The Debt Free Tickler

Time to Revise your budget?

2010-07-04T08:02:00.000-07:00

It's always good to revise your budget as new expenses enter your life and old expenses exit as you pay off your debt.

If you're not into the snowball effect of paying off your debt what you can do is incorporate the interest charge you pay on your credit cards in your minmum payments for the month.

i.e. Your mastercard owes 1300 on it and your minimum payment is 37/month. But of that $37 dollars $30 is interest. Pay your bills biweekly instead to make it easier for you and make that payment (37+30/2)=33.50 biweekly.

You may not be able to do this for all your cards so get started and do just one. Then if you can manage, do it for a second one and so on.

Hope that helps! Doing it this way will actually save you hundreds in interest charges.

You're broke because you want to be

2010-06-12T18:10:00.000-07:00

A friend of mine was skimming through this book today called "You're broke because you want to be". Strange title eh'

Are most people broke because they make a concious decision to be broke..or it's written down as one of their financial goals? No ofcourse not.

Something to think about:
If you're constantly spending money on the wrong things, which are things that don't have a postive impact on your financial future, then you'll be broke till death do you part. Win a million, a thousand, win cash for life, you'll max out what ever you get so you end up feeling the same way....broke.

So what do we do?
Invest your time in educating yourself about money, and smarter things to do with it. Simple.
Purchase a book on money, and read up on it. Use the internet to research about money, and eventually you'll find you're gonna start to figure things out.

Ultimate goal:
No matter how much money you make, you'll make educated decisions on how to make the most of it.

P.s. If you're into Zumba fitness, visit my other blog at: Ditch the workout and join the party!
http://thezumbasoul.wordpress.com
http://www.zumbaworkoutscanada.blogspot.com
www.zumbaworkoutscanada.com Video tutorials on how to dance latin style

Zumba Workouts Canada

2010-05-29T22:59:00.000-07:00

I've recently launched a new website in another venture I got going to hopefully improve the quality of my life.

If you already have a gym membership with www.goodlifefitness.com then you probably have already heard about Zumba! Gotta make sure you say it right ZOOM-BAA!

If you love to dance, even if you don't have much experience with Latin Grooves Music, it's still okay. You'll eventually get better and better at it.

My website talks about how to bring Zumba into your life to invigorate your soul.

Links to my blog at www.zumbaworkoutscanada.blogspot.com
Hot MP3 Tracks that fit a Zumba themed workout class - can be purchased on www.itunes.com
Basic Steps
Zumba Instructor Reviews for the ones I've tried - each add their own flavor to the mix
Important Zumba Links
Before & Afters

If you have suggestions visit www.zumbaworkoutscanada.com

XBankers.ca - Review or Anti-Testimonial

2010-04-27T07:45:00.000-07:00

XBANKERS.CA
lame italisized IMPACT font logo

Well well well, what do we have here? Something that seems too good to be true eh'. Well like they say, if it sounds too good to be true it probably is. Here is another good one - Curiosity killed the cat.

So in short, I wasn't happy with my experience with xbankers.ca. Their website doesn't have all the bells and whistles but their pitch in filling in that neat little form on the front page with the little red bow on top was enough to get me to press the "send" button.

After I pressed send, I received an email telling me that someone would respond to my inquiry shortly. They did in a matter of hours by email!

Email! Are you kidding me!

I was asked to email personal information. Not come into their office for a cozy appointment where they'd offer me free stale coffee they've had sitting there for a couple of days...but plain old email.

I got a queezy feeling in my stomache. So there was a number at the bottom of the email that I received and I called it. When I called, I was also told that I can email my personal information again! Credit card info, bla bla bla. And the email they were using was a from a gmail account! Hey Google, nothing against you guys, I love yaz. But they don't even have their own domain email.

It was downhill from there guys. I ignored further attempts to communicate with me by email and told them that I was no longer interested and I found another company - which I didn't.

For the politically correct version of this review - Xbankers.ca came across to be as being too informal, unprofessional, unsecure, and way too home businessy

That was my experience, feel free to post yours in the comments section below. toodle loooozz!

Money - The #1 Reason for Divorce

2010-04-06T15:02:00.000-07:00

If you haven't had a serious discussion with your spouse about your current and potentially future financial situation then you're headed for trouble.

How?

