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Stop Bleeding Cash: Why Your Mortgage is the Ultimate Financial Power Tool

Let’s have an honest conversation about the financial squeeze many Canadians are feeling right now.

Prices are up at the pump, at the grocery store, and certainly in utility bills. But for many homeowners, the real pressure isn’t just inflation; it’s the “silent killer” of accumulated consumer debt sitting on top of their mortgage.

I see it every day in my practice. Good people, with good incomes, who have managed to build significant equity in their homes, yet they are drowning in monthly payments because they are financing their lives using the wrong tools. They are using 19.99% credit cards and 11% lines of credit for expenses that should be financed at 4-5%.

It makes absolutely no financial sense.

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Posted Consumer Debt

The speed Discharge: Bankruptcy wins over Consumer proposal

In the world of debt relief, two primary options often come to mind: consumer proposals and bankruptcy. While both offer a path to financial freedom, they differ significantly in their implications and long-term effects. This article will argue why bankruptcy, despite its daunting reputation, can often be a more advantageous solution than a consumer proposal for individuals seeking to reestablish their financial footing.

When you’re drowning in debt, the idea of a “consumer proposal” sounds like a gentle breeze, a reasonable compromise. You offer your creditors a portion of what you owe, they agree, and you embark on a multi-year repayment plan. It feels less drastic, less shameful, than declaring bankruptcy. But let’s pull back the curtain on that seemingly gentler option, because from where I’m standing, a consumer proposal often leaves you in financial limbo far longer than the “nuclear option” of bankruptcy.

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Posted Debt

Finance Series – Part Two: Financial Literacy

I know it might seem strange to look at what financial literacy means in the second post of a financial series and not the first, but sometimes, with every step forward we need to take a step back and look at the bigger picture. This is more true in finance than anywhere. So what better way to do that than to break it down now. 

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Posted 1 Comment on It’s Financial Literacy Month Finance

It’s Financial Literacy Month

We’re celebrating Financial Literacy Month!

Join Senior Economist, Ted Tsiakopoulos and Mortgage Broker, Steve Garganis Thursday, Nov 12, 2020, at 1:00 PM Eastern Time for a chat about budgets, savings, debt, and more.

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Register Now: https://buff.ly/3lhmUl3

Hot Topics:

  • Interest Rates, Savings, Debt and Budgeting trends
  • Good debt vs bad debt: How debt affects the economy, housing prices and financial stability
  • Bankruptcy vs Consumer Proposal.
  • Bank of Canada interest rate policy now till 2023 – Risks??
  • Why the second line of defence (macroprudential policies) is necessary despite the recent rise in savings
  • Where does the problem lie? Disaggregating debt to asset ratio by age and income
  • Trends in financial literacy
  • Disruptions coming post-COVID & importance of financial literacy & skills
Posted Consumer Debt

Debt Consolidation Tip: Pay less interest!

Collateral ChargeThe beginning of the year is typically tough financially for most of us. Holiday bill payments, RRSP contributions, property tax bills, etc. And, if you’re self-employed, you probably have to make some sort of business tax or corporate tax payment. If December is the Holiday Season, then January and February feel like a hangover!

Banks and credit card companies love this time of year because this is when we’re most likely to carry a balance, forcing us to pay those crazy interest rates that range from 9% to 24%.

But, wait! Before you get too depressed, there may be a better option. There’s a less expensive way to manage your debt.

Continue reading “Debt Consolidation Tip: Pay less interest!”