Tag Archive for: Credit card debt

I owe, I owe

So as the dwarves in Snow White say “It’s off to work I go”. Below is a great article from The Vancouver Sun, talking about our ever increasing debt load. In fact, that is the number one reason that the finance department reacted with changes to mortgage financing yesterday. As always feel free to contact me if you have any questions.

Cheers,

Pat

Our debt-to-income ratio hits an all-time high

BY JULIE FORTIER, CANWEST NEWS SERVICEFEBRUARY 17, 2010 1:14 AM

Although the recession may technically be over in Canada, many households sank even further into debt in 2009, creating the highest debt-to-income ratio ever in Canada, according to the Vanier Institute’s annual assessment report, released Tuesday.

… Read more

You Suck!

Yup you heard that right, You Suck! Don’t take it too personally, we all suck in some shape or form. However in this instance it is about how you manage your money, and specifically your debt. Here are some indicators that may apply to you.

1)You have used your credit card to pay for a small ticket item. (something less than $10)

2)You make only the minimum payment on your credit card statement.

3)You consistently carry a balance on your credit card(s).

4)You have used one credit card to pay another credit card’s monthly payment.

5)You have occassionally gone without making your minimum monthly payments.

6)Last but certainly not least, you have next to nothing in a long term savings plan.

This is not the end of the world, but it should be a wake up call. There is still … Read more

Are you in a rut or digging your grave?

How we feel about our own finances has an effect on the market as a whole. Well now you may be saying that you feel less optimistic because the markets have been going in the toilet lately. It’s sort of like the chicken and egg scenario. Didn’t this all start with the demise of the sub prime mortgage market. If you remember that all started when people were unable to keep up with their mortgage payments and started to lose their homes. It sort of has a snow ball effect don’t you think.

The real difference between a rut and a grave is the depth! So stop digging and put down your shovel. There are solutions and there is a better way.

1) Stop looking at your feet and start looking at where you want to go. Begin with the … Read more

Lower your debt with your mortgage!

“Where does it all go?”You’re looking at your T4 from last year or maybe your most recent pay stub. Sure many people wish that those numbers after the dollar sign were a litter higher but it’s the vanishing act that alarms your the most. Tax time is especially sobering: you can see how much money you made…. but your credit card is still maxed out and you don’t have much to show for a year’s income.

If you are looking for the holes in your wallet start by making a list of your debts. Are your credit cards teetering at the top of their limits? Do you make regular use of your overdraft protection at the bank? Do you have escalating tax liabilities? What about any department store cards? Do you know what interest rate you are paying on them? … Read more

How to get a risk free double digit return on your money!

You’re about to learn some closely guarded information you’ll never hear from bankers, brokers, insurance agents, or credit card companies. Many love to keep you in the dark about debt, credit, and investing so they can keep getting richer at your expense.

If you don’t do something about it, more than half your lifetime earnings will eventually end up in the bulging pockets of others. Think I’m kidding? Read on.

Banks and lenders are robbing you blind, as the real interest rate of your home mortgage may be as high as 200%! Let’s use this example. Average home costs 225K, assuming you have good credit and you get an interest rate of 5.7%. Now this is where it gets interesting, you have options to spread out your loan to 25, 30 or 35 years.

At 25 years, you will be … Read more

Economic woes hit U.S. credit card business!

JONATHAN STEMPEL

Reuters

July 27, 2008 at 9:00 AM EDT

NEW YORK — Even as Washington Mutual Inc. lost billions of dollars from risky mortgages, the largest U.S. savings and loan could rely on its credit card business to turn a profit. No longer.

The thrift’s $175-million (U.S.) second-quarter loss from its card unit stemmed from higher delinquencies and an inability to sell some card debt to investors because of illiquid markets. It was Washington Mutual’s first card loss since it entered the business in 2005 when it bought Providian Financial Corp.

Washington Mutual is not alone. American Express Co., Bank of America Corp., Capital One Financial Corp., Citigroup Inc. and JPMorgan Chase & Co. face pressure as falling home prices, $4-a-gallon gas and rising food costs leave more cardholders struggling to pay their bills and force even wealthy customers

… Read more