It all happens when one of you decides to get serious about budgeting expenses of the household and the other doesn't. That alone will cause petty fights and arguements because one of you is trying to grow up and be more responsible and the other still wants to take their time or just doesn't see it as a big deal.

Advice: Do what you can to make a change to your lifestyle by making better spending choices. As a result hopefully your other half will see what music you can potentially make together.

Good luck!

A Balanced Budget: What it means exactly

2009-08-23T11:29:00.000-07:00

Are you feeling balanced or strained?

When you're on a successful balanced budget, it truly feels like losing 20 pounds. You feel comfortable in your money and you get what you need without feeling strained. That's what it feels like.

Here's an example of a strained budget: Income $3000/mo

House/Rent = $1500 (incl. property tax+home insurance)
Car Loan = $300
Car Insurance = $200
Gas = $150
CellPhone = $70
Food= $240
Visa=$65
Cable/Phone/Internet=$150
=$2675.00/month spent
=$375.00 /month left

So when you look at the budget of a single person up above, it looks as if initially they can afford to live in their home. However, you have to prepare for unexpected expenses such as:

Car Repairs
Home Maintenance Repairs
Tim Hortons Coffee/Timbits
Convenience store snacks
Cigarettes
Eating out at restaurants
Cinema
Shopping, online or offline
freak emergencies

So based on the budget above and with possibility of expenses popping up and eating habits unaccounted for, Can you afford to live in this house or get a house at this time with your current income? NO

Expect to live like a someone walking around with a noose around their neck. You'll be strained, life will suck, and payments are bound to be missed.

So what do you do? Figure out what changes you can make to your spending so that you can balance your budget to the following figures:
Housing 35%, Transportation 15%, Debt 15%, Food/Entertainment/Emergencies %25%, Savings 10%

Based on the budget above you can cut costs the following ways:

-No Timmies, carry a thermos to work
-Don't eat out
-If you work in the same city, use public transportation and bike to cut costs
-Change cable/inet/phone provider. Use skype to make and receive calls, or freecall
-Lower cell phone bill to a my5 or free incoming calls
-shop around for car insurance
-Rent out part of your home
-Quit Smoking

Just a few idea's ...so improve the quality of your life by cutting costs so you can save to go on a vacation once and a while eh'

Debt Denial Anyone?

2009-08-07T11:26:00.001-07:00

At some point or another we all can say that we've gone through a phase of our life where we've denied many things - Denied we're beautiful, denied we're well off, denied being in debt - oh yeah and denied being too old to wear a bikini!!! Like wtf!!!???

Does this sound familiar?

I'm not in debt! If I sell everything, it'll be paid off!

What about this one?

All I have to do is pay my minimum payments and I don't have to pay it off right away! (**and you say this with a huge grin and a wide eyed look on your face)

And this one takes the cake...

All I gotta do is win the lotto and I'm set for life!

Why don't we all take one moment to get real here? And realize a few of the following bad signs that you are in fact - IN DEBT:

You can only afford to pay your minimums

You're living paycheck to paycheck

You have not prepared to pay for a last minute emergency and will look to your credit card to save you from it or a loan

Your card or cards are maxed out

You rely on your credit card available balance to supliment your income

You take cash advances from your credit card to pay for things
Your overdraft is used and you're living in the negative every month

And last but not least - You have no feasible plan to pay it off other than saying "I'll pay it off when I have the money"

So rather than later - make it sooner to make a plan, put pen to paper and pay off your credit cards and keep your balances low if you plan to use them.

Keeping your balances low lets lenders know that you're capable of handling credit. This rule alone helps keep your credit rating plump and juicy, instead of dried up and on fire!

Your Minimum Credit Card Payments? $$$

2009-08-04T16:41:00.000-07:00

Paying your minimums eh' - definitely a bitter sweet isn't it?

Benefits of paying your minimums:

Pay less money at a time

You don't have to pay them back right away

You can use a portion of that money again for a purchase

Keep doing this and you'll never pay them off!

Disadvantages of paying your minimums:

Creditors don't like it when you just pay your minimums because it shows you're having difficulty handling access to credit

Although your payments are on time, with high balances it does nothing good for your credit rating

Lastly - YOU PAY AT LEAST DOUBLE IN INTEREST WHEN YOU PAY YOUR MINIMUMS ONLY!!

i.e. If your credit card is 10,000 and your minimum $106.50 at 11% interest on those lower interest rate cards. It will take you 18 years to pay it off and they get $13,004 in interest!

