Debt Free In 30

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 thirds of women are either single or divorced and struggle to manage expenses on a single income. Moreover, women earn 9% less than male debtors and are also 3 times more likely to be a single parent than a male debtor. This is what our average female client looks like. But, why is it that women are increasingly finding themselves in trouble with debt? What can they do to better tackle debt problems in addition to other life challenges? Sharing their expertise today are guests Gail Vaz-Oxlade, Kerry K. Taylor, and our Tr

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.

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.

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. We'll look at issues like whether the new mortgage rules impede Canadians' ability to consolidate their debt and what impact home prices will have on insolvencies.

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 it seems no one is listening to debt warning signs. First off, should we even worry about debt? Let's say I'm someone who owns a home in Toronto. It's worth a million dollars today. My mortgage on the house is $500,000 and I make $250,000 because I'm a lawyer. My personal debt ratio is 2:1. But, that's not a big deal because the debt to income ratio includes mortgage debt. So, does it even matter if I owe so much? According to Gail Vaz-Oxlade, yes, it still does: When you are in debt, what you have done is eliminated y

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 buyers by educating them. On today’s show Scott Ingram tells us how many realtors there are in Toronto (it’s a huge number), and he tells us what real estate statistics we should watch, and which ones we should ignore.

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 changes working? Why are indebted Ontarians in fact taking out bigger and bigger loans from payday loan companies?  To answer these questions and discuss the unintended consequences of recent changes to the payday loan industry, I talk with my co-founder and fellow payday loan antagonist Ted Michalos.

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.

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.

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 contributor to Macleans, BNN, and many more  media outlets. I’m happy to share that he’s also the newest member of the Hoyes Michalos team. Scott is our new Manager of Consumer Insolvency and he’s our guest on today’s podcast, as we talk debt.

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.

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.

We hear the same thing repeatedly. If you rent, you’re throwing away your money. Why? Because you have nothing to show for it at the end of the month. On the other hand, if you own your home, you’re paying down your mortgage and building equity. But is this true? Why can't you build wealth by renting? Today's guest thinks you can. Some points to consider, according to Alex Avery: It’s not one-size-fits-all. Buying isn’t for everyone. Neither is renting. Consider how long you expect to be in a particular location. If you have precarious employment, or know that a job will be moving you to another location, renting is a more suitable choice. On the other hand, if you know exactly where your life will be in the next 10 years and you’ll have children, who will go to school, then it’s probably better to invest in a home. When making the decision to rent or buy, don't forget all the negative carrying costs of owning and selling a home. Count that against your 'investment' decision. Be aware of you biases that migh

Because it's not the level of debt that causes the problem necessarily. It's whether or not you can service it. On show #174, we gave the example of someone with a $500,000 mortgage and 25-year amortization. If the interest on it went from 3.29% to 4.29%, the monthly payment would go from $2,400 to just over $2,700. That's about an 11% increase. On today’s show we discuss which debts should you pay first, and how to make that decision.

What will happen in 2018 that could water the seeds of a financial crisis? Ted Michalos and Doug Hoyes believe there are three big stories to watch in 2018: Minimum wage going up in Ontario from $11.60 to $14.00, effective January 1st. This means any employer that is already marginal or has very tight margins is probably going to employ fewer people. Debt. According to the Canadian Payroll Association's September 2017 survey, 49% of Ontarians are living paycheque to paycheque and 43% of them save less than 5% of their earnings. Canadians are also the most indebted in the world by at least one measure, as household debt is more than our GDP. Real estate value and mortgage interest rates. The Bank of Canada predicts that 47% of Canadian real estate mortgages will renew in 2018 and a lot of people are going to be facing an increase because rates are higher than they were a year ago. For more insight and detailed breakdown of our predictions for 2018, tune into the podcast.

On today’s podcast we explain how, even though your house may have increased in value, if you don’t have enough cash to meet your monthly expenses, you are house rich but cash poor. We give four tips to avoid being house poor.  The most important tip: decide what kind of life you want, and use that decision to decide on the house you really need.

Every year, the focus of the holiday season is on consumerism and the need to spend money on the perfect gifts, the perfect decorations and creating the perfect dinner. And every year, Canadians end up spending too much money, putting them at risk for financial difficulties once the holiday season is over. On today's show we rebroadcast a podcast from 2015 where my guest is Heather Cudmore, who at the time was the manager of Credit Counselling at Carizon Family Services in Kitchener, and is now a credit counsellor in the Hoyes Michalos London office. Heather has lots of great advice on how to make a memorable Christmas, without spending a lot of money.

Should you ever loan money to family and friends? It’s a tough question. Some of you might say, “sure, why not?” And others might think, “Maybe just to family.” Well, if you do decide to loan money, I’d recommend asking yourself this question: Do I have to borrow money to do it? If you do have to borrow to help, you shouldn’t loan money… even if it’s to family and even if they say they’ll pay you back. Now I realize that sounds harsh, but it’s in your best interest to not get yourself into financial trouble. On today’s show I discuss why you should never loan money to family and friends, and I explain how you should help them if they are in need.

On today's show, I review 10 personal finance books that would make great gifts and/or would be a great start to your own personal finance library. All 10 books are listed below, with the time stamp from the podcast, if you wish to jump ahead and listen to my comments on a particular book: General Money Management The Wealthy Barber Returns by David Chilton (2:35) Wealthing Like Rabbits by Robert Brown (3:20) 397 Ways to Save Money by Kerry K. Taylor (9:40) Stop Over-Thinking Your Money by Preet Banerjee (11:06) Debt-Free Forever by Gail Vaz-Oxlade (11:54) Protecting Your Money – A Guide to Identity Theft and Fraud by Kelley Keehn (14:24) Real Estate When the Bubble Bursts by Hilliard Macbeth (19:32) Burn Your Mortgage by Sean Cooper (23:26) Retirement Victory Lap Retirement by Jonathan Chevreau and Mike Drak (27:19) Thinking Thinking, Fast and Slow by Daniel Kahneman (28:48) Of course, I am also quite proud of my own book, Straight Talk on Your Money, which I discuss briefly at the end of the show

Have you ever wondered why a credit card isn’t called a debt card like it should be? Think about it. That’s what a credit card really does – it gives you debt. Well, I’ll tell you why. Because it’s not good marketing. And credit card companies know this. In Myth 4 of my book, Straight Talk on your Money, I point out that financial institutions know we are guided by our emotions. Banks and credit card companies have manipulated you into thinking that credit is good, and they do it constantly. Credit can also be used to describe a source of pride or honour like, 'you are a credit to your family.' Here's another example: "I'm a good person because I have a high credit score." How many times has been idea been shared? That maintaining a good credit score means you're responsible with your money and you're not a reckless spender. I disagree. Although my focus today isn't on credit scores - I already discussed that on my podcast a couple weeks back, episode 167 - I will say that a credit score, which should (once a