Money Management

A terrific invention

I think most of us would agree that debit cards are a terrific invention. First you swipe a plastic card through a point of sale terminal (POS) and key in a personal identification number (PIN). Within seconds money is automatically transferred from your bank account to the stores bank account. You never have to worry about not having enough cash on you to make a purchase (as long as there is money in your account).

Debt Management Programs

Looking back over their financial life together, Bill and Rita readily admit to how difficult it has been. Constant worries about bills and payments have made life unbearable at times.

For years this couple has lived beyond their means, ignoring all the financial danger signals and fooling themselves into thinking things will get better by themselves. Now due to life circumstances, their financial picture has taken a turn for the worse and debt collectors are calling daily demanding money that they are not able to pay - their debt situation is clearly out of control.

Rita and Bill are in my credit counselling office prepared to do whatever it takes to regain control over their financial lives and stop the collection calls.

The Never... Never Plan 

Many stores offer the "buy now, don’t pay until next year" programs.

If you cannot afford the item today what makes you think that you will be able to afford it in the future, ask yourself.

What is going to change financially so that I will be able to afford to purchase this item? Where will the money come from?

A loan till payday may bankrupt you

If you decide to use one of these payday advance companies which have popped up everywhere across Canada – be very careful and read the fine print. Some are much easier to deal with than others when you find you cannot repay.

“Sharon” has worked the last five years as an executive assistant for a printing business. About 10 months ago, she found herself in a financial mess after her car broke down and she had no money to get it fixed. Sharon decided, rather than waiting until her next payday two weeks away and using the bus, she would get an advance on her next pay cheque – payday loan, but not from her employer. That move would prove to be a very costly mistake.