Canadian-Money-Advisor.ca BLOG
Saving with Your Credit Card, a Must-Do
Financial consultants concur that settling unpaid accounts is an important achievement for young individuals who are usually troubled by bigger interest rates and lesser earnings. Though, as lesser Canadians in the similar age bracket subscribe for retirement plans, a few of the experts fret that youthful Canadians could end up in severe financial problem if they set aside saving for retirement for a long period of time. The period of retirement may look far off in the next coming years, and we know that settling debts, buying your first house or raising young families can be challenging financial needs yet establishing a stable future should be part of any preparation to meet those goals.
Minimize Your Spending
This may look like a very explicit suggestion, yet it is the most recurrently disregarded. If you can't pay for an item at the end of the month, then simply don't purchase it. Spending too much on credit cards is one of the quickest options where young individuals get themselves into a financial problem. Responsibly using a credit card can, however, put aside some money since you will be establishing a solid credit history that will give dividends in the coming years.
Move Your Current Balance to a Lower Rate Card
-->
There are few cards which also provide 0 percent or exceptionally low APRs for a permanent period of time, which may be a practical means for paying down your current credit card balance without paying too much interest. Then again, be certain to settle the balance before the promotional time ends so that you don't end up with a bigger interest rate.
The moment you have effectively moved your balance, compute the amount you saved in interest monthly and put them in your savings account.
Be Watchful in Using a Rewards Card
Think about applying for a rewards card that gives cash back with every transaction. Then, put up a scheme in which you follow each amount that you make using the card. You may only make a little sum of cash back. Yet, if you include that little sum of saved money to your retirement savings, the accumulated interest that you will make eventually could be a surprise to you.
-->
Know What You can Manage to Pay for and How You can Save
It is suggested that you first maintain an organizer for receipts and follow every item that you purchase. Be attentive of all expenses since identity theft is common and a lot of clients are not familiar that another individual could be using their credit/debit card.
It is also suggested that young individuals consult with a financial expert and educate about what's out there. Young individuals definitely need to get in touch with their banks and discuss with a financial adviser that can help them with the suitable savings plan for them. In that way, young adults will have a clearer understanding of the ways that these accounts can assist them reach their financial objectives.
See Also
Balance Transfer Credit Card Canada
Best Capital One Credit Cards Canada
Best Secured Credit Card Canada
External Links
Buzzle.com
Ezinearticles.com
Ehow.com
Comments (2)
CMA Blog Home
Things to Consider in Getting a Car Loan
It is always exciting to own and drive a car, may it be new or a used car off the sales lot. On the other hand, a few of these new car buyers do not carefully plan their finances and are now not able to settle payments after they buy a car. Hence, you must be certain that you know what you are getting into prior to applying for a car loan since there are other expenses that build up when you buy a new car. Be sure you can pay off all of these expenses prior to buying a new car. The following are the five most general expenditures to consider before buying a car:
Yearly Interest Rate
This is the yearly rates in interest on the car loan, and also known as the annual interest rate. This is not the APR, which includes other fees related with the loan. But, the yearly interest rate will have an influence on the sum of money you pay out on your car every year. The higher the yearly interest rate, the bigger expense it is for the purchasers. If you are someone having a low credit score, you will have a higher yearly interest rate than those clients who have a high credit rating.
Monthly Interest Rate
This is not considered as your full monthly fee. Your monthly car fee is taxed at this price. For a loan applicant having a low credit score, he/she should suppose to pay a much increased interest rate than a loan applicant with a good credit score. The monthly interest rate can considerably adjust the sum you must pay every month. Prior to buying a vehicle, be sure to inquire for these figures. When you are being hands-on in the process of buying, you can be certain that you receive a monthly interest rate you can manage to pay for. Usually, clients do not recognize that their monthly fees will increase because of the monthly interest rate.
Car Insurance Fees
Car insurance rates differ based on the kind of plan you need or select to use. A few of these auto loan companies oblige that car loan applicants have full coverage insurance. This signifies that the drivers have the most complete coverage on hand, at the event that the car is broken in an accident or by a natural calamity.
Fuel Fees
There are different reasons to think about fuel fees before buying a new car.
• Your previous car may have better fuel mileage than the new car
• Your new car may use a more costly kind of fuel
• Fuel prices may go up after you buy the car
Other aspects like the distance of your commute will also guide you in determining the amount you are going to allocate on fuel. If you can manage to buy a car, be certain that you can afford the fuel so you can use the car too. A car is of no use if you are not going to drive it.
Fees on Repair and Maintenance
Repair fees are difficult to foresee. These fees emerge when something sudden goes wrong with your car. Though you may have funds in your account, you may have been putting aside the money for your next car fee or some other payments. If you have to use up your savings, you are going to have a difficulty on your loan. To lessen this difficulty, put aside some amount so that if something goes wrong with your car, you will be able to repair it.
See Also
Bad Credit Auto Loan - Rules of Car Financing
Auto Loans - Car Loan Default - Canada
Is Getting A Car Loan To Fix Bad Credit A Good Idea?
External Links
Articlesbase.com
Hubpages.com
Buzzle.com
Comments (0)
CMA Blog Home
A Closer Look at Aspire Gold MasterCard from Capital One
If you are someone who flies frequently and would love some travel perks, you can have the card that suits you best: Aspire Gold MasterCard from Capital One. This Canadian credit card is perfect for those with outstanding credit, and for those who don't carry a balance.
What you can enjoy from Aspire Gold MasterCard
Capital One is popular for its no-annual fee credit cards, and this card is just one of them. The moment you acquire the Aspire Gold card, you will enjoy a “no-annual fee” feature so you can get points without paying for the extra charge to offset a few of the value you obtain. Though, there is an interest rate of 19.8% so this card can begin to get costly if you carry a balance.
More features of the Capital One Aspire Gold MasterCard:
- For each dollar exhausted using the card, you earn one point.
- Beginning 15,000 points, you earn a free travel.
- 5,000 bonus points is given the moment you make your first transaction.
- A price protection is activated on items that you purchase. Reimburses the difference if the value of a latest item decreases, up to 100.
- Purchase assurance that instantly covers your transactions from loss, harm or robbery for 120 days.
