well as debts, do not have any repossessions or collections, not declared for bankruptcy then it is most unlikely that having a credit card balance will actually have some effect on that rating of your credit. This is very true in the country of Canada. It is not that it is not the same in other countries but still it does matter a lot here.
As Capital One suggest if you have no form of creditor even if you are recovering from a credit that has been bad then a credit card is sure to help you build good credit even if not great credit and hence offset that bad history of yours with your credit. A secured credit card does not cost you so much and hence this is provided by Capital One even though you are not earning an income that is good enough. However you need to be careful about applying for these credit cards as some of them will need some credit inquiries which will actually put a black mark on your name as well as your credit report. Most of the lenders are deterred if they sight more than about four credit inquiries in a period of six months.
Once you have a Capital One credit card in your hand then you can make purchases that are small and then pay it off as soon as possible or even immediately. This for sure will help you build your credit. As you keep doing this, you become stable and then you can make purchases that are larger and also maintain a balance on that Capital One credit card of yours. Make sure that you pay off that required amount right on time. It is also important that you keep in mind that the rate of interest on these credit cards is high. So if you make small payments overall then it will cost you a lot in the long run. So try paying as much as possible when you can and at one go, instead of small amounts every now and then. What is a Credit Card Balance?
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What is Capital One Cash Back Platinum Master Card with No Hassle Rewards? In the real world of today, credit cards have achieved a commonplace stature and things have reached a situation wherein life cannot just move on without that little piece of plastic, craving for your touch. So obviously, the market for such little geniuses is extremely enormous and has always led to newer vistas in credit card sales.
Speaking of the company as such, Capital One was founded in 1988 by Richard Fairbank and Nigel Morris and is now one of the leading players in the credit card market, apart from making inroads into the loans, savings and auto finance sectors too. Capital One’s operations began in Canada in 1996 with the opening of its head office at Toronto. However, unlike in the USA, Capital One does not operate outside the credit card sector. It is the second largest customer of Canada post. Capital One now offers to you the Capital One Cash Back Platinum Master Card with No Hassle Rewards.
This Capital One Cash Back Platinum Master Card with No Hassle Rewards credit card is certainly a one of its kind card in the Canadian market. It is an exclusive card on offer for Canadian residents only. The customer gets to choose from a check or a statement credit. Adding to the existing irresistible features is the bonus of no upper bounds on earning being set by the company. So whatever be your salary, you shall enjoy unequivocal benefits as any other customer of the card does.
The Capital One Cash Back Platinum Master Card with No Hassle Rewards should be your priority certainly because you can claim the reward money at any time of your ownership of the card. You need not let it build to a certain amount before collecting the promised sum, or rather worse, wait until the end of the year before you can get your reward sum like other cards of this nature. In addition to this, you start earning rewards right away from the word go. Any average credit card amortization period would always require you to spend 5000 dollars before you qualified for a reward. However this Capital One Cash Back Platinum Master Card with No Hassle Rewards card helps you earn the dollars, right from the moment you have signed the application form.
However, over and above the above given benefits, the greatest asset of the Capital One Cash Back Platinum Master Card with No Hassle Rewards card is that you can use it at just about anywhere you would want to – for your groceries, at the supermarket, gas station- almost anywhere where the plastic currency is accepted. As far as this card goes you will never find any purchase too small. And as per our estimates, on purchases that reach till a limit $3000, the customer gets to enjoy a 0.5% cash back annually as returns. For example, if this credit card pays you 1% back, and your bills total $2500 a month, you qualify for about $25 in cash each month. That amounts to an amazing $300 a year, just for using the credit card for a period of one year.
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What is a Credit Card Interest Rate
What is a Credit Card Interest Rate? Whenever you take a loan, you are expected to pay a certain percentage of the loan as interest to the lender in compensation for lending you the money. Since credit cards are also a form of loan where you spend the money from the bank first and then repay it later, you are expected to pay an interest on them. This rate which decides how much additional amount you pay for your cards is called credit card interest rate. This interest rate depends on a number of factors such as credit history of the borrower, amount of money being borrowed, securities, etc.
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The main factor that influences credit card interest rates is the credit history of the borrower. If you have defaulted on your payments or declared bankruptcy, it could give a bad credit history. This means that you will be charged a higher rate of interest as compared to a person with a good credit history. Sometimes a person with a bad credit history will have difficulty in getting a loan. However having a bad credit history is better than not having one at all. People with no history might be charged with even higher rates of interests.
Most credit card companies only require you to pay a minimum amount every month for your credit cards depending on your credit card interest rate rather than the full payment. You can then pay up the rest of the loan later on. This is very useful for people who have limited income at the time such as seasonal workers. They can pay the required minimum amount and pay up the full amount when they have the funds.
However using a credit card that has a balance left on it could be troublesome sometimes, especially if your credit card interest rate is high. This is because the more balance you carry, the higher will be the interest charged and you will spend more time trying to repay the loan. Although it is good practice to invest your money, investments hardly have interest rates that match credit cards and whatever gains you make on your investment might be negated by the interest on your credit cards. Therefore it is better to use the money you plan on investing to repay the balance on your card.
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Capital One, which has its Canadian headquarters in Toronto, is one of the leading credit card companies in the UK, Canada and the US. Canada One offers a variety of credit card plans that caters to your needs. The low credit card interest rates they offer are really enticing and is one of the best deals available in the market! They also offer online banking facilities making all your transactions much easier. A relationship with capital one is bound to be beneficial, transparent and secure. What is a Credit Card Interest Rate?
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What is a Credit Card Limit?
Credit cards have become an integral part of everybody’s lives. They give us the convenience of buying now and paying later when we have the cash. However it is not all fun. All cards are set a credit card limit. You will not be allowed to spend more than this limit. This is simply for the sake of security to ensure that you don’t spend more than what you can repay to the banks. This makes sure that banks and credit card companies do not suffer huge losses on account of your overspending.
