Margaret Johnson and Brian Denysuik have been invited by the Financial Consumer Agency of Canada to represent the Canadian Association of Independent Credit Counselling Agencies at the “Partnering to Turn Financial Literacy into Action” conference this May 26th -27th 2011. The conference’s focus will be on how organizations can help individuals improve their financial knowledge and the way they manage their personal finances.
It will focus on how organizations can help individuals improve their financial knowledge and the way they manage their personal finances.
Brian will provide an update when he returns from the conference.
Household Debt By Region Assessed
TD Economics released their report on household debt vulnerability by region today.
“The focus nationally on household debt has raised questions about which regions face the most significant challenge,” according to Craig Alexander, TD’s Chief Economist
and co-author of the report. “This new index does not predict events, but it does shed light on those provinces that are most susceptible to downside risks.”
Its good news for Manitoban’s who are the least vulnerable. Households in British Columbia, Alberta, Ontario and Saskatchewan households were found to be at greater risk with Atlantic Canada and Quebec in the middle.
Are you paying to take out cash from ATM’s?
It is really scary to think that it could cost you up to $8.00 to withdraw cash from an ABM that is not owned by the financial institution where you bank.
Click here to see examples of what it might be costing you!
Holiday Spending Hangover
You did what you said you wouldn’t do over the holidays and that was over spending. Unfortunately, what’s done is done, you beat yourself up over it, and now you just need to move forward to fix it.
First thing to do is to assess the situation. See how much you have spent over the holidays and how much damage was done to those debit and credit cards. Then figure out a payment plan. Determine which debts to pay off first and prioritize when you will pay them off. While doing this, take a look at how much you will be bringing in over the next couple of months and if you have money left over after paying off your fixed debts, put that money towards your extra debt you accumulated over the holidays. Also, stop all unnecessary spending habits such as shopping, dining out, movies and entertainment, and vacations. It may be painful to give up some of your luxuries for a while, but it will be worth it once you have paid off your debt.
Additionally, to find extra income during this financially trying time, try getting your taxes done early and you never know, you might receive a significant amount on your tax return that you can put towards your debt.
The final tip is to learn from this preventable mistake. Plan ahead for the next holiday season and you are sure to make all the right choices next year.
Canadian Government Tightens Mortgage Rules to Stem Consumer Debt
Federal Finance Minister Jim Flaherty announced new mortgage changes this morning to combat the rising household debt levels of Canadians.
Three main changes are:
· The maximum number of years the government will back a mortgage was lowered from 35 to 30.
· The upper limit that Canadians can borrow against their home equity was lowered from 90 per cent to 85 per cent.
· Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
The home equity change is the result of the Government’s concern that homeowners are rolling too many consumers purchases into their insured mortgages. “These loans are not used to create housing. They’re used to buy boats, and cars and big screen-televisions,” Flaherty said. “That’s not the business that home insurance was designed for.”
December Poll reveals Canadians are concerned!
Knowledge Bureau shared the results of their online poll – “Are families in your community more worried about their financial affairs this Christmas shopping season compared to a year ago?” 78% said yes. Some comments were:
– “They have to curtail their shopping, as they are worried about the financial situation their families are in.”
– “I think everyone is worried about their financial affairs”.
What can a Credit Counsellor do for you?
Credit Counsellors help individuals in need to develop a plan to get out of and stay out of debt. You can learn more by reading Barbara Bowes Winnipeg Free Press column. This article is part of the radio show, Bowes Know that featured Creditaid’s Brian Denysuik. Click here to read the WPF Article.
Creditaid with Bowes Knows
On January 2, 2011, Brian Denysuik had the opportunity to be on Barbara Bowes, Human Resource Specialist, CJOB radio show – Bowes Knows. They discussed a variety of topics from facing up to the holiday spending hangover to insights on how a Credit Counsellor can help individuals with their debt load. Click here to listen to the show – Bowes Knows.
Canadians Borrowing Cheap in Recession
Mark Carney, Bank of Canada governor issued a warning to Canadians on borrowing low interest rate loans. Our household debt-to-income ratio’s are extremely high which makes Canadians vulnerable.
Meanwhile Stats Canada revealed the ratio of debt to disposable income rose to 148.1 per cent. Canadians now owe $1.48 for every dollar of disposable income.
Low interest rates today does not mean low rates tomorrow. Canadian need to keep in mind that interest rates are likely to go up in the future and they should plan for it accordingly.
Canadians Act on their 2011 Resolutions Early
TD Canada Trust has just released the results of their Holiday Survey.
Here is a glimpse of the resolutions Canadians are doing today.
- Spend less and avoid buying things I don’t need (53%)
- Look for better deals (38%)
- Build up savings to cover at least two months of living expenses (30%)