April 12th, 2012
What do you think?
The Finance Minister Jim Flaherty and Prime Minister Stephen Harper suggested that while Canadians are responsible for their own finances, the government isn’t opposed to stepping in.
Flaherty told reporters that he has been talking to the banks about the situation and has been monitoring debt levels, but he doesn’t believe that any action is needed at the moment.
Affordability is what is important and if you talk to the banks about default rates – and I talk to them often on this subject – there is not reason for extreme concern now, he said.
Stephen Harper suggested the situation is the result of individuals’ choices and the government can’t control how they spend.
“We continue to warn Canadian households that interest rates are unlikely to go down in the future. They’re far more likely to go up, so Canadians should plan accordingly, he said.”
According to these statements it doesn’t seem that the government feels it is necessary to step in at this time.
All Canadians need to consider what will happen to them if something out of the ordinary happens to them or someone in their family.
With debt levels at their current rates people can hold on unless something happens. Something like an illness that keeps you away from work, or losing a job or having your hours reduced at work. Anything that could decrease your income level could have a very serious affect on your ability to pay your debts.
This is why it’s very important to have debt levels that you can afford in an emergency situation.
Have you been able to put the money away for that rainy day that always comes?
Tags: borrowing money, Credit Card debt
Posted in Personal Bankruptcy | No Comments »
April 12th, 2012
There is a fee for doing a bankruptcy.
Most Trustees in Thunder Bay charge approximately the same amount for a bankruptcy. When you meet with a bankruptcy counsellor factors such as your ability to pay, your level of income, were there previous bankruptcies and do you need to attend bankruptcy court will help determine what your fee will be.
As with many other professional services the HST does apply to bankruptcy fees.
At BDO Canada Limited we allow the individual time to pay the fee. For more information about our flexible bankruptcy fee plans please contact BDO Canada Limted , Trustee in Bankruptcy, at 807-625-4444 or Toll free at 1-800-465-6868.
Tags: bankruptcy cost, cost, fees, fees for bankruptcy, Hst, Hst in bankruptcy fee
Posted in Bankruptcy Fees, Bankruptcy Fees Thunder Bay, Bankruptcy Fees in Ontario, Bankruptcy Thunder Bay, Bankruptcy personal, FAQ, Personal Bankruptcy | No Comments »
March 19th, 2011
Are you in the red, or the black?
How many of you out there even know what I’m talking about?
Not so long ago, people were considered to be in the “red” if they owed more than they owned or if they had debt and no savings.
If you didn’t have debt and had some savings or if you owned more than you owed you were considered to be in the “black” or to the good so to speak by that amount.
Being in the “red” or the “black” is just another way to look at your finances.
If you owe more than you own you are in the “red”.
If you own more than you owe you must have some equity which can be savings, a house that is paid for, a retirement savings plan and if this amount is higher than your debts you are in the “black”.
I don’t know if you’ve been paying attention to the latest statistics but apparently many Canadians are living in the “red”. They use credit cards, overdraft, payday loans and lines of credit to cover their day to day living expenses. This is a dangerous place to be.
When you owe or spend $1.48 for every $1.00 that you earn you are basically financing from your future earnings. What this means is that the longer you continue to do this the less future earnings you will have at your disposal. At some point it has to stop because this situation can’t go on forever. One day the gravy train of credit will dry up. Your capability of borrowing will run out if you don’t correct this situation.
The longer it takes you to learn to live within your means, or to get by on what you actually earn the harder it will be to make those adjustments down the line.
For many people they don’t make these changes until something drastic happens. One of the partners or both lose their job, or one of them gets sick and isn’t able to work for a long period of time which lessens the amount of money coming into the family. Even something as simple as going on Maternity or Paternity Leave can throw your finances into a “tizzy” if you haven’t planned for the reduction in income that will be experienced. Seasonal employment is another area that gets people into financial difficulty or into the “red” so to speak. While they are working they can manage everything pay all their bills no problem. But when they are on Employment insurance everything falls apart. Because they haven’t planned for the reduction in income that will be experienced while they are laid off.
If you would like to get back in the black you will need a plan. Sometimes the plan can be as simple as putting together a budget or monthly spending plan which takes into consideration everything you owe and matches it to the money you bring in each payday.
You may require assistance over and above a budgeting or savings plan. Your financial situation may require professional intervention. If this is the case contact your BDO Thunder Bay Bankruptcy Trustee, Jayson Stoppel for assistance at 807 625 4444.