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The credit card limit varies from person to person. There are a number of factors that determine what the set limit for a person is. Some of these include the card holder’s credit history, his or her income that will determine how much of principal and interest that person can pay, the total assets that the borrower owns, etc. The credit history is important as it indicates the reliability of the borrower. If you have made your payments on time, paid more than the required minimum and gotten out of credit as soon as possible, it reflects well on your credit history. This means that you will automatically get a higher limit as compared to a person with a bad credit history.
The second important factor that determines credit card limit is the income the borrower gets and his or her ability to repay the loan. A person with a higher income or with more resources at his or her disposal will have a higher limit for obvious reasons. The lower your ability to pay back the credit, lower will your limit to protect the bank from losses.
The credit card limit is also dependant on the recoverable assets. Higher the value of the assets you own higher will be your limit and vice versa. This is to ensure that in case you defunct, the assets will save as security for the financial organization or Credit Card Company and can be used to compensate for their losses.
Having a credit card with higher limits is always beneficial. This is because not only do you have enough to spend on what you need but it will also ensure that you do not exceed your limit accidentally. Also this will enable you to carry fewer cards rather than a number of cards with low limits. Fewer cards mean lesser interests and will ultimately save lots of money. annuity income
Capital One is a bank based in USA having operation is USA, UK and Canada. They have emerged as world leaders in credit cards thanks to the various plans they have to offer that are mutually beneficial. They have won a number of awards and accolades and have made a good reputation for themselves. Rated amongst the top banks in the world, they offer cards to customers with credit card limits that will be enough for you to get everything you might need in life. What is a Credit Card Limit?
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Capital One - Cash Back Guaranteed MasterCard® for Gas & Groceries
Introduction: Credits and debts have become thee way of life for most people at this present technological age. The trade and marketing industry survive based on credits and trusts. These credits are provided by large Banks to the industries and companies. The plastic money provides people with short term credit and gives them the independence to get or buy whatever they want, provided they are within their range of earning and income. Canada the land of promises has its own range of Credit Card Providers and Companies that give Credits and loans. The most famous of these is the Capital One Credit Card. This is the major Brand Name for Credit Card in Canada. It has a very high reputation and trust among the common users of the country. But to get to this place the company has to go through various hardships and marketing strategies. So what are they?
Cash Back Rewards and Free Miles Programs: People would not easily buy an object without first testing it or experiencing it. So usually samples are handed out. In this case the marketing strategy was to give the customers a lot of benefits and having various rewards programs. In the process of hoping to get these rewards and reward points, people bought this card initially. Later the service and the reliability impressed them more than the rewards programs, which brought the company customer loyalty. People started coming back for more. In a process of encouraging this practice, the Cash Back Rewards program was announced. It was initially reward program for the Master Card range applicable to the purchase of Gasoline and the groceries along with daily provisions.
The Master Card contains a lot of benefits and the reward program has the following features. The person gets cash back of 2% instantly on all Gasoline purchases in the fuel stations and pumps. The card also offers the same 2% cash back for the groceries purchased through this card. The Guaranteed cash back is also for other purchases but the cash back is only 1 %. The person earns back the cash spent and also lots of other prizes, making use of this Capital One Cash back Guaranteed MasterCard for Gas and groceries. The best thing about this is that the person can choose the method of getting the cash back either by the usage of cheques or by cash or by a credit statement that would be deducted if said so from the credit statement.
Also the best advantage of the usage of this card is that there is no limit of how much a person can get back from the Capital One for the Cash Back guaranteed Reward for Gas and Groceries. This reward program has got the full support of the public and this can also be cited as the main reason for the success of this company and its credit services. This card also has the option for including another user in the same card with no extra fee with fraud liability being 0. The Customer Care is also a 24/7 service servicing the users. Capital One - Cash Back Guaranteed MasterCard® for Gas & Groceries
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What is a Credit Card (APR)
-Annual Percentage Rate?
The term APR or the annual percentage of rate, is the yearly rate of interest applied to a credit card as compared to a payment that is done every month on a particular date as that is applied on mortgages, credit cards or loans. It is a charge of finance that is expressed annually.
In simple words, the nominal credit card APR or annual percentage rate is the interest rate for a whole year. A credit card's APR is the total of the fee as well as the compounded rate of interest that is calculated over one year. It is so easy you do not need to contact an attorney to understand the process.!
low interest credit card. The card offers the following benefits:
• Enjoy a low, long-term rate of 5.99% on purchases and balance transfers, guaranteed for 3 years (as long as you pay your bills on time)
• After 3 years your rate will stay low and become a variable rate of Prime +6.99% on purchases and balance transfers
• Annual interest rate for cash advances is 19.8%
• No annual fee
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- Posted July 30, 2009 by Monty Loree
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What is TD High Interest Credit Card?
Even though there are people trying to save their money, they still get a high interest credit cards that the market is offering with the least interest rate possible. You must be wondering why people are buying these high interest credit cards. Below are the features of the TD high interest credit cards.
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There are people who are getting the TD high interest credit card. Those TD high interest credit cards with no fee at all are the cards that people are looking for because they can save money on these credit cards even if they are paying a high interest rate to maintain these credit cards. Most of these credit cards will need some minimum balance that is required to keep your card running.
The TD high interest credit cards do not require this minimum balance that costs around thousands of dollars. This is an advantage that most of the users like about the TD high interest credit card. Also, the TD high interest credit cards have lots of free features which includes stuff that is related to finance. You do pay frugally to live more happily with these TD high interest credit cards.
The TD high interest credit card does not charge for balance transfers. This feature entices people to own this type of credit card. You also do not have to worry when you travel because travel fees are reduced and more services are given to you free of charge. You do not have to pay so much when you are traveling. and can save a lot of money at the same time. The TD high interest credit cards can calculate the savings that you can make. This is a great feature that TD high interest credit card is offering.
