This is a great list from the Financial Post that all young Canadians should read. And #1 on their list is a topic near and dear to our heart.
1. Misunderstanding credit cards
Services like Paypass are making them even easier to use. But credit cards are often misunderstood by young people, with small purchasing decisions often leading to long-term problems. Whether it’s cash advances, large balances, only making minimum payments, paying late or not paying at all, the small piece of plastic can be much more trouble than you realized. There’s also signing up for too many, unnecessarily increasing your limit and wrecking your credit rating.
“Credit card debt is spending your future income before you’ve earned it, and not magic money,” said Lisa Yanaky, a young woman from Toronto.
After the Christmas spending binge, a growing number of Canadian households dread the arrival of their credit card statements and the ensuing and often crippling holiday debt hangover.
There is a convergence of factors making this January and 2013 in general unlike any other previous January or year. Canadian debt to income ratios are at a historic high, the tentative American fiscal cliff and European governments’ debt load management melded with declining house prices, which represent most people’s primary asset, makes for a delicate economy.
If you’re fearing the arrival of a credit card bill filled to the brim with holiday excess, it doesn’t need to be crippling. At Cambridge Life Solutions, we’ve been working with Canadians to eliminate their credit card debt, and we’d be happy to work with you.
The Toronto Star has an interesting opinion piece on our dangerous addiction to borrowing here in Canada.
As post-Christmas credit card bills invade households across the country, ’tis the season — for a financial hangover. Even before the latest orgy of holiday spending, Canadians were carrying more household debt than ever before. And all this borrowing puts us at risk of a gut-wrenching crunch.
It’s a worrisome situation. For every dollar we bring home, we owe almost $1.65, according to Statistics Canada. That puts us depressingly near the household debt-to-income ratio in the United States when its housing bubble burst in 2007.
We at Cambridge Life Solutions concur that getting a handle on your debt is key. The editorial ends with this quote: “Canadians need to get serious about ending their dangerous infatuation with borrowing.”
Almost half of Canadians who have credit card debt, say they always or often carry an outstanding balance. In reality, your credit card is a debt card and 12% of Canadians are merely making their minimum payments. That’s not nearly enough.
If you’re one of the 12% who can’t make more than the minimum payment, or if you have more credit debt than you think you can handle, call us today. You have other options. We can help.
Insurance is a necessity for vehicle owners. It is required by law to have this type of coverage and protection for every vehicle on the road. There are many offers for customers to take advantage of. The services and plans offered to customers can be regulated to meet their financial needs. The plans vary depending on the customer’s needs and affordability. There are a variety of plans are regulated by state requirements, but are geared around individual needs and services. An insurance agent who specializes in auto insurance coverage can assist with the process of getting a plan set up and started. This allows customers to decide on the options they have and what costs that they need to pay up front. The agents can give quotes for installments that will benefit each customer.
There are many Barrie car insurance agents available to help customers get established an insurance and work out coverage that they can use. The coverage can depend on several factors that depend on the customer who needs the plan. Some of the factors that can be considered when purchasing an insurance plan are an individual’s driving record. If the person has had auto accidents, fines, tickets, or other auto problems then this could increase the price they will pay. The reason the price will increase with a bad driving record is because that individual would be considered a high-risk client.
Another factor that is determined when purchasing car insurance is if a person has a car loan or not. If the individual does have a car loan that is currently being paid, then they may be required to carry a higher amount of insurance. Often times this is referred to as full coverage insurance. The reasons that a person who has a car loan would be required to carry this much insurance is because they don’t technically own the vehicle yet. The bank wants to ensure the vehicle is completely covered while they still own the vehicle.
The process to purchase this type of coverage can be done in little time. Once the agent has the quote calculated then the customer can decide whether to pay for the coverage or not. If they decide the quote and coverage is a good fit; the plan can be completed the same day in most cases. Being able to obtain this type of plan is simple when working with the proper agent.