Tags: owe more than you own, own more than you owe are you in the red or the black
Posted in Bankruptcy Thunder Bay, Bankruptcy personal, Consumer Proposal, Jayson Stoppel, Personal Bankruptcy, Savings Thunder Bay, Thunder Bay Bankruptcy, Thunder Bay Bankruptcy Trustee | No Comments »
March 19th, 2011
What would happen if you got sick and you weren’t able to work for a couple of months?
Have you considered how you would pay your rent, utilities, buy food, etc.?
If you don’t have access to Sick benefits it’s really important to have an emergency fund with at least three months savings.
If you are wondering how to get three months worth of savings, you can do what most of us do, just start saving whatever you can afford every pay day.
Eventually you will accumulate the required funds.
But you must start the saving, even if its only a few dollars at a time. The more you can save the quicker you will accumulate the emergency fund.
As long as you start saving you will get there eventually. If you don’t start the saving you will never reach the goal.
While you are away from work you may be able to reduce your expenses. Any amount you could reduce would be helpful while you are away from earning a salary. Somtimes you need to make drastic changes like moving in with loved ones, or getting a roommate.
When I say anything you can do to reduce expenses I really mean “anything you can do”. You may need to be creative or think “outside the box” so to speak to make the necessary changes to help you get through this time.
Some people start out by saving their change every week and put this into their savings account. Others take a percentage off the top of their pay cheque or place a dollar value every payday earmarked for saving. For example: every payday 10% of your pay goes into a savings account, or $50.00 every payday goes into saving. These are examples you can choose whatever amount that works for you.
Some people put money into the Payroll Canada Savings Bonds Plan. This way the money comes off your paycheque like a deduction and goes into Canada Savings Bonds which you may cash out later to use the money for whatever you need. Many people say they don’t even miss the money when they save this way.
Whatever method you choose you need to find a method that works for you and your family.
Tags: savings thunder bay, thunder bay emergency fund
Posted in Canada Savings Bonds Thunder Bay, Emergency Fund Thunder Bay, Payroll Deduction for Saving Thunder Bay, Personal Bankruptcy, Savings Thunder Bay, Sick Benefits Thunder Bay | No Comments »
February 23rd, 2011
Do you use coupons, watch for sales or use price matching policies offered by some retailers?
Most grocery store sales begin on Friday of every week, which means the stores flyers are usually in the Thursday newspaper or delivered by the Thursday of every week. I realize it takes time to go through sales flyers and / or to clip coupons but if you don’t you may have to spend a lot more money to buy your groceries.
Food prices were up 1.7 per cent in December compared to the year before according to Statistics Canada. This may have many of us looking for cheaper ways to spend less of groceries.
Many of us don’t realize whether an item is a good buy or not. Once you become familiar with what regular and sale prices are you’ll be better able to make informed decisions on when to buy certain items.
There are certain times of the year when it is better to buy many items. If you realize you are going to need to buy something in the next twelve months do a bit of research to find out when the best prices will be offered for those items. Once you have that information work it into your spending plan to determine when exactly in the next twelve months you will make that purchase. Any money saved on one purchase is available to be used for something else.
For information on the best time of year to purchase certain items:
http://www.astepbeyond.ca/article/the-best-time-of-the-year-to-purchase-certain-items-188.asp
Tags: Consumer Education Thunder Bay, Education Thunder Bay, Financial Literacy Thunder Bay
Posted in Consumer Education Thunder Bay, Personal Bankruptcy, When to Buy What You Need, When to buy what you want | No Comments »
February 23rd, 2011
Finance Minister Jim Flaherty announced on January 17, 2011 some new rules for government backed mortgages that will come into effect on March 18, 2011:
The amortization period is being reduced from 35 years to 30 years
The amount Canadians can borrow when refinancing thier mortgages is being reduced from 90% of the value of their home to a maximum of 85%
Also, on April 18, 2011 the government is withdrawing its insurance backing on lines of credit secured by homes, such as home equity lines of credit.
What does all of this mean for the average or first time home buyer? Mortgages are going to be a little more difficult to obtain without the buyer have a larger down payment. Buyers may have to save a little longer before they can purchase that new home.
