As part of the credit counselling process, many people start asking for retirement planning advice. When I ask, do you have aretirement plan? people start talking to me about how they will need to grow their savings and investments. Retirement planning is so much more than that. What your retirement ultimately looks like is largely dependent on your healthy lifestyle plan.
Retirement planning advice: You can’t go from full throttle to neutral
You’re most likely used to working at least a 40 hours a week. And, at the end of the rainbow is retirement – no more alarm clocks, no fighting rush hour traffic or an overcrowded public transport system, no more brown bag lunches… Now you can reclaim at least 40 hours a week in addition to the hours that you spent commuting; but what will you do with those hours?
Retirement planning advice: The key to a happy retirement is having a healthy lifestyle plan
People that retire are very prone to depression, particularly men, whose sense of identity is closely tied to work. A 2013 study from the Institute of Economic Affairs that says retirement increases the chance of suffering from clinical depression by about 40%.
Men also have the highest rates of suicide worldwide, according to the World Health Organization. It’s not the job or the money that men miss so much in retirement, but the socialization and self-esteem that work brings, says Ken LeClair, co-chairman of the Canadian Coalition on Seniors Mental Health (CCSMH) and professor of psychiatry at Queen’s University in Kingston.
Retirement planning advice: Retirement is a huge adjustment
Retirement is a huge adjustment and like all stages of life, requires a plan. The key to a happy retirement is having a lifestyle plan. Do you have hobbies and interests? Volunteer work? Learning new things? Meaningful friendships? Travel? Lifestyle planning should ideally start 5 – 10 years before retirement starts so that you’ll be prepared for the transition.
Retirement planning advice: Start saving early on for your healthy lifestyle plan in retirement so as not to have to make tough financial adjustments
The likelihood is that once you retire there is going to be a significant change in your income. Most retirees can’t continue to live the same lifestyle as when they worked full time. The reality is that you’re going to have to make some financial adjustments that may involve downsizing your residence, driving a more economical car, traveling less.
However people generally want to do more in retirement. They have put off their travel and hobbies because they lacked one of the most precious resources – time. Many retirees start off by doing more now that they have the time. There is only one problem; they never saved properly during their working years to have the money to turn their dreams into reality in retirement.
Retirement planning advice: What to do if you have too much debt in retirement?
Unfortunately manyretirees are taking on debt they can’t afford by using credit that they can’t repay to support their lifestyles. This is a recipe for disaster and the sooner you seek professional help the better.
Toronto business bankruptcy protection: Introduction
The federal NDP party recently met in Hamilton, just outside of the Greater Toronto Area. There was a rally to argue for federal government regulation changes to safeguard pensioners in business bankruptcy and restructuring administrations.
Toronto business bankruptcy protection: Proposed NDP private member’s bill
Hamilton Mountain MP Scott Duvall, the New Democrats’ pension plan critic, informed a group at the United Steelworkers’ Hall that he will certainly present a private member’s bill to secure employees’ pension plans and benefits, and pressure business to offer termination or severance pay, prior to paying secured lenders.
Toronto business bankruptcy protection: The U.S. Steel Canada saga
The concern has actually been a lengthy simmering one with unions and created significant debate throughout the almost three-year, court-supervised restructuring of U.S. Steel Canada. The company exited from its business bankruptcy protection proceedings with a brand-new owner– Bedrock Industries– as well as an old name, Stelco.
Pensioners were smarting. The court permitted the firm to put on hold health benefit repayments for a year and a half while the business was under bankruptcy protection under the Companies’ Creditors Arrangement Act (CCAA).
Generally, these advantages have been maintained by the reorganized business. Pensioners are fretting that a financing system to maintain the pension plan solvent will ultimately fail. It calls for, inter alia, extra Stelco land to be cleaned up, marketed and sold for the net sales proceeds to cover future pension plan commitments.
Toronto business bankruptcy protection: Sears Canada too
Duvall, with NDP leader Tom Mulcair, claimed one more instance of exactly how the regulations are unfair to employees. They cited the Sears Canada situation. Sears Canada remains in business bankruptcy protection. Its employees are encountering a potential decrease in their pension plan benefits.