Think about it...

Put pen to paper and make a debt repayment plan to pay down that sucka' - no pun intended...

(The one on the left is symbolizes your relationship with your credit card and the one on the right signifies what you'll look like after 18 years of debt - just a wee bit worn out eh'...tee hee hee)

Inherit Mom & Dad's Debt: True or False?

2009-08-03T18:44:00.000-07:00

I'm sure at some point or another you've wondered about the same question...

Can they past their debt onto me when they kick the bucket?

Do they have life insurance to pay off those debts when their coop is flown from?

Answer: No, unless you co-signed or have a joint account for which you indirectly become responsible for the debt. Any money left unpaid would be absorbed by the creditor.

Reason: As long as you're not doing anything so that the creditor sees that you're taking responsibility for the debt and leaving a paper trail as proof then you're in the clear!

Example:

A joint credit card with a parent
A joint checking or savings account with a parent
Writing checks from your personal account to pay off dad or mom's bills

So be careful guys! Just because they're older, doesn't mean they're more responsible with money. Cover your asses. If you want to help mom and dad out as long as your financial situation is balanced, then you can give them cash or write a personal check to them and they can deposit it to their account.

(And for the parents that sign up for things in their kids names and then don't pay the bill - How the heck do you sleep at night for crissakes????) - Parental Identity Theft : doesn't sound too nice doesn't it...

How to Build Credit Score: With Bad or no Credit

2009-07-21T22:35:00.000-07:00

Hey guys! Here are a few steps you can do to increase your chances of getting approved for a credit card.

1. Do not apply for any credit card or loan for at least 6 months. The reason is because when you apply for credit, it records a hard inquiry on your credit report and will decrease your score. Too many inquiries made at once to get a loan or credit card communicates to potential lenders that you're in need of instant cash. Not good. If you're however, shopping for a home and apply to for a mortgages from different banks, it doesn't have much of a negative impact on your credit score.

2. After 6 months to a year has past and you've continued to pay all of your bills on time and pay more than just your minimums. Ask your bank for a secured credit card for which they will take a small sum of money as collateral - like 250 or 500 which would also be equal to the approved limit on your card. Don't confuse this process with that of a prepaid credit card because the money they give you access to is credit for which requires you to make your monthly payments on time.

3. For the next year and a half to two years, use the card responsibly and keep the balance 50% or below the credit limit, pay the bill on time, and pay more than just your minimums. After that time has passed you should have no problem in getting approved, through the same bank, for an unsecured credit card.

A good credit rating will save you thousands of dollars in interest in the long run. Play the game but play it smart:)

How to Build Credit Score: After Bankruptcy

2009-07-20T16:09:00.000-07:00

In the beginning there was man, animal and credit. Credit is the root of all evil and good. So if you build it; they will come.

Here a few quick tips on how to build your credit score after filing bankruptcy or from age 18 where you don't have a credit card yet.

1. College institutions...

often offer students their first credit card and it's quite easy to be approved - Look out for those agents, they stand at little booths near the cafeteria with small red horns on their head giving you the "come hither my sweet" glance from a far

2. If that's not an option, get your own cell phone in your own name.

Apparently they report if you're on time or late with your payments to the credit bureau. Pay your bill on time all the time and it's an easy way to get on the credit score map

3. If option one or 2 aren't an option then buddy up with mom and/or dad to co-sign a small bank loan with you to build your credit.

If you make a good reputation on that loan with the bank, chances are they may eventually approve you for your own credit card. So you build it fast make it a small loan for $1000 and pay it off in a timely manner. Also mom and/or dad or friend or whoever will do you a favor , need to have good credit.

If there are other ways you can think of, add a comment or send us an email

HSBC Finance Debt Consolidation is a huge rip off!

2009-07-18T19:36:00.000-07:00

Calling all Canadians! Hey you learn something every day but gotta warn you that using HSBC Debt consolidation will rip you off in interest rates. The interest rate alone is double that of a consumer credit card at a whopping 33%!!!

Too bad some realize this too late. For example:

An approved debt consolidation loan for almost 10000 will cost you almost $6000 in interest rates over 3 years if you go with HSBC.

