Unexpected Repair Bills Can Put You in Hot Water

Owning your own home is something that gives a person a sense of independence and accomplishment. You are no longer paying monthly rent payments on property that doesn’t belong to you. You are building equity in your home instead. When you purchase your home, your mortgage company will generally assess your financial situation to determine whether or not you can afford the payments on the home you are purchasing. They know that it is in their best interest to keep you from purchasing a home you cannot afford.

In spite of this careful financial screening by your mortgage company, financial positions can change after you make the purchase. Even when you are able to make your house payments, there may be little, if any, extra cash for repairs and maintenance to the home you own.

Unfortunately, repairs to your home can’t always be planned for. If your furnace dies in the middle of the winter, you have to replace or repair it. If you have water damage that isn’t covered by your insurance, those repair costs will have to paid by you, the homeowner. These types of unexpected expenses can break a family’s budget that is already stretched to its limits.

If you’ve found yourself in this spot and don’t know how you’re going to get out of this downward financial spiral, Creditaid may be able to help. Contact us for your free consultation.

Financial Literacy Week

Did you know that October 30th – November 5th, 2011 is Financial Literacy Week? The national campaign is organized by ABC Life Literacy Canada and aims to increase the financial knowledge and know-how of Canadians. This year’s campaign ambassador is Gail Vaz-Oxlade and together with ABC Life Literacy Canada, she has released a series of videos sharing her best financial advice.

Gail Vaz-Oxlade is the host of hit TV shows Til’ Debt Do Us Part and Princess. Gail is also the author of best-selling books Debt Free Forever and Easy Money.

Gail will be coming to Winnipeg on Feb 9th, 2012 – stay tuned to Creditaid for more information.

To watch more of Gail’s videos, click here.

Student Loans Got You in a Bind?

There was a time when applying for financial aid for university or college meant applying for grants and scholarships that didn’t need to be paid back. There isn’t as much of that type of funding available today. Even when it is available, it doesn’t usually cover the full costs.

Student loans are what most people have used to help them finance their way through university. They’re fairly easy to secure, and they don’t have to be paid back until after you leave college. Their interest rates are also usually lower than you would pay on other loans. They are a good deal for students.

Unfortunately, you may be in the situation that many others find themselves in after their education has come to an end. Starting pay at the job you’ve secured (if you have one) isn’t what you hoped it would be. In addition, you probably are dealing with a lot of other living expenses that you could not possibly have predicted at the time you took out your student loans. Many people start out college single and carefree, and then come out of college married and perhaps having children to support. They usually have added a car payment to their cost of living and a more expensive apartment or the purchase of a home. All these things can easily consume an individual’s pay check and leave little left for paying off student loans.

As we said, if you find yourself financially strapped because of student loan payments that you can’t afford, you are not alone. Plenty of others are finding themselves in the same situation. Many of them are our clients. We are helping them find solutions that can resolve their lopsided financial situation and put them back on track. Contact us and let ‘s discuss how we might be able to help you too.

What’s Your Hobby Worth?

Everyone has his or her own private passion. It may be sports, photography, fishing, crafting or restoring old cars. These types of passions and hobbies can keep us energized and excited about life. That’s a good thing. On the flip side, some of them can become quite expensive, and when it involves something we truly enjoy, it is easy to justify those expenses to ourselves. A good deal is a good deal, right?

If you’ve gotten yourself into debt to finance one of your hobbies – you aren’t alone. Plenty of people find themselves in that situation. Sometimes people make the assumption that the hobby will be able to pay for itself in some way, and then, that doesn’t materialize. At other times, people just get caught in the heat of the moment and hope they’ll be able to pay off the credit card debt the next month or next spring or…

Debt that has been created because of overspending of hobbies and recreational activities can be dangerous to a family in more than one way. Besides the bind it puts you into financially, it is the type of debt that often can cause strong division in a marriage relationship as well, particularly if the interest  is not one that is shared by the spouse.

Hobby debt can accumulate much faster than we expect, but it doesn’t need to be your downfall. At Creditaid, we’ve helped plenty of people deal with this same situation. Our experienced credit counselors are here to help. Contact us for your free initial consultation.

Digging Your Way Out of Job Loss Debt

Losing a job is one of those unexpected circumstances that can put our finances out of balance. Even when you have some notice that a job is coming to an end, you still have to deal with the uncertainly of how long you will be without work. When these two unknown factors are combined, they can make financial management very difficult.