Toronto business bankruptcy protection: Fairness for employees
They say this should have to do with justness for employees. The NDP wants to see a Canada that benefits every person as well as seeing to it that companies, including multinationals, cannot take the pension plans their employees have earned.
They state that the existing regulation permits funds that ought to go to employees’ pension plans to be given to the secured creditors instead. The NDP is especially concerned when the secured lender is the financially troubled or creditor-protected company’s parent company.
Stelco’s biggest secured lender was U.S. Steel in the United States. The $500 million restructuring saw the American firm get $130 million.
Toronto business bankruptcy protection: Pension plan funding should have first priority
The Duvall proposed private member’s bill would call for pension plans to be 100 percent funded prior to secured lenders being paid. Firms would certainly not be permitted to put on hold retirement benefits in court-supervised restructurings, which occurred with U.S. Steel Canada.
The NDP is calling their proposal “End Pension Theft”. It focuses on altering CCCA legislation as well as the Bankruptcy and Insolvency Act (BIA) to stop companies from placing investors, financial institutions and other lenders ahead of their staff members when they go into bankruptcy protection.
business bankruptcy
Toronto business bankruptcy protection: Is there a comparable precedent for such an amendment
Yes there is – the enactment of the Wage Earner Protection Program Act (WEPPA). From 1975, proposals were proactively taken into consideration for the facility of a wage protection plan for when the bankruptcy, liquidation or receivership of a company. The many choices gone over for just how this could be attained consisted of:
very top priority for wages;
acknowledgment of existing provincial/territorial concerns within the BIA structure;
a waiver of the waiting time for EI benefits; and
a wage earner protection fund financed either from basic tax revenue or as a part of the EI coverage regimen.
In November 2003, the Senate Committee on Banking, Trade and Commerce examined the background of these conversations and chose
the alternative for a super priority be taken on. Although the BIA was amended in 2005, these changes did not quickly come into force, as many technical amendments were required to be passed in 2007. The WEPPA came into force on July 7, 2008.
The reason for the timing of creating the WEPPA was a result of NDP pressure put on the minority Liberal government of Prime Minister Paul Martin. The Liberals agreed to the NDP proposal as part of obtaining continued NDP support for the minority government.
So there is precedent for a significant amendment to Canadian insolvency legislation.
Toronto business bankruptcy protection: How likely is such a pension reform in restructuring proceedings to succeed?
At this time, I believe there are certain obstacles from seeing such a significant overhaul being successful. The reasons I say this include:
Today there is a Liberal majority government in power, so the support of the NDP party is not required for the government to pass the legislation it wishes to.
Providing a super priority for all pension shortfalls would dramatically alter the way lending is done in Canada. Banks would be required to include pension plan actuarial shortfall calculations into their borrowing base calculations. It may end up that when there is a pension plan shortfall, there is no borrowing room available at all for a business. This would increase the number of insolvencies.
If the number of business insolvencies increased, that could lead to an increase in job losses. That would hurt employees which would hurt the same group the private member’s bill would be trying the protect.
However, the Liberal government of Prime Minister Justin Trudeau has shown that it does try to play to whichever group the government feels it can gain votes from. So, it is not out of the realm of possibilities that the government would try to enact some legislation to give a limited super priority to a part of an underfunded pension plan liability. Time will tell whether such a proposal has any chance of success at this time.
Toronto business bankruptcy protection: Does your Toronto area business require restructuring proceedings to survive?
If you’re company is struggling with too much debt, give the Ira Smith Team a call. We can help with refinancing and restructuring so that your business can get back on track Starting Over, Starting Now.
Do you believe that because you make thecredit card minimum payment amount on time every month that you’re doing well? Do you think this would let you be considered a good credit risk? If that’s the case, you would be wrong. Making only the minimum payments on your credit cards is a sign that you’re living in afinancial danger zone. And the likelihood is that if you continue along this path, you’ll accumulate more debt. You will not get out of debt.
Credit card minimum payment amount: What the TransUnion survey says
TransUnion, one of Canada’s largest reporting agencies, did a recent survey. It showed that making just the credit card minimum payment amount is leading more consumers intodelinquency. This is the same result with other loans too.
