Budget-Friendly Activities for Spring Break

Spring Break Budget Ideas

At this time of year, you will start seeing all sorts of advertisements for exciting Spring Break trip activities like tropical vacations or camps. With the holiday season just ending and tax season just around the corner, this can be an expensive time without adding extravagant adventure costs to the mix.

If you manage the finances in the home and are trying to stay on track with your budget, it can add a lot of stress at the thought of disappointing your family when it comes to spring break plans. Cutting back on spending shouldn’t have to mean cutting back on the fun so here are some lower to no-cost activities for the whole family.

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Will I Owe Income Taxes and Have to Pay Back CERB?

Cerb and Income Taxes

If you received CERB during the pandemic, your tax liability may increase because you didn’t pay taxes at the time you received it – no one did.

Like any income, CERB is taxable, but there’s good news.

There aren’t special tax rates you must pay on any CERB you received. The tax rates are the same rates you pay on your employment income. This makes filing your taxes much less overwhelming than most people thought, but it’s still money you will owe.

How Much Tax will you Owe?

No two people will owe the same amount of taxes. Your tax rate depends on your total income and this year your total income includes all employment income plus any CERB you received. You can check your tax brackets here.

How do you Pay your CERB Tax Debt?

Like any tax debt, to figure out how much you owe, you must first file your taxes. It’s always important to file your taxes on time even if you think you can’t afford the tax debt. Get your taxes in and then take additional steps to manage the debt.

If you can’t pay your tax debt on time, contact the CRA. In most cases, they’ll offer a repayment plan or payment arrangement, but only if you ask. You must be proactive in your request, so you don’t fall behind.

Options if you can’t Pay your CERB Tax Debt

If you can’t pay your CERB tax debt, here are your options:

Apply for Taxpayer Relief

Taxpayer relief is available for those who have extenuating circumstances including unemployment, chronic illness, or a natural disaster. It has to be something outside of your control that stops you from paying the taxes.

File a Consumer Proposal

If you are in over your head in debt, you may consider a consumer proposal. This is a formal request for relief of your debts including your CERB tax debt. A proposal doesn’t eliminate the debt, but it may lower the amount you owe making it easier to afford.

Work with a Credit Counselor

If you’re in over your head in debt and now face tax debt too, get with a credit counsellor. If you free up some of your money by negotiating lower rates or consolidating debt, you may have more money available to pay your tax debt.

The key is not to ignore your debt. If you can’t pay it, work with professionals to find a way to make arrangements. Ignoring the debt only leads to more penalties and interest.

Final Thoughts

Don’t let the thought of tax debt put you over the edge. Yes, it’s another debt and if you’re already struggling it can feel like too much, but there are ways around it.

Contact our credit counselors today for your free consultation to find out how we can help make your tax debt more affordable. Sometimes it just means you need to free up some money by lowering your interest rates on other debts or negotiating other payment arrangements.

Consider This When Preparing your Tax Returns During a Pandemic

Tax Time Savings

If you’re used to getting a large tax refund at tax time, you may be surprised to see this year’s return. Many taxpayers aren’t getting the refund they’re used to, and millions aren’t getting a return at all.

To maximize your tax refund, make sure your taxes include these deductions, if applicable to your situation.

Home Office Expenses

If you worked from home in 2020 as an employee, you may write off some expenses incurred. If you’ve never claimed a home office expense before, you have two options:

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How CERB May Affect your Tax Return

Millions of Canadians found themselves financially distraught amid the COVID-19 pandemic. Fortunately, the Canadian government came through in a big way with the Canadian Emergency Response Benefit.

CERB provided the financial relief consumers needed, but come tax time, you may owe more money than you thought because of the benefit. Depending on your financial situation, you may even have to pay back CERB, or a portion of it.

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Black Friday, Cyber Monday and Holiday Spending

680 CJOB, Winnipeg’s news talk radio, Hal Anderson recently invited Creditaid’s, Brian Denysuik to join him on air to help get people through the holiday spending season. Brian provides advice on how not to overspend including a few tips on how to create a “Save to Spend” holiday plan to help alleviate stress and avoid going into debt this holiday season.

Listen to the discussion below.

How Not to Overspend When Planning a Funeral

cemetery

We often offer advice about taxes here on our blog, but we seldom talk about life’s other certainty. Planning for the funeral of a loved one can be very stressful if you have to do it all while you’re in the process of grieving. There are many things to consider – type of internment, the casket, the service, and the reception. Because of our desire to “just get it done”, and to properly memorialize someone very close to us, we can often overspend when planning a funeral.

At Creditaid, we see the impact that high funeral costs can have. We can offer the following advice to someone who’s planning a funeral:

Take someone with you. Having a trusted friend or family member who isn’t as stricken with grief as you are to help with making the arrangements can assist in keeping a perspective on matters. While the professionals in the funeral industry aren’t trying to take advantage of you, bear in mind that it is a business. Having a “voice of reason” with you could prove to be handy.