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- Posted July 30, 2009 by Monty Loree
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How to apply online for a credit card?
The credit card has become an indispensable tool for many of us. As the demand and necessity for credit card grows, credit card companies come up with new ways to meet these needs. One of the many marketing come ons by these credit card firms is by allowing prospective customers to apply credit cards online. Online application for credit card is very convenient because you can fill up your applications anywhere as long as you have a computer and an internet access. This is one of reasons why many customers prefer to apply online for a credit card.
Capital One is a diversified bank that offers various financial services and specializes in credit cards, banking, home loans, auto loans, etc. It is based in McLean, Virginia but has operations in many other countries. It started its operations in Canada in 1996 and specialized in credit cards unlike its diversified parent company in the U.S. Its Canadian office is located in the city of Toronto, Ontario. It is one of the Fortune 500 companies and is credited for pioneering the mass marketing of credit cards in the early 1990's.
As mentioned above, Capital One - Canada focuses mainly on the credit card market. It has been named one of Greater Toronto's Top Employers in October 2008. This proves the company's success in marketing the credit cards. One strategy the company uses to promote its credit card is to allow its customers the option of applying online for a credit card. This is very popular among Canadian customers. And as most people today are computer savvy, applying credit cards online is not only convenient, it is very easy.
Before applying online for a Capital One credit card, the first thing that you have to determine is the type of credit card that you want or need. It is important to note that the credit card needs to serve a purpose and should not be used as just something flaunt about. To find out what type of credit card suits your needs, go to Canada One-Canada website of call their customer care department.
The different types of credit cards that capital one offers its customers are Delta SkyMiles®, Gold MasterCard®, SmartLine™, Platinum MasterCard®, Fusion™ Platinum MasterCard®, Low Rate Guaranteed Secure MasterCard, Capital One Guaranteed MasterCard, etc. Once you decide on the type of credit card you need, make sure that you satisfy the eligibility criteria. The eligibility criteria basically take into account the annual income of a person and his age. You can then apply for the card you want online and you will receive it within a period of time. What is bank interest charges?
In Canada, Capital One is a very prominent financial institution which was established in the year 1996. Its parent company is in the United States of America. In Canada, it is head quartered at Toronto, Ontario. This bank caters mainly to the credit card industry and has not diversified much unlike its parent company in the United States. It is a very successful company globally and in Canada having featured in the Fortune 500 companies and it was voted as one of Greater Toronto’s top Employers in October 2008. The Capital One company has single handedly pioneered the mass marketing of credit cards in the early 1990’s. This could possibly be the reason why many Canadians prefer to have a Capital One guaranteed secured mastercard.
When it comes to getting a credit card, a lot of thought needs to go into it before one decides on what to buy. To start with, one should know what purpose the credit card has to serve. Only when this is decided can one choose from the different types of credit cards the company has to offer its customers. Next is to make sure that the eligibility criteria are met. This mostly includes the annual income of the person who is applying for the credit card and his or her age. When all this is done, one can apply for a credit card and get it. Applying for a credit card can be done either online or by visiting the company in person, whichever is more comfortable for the customer.
When one sees whether a credit card is good or bad, it has its own advantages and disadvantages. It is difficult to classify any credit card as a good credit card or as a bad credit credit card. It is the user who ultimately makes it a good credit card or a bad credit card. If the customer has a bad credit record, it will obviously to problems and then one might say it is a bad credit card. Sometimes, for people with a bad credit history, it will be difficult to get a credit card. Even in such situations, it is possible to get a credit card but it is ultimately up to the customer to keep it from becoming a bad credit card. It is important to keep in mind that almost everything in this world has a bad side to it and it is up to us to ensure that the bad side does not affect us.
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What are Canadian Tire Low interest Credit Cards?
Introduction: Credits and loans are the way of life for many people. It is not uncommon for many people to use these plastic money in their daily transactions.This practice makes some people hooked on online and credit based transactions instead of the usual transacting in paper money. Credit card companies provide card holders with credit cards with the credit limit based on the person's credit score.The Low Rate Guaranteed MasterCardis one of the leading credit card vendors servicing for various needs and satisfying the customers.
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Canadian Tire Low Interest Cards and Low Rate Guaranteed MasterCard®: The Canadian Tire credit cards are very popular and cater to the different needs of their customers. These cards are broadly classified into High Interest Credit Cards and Low Interest Credit Cards. These cards popularity is based on their rewards programs, the high credit limit and the corresponding nominal interest rate and the medium credit score requirement.
The various cards that are available in the market include the Canadian Tire Options Master Card, Canadian Tire Links Master Card, and Canadian Tire Commercial Link Master Card. But the Interest rates of these cards are much higher than the Capital One Credit Cards. The Canadian Tire Low Interest Cards have an interest rate of nearly 26% and they require a fair credit score.
The Capital One Low Interest Cards the average interest rate is at 9.99% for the platinum type credit card and it has an annual interest rate of 19. 8 % for short term credits. Incase it is a longer term or three years minimum the rate becomes 9.99%, if the customer pays the bills regularly. The Low Rate Guaranteed MasterCard® offers these features:
- Low annual interest rate of 14.9% on purchases and balance transfers
- Annual interest rate for cash advances is 19.8%
- May help you strengthen your credit history
- Security funds may be required
The main advantage of Capital One's Low Interest Cards is that it is free to transfer debts using this card and there is no need for service charges but the trade off is the approval of this loan. This card gets sanctioned only when the person has a good Credit scoring rate. The next type of card is the Low Interest Rate Guaranteed Secured Master Card. This one has a guaranteed approval but the interest rates are 19.8%.