They’ve also created a “Total Payment Ratio” metric that shows the correlation between the payment amount and the delinquency across multiple products. To calculate the TPR a consumer’s total monthly credit payments are divided by the total minimum due on all the consumer’s credit products. The higher the TPR, the less likely a consumer falls behind on payments. Using the TPR to find the risk of delinquency, the TransUnion study showed:
Canadians with a TPR of less than five on their credit cards had a 1.77% high risk of auto loan delinquency — defined as not making a payment for 90 days or more
Once the TPR rose to more than 15.0, the high risk of delinquency dropped to 1.4%
Credit card minimum payment amount: It is not a good sign of your credit worthiness
As you can see, just making the credit card minimum payment amount is not a good sign of yourcredit worthiness. Conversely, making more than the minimum monthly payments will make you more attractive to financial institutions. This is because consumers that make more than the minimum monthly payments tend to have more liquidity and will be less likely to miss payments.
Credit card minimum payment amount: You need help to get out of debt
If you’re making only the credit card minimum payment amount, you haven’t got a hope to ever get out of debt. The interest rates are around 20% (and sometimes more). Your minimum monthly payments are paying the interest, not the debt. Now is the time to call in the professionals! Contact aprofessional trustee.The Ira Smith Team can help you conquer debt and get back on track to living afinancially healthy lifeStarting Over, Starting Now. All it takes is onephone call.
You may have listened to the news about the Equifax data breach.
Equifax originally said that it impacted only a limited number of Canadians. They have now amended that report to say that 100,000 Canadians are affected. If your details were endangered, Equifax intends to get to you straight away with support as quickly as they have determined that.
In comparison, the Equifax data breach may have affected more than 143 million Americans!
Exactly what took place?
According to Equifax, the violation lasted from mid-May through July 2017. The hackers accessed people’s names, Social Security numbers, birthdays, addresses and, in some instances, vehicle driver’s permit numbers. They also swiped charge card numbers as well as disagreement files with individual identifying information. And they also obtained details of people in the UK and Canada too.
Equifax, is one of the two Canadian credit bureaus, was the subject of a data breach by hackers. This violation has affected lots of Americans, but for now Equifax believes the Equifax data breach has affected just a restricted number of Canadians. Equifax reminds everyone that the hacked US website is for US social security numbers, and does not work for Canadian consumers.
What information was taken?
In Canada, the hackers may have gotten sensitive details, such as names, addresses, and Social Insurance Numbers. Equifax believes that only a limited number of Canadians could have been impacted. They are working to figuring out the exact information. Equifax will update this information as they learn more.
Litigation and investigations begin
Considering that it is one of the largest hacks of the year, the compromised business is now dealing with loads of lawsuits. At least one legal action claims, among other things, that Equifax pumped up financial results to bring up the share price, prior to the hack being revealed. No allegations have yet been proven in Court.
After Equifax announced the Equifax data breach violation about $3 billion was cleaned away from the business’s market cap as its shares dropped by 17% immediately following the disclosure. Lawmakers are concerned that people’s delicate information was not correctly safeguarded. Investigations are ongoing.
Exactly how will this impact me?
The thing is that people who never bought any Equifax services will be negatively affected by the hack. If your details were jeopardized, it may put you at the threat of identity theft. Identification theft is when a person steals your personal information to open new accounts or dedicate activity utilizing your name. We urge you to check your credit score and stay alert in checking your credit card and any other financial account statements.
Equifax data breach: Have my details been endangered?
If you’ve ever before made an application for credit, as an example by requesting a charge card or a cellular phone service, Equifax has gathered your details. Equifax will only contact you if they have identified that your information has been breached. That is why we strongly recommend that you must carefully check all account statements you receive to make sure that: 1. You recognize the account as being yours; and 2. You do not see any suspicious activity in your accounts.
Equifax is the largest credit report bureau in Canada and is extensively made use by lenders, including banks, to prove creditworthiness. Equifax accumulates information from your bank as well as other sources to find your credit history, which is then given to lending institutions.
This case is the tip of the importance of data protection, which is something you must take very seriously. That is why IT people always recommend that you use bank-level encryption to safeguard your data. The Equifax data breach proves them right.
Canada’s privacy commissioner is interested in the Canadian data breach.