Here’s an example of how these new rules will work:
With the new rules coming into effect it means that a buyer will have access to only 90% of the equity amount instead of 80 or 85%. On a $200,000 home purchase buyers will only be able to borrow $180,000. They will need to come up with that extra $20,000 on their own.
For more information: www.fin.gc.ca
Tags: Consumer Education Thunder Bay, Financial Education Thunder Bay, Financial Literacy Thunder Bay, Mortgages Thunder Bay
Posted in 3 C's of Credit, Affordable Housing Thunder Bay, Alternatives to Bankruptcy Thunder Bay, C redit Cards, New rules for mortgage borrowing | No Comments »
December 15th, 2010
According to the Canadian Government Canadians need to rein in their spending.
Household debts for Canadians are causing concern for the Government of Canada because their levels are unprecedented relative to their income. Canadians have rapidly increased the amount they have borrowed during the recession and recovery. This is a problem because the proportion of households with stretched finances has ballooned as a result. Mark Carney Bank of Canada governor explained in a speech to the Economic Club of Canada on Monday December 14, 2010.
Statistics Canada says the ratio of debt to disposable income rose to 148.1 per cent in Canada in the third quarter. The increase means that Canadians owe $1.48 for every dollar of disposable income that they have. We have surpassed the American ratio of 147.2%.
Why should Canadians be concerned about this debt to disposable income ratio?
Because the government has continued to warn Canadian households that interest rates are unlikely to go down in the future. They’re far more likely to go up.
Why is this a concern you might ask? If Canadians are having a difficult time to meet their minimum monthly payments at these interest rates it will become increasingly difficult to do so if the rates rise because the payments required will also rise. Not to mention the additional time it will take to pay these debts off.
If you require assistance with your levels of debt please contact Jayson Stoppel, Trustee at BDO Canada.
Tags: Consumer Education Thunder Bay, Credit and Debt Thunder Bay, Financial Literacy Thunder Bay
Posted in Bad Debt, Bankruptcy Resources Thunder Bay, Bankruptcy Statistics Canada, Bankruptcy Statistics Thunder Bay, Debt Management, Education, Financial Education, Jayson Stoppel, Personal Bankruptcy, Resources Managing Credit and Debt, Thunder Bay Bankruptcy Trustee, financial literacy | No Comments »
October 21st, 2010
Although Insolvencies are decreasing as a whole, they are increasing significantly for one segment of the population. Can you guess who it is that is going deeper into debt?
The total number of insolvencies in August 2010 was 12.4 percent lower than the total number of insolvencies in August 2009. Consumer insolvencies have decreased by 12.1 percent, while business insolvencies have decreased by 20.6 percent. These statistics are provided by the Office of the Superintendent of Bankruptcy Canada.
According to the Office of the Superintendent of Bankruptcy from 1989 to 2009 , the proportion of insolvent consumers between the age of 18 and 34 has fallen steadily (from 12.9 percent to 4.4 percent among those 18 to 24 years of age and 43.0 percent to 22.3 percent amont those 25 to 34 years of age).
Over the same period, the proportion of insolvent consumers among older age groups has increased (from 11.3 percent to 24.7 percent amont those 45 to 54 years of age and among those 55 years of age and above the proportion has more than quadrupled from 4.6 to 20.6 percent).
What are your thoughts on these statistics, did you realize older persons were going deeper into debt?
Tags: Bankruptcy and Seniors, Bankruptcy and Seniors in Thunder Bay, Seniors and Bankruptcy
Posted in Bankruptcy and Seniors, Bankruptcy and Seniors Thunder Bay, Personal Bankruptcy, Seniors and Bankruptcy, Seniors and Bankruptcy Thunder Bay | No Comments »
October 21st, 2010
McGinty Government helps Ontarians with Energy Costs and Property Taxes
The McGinty Government is considering increasing the amount seniors can earn and still be eligible for the proposed Ontario Energy and Property Tax Credit. Over 740,000 Ontario seniors would see an increase in tax relief.
Under the Ontario Energy and Property Tax Credit, Ontarians who own or rent a home could receive up to $900 in tax relief, with seniors being able to claim up to $1,025 in tax relief.
For more information:
Find out more about the OntarioEnergy and Property Tax Credit
Read about the Ontario Senior Homeowners’ Property Tax Grant
Tags: seniors tax relief thunder bay, thunder bay tax relief for seniors
Posted in Education, Financial Education, Personal Bankruptcy, financial literacy | No Comments »