When I had my first consolidation loan with them and called to complain why I wasn't able to receive any statements of what my loan is at and this is what I was told. I was told that I would have to call in every time to find out and that I would have to redo my loan over so that I can receive automatic statements. AKA it was soooo lame. And as the rep made a lame attempt to appreciate my frustration it all went to nil when they said this...before I slammed the phone in their face

"We appreciate the interest that you forward to us"

Yeah I know pretty disgustingly transparent eh'

I did find a new company though and would like to share - http://www.xbankers.ca/ who are based in Toronto Ontario Canada. If any of you have experience with this institution kindly let us know by posting a comment below. Apparently a 10000 loan would cost under 11000 instead of the whopping 15000 with HSBC Finance

A Balanced Budget: Lesson 102 - Overspending

2009-07-16T11:53:00.000-07:00

Overspending eh!

What is a balanced budget? How do you know if you're putting too much of your monthly net income toward a particular expense? Here's How...

1.
Take your monthly combined income: i.e. $4200 or
Take your monthly single income: i.e. $1600

2. Divide your monthly income up into the following percentages that signify a balanced budget.

25% Housing (rent or mortgage, gas, water, electricity, home insurance)
15% Debt (minimum credit card payments, loan payments, line of credit, student loans etc)
15% Transportation (gas and auto insurance and repairs)
10% Savings/Emergency (to be put aside into an RRSP and emergency savings account)
25% Leisure/Life (groceries, movies, dinner, fun stuff, baby needs such as diapers, formula, medical, pets, petfood, vet)

3. Examples using 4200 combined income: Let income be variable I

25% Housing = $1050.00 = H
15% Debt = $630.00= D
15% Transportation = $630.00 = T
10% Savings/Emergency = $420.00 = SE
25% Leisure/Life = $1050.00 = L

4. Analyze the numbers
-If your housing costs are more than $1050 then you've taken on a bit more than you can afford so guess what gets slashed first? That's right the savings. Not good because there has to be a back up plan incase your other half gets laid off.

- If your debt payments exceed that because of a debt consolidation loan in combination with credit card minimum payments, student loans and line of credit interest - find a way to make more money to get rid of them and cut costs on your variable expenses.

5. Analyze the numbers using the following formula for each of the 5 partitions above:

(H/I)x100 = The percentage you're spending on housing (Is it more or less than 25%?)
(D/I)x100 = The percentage you're spending on paying your debt (Is it more than 15%?)
(T/I)x100 = The percentage you're spending on your sexy ride (Is it more than 15%?)
(SE/I)x100 = The percentage you're spending on savings (Is it more than 0%? up it to 15%)
(L/I)x100 = The percentage you're spending on life/leisure (Does it exceed 25%?)

What this means for you?

Now that you know your percentages, time to cut costs. In many cases you'll find the debt D and the L Life/Leisure very high. See what you can do about cutting costs there. Also T might be a bit high too see what you can do about getting a better vehicle that you can afford and not just pay for while other payments such as cable/phone/internet are being put on the back burner.

This posting should give you a good idea on where you're at financially and what numbers would balance your budget based on your net monthly income. If you're living like you're rich, bring in the cash that you'll need.

(See posting on "Are you really affording it" in June 2009 Archive to see if you're making enough money to successfully maintain the lifestyle you want. ) http://debtfreetickler.blogspot.com/2009/06/debt-are-you-really-affording-it.html

Credit? Forget it!

2009-07-15T20:17:00.000-07:00

Sharukh Khan - Bollywood Superstar

One saying I heard from one Bollywood movie for which I can't remember is "Credit? Forget it"

So next time your spouse asks you if he/she should buy something that involves a credit card, loan or something of the kind you say 2 words...... 3 times

Credit? Forget -it, Credit? Forget-it, Credit? Forget -it.

Had to pay tribute to one of the best Bollywood actors of all time - Sharukh Khan. so

Slumdog millionaire can eat his dust because America hasn't tasted what Bollywood is really about until they've seen Shahrukh Khan in action!

Debt-Free Budget Plan: Getting spouse on board

2009-07-14T19:18:00.000-07:00

Getting the spouse on board can be like pulling hair out of a horses ass - A real kick in the head.

-Your opinion has little or no bearing on purchase decisions

-Spouse doesn't want to talk about numbers

-They're busy

-They point fingers and pass blame

-They say it's your problem

-They don't want to share responsibility of the accumulating debt

-Keeping secrets that get you deeper in debt

-They talk about the plan but no action

-You have separate bank accounts and keep your personal finances private

-Don't really care about their credit rating or getting a house-Rely on applying for bankruptcy as a way out

If any of you have any suggestions on how to get the spouse on board to making an agressive plan to pay off debt - share and please do in a comment below.