It’s important you watch your credit report as well as your various financial accounts. That way you will be aware of any kind of adjustments or suspicious activity.
You can do what is called a “soft” credit check on yourself at no cost using one of two Canadian services. We explain it all in our blogs:
Screen your credit card accounts as well as bank accounts
Your charge card and bank accounts are additionally important to watch. Keep an eye out for any transactions you did not make or approve as well as report any problems to your bank or credit card company right away.
Record any theft or crime
If you find a suspicious activity that could involve the theft of either your identity or assets or other criminal offences, report the event to your regional police. You could also report the rip-off or fraud to the Canadian Anti-Fraud Centre. Inform your financial institution as well as bank card firms. As well shut any accounts and cards that could have been hacked instantly.
To find out more, please call Equifax at 1-866-828-5961 or visit their website here.
Equifax data breach: Are you struggling with too much debt?
If you’re struggling with too much debt, give the Ira Smith Team a call. We can help with budgeting and credit counselling so that you can get back on track Starting Over, Starting Now.
The reality is that we live in a credit-based society. As a result almost everyone lives with debt and we don’t give it a second thought. After all, who do you know that pays for a house or a car in cash? And who doesn’t use credit cards? Having debt isn’t necessarily a problem; taking on more debt than you can repay is the problem. So how do you know that you’ve taken on too much personal debt?
Too much personal debt: What’s too much debt?
Traditional lenders (financial institutions) will typically grant you a loan based on two main criteria (there are other factors involved).
Total Debt Servicing Ratio (TDSR): Add up all of your monthly debt payments – mortgage/rent, car payment/lease, utilities, credit cards, lines of credit, etc. If these monthly payments add up to more than 40% of your income before taxes, it’s not very likely that a traditional lender will grant you a loan.
Gross Debt Servicing Ratio (GDSR): GDSR is your mortgage payment plus heating and taxes and it should not exceed 32% of your income before taxes. If your GDSR exceeds 32% of your income, it’s not very likely that a traditional lender will grant you a loan.
If you don’t qualify for a loan from a financial institution, you know you’ve taken on way too much debt.
Too much personal debt: Way too much debt
Although subprime lenders will lend money to people who don’t qualify for loans from financial institutions, their interest rates are exorbitant. Borrowing from these companies can put you into worse debt than you’re already in, so run for your life.
Other signs that you’ve taken on too much personal debt are much more obvious. Are you having trouble making your monthly payments? Are you getting calls from collection agencies? Are you living from paycheque to paycheque?
Too much personal debt: When you have too much debt
A bankruptcy discharge is when the bankrupt is released under Canadian bankruptcy law from his or her debts as part of the bankruptcy process. Some people think that it is the act of filing bankruptcy that releases the bankrupt from liability. This is not the case. It is the discharge from bankruptcy process that “discharges” the bankrupt’s debts.
We explain in this vlog the procedure when a bankrupt’s outright discharge is opposed. We discuss the top 8 things that the Bankruptcy Court will consider in determining just what outcome the bankrupt could expect.
The primary benefit of the bankruptcy process for the insolvent person
The bankruptcy discharge is among the primary benefits of relief under the Bankruptcy and Insolvency Act (Canada) (BIA). The discharge is vital to the bankruptcy process. Debtors, after bankruptcy, can wipe the slate clean and start over, which is a central principle under the BIA statute.
Not all debts may be released
A bankruptcy discharge offers the discharge of many unsecured debts. Credit card debts, personal income tax debt, unsecured personal loans and under certain conditions, some student loan debt are all dischargeable debts. Financial debts, which will not be discharged include:
support payments to a previous spouse or to children;
fines or financial charges imposed by the Court;
debts emerging from fraudulent behaviour;
student loans if fewer than seven years have passed considering that the bankrupt quit being a full or part-time student.
bankruptcy discharge
It can be opposed
An insolvent’s bankruptcy discharge application may be opposed by one or more unsecured creditors or the Licensed Insolvency Trustee (formerly called a bankruptcy trustee) (LIT). A creditor opposition is created when the creditor files the required notice of opposition, setting out the reasons for opposing.