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The advantage of the card is that the interest rates are very low when compared to other credit cards. The card can also help regain the credit rating score and the person can also update the report with this attained data. The next type of card is the Capital One - Low Interest Rate Guaranteed Master Card®. This card is a scaled down version of the previously described credit card. The advantage of this card is that it provides $0 fraud liability and there are various ways that the credit score can be updated using this type pf card. All the three above mentioned credit cards can improve or decrease a person's credit report and the holding of the various credits and debt transfers. What are Canadian Tire Low interest Credit Cards?
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What is a Capital One – Low Rate Guaranteed MasterCard?
In today’s horrible economic climate, it is totally understandable if a person has bad credit, that is, if they have a bad history of not being able to pay their credit card bills or if they have declared bankruptcy. This is because of the considerably large amount of people that are laid off each month while no new job opportunities are being created. Thus in these times of financial crisis, these people deserve all the help they can get in order to survive and make it through the bad weather. In that respect, Capital One, Canada’s number one financial organisation has come out in fine style with their recently released Capital One – Low Rate Guaranteed MasterCard schemes and offers.
Wondering just what exactly this is? Well, this is a credit card that has criminally low interest rates and that requires little or no credit history. Thus if you suffer from a bad credit history that prevents other credit card organisations from being able to trust that you will be able to make the monthly payments for the credit card, then Capital One – Low Interest Rate Guaranteed MasterCard is the option for you. You will be approved for this card even if you had just declared bankruptcy. All that is required of you, to maintain a good credit relationship with Capital One once you purchase the Capital One – Low Rate Guaranteed MasterCard, is to make sure that you make the monthly payments.
As long as you are able to manage that, then there is no problem in keeping the credit card and using it on a regular basis. A major advantage with this type of credit card is the amazingly low interest rates that accompany it. This can really be a major step towards stabilising one’s financial affairs since it means that you will be able to save more cash each month that can be used into the next month. Since most of the worries for the people who were hit by the financial crunch is where the money is going to come for the next month, a little bit more saved in this one would certainly ease the pressure on next month.
With the Capital One – Low Rate Guaranteed MasterCard, there is the added benefit of having no annual fee either. This makes it one of the cheapest credit cards available as no other credit card offered by any of Capital One’s rival companies offer anything at this level of low prices. This might not seem like much since the annual fee is just a small amount that is paid once a year, but once you consider other factors like the service fees, penalties, etc., it is easy to see that Capital One offers you the best deal with no hidden expenses. Thus if you are one of the millions in the country suffering from the economic collapse, then fear not, because Capital One has faith in you, and you can have complete and utter faith in Capital One – Low Rate Guaranteed MasterCard. What is Capital One – Low Rate Guaranteed MasterCard?
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What is a Credit Card Approval?
Credit card approval is very much needed if you need to use a credit card. Earlier it took longer to get your credit card approved as it had to go through a number of stages before it got approved. Hence once you applied for a credit card it would take you some time to make use of it.
But today we get credit card approval instantly. With this instant approval it makes it easier for people to use their credit cards as soon as they have applied for one of these cards. You can apply for this credit card approval online.
Once it is found that your credit card is qualified then you normally receive a mail via the internet to your mail account. This happens really fast within a few seconds of sending in the application. So now you do not need to wait for long before you get your credit card approved. Generally people with a real good credit get their credit cards approved really fast. This is available in the country of Canada today and hence there are more people who are looking to get more credit cards instead of handling cash manually. Capital One is one of the most famous credit card companies that are providing you with such facilities.
There is also another way, which the credit card companies in Canada like Capital One, use to get the business. A list is got from your credit bureau, credit reporting agency or even those people who have real good records of their credit and also favorable payments in the past. If you are one of those people then Capital One has an offer to stun you with. You will be provided with credit cards that are pre approved. Credit card approval in this case is not a matter that needs some thought at all. Such people have histories of paying off their debts in time and hence become the prime members who are targeted to get such credit cards.
This is because Capital One does believe that you will pay and hence your application for your credit card approval is already approved. Yet another good thing about these credit cards companies like Capital One is that if you are one of those people then you will also be offered with credit cards of low interest. There is however one thing that you ought to keep in mind and that is to keep a check on the rate of this interest. This is for only one simple reason that the rate of interest might go up at any point of time and you would not know it unless you are keeping track of it. Capital One now offers you with credit cards of cheap interest rates that are secured. You also have the platinum cards that are available. You can save a lot of money as well as establish a history of credit that is good with these low rate credit cards. What is a Credit Card Approval?
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What is Loans for People? Money has been lent and exchanged in various forms and according to persons needs since a long time. Even before the advent of money as such, the barter system was widely in practice as a means for man to acquire material. Man's craving for material has undoubtedly led to a vast system of loans for people that enable customers to purchase goods with minimal stress on their own pockets.
Loans for people basically means lending of money by the lender and the person receiving them is called the "borrower". The principal amount loaned out to the borrower has to be repaid in regular and equally-timed installments that amount to the initial loan amount. Over and above the amount loaned out, the borrower is also obliged to pay an interest, which essentially is an incentive for the loaner to hand out the loan. Although the term loan is largely associated with monetary exchange, in certain cases even materials can be lent.
Loans can be classified into two types- secured and unsecured. A secured loan is granted upon the borrower pledging some asset as a security for the loan amount. Auto loans are secured too, but their validity and the amount depend largely on the usefulness of the car being secured. Auto loans for people can be of two types: direct, where the bank hands the loan to the customer directly and indirect, where there is a dealer acting as an intermediary between the customer and the financial authority. With global recession and indiscriminate job-cuts being the order of the day, a lot of Canadians find it a cheaper option to finance their automobile purchases through financing.
Loans for people for higher education are easily attainable in Canada through the Canada Student Loans Program (CSLP). These loans issued to full-time students are interest-free. Financing is available for part-time students too through the CSLP but they must make interest payments while in study and begin payments of principal and interest when their period of study as a part-time student ceases. Students with permanent disabilities or students from low-income families are also facilitated in their study with grants.