- Comprehensive warranty to instantly increase on the manufacturer's warranty.
- To assist you offset some expenses, there is a travel accident insurance.
- Car rental insurance is available when you rent out the car using a Capital One Aspire Gold MasterCard.
- In case your baggage gets lost, there is a baggage delay refund.
- Assistance for travel needs like medical referrals, ticket replacements, and other concerns.
- There is a $0 fraud liability on misplaced or stolen credit cards.
- When you travel more than 80 km from your house, you get a roadside assistance.
Clearly, there are various advantages that the frequent traveler might consider to be helpful. Hence, the Capital One Aspire Gold MasterCard is created purposely for travelers who might need assistance when they are away from home, and intended to aid travelers save points and get free travel rewards.
See Also
Capital One Aspire Gold MasterCard Credit Card
Capital One Guaranteed MasterCard Credit Card
The Truth about Capital One Venture Credit Card
External Links
Capitalone.ca
Yo-yanto.co
Milliondollarjourney.com
Comments (0)
CMA Blog Home
Knowing the Ways Insurance Companies Make Money
Are you aware how insurance companies make money through their medical, auto and life insurance? Then, who among us know the ways that these insurance companies make money? In what process does it compensates its workers? How do the insurance corporations produce profit by getting an inadequate quantity when it comes to premium account where it has to shell out immense money for claims?
So, in what ways do life insurance companies make money? In fact, there are various ways. The lapse is probably the major one. Life insurance is totally nothing far more than making a bet. You pay an amount for a premium on a regularly scheduled time monthly. If you pass away in the duration of the period the plan is in place, then you certainly win the bet as well as the corporation gives out the death benefit towards the individual you appoint.
Even though there are changes among insurance coverage aspects and insurance companies, the basic principals they utilize to make money would be similar. To provide insurance coverage, insurance companies require a premium amount, which will be the worth for the insurance plan. You can give out premiums in several varied ways, depending on the kind of insurance together with your preference.
An insurance company generates profit in conformity to the terms with the insurance when a certain incident occurs to a policy holder. Within the circumstance of the homeowner’s insurance plan, the insurance coverage company might expend if there is a fire. Generally, the biggest quantity the insurance company will disburse is declared in the policy. These disbursements indicate expenses on the part of the insurance company.
To allow the models function to make money, a life or health insurance company generates profit by applying an excellent approach to statistically determine the amount of possibility involved in any insurance product. If it cannot determine these types of possibility, an insurance company may perhaps not promote a specific product to a certain part from the people or to a specific area.
See Also
Cheap Life Insurance in Canada
What is Term vs. Whole Life Insurance?
A Policy on Convertible Term Life Insurance
External Links
Askmehelpdesk.com
Financialcrisis2009.org
Doughroller.net
Comments (0)
CMA Blog Home
Term Life Insurance Intended for Kids
Are term life insurances for children better alternatives rather than whole life insurance plans? Normally, only those families who largely depend on the family members’ earnings will require life insurance. Life insurance enables a family to continue to maintain their living expenses if the head of the family passes away.
However, in some instances a parent may perhaps select to purchase term life insurance for kids who do not have income to use for medical-related or interment expenses. It may also sustain a child with a health issue get reasonable life insurance. For those who are decided to purchase a life insurance plan for your infant or child, term life insurance seems to be the perfect plan to sign up for.
Term life insurance for kids could be acquired for various experience values over and above for much different duration from five to thirty a long time. These strategies are regularly changeable down the road and practically, give out the most successful objective for a child.
The entire purpose of term life insurance for kids would be to be positive that your family members can maintain their current lifestyle or that your kids can still have a decent education must you or your partner pass away. An insurance corporation would definitely wonder for those clients who choose to get a large policy on the infant or young child, so rationally, the advantages for somebody so youthful would not be of any help to other family members.
The beauty of buying a term life insurance for kids must cover your newborn or young child by purchasing a plan for as little as $5,000.00. These days that may perhaps not insure the complete sum of the funeral service, but it would be of assistance. Although for those who raise the deal with up to $10,000.00, it would still be less expensive than deciding with a whole life plan or another that puts up cash values.
The policies of term life insurance for kids are possibly the most effective way to insure any expense you might incur should the unimaginable event occur to your child.
See Also
No Medical Life Insurance in Canada
What is Affordable Life Insurance?
Which insurance is best for me? - Canada
External Links
Suite101.com
Enemyofdebt.com
Wisebread.com
Comments (0)
CMA Blog Home
For Every MBNA Sony MasterCard Approved comes a Free Cybershot Camera
Currently, MBNA Canada Bank is offering a wonderful advertising: Sony Cybershot digital cameras to be given away at each chance you get a new Sony MasterCard.
The Sony MasterCard is a terrific rewards card for those people who are techies. You receive reward points which can be converted into a gadget in the Sony Style Canada online store. This certain one-time promotion is for latest MBNA Sony MasterCard holders, and for current cardholders who are eligible for another bank account. To be able to get your free camera, this is what you must do:
1. Submit an application for a MBNA Sony MasterCard by March 31, 2011
2. Utilize your account with a minimum of a single transaction or cash advance by May 31, 2011
Just like any other advertising promos, you will have to allocate 6-8 weeks time for the shipment of your free camera.
Hence, the MBNA Sony MasterCard is a fantastic Canadian credit card, with no annual fee and an interest rate of 19.99% that is considerably competing with other rewards credit cards.
See Also
MBNA Eco-Logique MasterCard Credit Card
Choosing the Right MBNA Credit Card
MBNA Premier Rewards Master Credit Card
External Links
Getbestdeal.org
Soforce.com
Fwisp.com
Comments (0)
CMA Blog Home
A Policy on Convertible Term Life Insurance
A convertible term life insurance policy is the policy that allows you to convert a term life insurance to a long term life insurance policy. Consumers go for a convertible term policy since it has the capability to alter their insurance to suit unexpected changes in one’s life.
A term life insurance policy is essentially a guideline which will comprise for any particular time period, however, when you are in a convertible term life insurance policy, you may have the capacity to modify your policy from a short-term policy to a long term policy.