This happens if the insolvent has not met all of his/her responsibilities under the BIA. Making full disclosure, attending the required two financial counselling sessions and making all necessary surplus income payments are all duties of the bankrupt that must be fulfilled if a discharge is to be considered.
It can also happen if the individual bankrupt has actually committed a bankruptcy offence. Those are acts listed in section 173 (1) of the BIA. In this case, there needs to be a bankruptcy discharge hearing in Court and the Court will after that evaluate the LIT or creditor opposition as well as give its decision on the discharge from personal bankruptcy.
Absolute discharge— The bankrupt is launched from the legal obligation to pay off financial obligations that existed on the day of bankruptcy, except for certain types of debt identified above.
Conditional discharge— The bankrupt must fulfill certain conditions, additional payments into the bankruptcy estate, to get an absolute discharge. Once all conditions have been fulfilled, an absolute discharge will certainly be granted.
Suspended discharge— An absolute discharge that will be granted at later on a specific date determined by the Court.
If there is no opposition to the discharge from bankruptcy of the bankrupt by a creditor or the LIT, then the LIT is able to provide an automatic discharge by issuing the appropriate certificate. There is no need for attendance in Court.
bankruptcy discharge
The opposition process
When a debtor’s bankruptcy discharge application is opposed by either an unsecured creditor or the LIT, the Trustee needs to secure a Court day. This will be for a Court hearing on the insolvent’s application for discharge. The LIT must then tell all creditors who have filed a proof of claim of the opposition. Details are also provided about the date, time as well as place of the Court hearing.
The Trustee needs to also file a report with the Court on the conduct of the bankrupt both prior to as well as after applying for bankruptcy. The report will as well give a summary of the financial results of the bankruptcy administration. If a creditor has opposed the bankrupt’s discharge, then that creditor likewise needed to send a notice of opposition.
Does the bankrupt need a lawyer on an opposed discharge?
When going to Court for his/her discharge application hearing, a bankrupt would be well advised to come with a skilled bankruptcy lawyer to represent his or her interests. Sometimes the discharge hearing is less formal than various other types of Court hearings.
However, the Court follows all the proper regulations of civil procedure. It is sometimes tough for nonprofessionals to put their best foot forward without an attorney’s aid.
The top 8 things the Bankruptcy Court will consider
The concerns the Court thought about, in determining what type of bankruptcy discharge certificate to issue, which is the same in all bankruptcy discharge hearings, were:
Do the conditions of the bankruptcy filing and the bankrupt’s conduct sustain an order discharging the Bankrupt’s unsecured debts?
The Court’s problem is to make sure that within a choice the policy purposes of the BIA are fulfilled. The bankruptcy, including the insolvent’s discharge, should act as a deterrence for the person not to duplicate the very same behaviour.
If the circumstances of the bankruptcy support an order discharging the bankrupt, what terms of discharge are proper under the distinct circumstances of the bankruptcy?
What were the conditions of the insolvent when the debts were sustained?
What efforts did the insolvent make to pay the creditors?
Did the bankrupt pay in respect of certain other debts but not all of them and particularly not the debt of the opposing creditor?
Exactly what are the insolvent’s monetary opportunities for the future?
Is there any other conduct or reality that needs to be factored into with the regard to discharge?
The Court will take lots of variables into account. The conduct, previous income, education and age of the bankrupt are all important factors. The Court will certainly likewise trust the Trustee’s report to Court on the bankrupt’s application for discharge. The Trustee’s report assists in determining facts about the conduct of the insolvent and his or her future prospects.
Prevention is always a consideration. It is however very important to remember that Courts tend to be extra conventional when dealing with older bankrupts. A more youthful bankrupt with years of income-making opportunities could be needed to make an extra significant repayment. Less respect is given to the instant ability to pay.
An older bankrupt with some surplus income but fewer working years might be needed to pay less surplus income obligations into the bankruptcy estate.
Bankruptcy discharge: Is my bankruptcy case over when I get a discharge?
You should by this point in my Brandon Blog realize that when you receive an absolute discharge from your bankruptcy, at that point, you are discharged from your unsecured debts.
A discharge shows that you have finished with your bankruptcy legal process and your personal liability for unsecured debts has ceased. It’s not a separate thing from bankruptcy; it happens either automatically or by an Order of the Court, as I have described above.