The Canadian Government also helps finance small and new businesses through grants, loans, guarantees, subsidies and tax benefits. Under the Canadian Small Business Financing Act, the government can guarantee loans for people desiring to start a small business to a maximum of 85 percent. The advantage being, if the borrower defaults on a loan, the bank is safeguarded. Other government organizations that lend in Canada include the Canada Mortgage and Housing Corporation, that helps housing plans across the country and Farm Credit Canada, which is Canada's largest agricultural lender.
All these organizations fall under the Canada Crown Corporation, which is a state-owned enterprise and runs the general functioning of the country. Some of the important financial organizations granting loans for people that fall under the purview of the state-owned Crown Corporations are: Bank of Canada, Business Development Bank of Canada, Canada Mortgage and Housing Corporation, Canada Commercial Corporation, Farm Credit Canada and many more.
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What is Making Money in Canada 2? Making money in Canada is no longer an overwhelming task. Though the economic crisis has resulted in lots of people losing their jobs on a regular basis, people in Canada are turning to additional sources of income.
Here are some surefire ways for making money in Canada just over the internet:
1. Market your services online: If you can design using Photoshop or have knowledge in programming languages like PHP and HTML, then you can look for projects online easily. The challenge here is that you should be capable of competing with the global market. There are other adept providers out there who provide services at different rates. Services offered by those in developing nations are often cheaper. To start making money in Canada over the internet, you need to discover your competitive edge and market your services based on this.
2. Buy and sell items: Auction websites such as eBay offer buy and sell opportunities. You can also set up your own website, complete with payment processing system and shopping cart. It is advised to do a research on the in-demand items first. Visit other auction sites to check out the popular items and their rates. The rates on your website must be competitive to the prices on other similar sites.
3. Ad programs: Ad programs pay you according to the number of clicks you generate for the advertiser's site. For this, you need to post content relevant to the advertiser online.
4. Paid survey: One of the most popular ways of making money online is with paid surveys. Many companies look for consumer opinions on their products and services and rely on the unbiased opinions given in online surveys. Although the majority of paid survey sites permit members exclusively from the United States, many survey sites are beginning to expand their member database internationally. However, making money in Canada is not a problem since Canada is second only to the United States when it comes to countries that survey sites permit its members to be from. Paid surveys are easy to fill in and can be filled in at any time of the day or night. So, even extremely busy people can fill in a paid market research survey in a few minutes and get paid for it.
How do you find these paid survey sites?
Simply Google 'paid surveys Canada'.
Make sure you look through the terms or the FAQ section at the site you plan to sign up with to check if they accept members from Canada. If Canada is not listed as an option on the sign up form under 'choose your country', then you will definitely not be able to sign up at that particular site.
Making money in Canada does not seem all that difficult now, does it? So go ahead and start raking those bucks in!
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What is a Fico Score?
Introduction:
The Fico Score is the index fixed on a person's credibility which influences the access of low interest credit cards, mortgages, loans either personal or home and anything that relate to transactions involving credits. The Fico score is also used in Canada as a method of measuring the person's reliability of paying back the loans. The name Fico is derived from the name Fair and Isaac Company.
How Credit Scoring and Fico Scoring Works:
The Fico scoring is based upon the person's ability to repay a loan or honor a credit. In Canada the scores are set between 300 and 900 and most of the people of the nation are in the range of 600 to 750. This score is generated by software for which the input is the financial report of the person for whom the report has to be generated. However the source of this input is never revealed to anyone. The algorithm also is a closely guarded secret.
Also the companies that have a license to use this software are required not to expose any of the information that they might gather while the credit score is being decided upon by the system. Also the scores would be made known to the customer only when the person asks for it personally and in writing.
Advantages of the Fico Score:
The Fico score has made the process of decision taking much simpler. The process of decision taking would be much reduced with a lot less discussions and assessment of the credibility of the customer. This is because lenders have access to the mathematical models and vast information that weighs a potential borrower's financial status and his patterns in finance and predicts how that borrower will behave, based on other people who have the same kind of fianancial behavior.
Credit Scoring and its Importance in Canada:
The US system of Credit Reporting is very similar to that of the Canadian one. The main difference was that the citizens do not get more than one report in the United States. Here the citizens can get Credit lessons and how much ever credit reports he might require. The credit report is actually generated by the computer software.
Conclusion:
The Canadian government also releases these issues with much ease and open mind ness. All these are released as a free publication "Understanding Credits and Credit Reports". The algorithm is stored in a different data center so that their resources do not get compromised and the person with the correct authentication is mobiles. There are some more companies that shortlist people to serve as a meaning. The document highlights some of the following points about how to face an interview.
They are as follows
Payment History:
1) The record contains the ability and the promptness of paying bills and also the point of purchases and outstanding loans
2) Amount of time the person puts on for a work to be completed and used and also the length of the time of credit and the outstanding or present rules. What is a fico score.?
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Who is Equifax Canada? Equifax Canada is one among the three agencies that provide credit bureau for businesses along with the generation of information providing reports. These services by Equifax Canada are extended to all companies, individuals and even the financial sector.
The other two agencies that provide similar services are Experian and Transunion Canada. Equifax Canada is housed in Toronto, Ontario. The various services offered by Equifax Canada are fraud, score, disputes and any general request. Equifax Canada provides consumers and businesses with the kind of information that they can trust upon. In the field of information solutions, Equifax Canada has been global leaders. They have been one of the biggest sources of commercial and consumer data.
Equifax Canada focuses on enriching the complete profile of a customer, enhancing the efforts in lifecycle management of the customer and also providing customer profiling and segmentation. Since its inception in the year 1899, Equifax has been the epitome of reliability for credit information. They have been extremely successful in gaining their clients’ and consumers’ trust and confidence.
The credit report provided by Equifax Canada on the consumers’ expenditures and transactions are very authentic. The lenders have access to the information on the credit report.