These guidelines suggest that for those clients who have a policy for twenty five many years and are having a convertible term life insurance policy, then the client can have the power to change the term policy directly into an entire, universal, or variable life insurance policy (depending on the corporation).
A convertible term life insurance policy also provides a death benefit to obtain a set quantity of time. The term may vary from company to company, although five, ten and twenty year term policies are common. Immediately earlier than the term expires or as or else stated, the insured may alter the policy directly into an everlasting kind of life insurance which consist of entire, universal, or variable life insurance.
The ultimate advantage of convertible term life insurance policy is the assurance of the modification. If your insured party would make well being difficulties that will make them uninsurable, they would, on the other hand, have the capacity to modify the term life policy. Convertible term life is way less expensive than long term life insurance, allowing the insured person to spend much less income up front around the insurance coverage.
The buyers of life insurance must really assess the convertible term life insurance policies offered by different firms. Not only the premiums are to be compared yet as well as the time at which conversion have to to be created and the alternatives of everlasting life insurance policies which will also be available.
See Also
What is Term vs. Whole Life Insurance?
What is a Life Insurance Calculator?
No Medical Life Insurance in Canada
External Links
Allinsuranceinfo.org
Christianet.com
Insureme.com
Comments (0)
CMA Blog Home
Visa Tries Payment through a Mobile Card
Visa, together with ANZ will be attempting a latest technology in credit card that is assembled in to an Apple iPhone. A little memory card is implanted in the mobile phone. The moment the iPhone is waved at the front of a credit card reader, it allows them to undergo transactions of $100 or less, without signing. Vipin Kalra, chief of Visa's Australia's division expressed that the recent technology will be an essential achievement for the corporation as it transforms the credit cardholder's mobile phone into a wallet. The trial is being done in Sydney and Melbourne, with Sydney having 50 cardholders to utilize the latest technology for 30 days.
Visa selected Sydney and Melbourne because of the capacity of its residents to adapt new technology. The credit card giant believed they wished to establish that a financial corporation could effectively begin a new mobile phone credit card application before the manufacture's conclusion to create the product. Kalra also expressed its disappointment to be existing in the 21st century and yet cardholders still are not able to have this kind of technology. DeviceFidelity manufactured the iPhone case that has the memory card which is devised by MicroSD. The card functions using a program and a prepaid debit card.
Kalra alleged that currently, the iPhone is being used for the trial. Eventually, it will be adjustable to work with the Blackberry and Google's Android mobile phones. Upon the completion of the trial, Visa wishes to launch the credit card application in the United States prior to branching out to Australia. Telstra and the National Australia Bank performed a comparable trial in the year 2010. The results were that over 20,000 contactless payment stations were established in Australian businesses. Some are skeptic that the latest phone application could make it simpler for cardholders to spend more and pave the way to increased cases of fraud.
See Also
Minimum Payments - How Do Credit Cards Companies Calculate Them?
Cash Back Visa Credit Card Canada
Credit Cards - Best Visa Credit Card Canada - Canada
External Links
Thenextweb.com
Businessweek.com
Trefis.com
Comments (0)
CMA Blog Home
What are Policy Ratings in a Term Life Insurance?
Commonly, the Term life insurance protocols in Canada will be given one of four underwriting assessment:
1. Preferred Rates- These are provided to persons who have the best health and those which have excellent family health history. Preferred rates are usually divided into 'Preferred' and 'Super Preferred' class. The term 'Super Preferred' are provided to the healthiest persons having the best family health history. This can result in savings reaching to thirty percent (30%).
2. Standard Rates – Almost all life insurance applications obtain standard rates. Standard rates are awarded to clients who are in good health. Hence, the family health history of the individual characteristically does not have a factor in to obtaining a standard classification.
3. Substandard Rates - Substandard rates or policy ratings are provided to persons who have health or lifestyle problems that make them at an increased susceptibility to the insurance company. Health problems like angina and diabetes, or issues in lifestyle like previous alcohol and drug abuse can lead to policy ratings of between 50% to 300%, plus the standard rates. If the insured gets a policy rating of 100%, they would have to pay twice the basic standard rate.
4. Declines - Clients who are in a bad health state or have severe lifestyle problems may have their policy application declined. If the application of the insurer is disapproved, they can opt for a simplified issue or guaranteed issue protocol. These regulations usually have a waiting time of 2 years on the death benefit, which means that if the insured individual dies in the first two policy years, the recipient will be given a return-of-premium plus interest.
See Also
Whole Life Insurance Canada
What is Term vs. Whole Life Insurance?
Importance and Benefits of a Burial Insurance
External Links
LSMinsurance.ca
Nomedicallifeinsurance.ca
Money.msn.com
Comments (0)
CMA Blog Home
Why Do You Need a Life Insurance?
When you’re deciding about whether or not to get a life insurance, think for a while and ponder on these few questions. Have you been married or you are still single? Do you have any dependents such as your children? In the place where you live, do you own it? Once you have the answers to these questions, they may guide you to figure out if you must buy a life insurance policy, and if you do, what type of life insurance coverage you must purchase.
As a Young Adult
Similar to most youthful Canadians, your unexpected death may not pose as a financial difficulty for your family and friends, so having life insurance coverage will not be your major priority. But, if you have unsettled accounts or are supporting a family member, life insurance coverage would guarantee that your dependents can receive support in any case that you die.
As a Married Man/Woman
If you and your spouse have your own abode, the weight of a mortgage may be greater than your spouse can have enough money on one income, in case the other dies. The other unsettled accounts like credit cards and car loans can also bring more burden. So in case anything happens, it’s better if both of you can have life insurance to settle your debts.
As a Family Man/ Woman
Whether your family depends on a single income or two, when one spouse passes away, this could have tragic financial effects. Both you and your spouse must have enough life insurance to settle all expenses when either of the two of you dies.
As a Career Man/ Woman
While you are enhancing your career, shifting jobs also implies shifting companies. It is significant to know the coverage of your life insurance when you resign from a company. This is because you may not be able to maintain your coverage with your recent employer, so you should attempt to obtain a similar life insurance policy from any new company that you enter into.