Cash Money Management: How to start

2009-07-11T06:19:00.000-07:00

After you've made a solid and realistic budget implement a plan to live on cash. All your fixed expenses such as:
-Rent
-All Minimum Loan payments(Car, Credit Cards, Student Loan etc.)

Then shop around and/or cut costs on:
-Auto Car Insurance
-Water
-Gas
-Electricity
-Home Insurance

Then divide up all your variable expenses such as:
-Food
-Clothing
-Diva Maintenance (Hair/Nails/Waxing)
-Pets Medical/Food
-Anything other than what fixed expenses are but that you can forcefully do without(some of them)

Now there is only so much money you have to divy up unless you're going to get out there and make some more money.

So then you begin to live on cash and when you do, you wouldn't BELIEVE how much you've spent before. All of a sudden the answer to the question:
-Where did my last $100 go?????
Becomes clear. The answer to why the rent bounced, why Paul is still harassing you for his money...................all becomes clear

Guys you gotta start living within your means even if that means, cutting down on buying so many snacks, or even selling the dog.

But don't worry, it'll all be over when the debt is gone:)

Michael Jackson's 1.4M Memorial: Caring Humanitarian Deep in Debt

2009-07-09T01:34:00.000-07:00

What an amazing memorial ceremony. Many stories and commendations were given to the King of Pop in an effort to restore credibility and empathy towards him.

He was indeed a caring humanitarian who gave and gave till no end. But was he able to afford it? Probably not. As long as he was spending up to 30 million dollars more than he made every year chances are his extreme generosity contributed to the massive debt balloon of 400 million dollars. Without a financial planning map it is said that the only place you'll get is lost.

Another question is who is going to end up paying for the massive $4,000,000 debt load???......his family or tax payers themselves? It definately worries me that with another write off debt hanging over our heads, what are the politicians going to come up with next?

Don't you think it would've made sense that they used the memorial as a fricken fundraiser to knock several million off the debt? For a man that was indeed very giving, it would make sense for the ones who care so deeply for him such as his immediate family to do the same.

All the roumers that are stirring about are just fogging out the fact of the 400 million dollar debt still needs to be paid back and there is no way in hell it's going to disappear!

(p.s. Also wondering why President Barack Obama didn't accept the invitation to come to the memorial ceremony?? We brothuz got2 stick 2getha' right...)

Michael Jackson died 400 Million Dollars in Debt

2009-07-07T09:59:00.000-07:00

Michael Jackson 1958-2009
This is how I remember Michael Jackson - on stage he was cool, a great dancer and overflowing with charisma. Off the stage he was humble, quiet and caring and a billion dollar business man. Although there were rumors that he was in debt, the public didn't absorb the the truth of this matter until he died.

400 Million dollars in debt would make just about anyone wanna head to the grave due to the stress alone. R.I.P. (b.t.w. Did he die as a Christian or as a Muslim?)

How did he manage to go in to his debt up to his eyeballs and beyond especially after becoming so ill during his decade long scandal? Was it because he became too ill or sick to work or was he deep in debt before all of that started?

We know he was a business man who bought and invested in many things. Lets go through what we know some of them were and other factors that influenced the 400 Million dollar debt snowball...

He hasn't toured since 1997 and last album "Invincible" was made in 2001

Bought 2,500 acre Neverland Ranch for 14.7 Million Dollars in 1988 - Years later he borrowed millions from a wealthy friend to save the Neverland ranch from being sold in a public auction in exchange for a joint business venture

Accused of Molesting a 13 year old boy in 1993 which cost him millions to settle the case

When he secured a 95 Million dollar deal with ATV, he used it as collateral to secure 200 Million dollars in Loans

Owed lawyer fees of 12 Million dollars in fees and expenses

Defending many lawsuits to fight for his innocence which resulted in millions going out the window

The king of Bahrain, Sheikh Abdullah bin Hamad Al Khalifa sued him for 7 million regarding a deal made with Michael Jackson to write a book and make an album which was never produced. The king also took him under his wing and subsidized his expenses for some time as a good gesture and let him stay in the Gulf.

Millions in ticket sales to be refunded for upcoming Tour this year - but unfortunately no longer...