Recently Equifax Canada in their Canadian headquarters at Toronto declared the launch and advent of Citadel. This is basically one of the most advanced management object (tool) and an application for prevention of fraud. This is exclusive to Canada and first of its kind there. Equifax has made use of the known frauds of the suspects and cross industry universe aspect to develop this tool called citadel. This tool has been developed for the lenders in reply to their urgent requirement of defenses against the fraud application and consequently averts any serious financial crisis.
This is a lone product which gives the consumers a true report of their fraudulent activities with their credit. This also tips them off to improve their efficiency in operation and fake positive rates. Citadel has proved to be critical for the organizations, as they now can provide a nexus between the account opening systems and investigation of fraud.
In Canada, most of the business organizations, companies, individuals and other organizations of the financial sector have been registered to one of the three credit bureau agencies. Even banks, local and international, departmental stores, etc. all register to mostly to Equifax Canada. Equifax Canada essentially gathers all the details about the consumers’ financial activities and his or her expenditures.
The Canadian idea of credit usage is a bit more extensive than that compared to the Americans’. Canada has been known for its credit card frauds and hence Equifax Canada has proven to be more than efficient in the regulation of credit card frauds and thus averting major financial losses. Thus Equifax Canada has been quite successful and innovative in this field.
What is Equifax Canada
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How to Fix Your Credit? Your credit is essentially a number that can sum up your entire financial history in 3 digits. Several credit companies in Canada are constantly updating every financial transaction performed by the citizens of the country. Based on these transactions, the companies will provide a credit number to every citizen. Only on the basis of this number will one be entitled to a loan or credit card or any other financial need.
A healthy credit of over 700 from FICO will guarantee anybody a loan at a very reasonable interest rate. However, not everyone is lucky enough to maintain a clean history through out their lives. Sometimes a delayed payment or careless mistake can bring your credit down to a number that will make any Canadian banker apprehensive. In a worst case scenario of bankruptcy, your credit will take a nose dive, making it even more difficult for you to get out of the situation.
Nobody likes to maintain a bad credit. Though the history of your credit cannot be changed, a lot can be done to fix your credit in order to bring you back into the financial world. The first step would be to demand for a copy of your credit report from any of the credit companies. You will have to analyze each and every aspect of the report and inform the firm in case of any errors.
If your problem is far more serious than a mere error, a stringent step must be taken to fix your credit. You will have to devise a systematic procedure in order to clear off your debts. Aim at clearing the debts that ask for a higher interest rate before your try clearing the ones having a lower interest rate. Also, never skip or delay a payment from hereon. If you wish to fix your credit, this factor is a deciding one.
Obtaining a secured credit card can help improve an otherwise bad credit number. A secured card can be easily acquired from any of the banks as long as you deposit a sum equal to the limit of your card with the bank. You will have to make certain transactions with the card and more importantly, pay up for these transactions on time.
This will help the banker or financer gain your trust. Also for every timed payment, the credit companies will improve your credit score. In future, this will deeply assist you in receiving a loan from any bank in Canada.
If you are unable to cope up with your debts, seeking out external help would be a good idea. In order to fix your credit, you might have to approach credit counselors or financial counselors. They will be able to come up with the most appropriate solution to clear your debts in the minimum time possible. Besides clearing your debts, these counselors will also ensure that the manner in which the debts are cleared will indirectly fix your credit with all the credit firms in the business. How to fix your credit.
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How to FIX MY CREDIT in CANADA? According to reputed bankruptcy trustees, a volley of questions often expected from citizens relate to dealing with poor credit after bankruptcy. An individual’s credit rating is one that determines if he/she will be able to avail a loan in the future or not.
In Canada a black mark on one’s credit report, say for example filing bankruptcy, would remain in his/her credit record for a maximum of seven years.
Is it possible to erase bad credit history? Is it possible to fix my credit? Is credit repair post bankruptcy a possibility? Does that as well answer to ‘fix my credit’ queries? Unfortunately, you cannot completely wipe off your bad credit, because you cannot remove bankruptcy from your report. Nevertheless there are various other solutions to improve your credit record.
Suggestions on how you can repair your bad credit follow.
Common solutions to repair BAD CREDIT
Fetch your credit report
A credit report can be obtained free of cost or for a nominal charge. Following are the credit bureaus in Canada.
Trans Union 1 800 888 4213
Equifax 1 800 465 7166
Credit report review A review of credit reports is suggested to look for erroneous findings and negative comments. One of the most common forms of an error is the inclusion of a debt that one may have already cleared. Negative comments generally result from a retail store card that one probably would have stopped using five years ago, if it had a $30 balance owing, it may still find its place on ones credit report.
Correct any errors on your credit report
On finding an error, get in touch with the credit bureau of your respective region and show proof that you do not in any means owe them money. In some cases a letter may be needed from the creditor stating that the payments were made.
Pay off your debt Many a times a lender may look on high levels of debt even when your credit report indicates that you have made all your regular monthly payments. The solution lies in clearing off as much of your current debt as possible prior to seeking a new loan.
It is recommend clearing off the higher interest debts initially, for example the wise thing to do would be to pay off the 16% credit card debt and then the 12% credit card debt. The lesser your debt is, easier it would be to seek a loan.
Worst case scenario
In situations where the debt is more than one can probably repay, the only solution to credit repair would be to formally deal with your debts. The options include, filing a formal proposal to your respective creditors, or looking at consumer counselling for bad credit reports and a management plan for your debts.
Having suggested a string of solutions, one cannot erase a poor credit with a personal bankruptcy record on it, however partial credit improvement and credit repair after bankruptcy is a possibility which lies in your hands. Want to obtain a loan somewhere in the future? Start improving your credit rating now. Start implementing Fix My Credit solutions right away!
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What is Fixing bad credit?
