Debt Free in 30

When I ask my clients "what happened; how did you get into so much debt?", they tell me that the credit card company offered them a credit limit increase on their credit card, so they took it.  Or, they offered me a line of credit, so I took it. Makes sense; if someone offers you something, you take it. But is it always a good idea? What should you watch out for? So today on Debt Free in 30 I've i...

When Sears went bankrupt and the employees discovered they wouldn't get their full pensions, there was an understandable outcry, and many people has said that the solution is to make pensions the first creditor to be paid in a bankruptcy, ahead of the banks. That sounds good, but that policy may cause some unintended consequences that hurt workers, as we explain on today's podcast, and we offer so...

Debts arising from the failure of a business is a common reason that someone may have to file a personal bankruptcy. That's not surprising; you borrow money personally to invest in a business, it doesn't work out, you're left with the debt, so you file bankruptcy.  I've personally done hundreds of bankruptcies that were the result of a business failure. So what can you do to reduce the chance of b...

There is a lot of bad credit and debt advice out there.  We see it on YouTube, and Twitter, and Reddit, and in personal finance blogs.  And it seems that one of the most popular areas to give bad advice is on how to improve your credit score. So, today, Scott Terrio and I are going to share and debunk the bad advice you can get on the internet for improving your credit score.  Some of the bad advi...

Getting a copy of your credit report and credit score for free, from one of those "credit monitoring" services, can be very expensive. On today's show I rant about why I don't like those services, and I give practical advice on how and when to monitor your credit score.

Today's episode is a quick "Technical Tidbits" edition where we answer one question from our listeners. The short answer is yes, it is possible for a collection agency to take you to court, but it's not a common occurrence.  We explain when they are most likely to take you to court, and what your option are if they do.

On today's show we discuss the proposed changes in the federal budget, including help for new home buyers, and explore whether or not these changes will actually help millennials and others.

Every year, we analyze information we collect about our clients to develop an updated profile of the average person filing insolvency. We call this person Joe Debtor. As the economy changes, so too does Joe Debtor. In 2014/2015 we warned that we were seeing an increase in the number of seniors filing bankruptcy. In 2017 we highlighted that, despite a robust economy, we were leaving people behind w...

Budgeting for bill payments and saving can be a straightforward process when you have a regular, consistent paycheque. But how do you stay on top of your finances when your income differs from one month to the next? What if you're just not someone who can follow traditional financial planning? Enter Chris Enns. Chris is an opera-singer and a fee-only financial planner specializing in helping peopl...

In over 20 years helping Canadians eliminate their debt, I've yet to hear a single client say they chose to have debt problems . Debt accumulates over time and then it becomes an even bigger problem when you lose your job, become ill or get divorced. But for many of my clients, despite knowing that the cause of their money troubles was beyond their control, they still blamed themselves for their f...

When used correctly, a credit card is a helpful tool to build your credit history, and it's a safer than carrying cash. However, when mismanaged, a credit card can quickly become one of the most expensive borrowing options, leading to serious debt trouble. For many of our clients, credit card debt is the second biggest debt they carry. To help you avoid the common pitfalls that come with owning a...

Many people we meet are surprised to find themselves so far behind financially they can no longer pay their bills. The problem with debt is that it creeps up on us slowly.  Today we are going to take a lesson from the business world and apply it to personal finance. Businesses use financial ratio analysis all the time to assess their financial risks. Today we are going to look at 4 personal financ...

Whether you are a borrower or a beginning saver, the best way to beat the bank at its own game is to learn some basics so you can make a better decision.  I talk with Larry Bates, author of Beat the Bank, as he shares tips for outsmarting financial institutions and keeping the most of your hard-earned money in your own pocket rather than the bank's. One of Larry's biggest messages is that if you u...

A debt collector does just what the name suggests: they collect on unpaid debt. They won't review all your debt relief options with you or give you a plan that makes debt repayment realistic and affordable. Their only goal is to recover as much debt for the creditor as possible. That's how their business makes money. You might be shocked to learn that some big not-for-profit credit counselling age...

A home equity line of credit (HELOC) is a loan secured by the equity in your house. A HELOC is often presented as a great borrowing tool because unlike with credit cards or unsecured loans, you have access to a large amount of revolving cash at a lower interest rate. But what you probably don't know is that your bank can change the borrowing terms on your HELOC whenever they want. I talk with Scot...

If you can sell your assets, pay the taxes (there's a tax hit when you cash in an RRSP), and have enough to pay off your debts, it may make sense to sell your assets to pay off your debt.  But, if your assets won't cover your debts in full, there may be a better option. On today's podcast we discuss how to determine if selling assets is a good debt reduction strategy.

Whether your inheritance is included in a bankruptcy depends entirely on when you become entitled to receive the proceeds. As this is a complex issue, I talk with Ted Michalos and we take a detailed look at bankruptcy implications for inheritances.  While we discuss inheritances and bankruptcy specifically in this podcast, the advice applies to virtually any cash windfall including a cash gift, wo...

The best way to control your auto expenses is to buy a car you can afford.  This keeps your monthly car loan payments low (since you borrow less) and ensures that you don't over-finance. But how do you buy an affordable car that fits within your budget?  Should you buy new or used?  If it's used, how can you know it's reliable? Enter Scott Marshall. With 30 years of experience in the driver traini...

Every financial guru says that achieving success starts with setting a goal. I disagree.  While there is some benefit to setting goals, you are more likely to achieve success if, instead of focusing on goals, you have a system. I discuss goals vs systems on today's podcast. Listen or read the transcript below. This is our first episode of 2019, and I've got a question for you: how did you do with...

It's been a long time coming, longer than Ted Michalos and I predicted in our past year-in-review podcasts. We predicted that 2014 and 2015 consumer insolvencies would remain flat, and they did. However, last year, we predicted that the seeds of a debt crisis had been planted, and we fully expected consumer insolvencies to begin to rise.  And they did, albeit not until the end of the year. As of O...

If you just earned a bonus from your employer or received an unexpected sum of money, how should you use that bonus if you also have debt? On today's show we talk with Scott Terrio and we outline what to prioritize to get the most bang for your buck. We also take a look at common mistakes people make when they receive a surprise lump sum of money and discuss the impact a bonus can have on a bankru...

Financial technology, or fin-tech, has come a long way. Much more than just a budgeting app, now you can do your banking, money management, investing and even borrowing, online. In addition to apps, fin-tech companies are following the chatbot trend. On today's show I talk with Alan Whitton, (known as the Big Cajun Man), who has spent 35 years working in the tech industry, about whether chatbots a...

When you have debt, Christmas is a stressful time. With pressure to spend on family, friends, co-workers, and maybe even your barber, the season turns into more of a financial burden than a time to be merry. And even though you want to give, your budget is limited. Is it possible to say no to holiday spending without feeling guilty? Actually, it is. It's all in your approach. On today's show I tal...

The death of a spouse and divorce bring an emotional burden, but sadly such catastrophic events also create financial consequences.  In fact, the death of a spouse or divorce are both common  reasons why people file bankruptcy . Without proper financial planning, people can find themselves unable to cope with existing debt and often take on new debt to pay the bills.  Doris Belland, our guest toda...

If you are out of work or laid-off and need to upgrade your skills to improve your employment potential, how can you do this without incurring more debt? The Ontario government has a Second Career program that offers financial support to retrain for in-demand jobs for those who qualify. On today's show we talk with David Shumaker, an employment counsellor at The Working Centre in Kitchener, where...