It’s the month of August, and we are replaying the most downloaded episodes from the past season of Debt Free in 30. This episode was inspired by all of those personal finance bloggers who love to write stories about how they paid off a massive amount of debt in a short period of time. That’s great if you have a massive income and can do it, but what if you can’t? That’s the topic on today’s rebroadcast, so please enjoy our take on a Realistic Approach to Paying Down Massive Debt....
Aug 11, 2018•17 min•Season 4Ep. 206
As is our tradition here at Debt Free in 30, during the month of August we rebroadcast the most popular episodes of the past year. Today’s episode is short, only 15 minutes, but I think it resonated with listeners because I discussed the concept of minimum payments. Since September, 2010, banks are required to show you, on your monthly credit card statement, how long it will take you to pay off your balance if you only make the minimum payment. That’s a scary number, and it’s a big reason why pe...
Aug 04, 2018•13 min•Season 4Ep. 205
On today’s show, recorded in July, 2018, I give my thoughts on what the bankruptcy of Tesla Inc., the electric car company, can teach us about how we manage our own personal finances. And yes, I realize that Tesla is not (yet) bankrupt, and in fact they have a market value of approximately $50 billion (in US Dollars), which is comparable to the market value of General Motors, so on the surface it appears that everything is going great at Tesla. Perhaps, but looks can be deceiving. Is someone who...
Jul 28, 2018•18 min•Season 4Ep. 204
There's a saying that you shouldn't put all your eggs in one basket, and this rings true for bank accounts. While it is convenient to have all your finances located at one bank, what happens in the event that the bank's systems are down and you can't access your money for a little while? Or, a more common scenario my clients have faced is having their bank account frozen due to missed debt payments. This makes their financial situation more frustrating because they can't access their chequing ac...
Jul 20, 2018•14 min•Season 4Ep. 203
There's no need to worry. Bankruptcy court is not something that every bankrupt has to go to when they file for bankruptcy. If you complete all your duties and no one objects, you are automatically discharged from bankruptcy after the required period of time has passed, so there is no requirement to appear in bankruptcy court. In fact, this is the case for the vast majority of my clients. The only reason why you would have to appear in bankruptcy court is if your bankruptcy could not be automati...
Jul 14, 2018•25 min•Season 4Ep. 202
You know you need to improve your financial health. You might even know what you need to do - save more, spend less, pay down debt. So why does that not necessarily translate into healthy financial habits that move the needle? What's stopping you from achieving overall financial wellness? That's the question asked in a recent study by Mercer Canada . The study found that while Canadians have a reasonably high level of financial literacy they aren't necessarily achieving financial wellness. For e...
Jul 07, 2018•31 min•Season 4Ep. 201
For as long as debt has existed, society has judged people for failing to pay it back. Over the years, I've heard hundreds of honest, but unfortunate debtors tell me they are stressed out because they believe they have morally failed for being unable to repay their debts. But why is it that we attach a moral dimension to bankruptcy at all? Is bankruptcy morally and ethically wrong or is it more accurate to just consider filing bankruptcy to be a math decision? When you face financial hardship li...
Jun 30, 2018•25 min•Season 4Ep. 200
What causes us to spend beyond our means? While in some cases it's the result of a job loss or illness, in other situations, it's the Diderot Effect at play. The Diderot Effect is a social phenomenon where the introduction of a new possession that deviates from what you currently own leads to a spiral of even more consumption. For example, when you buy a new house, you don't just settle for the home. You now have to have new furniture, maybe a new deck, and so on. This creates a cycle of spendin...
Jun 23, 2018•30 min•Season 4Ep. 199
Did you know that in Ontario, anyone can call themselves a financial planner? With this in mind, how can you make sure that you are getting expert and unbiased advice on money management? Should you trust the financial planners who work at banks? Are they credible or do they just want to sell you mutual funds? My guest today says that if you want an honest assessment of your finances, you should speak to an advisor who doesn't sell products, but rather, advice. My guest today is Jason Heath, a C...
Jun 16, 2018•31 min•Season 4Ep. 198
Repaying debt requires a stable income. Even when you're in a debt relief plan like a consumer proposal, you need money coming in each month to make your payments. But what if you are faced with a sudden job loss and can no longer keep up with payments on your consumer proposal? Could you revive it after you find another job? What if you don't find work until after several months, could you restart your proposal then? My guest today says it is possible to revive a consumer proposal. Richard Howe...