It may be really difficult for you to fix bad credit as many of the people might not be willing to help in any way. However in Canada you can fix bad credit. This can be easily done by simply obtaining a credit rating that plays a major role or what is referred to as an important role when you are trying to obtain a credit card that is unsecured.
These bad credit cards can take up to a 900 from a simple 300. If you have something around a 700 then your credit is supposed to be really good to fix bad credit. If you do find that your credit is much below 600 then there is no need to worry as you can still do something about it. For instance with the fix bad credit you can also look at mortgaging. The bad thing about this is that if you find that your credit is bad then you will have to pay an interest that is really high to get to fix bad credit.
For those people with bad credit and those who are looking to fix bad credit there are both financial institutions as well as banks that are available to approve you for a credit only if you are looking to fix bad credit. The amount of credit you will need to pay however always depends on the total line of the credit. Unsecured credit cards for those to fix bad credit are not very much likely to be available in Canada.
For those people who want to get secured credit cards in Canada and also for only those who are trying to fix bad credit, there is a really good way to build or even rebuild your credit. Most of the secured credit card companies will require you to deposit something that is equal to the credit line that you are looking at. It really is important for you to make sure that you report your monthly payments to the major credit bureaus.
It really helps in increasing the credit rating if you make your payments right on time. For those trying to fix bad credit there are also pre paid cards that are provided in the country of Canada for those people who do online purchases. These prepaid credit cards are a great and an alternative way for making the online purchases, reservations in hotels and also for renting cars. It is so much safer for you to carry around this than having to carry around cash in you. This is however charged with a fee that is very small and also that which has to be paid every month.
There are also student credit cards in Canada that are provided for students who want to fix bad credit. These student credit cards are really an amazing way for all those college students who want to start off by building a credit history that is really good and that will stand for a long time to go.
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What is a Collection Agency?
A collection agency is one that pursues debts owed to a credit organization for a fee or buys the debt at a fraction of the cost, and recovers the rest from the debtor. They are governed by strict laws to prevent harassment to the debtor and they have a statutory limit of 7 years for recovery. They are a last resort for companies to collect on unsecured bad debts.
They normally work for a flat rate or a percentage or on a hourly basis, and recover unpaid dues. Here in Canada, once the bad debt information has been factored into ones credit rating, it stays for 6 years, from the date of last transaction. If the agency starts to harass customers or intimidate them, one can register a complaint with the Attorney General's (or Consumer Protection) office.
If a collection agency calls you without first informing you in writing about their taking over your dues, or call at ungodly hours, or more than once a day you can take legal action against them as the Canadian laws frown upon harassment. The agency is not obliged to keep the debtor informed of payments; it is up to the debtor to keep track of his payments. An agency cannot take legal action against the debtor nor move to cease his assets; any such attempt on their part will be seen as harassment.
At best, they can recommend to the creditor that legal action be taken. A collection agency is obliged to ensure of the correct identity of the debtor, and inform him in writing prior to calling him. One can get more information on these agencies and their operations and their obligations by calling the toll free number to Consumer Protection : and asking for "A Consumer's Guide to Collection Agencies". When dealing with such an agency, it is very important to stay calm and professional; any commitment given towards payment has to be met with, no exceptions.
One should not try to evade one's debts as they are responsible for those debts; however if one tries, a collection agency has the ability and wherewithal to track down people. Any debt sent to such an agency for collection automatically affects one's credit rating and will go on for the next 6 years, at least. An agency gets into the picture only when a creditor gives up hope of collecting from the debtor, so the credit bureau is already informed of the bad debt.
A collection agency in Canada cannot garnish or attach a debtor's wages or assets in the USA, unless they retain an US attorney for the same and get a court ruling from a civil court in the US. However, if the debtor is a Canadian Citizen, a court ruling in Canada can be enforced against any assets in Canada, even in the debtor's absence.
Once an agency buys a debt, it will not give up, even if the debtor is away from the country for a long time. Unpaid student loans can follow a person for a long time and they cause a bad credit rating to follow you around, creating difficulties when you try to buy a car, home, etc.
REGULATIONS: Canadian Collection Agencies are Regulated Provincially.
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What is Securing Loans?
For students looking for a loan an online search would be their best source of information. Even someone with a poor credit rating can get a student loan, but the interest rate is likely to be exorbitant. Some banks in Canada do offer student loans for study in the USA. As a general rule, only Canadian students can avail of student loans from the Canadian Government, though there are exceptions.
For students from the US who want to study in Canada, in case of Universities recognized by the US Dept. of Education, they are eligible for Stafford Student loan and their parents for the Parents Plus loan. Most banks offer a wide range of business loans to cater to the needs of their customers. It is prudent to have a thorough business plan worked out, along with the proposed repayment schedule for quick approval and disbursement. The initial contact and application can be done online, as most banks have specific provisions for different functionalities on their websites and this will further speed up the processing of the loans.
In case of emigration, say to Canada from the USA, it is better to be upfront about it than face charges at a later date brought by the lien holder. Unsecured loans can be found online to suit every pocket and needs. In case of students from USA studying in Canada, tax exemption for the loan interest paid is provided if the University is a recognized one.
The federal and provincial governments in Canada offer grants and student loans to deserving candidates. There are several online lenders who are willing to sanction loans to even people with bad credit. Some trust and loan companies like Citifinancial, VFC (Vehicle Finance Company), specialize in unsecured personal loans. A student loan is an inescapable liability; it can never be written off (please read the contract), there is no statutory period, and it can even survive bankruptcy. One should at least try and pay the minimum dues on their loans, as neglecting to pay even that makes on financially irresponsible.
Getting business loans in case of bad credit is also possible as specialized banks cater to it. The debt consolidation process can merge all overdue loans and bills, including utility and medical bills, and even taxes into one consolidated loan. This helps in one consolidated EMI which is split between the various creditors, reducing the burden on the debtor, while repaying the creditors as quickly as possible. In Canada, an American homeowner can get an Equity Line of Credit on property owned here.
