Blog & News

Today there is good and bad news.

The good news came from a StatsCan report about all of the household debt in Canada that many  experts have been complaining about – how Canadians have been accused of being bad money managers but guess what? This report confirms that we are not broke and precariously dangling from a cliff of troublesome household debt, but quite the opposite. Canadians have significant assets to back all of the debt – and more. There is a net-worth surplus.

As published recently by the Vancouver Sun, a former chief economic analyst for Stats Can, Philip Cross, revealed that two-thirds of the $1.8 trillion in household debt were mortgages.

Finally someone agrees with what I’ve been saying for many years.

It’s easy to tell if your debt is affordable, either you can make the payments along with your other expenses, or you can’t. But if you can “afford” your debt, does that make it acceptable? What may help with that answer is knowing how your debt compares to that of other Canadians.

Do you know if you have more debt than your neighbours, or more than the average Canadian?

If you do have above-average levels of consumer debt, realizing that could be a wake-up call.

Our team of dedicated professionals spent many years working together with Consumer Protection and the BC Government on this. We are all thrilled to finally see this take shape!

I don’t understand how every time the topic of lower interest rates comes up in a public forum, we hear the same song sung in perfect harmony by the experts– it’s bad for the economy – it’s bad for the consumer because lower rates will encourage people to borrow more – especially bad is mortgage debt, and we have too much household debt already. Etcetera, etcetera, etcetera.

Then we hear about the credit crunch of 2007 and that nobody wants to go back there. The message from the experts is familiar in this domain, too. They claim to be worried about out of control debtors and how high interest rates best controls borrowing.

January 15, 2015

shouldIfinanceanewvehicle

Is financing a brand new car the right decision for you?

December 22, 2014

By Margaret H. Johnson

It’s beginning to look a lot like Christmas - now that I pulled myself away from the internet and escaped to Vancouver Island to pick up my mother.

2014 has been such a busy and fulfilling year for me, for my staff and all the programs we have worked so hard to produce for our stakeholders. The wheels have been spinning so fast that I have truly been lost in the gravitational pull of daily routine and the solar heat of managing your own business. Sometimes I forget that my family and friends are all waiting on the other side of the door of duty and obligation.

October 30, 2014

The Conference Board of Canada has identified age rather than gender as a new income divide. As reported September 23rd 2014  The Bucks Stop Here: Trends in Income Inequality between Generations, “Three decades of progress in reducing income inequality between men and women has been accompanied by a growing earnings gap between younger and older workers that could threaten future economic growth and social stability… The average disposable income of Canadians between the ages of 50 and 54 is now 64 per cent higher than that of 25-to-29 year olds, up from 47 per cent in the mid-1980s.”

With the growing aging of Canada’s population, the size of the labour force will be shrinking. Fewer Canadians will be earning income. This means that the younger generation will need to make more in the future. The evidence, however, suggests younger Canadians today are falling behind—their incomes relative to those of older workers are lower now than 30 years ago. If the future incomes of today’s younger workers fail to accelerate, economic growth will be constrained.

Canadian Credit Counsellor

If you have delinquent accounts (in arrears, possibly in collection) they are listed on your credit report as R9. R9 is bad, and it will send your credit score down to the ground.

September 25, 2014

A recent survey of thousands of employees in Canada published in the Vancouver Sun this week by the Canadian Payroll Association found that 51% of employees would find it difficult if their paycheque were delayed by a single week.