Jun 09, 2018•25 min•Season 4Ep. 197
What if you could approach personal finance like most of us try cooking? Instead of learning a bunch of rules and principles, all you'd have to do is follow some tested recipes. Would this make it easier to save money, budget and build wealth? Today's guest thought so and the result was a new approach to money management he called Cashflow Cookbook . Instead of asking you to make sacrifices to save money, he compiled 120 ideas for you to be more efficient with your spending, while not having to ...
Jun 02, 2018•32 min•Season 4Ep. 196
Credit scores are a way for a lender to assess how well you handle debt. To be able to set a credit score, the credit bureaus need information about credit use. This leads to a strange principle behind credit scores: the more access to available credit you have, the better your credit score will be. While that's good for your credit score, is that actually good for you financially? Are we too addicted to credit scores? The techniques needed to build a higher credit score can be surprisingly harm...
May 26, 2018•19 min•Season 4Ep. 195
Your credit report is a report card on your credit activity. While you can get a free copy of your credit report from many sources, not all credit reports are the same and not all sources provide full information. With so many free report providers, how do you know which one is accurate? My guest today stresses it's important to first understand what's actually on your credit report. Then you can take action to deal with any errors and omissions. Meg Penstone is a certified credit counsellor at ...
May 19, 2018•32 min•Season 4Ep. 194
Divorce can be expensive. In my experience, it's also one of the many causes for insolvency . The reason for this is when you are living together, you only have one bill for rent, cable, and utilities, but two incomes. You are in a better position to save money. When you separate, suddenly all these expenses become yours. What's more, if it's not an easy separation and lawyers are involved, it can cost tens of thousands of dollars. It's no small expense and it's often funded through debt. But, i...
May 12, 2018•32 min•Season 4Ep. 193
Once upon a time, if you had a lot of credit card debt and owned a home, you could get a second mortgage to consolidate and pay off your debt. Interest rates were low and home values were rising. You could borrow against your home equity and pay down your unsecured debt affordably. But interest rates are rising. What's more, in some areas now, home values are declining. Mortgage rules are becoming stricter which means more people are being turned down for a second mortgage and the cost of borrow...
May 05, 2018•23 min•Season 4Ep. 192
As a Licensed Insolvency Trustee, I'll always advise that you prioritize debt repayment. Why is it important to pay off debt first? So that you are no longer burdened by it. While that is the most prudent course of action, not everyone wants to wait until they are debt free before pursuing their dreams. For example, if you are a recent graduate, you might not want to delay starting a business until you've paid off all your debt. This is exactly the decision that my guest, Alex Grodnik, made. Sti...
Apr 28, 2018•28 min•Season 4Ep. 191
Money management is hard. That’s why so many people don’t do it. Over the years at many credit counselling sessions with clients I’ve explained budgeting, and spreadsheets, and budgeting apps, and lots of other techniques to manage money. Some of my clients love the process of recording every transaction. Others, not so much. So, what can you do if you want to keep track of your money , but don’t have the time or the inclination to keep a spreadsheet or spending journal? You cheat. By cheat, I d...
Apr 21, 2018•9 min•Season 4Ep. 190
I've said it before: when it comes to credit rating agencies like Equifax or TransUnion: You are not their customer. You are their product. Your data and loan history are for sale to any lender who is willing to pay for the data. But what if this could be flipped upside down? What if you could own your own credit history and control who gets to see it? Well, our guest today says that can be made possible with the power of blockchain technology. Derek Silva is the head of community relations at B...
Apr 14, 2018•53 min•Season 4Ep. 189
In our latest bankruptcy study, we discovered that over the last 5 years women have been filing for bankruptcy in higher numbers. In 2012, 42% of women filed insolvency and by 2017 that number reached 48%. But, it's not that women are suddenly using more debt. What we've noted from our client data is that female debtors face a unique set of challenges that drive women to turn to debt to makes end meet and then prevent them from being able to keep up with their debt repayment. For example, two th...
Apr 07, 2018•39 min•Season 4Ep. 188
How can you find a good place to rent, even if you have damaged credit? Today’s guest runs her own property management company, and she gives us the inside scoop on how to find a good place, and how to convince the landlord to rent to you.