As a Businessman/woman
If you are pursuing into business for yourself, think about buying a life insurance policy. Always make sure that your coverage is updates and comprises all unsettled payments acquired from your business, and your personal matters.
As a Retiree
Upon retiring, go over your life insurance needs with a financial expert. Reviewing your financial situation during your retirement is advisable. The coverage is costly at this period, so you should know the financial influence of this if you choose to get a life insurance policy.
See Also
What is Term vs. Whole Life Insurance?
How to Buy a Life Insurance Policy in Canada?
Why Arrange Life Insurance Cover?
External Links
Rlrouse.com
Personalinsure.about.com
Articles.moneycentral.msn.com
Comments (0)
CMA Blog Home
Knowing the Best Type of Life Insurance
When take a major step, such as getting ourselves a life insurance, it is significant to search for the plan that best fits you and your everyday life.
Just like everyone else, your personal situation is a unique entity such as your health, your job, your lifestyle, your financial status. Hence, it is significant that your life insurance plan embodies these factors. These details will act as a basis for our qualification for the amount of coverage you can acquire, yet, it seems the major concern, when pertaining in terms of life insurance, is what type of coverage to sign up for.
Term Life Insurance
Term insurance encompasses a particular period of time which is usually between 5 to 20 years. It comes with a set rate and a tax-free insurance payout to the recipient. In fact, it is the alternative with the smallest investment and the biggest payout. Between the two alternatives, term life insurance and permanent life insurance, term life is also deemed as the short-term investment.
Moreover, if you belong to the big population who can see the results of the recession in the economy, and your money are on a firm budget, this may actually be the best for you. This alternative can be better as the monthly charges are typically lesser. Then again, you must put in mind that lower monthly coverage is not essentially better, and may result to costing you more eventually.
Permanent Life Insurance
The other option, permanent life insurance, provides protocols that assure coverage at a permanent rate for the entire lifetime of the covered person. The fee for this kind of insurance appears to be more costly than term insurance fees. Though, the benefit is that the rates are confined over the full phase of the contract. This means that from the day you subscribed, your rates will remain the same.
This may be the better choice for those looking to have insurance over the long run. The answer to obtaining the best rates is to subscribe early on since life insurance fees are less expensive for younger individuals as the supposition is that they will have a longer life. In short, our health declines as we get older, and so if you are able to subscribe into a good reasonable rate as early as possible, you will keep on paying that same rate for the rest of the years.
What To Consider
If you have not yet acquired a life insurance, you will not be only searching for the kind of coverage that best fits you, yet, you also want to pay reasonable rates for the plan. However, this can also vary depending on huge aspects like your age, health, job, lifestyle, term length and the quantity of coverage you would like. Take for example, if you are older, or you do have health problems, this will surely influence your rates. At the same time, if you have a high-risk occupation, or if your favorite hobby is a risky adventure, again you must be expecting elevated rates as these kinds of activities have a greater susceptibility of injury and/or death.
Maximize the Advantages
Whereas you are not determined to change your favorite pastime, nor look for another job, there are other choices you can have to do something out of the situation, like leading a healthy way of life. If you smoke, then stop smoking. If you are obese, do regular exercises and lifestyle modification since diseases like diabetes and heart disease significantly influence your qualification for insurance coverage. You must also educate yourself.
You can go through the internet, discuss with friends and experts and talk with different insurance providers. Also, trustworthy websites may allow you to get online quotes without asking a lot of personal data. With this type of information, you can inquire educated questions such as the occasion to sit down and discuss with an insurance agent. They make things easy by giving out advice that makes sense, and they assure to find you the most reasonably priced life insurance coverage possible.
Looking for the best life insurance should not be an overwhelming thing to do. Once equipped with the correct means such as knowledge and resources, you can surely select the most affordable insurance coverage that fits you best.
See Also
Whole Life Insurance Canada
Canadian Term Life Insurance Quotes Canada
What is an Average Life Insurance Cost?
External Links
Lifeinsurancecanada.org
Insurecan.com
Lsminsurance.ca
Comments (0)
CMA Blog Home
Card Issuers Increase Competition for New Customers
The credit card market in Canada has always been aggressive. However, according to a recent research, banks are craving than ever for clients' business.
Amongst the features adding to the new challenge confronting credit card companies is the economy. It is because the economy recently is directing the levels of household debt, leading in added card delinquencies and wrongdoings.
A director in a banking group said that a surprise was how much the quality of credit in the Canadian portfolio has worsened. It is considered as an overdue manifestation of the economic environment.
An additional difficulty that will surely create an impact to clients is the corroboration of dual network-branded issuing. This arrangement allows banks to approve more than one brand of credit card. In actual fact, the Canadian Imperial Bank of Commerce (CIBC) has been considered as the biggest dual credit card issuer in Canada, having extended into providing MasterCard and Visa branded credit cards.
However, even as dual network-branded issuing may me better opportunities for clients, people in Canada must not suppose banks to just immediately start offering every card there is available. This means that just because banks can provide the other brand of credit card does not entirely mean that it makes sense for them to do so.
On the other hand, a clear sign of the banks' willingness to have customers is the accessibility of many reward programs. It is actually good news for clients who are looking for travel discounts and markdowns on groceries, gas and air fares. In fact, the best thing for clients is to grab the chance and take advantage of these loyalty programs. For the banks in Canada, it is significant for them keep inviting the right client so the variety of loyalty programs goes on to increase.
At the same time, the banks are improving their eward offersr. There are considerable opportunities for important rewards to be received by clients if they just give time and look at the available offers and know which one best suits their needs.
At the same time as the 'Big Five' Canadian banks has the leading spot in the credit card market, they still have tough competition against second level domestic financial agencies, the auxiliary of large foreign banks, and card market applicants from the retail industry. These are more motivating factors for Canadian clients to look to the extremely competitive credit card market for new prospects and possible cutbacks.
See Also
Experts’ Predictions on Credit Cards for Year 2011
Creating a Credit Card Strategy for 2011
Credit Card Application in Canada
External Links
Ongo.com
Vrl-financial-news.com
Papers.ssrn.com
Comments (0)
CMA Blog Home
Let's borrow $1 trillion to pay off bad mortgages!