We all want to approach difficult circumstances with a positive and hopeful attitude. The same is true when we have a job loss. Unfortunately, that hopeful perspective can sometimes mean that we finance many items with the use of credit cards, with the assumption that we will soon be working again, and able to pay off the credit card charges. If our time without work stretches out longer than we expected, we can easily find our debt growing out of control.

Interest on unpaid balances on credit cards accumulate very quickly. If payments are missed, those interest rates can increase and have penalties added to them besides. Before you know it, what seemed like a manageable amount of debt has turned into an intimidating mountain.

The good news is that the mountain doesn’t need to keep growing. There is a way out. Even if you are still without a job, we can help you bring your debt back under control. Contact us for your free initial consultation with one of credit counselors. We are here to help.

Credit Card Offers Are Sexy

Back-to-school for many post secondary students means the onslaught of credit card offers that entice with low interest rates and perks – Free Trip Anyone?

Before you apply for that new credit card, ensure you educate yourself on how to handle credit and manage debt. Student debt is such an important thing to understand. It is the begining of establishing a solid financial start as an education is pursued.

Getting Your Financial Life in Order

Just as spring is often the time that we clean-out and reorganize our homes, it is a good time to bring some order to our financial lives as well. We’ve put together a few tips to help you do just that.

1. Balance your checkbook. For some people, this may be a ‘duh’ statement, but for others it is actually a big step. If you have not been balancing your checkbook with your monthly bank statement each month, now is the time to start. Knowing that the balance in your checkbook is accurate can relieve a lot of stress and save you plenty of money in overdraft fees. If you’re having trouble getting it balanced, take it into your bank and ask them for help. They can help you get to a good clean starting place for the spring.

2. Write out a monthly budget. It doesn’t have to be overly detailed, just start by listing out all your monthly bills and the average amounts due each month. Then add in budget amounts for groceries, fuel for your vehicles and other expenditures you make that do not come to you in bill form, like entertainment, giving and clothing. Schedule when each bill will be paid on a calendar, based on its due date and when your income comes in.

3. Make an appointment for credit counseling. There are experts available to help you sort through your finances and give you the advice you need. Pick up the phone and make an appointment with one of our credit counselors.

4. Open a savings account. Even if you don’t have much to put into it, open a savings account and begin the process. Determine an amount to deposit into it each week or each month. Perhaps you’ll want to set aside a few dollars from each pay check, or maybe you’ll do the ‘save my change’ game and deposit your extra change each week. No matter how small it is, begin the process of building a savings account for yourself.

These are just four simple steps to help get your financial life in order and heading in the right direction. Spring is as good a time as any to start fresh.

Time to Rein in Spending

April showers bring May flowers is the old saying. The spring rains wash away the dingy gray of winter and usher in the beautiful bright colors of tulips and daffodils. In much the same way, ‘reining’ in spending can release some wonderful feelings of exuberance and new life as well.

When we over spend and are behind on paying our bills, the stress mounts ,and each new month becomes one to dread, instead of to enjoy. By saying no to our old spending habits in several small ways, we can become free to relax and enjoy life again. Here are a few tips to help you get started.

Make a shopping list and stick to it. If you didn’t write it on the list, you can’t buy it, that’s the rule with this one. That means you need to be very thorough when making out your list. It may take you a while the first few times, but you’ll get used to. You’ll be surprised how much it will help you just to have that sheet of paper that tells you what you can buy and can’t buy when you enter a store.

Don’t carry your credit card with you. If you have credit cards, leave them at home. If you don’t have them with you, you are less likely to spend money that you don’t have. Only put the credit card in your purse or wallet when you know that you will need it for a specific purpose.

Gifts. If you are a generous gift giver but your finances are out of control, this may be an area you need to rein in. Set yourself a budget for birthday and holiday gifts. Let your family know that they shouldn’t expect the same extravagance in gifts that they have received before. They’ll understand and you’ll find your bills much easier to pay.

Decrease your dining expenses. You don’t necessarily need to quit going out to dinner entirely, but you can begin to cut back. Start bringing your own lunch to work, instead of going out for lunch every day. Choose your dining establishments for their dollar value and not just their ambiance. Look for the specials and coupons in your local paper for area restaurants.

These are just four easy tips to begin reining in your spending before it gets totally out of hand. Every little bit that you can trim off, is money in your pocket.