Mar 31, 2018•38 min•Season 4Ep. 187
Credit card fraud affects many stakeholders. It's damaging not only to consumers, but also to merchants and financial institutions. In addition to losing money, credit card fraud can ruin a customer's relationship with a retailer as well. But with advancements in card security like having a chip and PIN, how does fraud continue to be such a big problem? How can Canadians protect themselves? What can retailers do to limit their losses? Those topics and practical advice on today’s show.
Mar 23, 2018•36 min•Season 4Ep. 186
At the end of last year, Ted Michalos and I predicted three types of bankruptcies we expected to see more of in 2018: People will be denied for debt consolidation and refinancing. Ontarians will be dealing with lower home equity and as a result, end up filing for more proposals We will see crypto-currency related bankruptcies in the New Year. To review those predictions now that the year has started and to share his insight, I'm joined today by our Manager of Consumer Insolvency, Scott Terrio. W...
Mar 17, 2018•34 min•Season 4Ep. 185
Household debt to income levels in Canada continue to rise. We now owe $1.71 for every dollar earned . But, with no shortage of experts discussing the risks of high debt and how to repay it, why is it that we continue to spend? Why do we find it so hard to say 'no'? Are we just comfortable with debt now, as a society? To discuss these questions, I'm joined today by a panel of experts: Gail Vaz-Oxlade, Kerry K. Taylor, and Robert Brown. Using their years of experience and insight, we dig into why...
Mar 10, 2018•41 min•Season 4Ep. 184
Talking real estate isn't a first for the Debt Free in 30 podcast. We've had many experts like Hilliard Macbeth, Ben Rabidoux, and Alex Avery provide their insight on whether renting is better than buying and vice versa. But we've never had the most obvious guest to talk real estate: an actual realtor. On today's show, we're chatting with Scott Ingram. Scott's not just a realtor, though. He's also a Chartered Professional Accountant. But what really sets him apart is that he likes to empower his...
Mar 03, 2018•35 min•Season 4Ep. 183
In early February, we released updated research that shows 3 in 10 Ontario insolvencies involve payday loans. Payday loans have been a fairly popular discussion in 2018, as the Government of Ontario changed laws lowering the cost of borrowing for these types of loans and the City of Hamilton stepped in to be the first municipality in Ontario to limit the number of payday loan locations . Yet despite all the warnings and changes, payday loan use among our clients is on the rise. Why aren't these ...
Feb 24, 2018•30 min•Season 4Ep. 182
On more than one occasion, we've said that compound interest is great for savings, but terrible for debt. On today's show, Ted Michalos shares a simple math trick to help you easily calculate the impact interest has on the debt you carry. The trick is called the Rule of 72. You take the number 72 and you divide it by the interest rate that you're considering. Why does this matter? We explain on today’s podcast.
Feb 17, 2018•9 min•Season 4Ep. 181
With the launch of the new PC Optimum program , we're taking the opportunity to examine just how Canadians can make the most of loyalty cards and points programs. While there are advantages to in-store reward programs, if you're not careful, they can actually cause you to overspend. Our special guest host on today's podcast, Sharon Hoyes, talks with our guest, Kimberly Hill, about how to use loyalty programs wisely to balance your budget....
Feb 10, 2018•25 min•Season 4Ep. 180
Trying to make debt an everyday topic is difficult. What’s more, most people who are in my line of work have an accounting background. As such, there’s a tendency to be more numbers-focused than say, story-telling, for example. But a year ago, I came across an individual on my Twitter feed, who was commenting on personal finance issues and the sorts of situations that my clients face. He’s even got an impressive social media follower base because of it. His name is Scott Terrio. He’s a regular c...
Feb 03, 2018•33 min•Season 4Ep. 179
You hear the stories about the person who paid off $100,000 in debt in just 3 years; sounds great, but how did they do it, and is that realistic for the average person? The short answer is no, if you earn $25,000 per year it is mathematically impossible to pay off $100,000 in three years, but you do have options, which we discuss on today’s show.
Jan 27, 2018•16 min•Season 4Ep. 178
If you think your finances are under control because you're keeping up with minimum monthly payments on credit card debt, think again. To become debt free, you need to pay down more of your balances. How do minimum payments work and why do they keep you in debt? And what do you do if all you can afford are the minimum payments or less? We discuss that on today's podcast.
Jan 19, 2018•12 min•Season 4Ep. 177