That doesn't make alot of sense
The financial news these days certainly isn't boring. The article below talks about how the U.S. federal govt is going to use $1 trillion in debt to purchase toxic mortgages and get them off of the banks balance sheets.
Why does this seem so wrong.. Isn't there a term for this? Kiting?!! Using debt to pay off debt?
If consumers use debt to pay off debt, that will affect your credit score pretty badly. It tells the creditor that you're illiquid and that you don't have cash savings to pay your debt.
Fundamentally using debt to pay off debt is just wrong. It may ease the pain for the short term, but ultimately it's going to cost everybody alot more. in real estate What they're doing is taking the burden off of the individual mortgage holders, and putting it onto the over all population. That's not right, and it's not fair.
People need to be responsible for their own mortgages. If you can't afford to pay your mortgage, move to a lower cost situation.. The existing credit market is designed to work with these cases. It's not politically correct to let millions of people default on their loans and mortgages.. however there is a system to work this through. The mortgage companies and banks made piles of money at the beginning of this free-for-all mortgage bubble. Now they don't want to take the losses associated with their misdeeds.
Accountability is what it's all about. The banks get bailed out, and the individual has to take it on the chin.
Geithner Relies on Investors for $1 Trillion Plan
By Rebecca Christie and Robert Schmidt
March 23 (Bloomberg) -- The Obama administration unveiled its long-awaited plan to remove toxic assets from the books of the nation�s banks, betting that it can revive the U.S. financial system without resorting to outright nationalization.
The plan is aimed at financing as much as $1 trillion in purchases of illiquid real-estate assets, using $75 billion to $100 billion of the Treasury�s remaining bank-rescue funds. The Public-Private Investment Program will also rely on Federal Reserve financing and Federal Deposit Insurance Corp. debt guarantees, the Treasury said in a statement in Washington.
Comments (11)
CMA Blog Home
Bicycling is cheap - and full of adventureI did my first 23 km bicycle ride yesterday.
I thought that for the first day of spring I should get out and bicycle some place. My favorite place to go is Southland Mall - which is an 10 KM ride, and then back home which is another 10KM.. (earlier in the day I went shopping on the bike which was 3 km.)
Along the way I stopped at Wascana Lake in Regina and took some pictures of the sites and people and geese on the lake.
 I can't believe how much I missed bicycling over the winter time. It's a time to get out doors, get some fresh air, see the sites and get exercise.
It's also a cheap way to travel. I spent $1.49 at Southland mall to purchase trail mix for the ride. Better than a car loan!!
I was pleased that I was able to ride 23 km in one day, and especially at March 20th.. Last year it took me until June or July to before I could go that far on the bike with out passing out.
This year I plan to travel to Moose Jaw and back, which would be 130 KM in a day. I also plan to do even longer runs, which will take more practice and getting into shape.
The benefits of bicycling last year - Summer 2008:
- I lost around 50 lbs
- My heart was greatly strengthened
- My leg muscles get strengthened
- I lowered my cholesterol down to normal
- I saved a bunch of money on car expenses.
- I enjoyed the summer probably the most in 25 years.
- I relieved a ton of stress
The benefits of bicycling have been absolutely tremendous. For such a low cost transportation, the benefits and enjoyment have been wonderful. I would say that I enjoy riding my bicycle even more than driving my Cadillac CTS.
During this economic down turn.. why not take your bike, instead of the car.? It will save you money and you'll really enjoy it. (After you get used to it ! )
Comments (4)
CMA Blog Home
You've got to Live - Spend Your Money???I was listening to a radio talk show this morning and the fellow was talking about the economy. The radio announcer was complaining about Suze Orman and Suze's style of money coaching.
The comment came up that Suze recommends that people save their money and cut down on expenses. The announcer then indicated that people need to live their lives and spend their money!
I love that logic.. the announcer said, "well yeah, you need to save and pay down debt, BUT you also need to live your life."
Isn't that what got us into this problem in the first place?
Here's my point:
1) If you don't have sufficient cash reserves - you NEED TO sacrifice and start saving your money
What this yappy announcer failed to mention was this:
Most Canadians and Americans have really low savings rates. We love to spend our money , but hate saving it.
This becomes a huge problem in an economy such as this economic crisis. If all individuals had an abundance of cash reserves they would never be worried about losing their jobs . They wouldn't be worried about paying bills or paying down debt. Quite frankly, I don't think individuals would have too much debt if they had an abundance of cash saved.
For those who have no savings, and are in debt... It's my opinion these people should take a time out from spending, and put their money in the bank. Plain and simple... Just save it.
You have to live, I agree, however you need to have safety measures in place. Why are Americans so worried about this economic down turn? If they had sufficient cash reserves in place, and little debt, there wouldn't be much to worry about.
IE.. If Americans and Canadians were recession proof, they wouldn't have to worry.
What harm would it do to Sacrifice for a few years and save money ?
So you kids have less toys.. you have less vacations.. you have less consumer products.. you eat out a little less.. What would your kids say about that?
Your family might complain for a few years about not having any money to spend. At the same time, you would have less fights because of lack of money, less stress, and less worry about paying bills.
What's more important to you, instant gratification or long term peace of mind?
I wish that the media would get on board and stop asking consumers to borrow more and spend their way out of the economy. Consumers need a financial rest. They need to have their money take a time out and spend some lonely time in the bank account.
Ultimately this will make the consumer feel better, and eventually give them a more confident feeling when they start to live their life!
Comments (2)
CMA Blog Home
AIG Bonuses - Don't eliminate the Trust Factor!I must admit that I think giving bonues to execs who've lost $68 billion is completely wrong. But as mentioned on the news, it's in their contract.
The federal goverment should have known about these bonuses prior to purchasing 80% of the company. They should have been away of the income statement and balance sheet prior to purchasing the company.
Where I think it's completely ridiculous to give these execs $165 billion in bonuses, I think it's worse for government to step in and renege on their contracts.
I would be furious if a government of any type stepped in and started dictating what I can and cannot do with contracts in my business.
IMO.... the government shouldn't be getting involved in private business. That's eroded alot of confidence in the market place. Having government involved in private business means that business can't operate on it's own and needs life support.