But one has to specifically ask for the Equity Line of Credit. Availing of loans is quite simple, provided one has minimum 2 years of gainful employment; one can approach One of the Canadian Banks, credit unions, trust companies, for such a loan. Some banks, when sanctioning loans to people with bad credit history, do it in increments – raise the amount lent month by month, based on their net income, credit score, job history, and other factors.
Mobile home loans are available with blemished credit history, but at very high interest. For people with bad credit history, it is essential to meet the conditions in the loan agreement for improving their records. For businesses, at least 2 years in existence is necessary for getting a loan approved; if not a personal guarantee will be needed.
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What is a Credit Card?
Credit Cards, be they Mastercard or Visa, are one of the most recent developments in the banking industry that has revolutionized the personal banking sector. Besides avoiding the painful process of carrying cash wherever you go, credit card companies have simplified internet banking and purchases, thus leading to a new sector in finance known as e-commerce.
Even though companies such as paypal specify in the same field, credit cards have an upper hand in terms of usage. It is easy to get a credit card and using it on any of the merchant websites is a walk in the park.
Getting to the basics, a credit card is a simple plastic card that consists of a magnetic strip that has the capacity to hold sufficient information about the user including his name, card number, etc. Each credit card has a credit limit, which is cash limit that the user is entitled to and can be used at merchant shops or withdrawn as cash through ATMs found at various parts of the country.
These credit cards can also be used outside Canada, in any other country as long as it has a Mastercard or Visa logo on it. Usage of the card outside the country of origin will invite certain bank charges along with currency exchange charges. This means that even if the purchase is made in US dollars, the credit card statement will reflect the purchase in Canadian currency.
Prepaid cards or Debit cards are similar to credit cards in the way they are used. However, when it comes to the way banks handle them, they are quite different. Prepaid cards do not have a credit limit for each customer. The limit depends on the amount the user deposits in his or her account.
The customer then can make use of this amount through the prepaid card without having to pay an additional transaction fee. This type of card will boost one's credit on one hand and will give the bank more confidence in awarding the customer with a credit card with a fairly decent credit limit.
Building Up Your Credit History
If one would like to improve his or her credit, he can do so by starting a savings bank account, if he or she doesn't hold one in the first place. It would help one's credit if monthly bills are paid through this savings bank account. These bills have to be paid in time, of course, to maintain a healthy credit. Also, the account holder can apply for a small loan and remember to pay the installments on time.
This will tremendously boost one's credit, as credit analyzers will surely look for the timings of payments and any delay in minimum payments will be noted and can pose as a threat to an otherwise good credit.
What is a credit Card?
A primary card holder must make sure he is responsible with his card. Since the credit card is an access to a very good amount of money, any loss can pose a danger to the customer in case the finder misuses it. Thus, if the card is lost or stolen, the customer must not delay in contacting the customer care and blocking his or her card and transferring his funds to a new card.
SEE ALSO
credit card
credit card agreement
credit card application
credit card company
credit card consolidation
credit card debt
credit card insurance
credit information
credit inquiry
credit limit
credit rating
credit report
References
External Links
TD Visa
CIBC Visa
RBC Visa
ScotiaBank Visa
BMO MasterCards
MBNA MasterCards
CapitalOne MasterCards
American Express Canada
HomeTrust Visa Canada
ScotiaBank
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What is bankruptcy? The basic aim of the legislation meant for bankruptcy is to help people who are badly stuck up in debts.It is made to give them bright chances to handle with the debts when they are in hopeless troubles and to get them freed off their debt burdens.To help themselves the bankrupts must provide the necessary details such as income and move on with the help of trustees.Co-operation with the trustee to fulfil all the requests made is important.At this point it is most necessary to say who is exactly a trustee. A trustee is a well educated and seasoned consultant of debts in Canada.Under the condition that the valid documents are filed, there should be no actions against a bankrupt apparently.However this may not include creditors like banks etc.From a married person�s view point , the spouse will strictly not be charged for the bankruptcy unless and until the spouse is not responsible for the debts directly.
Deep into details of bankruptcy There are primarily two ways to go into bankruptcy.It can be either done by voluntarily making an assignment or by requesting the court to declare an order stating about the person�s bankrauptcy.People who have real valid reasons to be in such deep troubles and never been bankrupt before have an advantage of having an automatic discharge in a term of nine months provided the conditions concerning the trustee and other authorities are met.Considering making a proposal is essential if there is proper cash with the person.It becomes the duty of the trustee to deal with it in such cases.
Other payments and costs related to bankruptcy Payments of alimony has got nothing to do with the bankruptcy and it has got to be maintained properly.Some fines can also be taken off by the bank�s discharge. Butbthere are exceptions with fines like court fines, fines for robbed things etc.There are some other costs that are related to bankruptcy but are taken control by the government.For example the trustee fee, fee for counselling are taken decided by the government.
Gaining Credit once again Gaining credit all over again is of course essential and it can be achieved in several genuine ways such as saving a good amount of money constantly,availing only very small loans if necessary , by not accumulating any credit card payments etc.
Bankruptcy in Canada Taking the case of student loans, there are special laws for it and there are less chances of getting the student spared from filing a case under any willingness by te opposition.Getting a trustee�s advice ewhen it comes to the termination of bankruptcy period is important.There are actually a number of considerations that govern the length of the period.The proceedings to gain a mortgage in Canada has had a lot of modifications in the recent two years in Canada.
Merits and trade-offs It is advantageous in the view of avoiding harsh collection approach.It is undoubtedly a fast process that needs no much shell out of cash. It suffers the disadvantage of being tough on the credit history.There is a growing need for continuous documentation of every single detail of the transactions.Sometimes there can be an extent where even the possessions cannot be saved from complete surrendering.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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