It was said that he was spending 20 to 30 million dollars more than he earned every single year. Multiply that by 10 and double it due to interest it surely makes a lot of sense on how he'd get there

So even the great celebrities need tangible tips in money management. Based on this list we know spending more money than you earn will land you in debt. We also know that not paying back those whom you owe money is the true culprit in making debt snowball to a colossal mess that can kill ya'

So be tickled by the feeling of becoming debt-free because it's never too late. Put pen to paper and calculate what you can actually afford and where you can cut costs. The best thing is that the plan is only temporary. Once the debt is gone, make a pact to never borrow again. The money you get is now yours not theirs - a great feeling!:)

Snowball Calculator: How long till you're debt-free?

2009-07-05T22:47:00.000-07:00

Hey - this is an awesome FREE tool that can help you figure out how long it will take you to become debt free depending on the amount of $$ money you put toward paying off your debt.

Give it a whirl!

Download FREE Excel Snowball Calculator

Thinking of filing Bankruptcy eh'???

2009-06-30T16:39:00.001-07:00

Not to mention any names but one who was thought to be wise said "I'll just file for bankruptcy, it doesn't cost anything". Well did we look into that one

When to file for bankrupcy?

You file for bankruptcy when all your debt and loan minimum payments exceed 75% of your monthly income AND where the 25% left from your money isn't enough to cover your Rent, Food, and Transportation. Simply put - right there - you'd be smack dab in the middle broke and you'd never be able to dig yourself out of it based on your current monthly income.

So what are the basic 101 facts about bankruptcy?

Well it's simply this. They tally up all of your debt and lets say that's 270,000 for one individual. Then they tally up all your assets, which include:

Equity in your home - by taking your home away including all the work you put into it

Your Car - including all the money you spent on tricking it out

Any other assets you have as well and liquidate that to cash

and here it comes.......................... liquidate all of that and turn it into cash, and use that to pay part of the debt off...and then write off the rest and say "forget about the rest". And you start from scratch all over again.

How long does it stay on your credit profile?

It stays on your credit profile for 7 years and then the credit bureau MUST remove it. So even if you apply for a house or a loan after 7 years and know that it's erased from your credit report, and they ask you "have you applied for bankruptcy within the past 3 years"....if you're on year 11 what is your answer? That's right...N O. So don't let that 7 year curse last longer than it needs to by reminding lenders that you've filed bankruptcy so and so years ago. Some lenders make their decisions based on their discretion.

What if I have co-signed loans with other people?

If you have loans that you've co-signed with other people be it family members or family or friends, know you'll end up bringing them down with you. But there's also a rule where you can't file for bankrupcy if the cosigners are your parents.

How do I reduce stress of bankruptcy during my 7 years?

Just accept and own your situation. Make a cash only policy, and don't buy what you can't pay in cash for. Embrase the feeling of being debt-free which is a positive thing. When you're situation get's better, then review option of becoming a home owner at that time. And in the mean while, play that fricken' lottery every week like their ain't no tomorrow. It's pretty affordable, 2 bucks a week that's 8 bucks a month. You probably won't miss it as long as you include it in your budget.

If you've filed bankruptcy and your seven years it will limit the following:

-which apartments you can rent from or not

-whether or not you can get a cell phone, might have to do pay as you go

-you can't get a loan in any shape or form

-possibly can't get cogeco cable or rogers cable or any utility company that requires to do a credit check because it will be so low they won't want to look at you

-anything and everything that involves getting a credit check will be declined

HOpe this helps guys so don't jump the gun and even think for one second that bankruptcy will make your life easier. If you're a habitual spender then you'll find it extremely difficult

Good luck!

What Bad Habits will cost you

2009-06-29T18:10:00.000-07:00

Never realized how costly bad habits are until only recently. Here are a few...

Medium Tim Horton's Coffee twice a day for 25 days costs: $64.00/month

$64.00 can buy you 2 trips to the movies twice a month with your partner

A bagel with butter and a medium coffee once a day for 24 days: $57.75

Do that twice a day and that's $115.50/month which can buy you cable/phone/Internet with cogeco cable under promotional pricing

Solution?: Pack coffee in a heatable thermos, even if that means you have to purchase one. Instant coffee tastes pretty great with the right cream and/or the right amount of sweetener or sugar

An egg or tuna sandwich from work once a day for 25 days costs: $60-70/month
Pizza slices, or ordering whole pizzas
MacDonald's
Dairy Queen ...........yuuuummmmmm blizzards one a day 25 days = $100/month

Ever wonder why you fall short on rent, utility bills, or other fixed costs you've been encountering for the past several years because of debt. Well it's because you're overspending on those bad habits that definitely cost you more than you can afford.