Having government interfere with private enterprise contracts is the next step to BIG BROTHER and socialism.
It will erode trust even further with businesses. Businesses will be concerned if they should do something lest the government jump in and act.
I know that this is an extreme example, but when contracts are legally binding, they should be allowed to carry out, in a lawful fashion.
According to:
http://news.hereisthecity.com/news/business_news/8869.cntns
(AIG) Staff Get 'Death Threats' Over Bonuses
The furore over the $165m in bonuses AIG is contractually obliged to pay staff at its Financial Products Group (the unit that basically brought down the firm) reached fever pitch over the last couple of days.
The Times reports that armed guards have now been placed outside the Connecticut offices of AIG Financial Products, after staff there received death threats over the bonus payouts. Several staff are said to have refused to come to work, and others are thought to have quit. And we even had US Senator Chuck Grassley telling a radio audience earlier in the week that AIG executives should 'resign or go commit suicide' (he later clarified that remark, saying he didn't really mean that they should actually kill themselves, instead suggesting that they say 'sorry').
In the meantime, House Speaker Nancy Pelosi hopes to enact legislation in the coming days in order to slap a heavy additional tax charge on the AIG bonuses (will effectively cancel them out), and Representative Barney Frank has suggested that the US government simply step in and assert its ownership of AIG. Frank told a group of reporters Tuesday that the government needs to say, as owner of the firm: 'No, I'm not paying you the bonus. You didn't perform. You didn't live up to this contract'. And Treasury Secretary, 'dim' Tim (Geithner), has said that he is looking into the matter (he may - like all his other schemes - have a plan for a plan, with more details sometime never).
How is anybody supposed to get any work done in this trustless environment. Who would want to work in the company after all of this headline news?
I think for next time, the AIG Bonus contracts should be reconsidered. However, at this time, pay the bonuses and keep to your agreements. Agreements and fulfilling agreements are the glue of the North American economy.
Comments (5)
CMA Blog Home
Using Credit Cards as Income - A definitionIn my previous post, I talked about how you can use credit cards as a beneficial tool in your day to day finances.
In this post, I would like to talk about what using credit cards as income source means.
By allowing people to make minimum payments on their credit card debts, the credit card companies make it tempting to use credit cards as an income source.
The following are ways you could be using credit card as income.
1. Buying expensive items that you can't afford
2. Buying day to day goods on credit
3. Purchasing small items that you don't need and can't afford.
Buying expensive items that you can't afford
You say to yourself, "this item costs $1,000, but I can afford the minimum payments of $30".. I've heard this said so many times, and used as to how people justify their purchase.
What you're doing is giving yourself a $1000 payday bonus that's going to cost you alot in the end interest wise.
A better way to do this is .... Save up $30 per month until you can afford the $1,000 to make the purchase. It requires patience, however, if you really want the item then this is a better way to make the purchase.
Buying day to day goods on credit
You've spent all of your earnings and you still need money to buy day to day goods. You use your credit card to make up for the short fall in income.
This is a really bad trap to get into. What it tells the credit card company is that you do not have the ability to pay your bills, and that you're becoming a bad credit risk.
If you're running into this problem, it's a good idea to cut back expenses to the very bare minimum , and / or get another job to earn more money.
Even though access to cash advances on your credit card is easy to do ... trust me.. Using your credit card as income in this case will certainly cause alot of headaches in the future.
Purchasing small items that you don't need and can't afford.
You go to the mall and make several small purchases that you don't have the cash to repay.
You justify this by saying to yourself.. This necklace only costs $25. I can easily pay that off this month. The problem is you make several of these small purchases that add up. Eventually you start to carry a balance that you can't pay off each month.
IF YOU CAN'T PAY IT OFF EACH MONTH, THEN YOU'RE USING YOUR CREDIT CARD AS INCOME
Simply stated, you should always have enough cash in the bank to cover your credit card purchases. You should pay your account in full every month.
If you're carrying balances and paying interest, then you're using your credit cards as an income source.
I wrote this post to give people a new light to their credit card habits. In this economic crisis turmoil that's brought on by consumer spending and debt, I'm hoping that we can change the way people think about using their credit cards.
Use credit cards as a tool.. and not a source of income.
Comments (2)
CMA Blog Home
Using Credit Cards as a Financial ToolAs I'm watching the economic news, it's hard not to hear headlines of credit card defaults, and other problems people are having.
People have been using credit cards as a source of income, when they should be using them as a financial tool.
The best example of using credit cards as income is when an individual purchases and item or service when you don't have the cash in reserve to pay off the balance in full every month.
This of course leads to individuals carrying balances on their cards, which usually increase over time.
I recommend that people use credit cards as a financial tool.
This means that you take advantage of the credit cards benefits, excluding being a source of income.
Some of these benefits are:
1. Convenience to make purchases online
2. Saving money on ATM withdrawals
3. Receiving rewards for credit card purchases
4. Receiving 30 days of free money
Convenience to make purchases online
This is one thing I use credit cards for all the time. I like to purchase software or training programs online, and of course I can't pay cash or debit card. Online companies only take payments from Paypal, credit cards or other online payment services.
Many of these services I cannot find locally, and in order to stay competitive in my business, I need to have competitive software and training for that software.
Saving money on ATM withdrawals
I learned this lesson the hard way.. I used to use my debit card at ATMs alot . I want to pay cash for things but my service charges were adding up quickly.
I decided to pay for what I normally purchase using credit card, and then promptly pay the credit card bill when I receive it.
The credit card companies don't make you pay service charges for purchases so you can do a bunch of them with out paying.
Receiving rewards for credit card purchases
I use my Canadian Tire Mastercard to buy things. I receive rewards with with I can use to buy things at their store. This is a great way to purchase household items using points.
At one point in my business, I was getting $100 per week in Canadian Tire points, and it was fun to go and spend them, as I knew the purchases weren't costing me anything.
Receiving 30 days of free money
If I make a purchase today, I generally receive 30 days or so before I need to make a credit card payment. That means that the money stays in my account for 30 days, and then when I make the payment it's one payment in stead of many.
In essence, I am using the credit cards money for 30 days while I earn interest on the money that's sitting in my bank account.