Shop around. Funeral services differ in price. While we don’t advocate driving all over town, visit at least two funeral homes to see what options they offer you.

Look at economical alternatives. Instead of a full-blown funeral, you could opt for a “direct disposition”, where the internment is handled in the background, and instead hold a memorial service for friends and family. Cremation is a more economical option than traditional burial in a plot, and has gained popularity in recent decades. It’s now a standard method of burial.

Consider the real wishes of your loved one. Chances are, they wouldn’t want you to put yourself in a position of financial hardship for their funeral. While it’s only natural to want to memorialize someone “properly”, financial realities should always be considered. There are lots of ways to make a fitting memorial without exposing yourself to crushing debt.

Creditaid offers credit counselling and debt management solutions to Manitobans struggling with debt.

Hosting a BBQ on a Budget – How to Survive Summer Parties Without Breaking the Bank

party-table

Manitoba summers are notoriously short, so it’s understandable that we celebrate our respite from frigid temperatures with zeal. Unfortunately, for those of us on a tight budget, seasonal celebrations can prove to be a strain on the budget, especially because we tend to throw caution to the winds once the sunny weather comes. Here are some strategies to limit the pressure your budget:

Resist the Temptation to Pay for it All
Chances are your friends will understand your need for budgetary restraint. Most of them probably feel the same way. There’s no need for you to take on a huge expense in the name of entertainment for your friends. If they don’t understand you need for restraint, then perhaps they aren’t really your friends. Ask them to share the cost by bringing their own alcoholic beverages if they choose to drink, and consider asking them to bring a dish to accompany your barbecue as a potluck. It’s a good idea to co-ordinate the things guests bring so you won’t have too many macaroni salads!

Spend Your Money in the Right Places
barbeque-skewers-party-on-a-budgetIf you’re going to splurge, do it in a way that people will notice. Shrimp skewers for appetizers, or a really nice cheese plate become a focal point of your party. Don’t spread your money too far.

As for barbecue, there’s really no need to grill expensive cuts of meat. Hotdogs and hamburgers are traditional summer fare, and they’re reasonably economical. Consider making your own burgers rather than buying pre-made patties. It’s cheaper, and nearly always better.

Make Do With What You Have
Resist the urge to make big purchases in the name of entertainment. Summers here are short – don’t spend a lot of money on expensive outdoor furniture you can’t use most of the year. There’s no shame in asking your guests to bring their own lawn chairs to your party, and your buffet table doesn’t need to be a new shiny glass-top from the big box store – your old one, or even a door on a couple of sawhorses will look just as good with a table cloth on it.

Plan Ahead
Make sure you have enough propane or charcoal for the barbecue, and that there’s no need to purchase condiments or anything else from the convenience store at exorbitant prices.
Above all, remember that summer entertaining is about the people, not the party. There’s no need to expose yourself to financial risk in the name of entertainment. Go ahead and have fun, but exercise restraint.

Creditaid Offers credit counselling and debt management solutions for individuals in Winnipeg and across Manitoba, including areas such as Portage la Prairie, Brandon, Winkler, The Pas, Flin Flon, Thompson, and many others.

What to Do with the Wedding Ring after Your Divorce

When a relationship ends, the items that held special meaning before can become bearers of painful reminders. Engagement and wedding rings, wedding dresses and marriage certificates are items that many people wonder about after the end of their relationship.  What can you do with them?

Engagement rings and wedding rings often come with a big price tag and if the items lose their emotional value, there is the option to sell them.  Jewellers sometimes will buy their pieces back but at a significant discount.  On average, they will buy them back at only 35% of original value.

Many people in similar situations have opted to sell their rings online through websites such as “I Do… Now I Don’t”.  The founder, Joshua Opperman, was left with a ring after his engagement ended prematurely which prompted him to found the jewellery auction site to help others in similar situations part with their rings.  He has since been featured on Rachael Ray, CNN, and Whoopi Goldberg.

One important factor when selling your high valued item online is to minimize risk of scam.  On “I Do…Now I Don’t”, sellers can list their rings for free.  Once the item is purchased, the money is held in escrow by the website.  The seller will send the ring in for authentication by GIA-trained gemologist.  Once the ring has been authenticated, the ring will be sent to the buyer via UPS with insurance included and a bank cheque will be mailed out to the seller.

Sellers will typically receive 40 – 60% of the retail price for their item, minus a 15% commission fee. If you are making payments on the ring, this return can help you substantially in reducing your debt.

Parting with your engagement or wedding ring might give you the emotional detachment you need to help you move forward past the relationship and onto something better! Visit https://www.idonowidont.com/ for more information.