Don't you think it's time to wake up and smell the Jalapeno Hummus?

(Longo's carries the best brand of hummus with the green lid on it...trust me on this)

Making a positive impact on credit score

2009-06-29T17:51:00.000-07:00

There are a number of things that can impact your credit score:

The total debt you owe
Your total yearly income
The # of revolving accounts and loan accounts
The balances on your revolving accounts and loan accounts
# of hard inquires made on your credit report
Late monthly payments
Accounts that have gone to collections
If bankruptcy was filed within past 7 years

FACT: But believe it or not "the overdraft on your personal bank accounts" are not in your credit report and therefore do not accumulate to the total debt owing.

FACT: Your bill with your cell phone company be it Rogers, shows up on your credit report, and reports by month if you were late on your bill or not - that kinda sucks...

There are a few hidden ones I have yet to investigate and experience, but I'll definitely let you know when and if I find out more.

I had a conversation with a call center rep who worked for a company who keeps records on credit reports and score, and I asked them simply:

If paying down my closed card account will increase my credit score?

The only response I got from that whole 15 minute call was that "any payments you make to your card will have a positive impact on your credit score" What a generalized bunch of monkey doo doo! It was pretty disappointing and I politely finished the call and thanked them for their time - a waste of time that is....

So from my own investigation the answer is this"

No your credit score will not increase unless you pay off your closed account in full. Period.

Why Closing all your cards lowers credit score

2009-06-27T13:17:00.000-07:00

Question: Has it ever happened that after you "paid off your cards", and then closed them all that your credit score got lower?

Answer: It's because after you pay off your cards, especially the ones you've had for a long time, your ongoing credit history with that card stops dead in it's tracks.

Keeping a MAXIMUM of 2 of your oldest cards with the LONGEST credit history OPEN and use no more than 35% of the balance and pay it off in 30 days in FULL...............here's the kicker.........you ready???!!!

Tells Lenders that you're capable of handling access to credit. WOO HOO!

man that took a lot of energy out of me to say....trust me...i was just as shocked as you are now:))

Which Cards to pay off first?

2009-06-22T23:20:00.000-07:00

There are 2 types of credit cards: Secured credit cards and unsecured. The secured credit cards require collateral such as the home you own or your vehicle. Unsecured credit cards require none of the above and grant you the card based on your current credit rating status.

The answer: Pay the secured cards off first. The reason is because if an extreme variable change occurs in your life and affects your ability to make your payments on time they will eventually collect on the collateral you've put up. You don't want things to come to this point. In fact it's better not to apply for these types of credit cards at all.

At least, when you're dealing with collectors, you can buy time. Get it...buy time....hahah

Kick Bad Spending Habits or Debt will Snowball

2009-06-20T14:08:00.000-07:00

"Honey ??? Where did all the money go? You just got paid 3 days ago?"

You've probably had this conversation before with your other half. And as soon as you begin to forget where your money is going and how it's being spent, chances are it's being wasted on something you didn't really need. Something you felt you needed at the time you looked at it for that split second.

Try to calculate how much of your money goes towards things other than mortgage, rent, gas, insurance, clothing, food, and utility bills. Basically every single dollar you spend outside of that is what you spend on your daily comings and goings of life. Take a half an hour and try to calculate how much % of your income is going towards variable aspects of your life. Is it 40% or more? If you don't know where your money is going, then chances are it's at least 40% of your income. And if you end up coming up short on your fixed expenses such as the mortgage, rent, food, car insurance, then you're definitely spending more than 50% which is more than you can actually afford.

Isn't it the first instinct to live in the now and not plan for future emergencies. But try to think, what if your honey loses his/her job? Then what? Any money in the bank that you don't have to dip into your RRSP to cover your butts? If you're finding it difficult at this point in time to talk about it, then work on yourself and set a good example and learn how to efficiently stretch that dollar. But be careful of the inevitable debt snowball that grows even in your sleep. And continuing to use your debit cards out of habit is a sure way to lose track and allow your debt to spin out of control...