These are reasons why credit cards are actually useful. Again, credit cards shouldl never be used as an income. If you're using credit cards as an income source and don't have the cash reserve in place to make full payments each month, then you're probably in trouble financially.
Comments (7)
CMA Blog Home
Mortgage Life Insurance in Canada One of the most significant purchases a family makes in the course of its life is the purchase of a home. Many of your monthly expenses are centered around the fact of owning that home: cable, telephone, electricity, water, and gas, not to mention maintenance, take a up a significant part of your monthly income. The bill that in many cases takes the biggest proportion of your income is the mortgage, your monthly house payment. And it is the bill that must get paid above all; the other expenses can be put off or lived without if necessary, but if the mortgage is not paid in a timely manner, there will be no home for the family to live in.
But a family might find itself in the tragic situation where one of the people responsible for making that monthly house payment is incapacitated or even dies, and your family becomes unable to pay the mortgage. In that case, your family might face not only the death of a loved one, but the loss of their home and credit, as well.
Fortunately, there are plans that can help you avoid this unfortunate eventuality. Mortgage life insurance is designed for just such protection. Mortgage life insurance is a low-cost, flexible method to protect one of your family’s most important investments. If you develop a terminal illness, sustain a serious injury, become disabled, your mortgage insurance can offer you several benefits:
- It can pay your outstanding mortgage amount. This is the chief reason that most people buy this type of insurance. If you die or become incapacitated, the balance of your mortgage will be paid off. You may, however, still be responsible for any over due payments that have not been made.
- It can pay up to five years’ worth of accrued interest.
- It can pay any property taxes that you owe when you die so that your heirs are not left struggling with taxes.
- If you are diagnosed with a terminal illness, it can give you an option to pay out early, so that you can be assured before your death that the house is paid off for your family.
Most people sign up for mortgage insurance at the same time they apply for their mortgage. This ensures that your family is protected even before you close on your mortgage, so that if something happens to you, they will still be able to move in to the new home you have planned.
Applying for mortgage insurance
The cost of mortgage insurance is based on how old you are when you apply for the policy and the amount of your mortgage. Your premiums will not increase as you get older, as long as the terms of your mortgage remain the same. They are also conveniently rolled into your mortgage payment, so you are not paying two separate bills each month. You are eligible to apply if you are a resident of Canada, between 18 and 69 years old, and have been approved for a Canadian residential mortgage.
Comments (2)
CMA Blog Home
How are credit card companies treating you? - Economic CrisisI got a call from Kate Rutherford from CBC radio in Sudbury Ontario.
Kate was inquiring about how the credit card companies were dealing with the economic crisis situation. She was concerned about credit card companies increasing interest rates, service charges and even decreasing people's lines of credit.
Credit card companies make their money from interest and service charges. They base their interest rates and service charges on the level of risk that the individual is at.
This means that if your credit score all of a sudden decreases for any reason, they may charge you a higher interest rate.
American Express is charging me higher interest rates, even though I've got excellent credit
As a result of Kate's call, I contacted American Express. I have a Business Gold card with them.. The customer service rep indicated that my interest rate had increased from 14.99 % to 16.99 % even though my credit score hadn't declined. She indicated that this was because of the economy and the write offs that they're incurring.
Check your credit score with Equifax and Transunion.
If you want to understand why you've received a interest rate hike, or why you may receive one in the future..it's best to in vest $20-$30 to purchase your credit reports. This will tell you exactly where you stand with the credit bureaus. And you'll know what the credit bureaus are reporting to your credit card companies (and other lenders)
This is especially the case for workers who have been laid off in this economic down turn.. If you've used up your cash reserves, and are now using credit cards as income, this could adversely affect your credit score, thus driving up your interest rates.
I always tell people... if you're in doubt as to where you stand with the credit card company...it's worth it to take 15 minutes and call them up. After all , they are suppliers of credit, and should be there to give you the service you need.
Comments (11)
CMA Blog Home
General Motors isn't a going concern - Deloitte & ToucheIn the last few days, Deloitte & Touche, a third party consulting firm, gave a report on the viability of General Motors. The consulting firm indicated that they have substantial doubt about General Motors future and their capability to generate a profit in the near future.
I give General Motors all the credit in the world for their fighting spirit, however, what does it take to bankrupt this company?
If they're not making money, then by the definition of free enterprise, they should be left to reorganize and downsize themselves to a point where they can start making money.
Here's what bothers me about their bailout...
We Lived on $60 per week in groceries - family of four (1993)
When I was first starting my business in 1992, our revenue was pretty light as you can imagine... we lived on $60 per week for grocery money. One week we were pretty desparate so I called social services and asked them if they could help out. Social services told me that I would have to sell my house, because that would provide me with cash!!
I needed money then to feed the family. I was furious at that reply. Here I was ... working 7 days a week, trying to feed the family and had genuinely asked for help. I was refused !! At that point, I said, NEVER AGAIN, would I ask for help from the federal government.
The Federal Government is giving Welfare money to GM
The federal government is now giving bailout / welfare money to people who make $50-$60 per hour. That doesn't seem right, in my opinion.
Is this the alternative to having these families on Employment Insurance? I'm not sure..
This situation is completely wrong IMO.. General Motors should be left to fend for itself. That is the painful choice, however it will be better in the long run, in my opinion.
I've been self employed since 1992.. This means that I've earned money the real way.. creativity, hard work and sacrifice. I've made money , and I've lost money. My family has experienced the severe highs and lows of being self employed. However, we've never asked for a dime since those start up days.
We've had to adapt to our situation as it has happened. We've learned to deal with expanding the business and contracting the business. It's been painful and in some cases it's taken years to do. That's the nature of business.
If you have to down size, then you get back in the saddle and innovate. You create enough value that your customers will start to buy from you again. Again.. some times this takes years, however, you need to do what it takes.
End of rant..
Good luck General Motors, your workers, your suppliers etc!
Comments (4)
CMA Blog Home
Canadian Consumer Toxic Debt? What do we have to show for it?I am starting to research monetary policy and the money supply system.. in my travels I came across this Canadian money supply page that talks about how much savings Canadians have along with how much debt Canadian individuals have.
I was alarmed that Canadians have $412 billion in Consumer debt, and $1.3 trillion in debt when you add in mortgages.
I can understand the mortgages part of the equation as this debt is backed by real assets.
The $412 billion I would assume includes car loans, renovations loans, lines of credit and credit cards. I contacted the government of Canada and they couldn't give me an exact breakdown of the consumer debt portion.
What I'm really worried about is, what kind of assets do we have to back these debts? IE... are all of these debts based on highly depreciated assets?
The basis of my comment is the current collapse of the stock market.. the recent economy has been built on debt on all levels... now that the economy is crashing , there is alot of debt that we're dealing with, but it doesn't seem like this debt is backed up by solid assets.
So.... if our $412 billion in consumer debt isn't backed up by real assets, then how does that make our economy look?
It makes the Canadians balance sheet look pretty weak.
I should say that the it appears from the chart that the money supply in Canada (M2++ gross) is $1,735,973,000,000 ($1.8 trillion) so we have cash to back up the debt.
The point of this post is to express concern so that we can become a little more aware of what we're using consumer debt for. If we're buying holiday & travel, restaurants, and electronics which all have zero asset value after the purchase, then we're buying too many empty items with our consumer credit.
The other point I wanted to bring across.. if we're paying an average of 10% on our consumer credit... that's $41.2 billion dollars per year in interest. Is that what you want to be spending your hard earned dollars on?
Comments (1)
CMA Blog Home
AIG Gets $30 billion more? - Let them go bankrupt!My pet project is to talk about General Motors and how the federal government should let them go bankrupt.
AIG Insurance company needs an additional $30 billion bailout after losing $61.7 billion in the fourth quarter.
So... we're debating whether to give General Motors $4 billion but we're easily going to give AIG Insurance $30 billion.
This is completely ridiculous... the problem is... I can understand a little about the car industry... I have no idea about the insurance business.. (I understand life insurance) I don't understand the high level complex financial products that AIG has created.
AIG MADE TONS OF MONEYThese companies who are getting bailout money enjoyed making alot of money during the hay days. They all enjoyed the upswing. Now, with the downswing they're not enjoying themselves.
From my understanding, capitalism is all about peaks and valleys.. You make profit in the good days, and manage carefully during the down times.
Nobody wants to take the lumps of a down market.
This isn't right. And it's going to cause more problems in the future.
As painful as it may be... why not let AIG fail and restructure. Isn't business about Caveat Emptor? If individuals and companies have insurance with AIG... let them buy insurance from other companies...
I know that's not as simple as it sounds, however, caveat emptor...
AIG performed badly and should be treated accordingly. It's customers should realize that they purchased products from a bankrupt company.
CAVEAT EMPTOR - A business term for capitalism
I think consumers are getting pretty sick of government bailouts... myself included.
Comments (1)
CMA Blog Home
|
Subscribe in a reader
|
|
|
|
|
Enjoy our "What Is This?" articles
• Taxes
• Credit
• Debt
• Bankruptcy
• Credit Repair
• Investing
• Making Money
• Saving Money
• Retirement Planning
|
Comments on our
Blog Posts
|
|
|
|
|
|
|
2012-11-13 23:08:19
Cbv Collection Services Problems
same deal,,these criminals sent a bill saying i owe 18,000$..hilarious,,they call me 5x per day..i am taking rogers to court..small claimes..why not y
Comment By:karen cliff
|
2012-11-13 13:18:44
Retail Theft Could Get You Sued
I keep receiving emails and phone calls from people who think they can simply ignore the letters from these Civil Recovery lawyers.
Don't.
They
Comment By:Gerry Laarakker
|
|
|
2012-10-18 08:23:07
Retail Theft Could Get You Sued
Bank statements can be demanded or balloon a day even fail to repay the debts incurred from the varied lenders. The offered amount in such cash untill
Comment By:Spadiatrere
|
|
|
|
|
2012-10-09 12:42:44
Credit Repair Canada 3 Things You Should Know
to , take up a new job. Also, reflect on investing in generating a payday advance loan while using classmates and more, typically the segments. The in
Comment By:WarbabsjamY
|
|
|
2012-09-30 20:03:01
Cbv Collection Services Problems
I had a telus pay as you go phone from 2003 2008 and now cbv collectons is claiming that i owe over 1500 dollars, the last time they called i called
Comment By:marcus
|
2012-09-25 10:19:31
Cbv Collection Services Problems
Had a bogus 'roaming charge' bill from Telus a few years back. Got mad at them and switched providers. It went to CBV. Yes, they are persistent and
Comment By:Scammed
|
2012-09-23 07:37:50
First Canadian Finance Scam Site
While these aforementioned dangers are a cause for legitimate concern, there are other dangers that derive from perceptions that often have no basis i
Comment By:effomicok
|
|
|
2012-09-16 16:42:15
Retail Theft Could Get You Sued
I am sick of all you so called legal counsel, wanting money from me , there was a reason i was stealing the items in the first place, i have no money!
Comment By:a shopplifter
|
|
|
2012-09-13 11:18:04
Car Repossessed Trouble With High Risk Car Loans
Our car loan was with wellsfargo to begin with then transfered to carfinco,. Have never had a problem with them yet and have less than 2 years left on
Comment By:Darlene Fougere
|
2012-09-02 18:27:17
15 Blog Post Articles That Talk About Equifax
obviously like www.canadianmoneyadvisor.ca however you need to test the spelling on several of your posts. A number of them are rife with spelling p
Comment By:promotion site
|
2012-08-31 11:32:19
Retail Theft Could Get You Sued
so i went in zellers and i baught bus tickets. then walked around playing with toys, and i was with a friend, we're both adults who like stupid toys.
Comment By:Aj.
|
|
|
|
|
|
|
Site Menu
|
|
Canadian Credit Cards
|
Best Canadian credit debt Financial Blog
Canada, British Columbia (BC), Alberta (Alta), Saskatchewan (Sask), Manitoba (MB), Ontario (Ont), Quebec (Que), Newfoundland (Nfld), New Brunswick (NB), Nova Scotia (NS), Prince Edward Island (P.E.I.), credit canada, Canadian
|
|