At that point, the LIT still has some duties to fulfill. They include:
if there is going to be a dividend paid to the creditors, making sure that all proofs of claim have been reviewed and allowed for dividend purposes;
resolve any uncertainties the LIT may have concerning certain filed bankruptcy claims, including the issuance of Notices of Disallowance if any;
preparing the bankruptcy administration Final Statement of Receipts and Disbursements;
getting approval from the Office of the Superintendent of Bankruptcy to the Final Statement
getting the Final Statement, including the LIT’s fee and disbursements, approved by the Court;
issuing the dividend bankruptcy payments, if any
getting the discharge of the LIT
It is then that your bankruptcy case is closed.
Bankruptcy discharge: Do you have too much debt and want to avoid bankruptcy?
Do you have too many debt obligations and debt payments and have no idea how to deal with them? Act before you find yourself in the throes of an emergency financial situation. Ira Smith Trustee & Receiver Inc. has assisted many Canadian businesses and people throughout the Greater Toronto Area (GTA) in dealing with debts that need a plan for Starting Over, Starting Now. Don’t postpone. Give us a call today. Financial problems can be solved while avoiding bankruptcy with timely activity as well as our excellent strategy tailored just for you.
What’s more important – saving or reducing debt? Should I focus on debt elimination or invest excess funds? Should I invest or reduce debt.
These are age-old questions that I’m frequently asked and there isn’t a one-size-fits-all answer. Let’s get back to basics and figure out what your income and expenses are before I can answer whether it’s better for you to save or reduce debt.
Debt elimination: Create a budget
Everyone should have one. The reality is that many people spend what they earn but don’t really know what they’re spending their money on. A budget will find how you’re currently allocating your money – which may be very different from how you should be allocating it.
Detail your income
Itemize your fixed expenses which are the same each month – housing, insurance, payments on loans, etc.
List your variable expenses which are flexible and will vary from month to month – groceries, gas for the car, cell phone, etc.
Identify your optional expenses which are non-necessities – meals out, clothing, vacations, etc.
The good news is that to ask “Should I invest or reduce debt”, that means your budget should confirm that you have an excess of income over expenses each month. It also means that you can see that monthly cash excess in your bank account.
Debt elimination: Determine what type of debt you’re dealing with
The reality is that not all debt is created equal. Credit card debt could be costing you 20% interest or more per annum. And, if you have any payday loans, the interest rate could be over 500% (no, this isn’t a typo). High interest debt costs a fortune; pay it off as quickly as possible.
Debt elimination: Create an emergency fund
I always recommend that you have an emergency fund of three to six months worth of living expenses. Job loss or an unexpected expense can put you in a financial danger zone if you’re not prepared.
Debt elimination: Where can you find the money to pay off high interest debt and create an emergency fund?
Go back to your budget and have a good hard look. How many of your optional expenses can you cut or cut back on? E.g. Forgo the vacation for now, don’t buy those really cute shoes, etc.
How much of your variable expenses can be reduced? E.g. Shop at a discount supermarket and price match/use coupons, comparison shop for better cell phone plans, drive less/take public transit more, etc.
You’d be amazed how much money you’ll be able to save and put toward paying off high interest debt and creating an emergency fund.
Debt elimination: Should I invest or reduce debt?
The answer to the question about what’s more important – saving or reducing debt, lies in your budget. If you have high interest debt, pay it off first. If you don’t have high interest debt then you can work on both reducing debt and saving and investing at the same time.
Debt elimination: Are you struggling with debt elimination?
Nobody expects their home to be destroyed or to receive a serious disease medical diagnosis. When emergencies like these do occur, unexpected expenses lead to economic tension. You’re forced to see the bills consume up any financial savings you might have had. You will no doubt be saying “I need financial help right now”.
The good news is, there are resources for people as well as families who need emergency economic aid. For people and households that typically aren’t qualified for aid from the government or nonprofits, perhaps crowdfunding can help you secure the reserve you need.
I need financial help right now: Most Canadians can’t save
No person likes to think they will need emergency financial support. The Canadian Payroll Association’s NPW 2016 Employee Research Survey Results discovered that of those surveyed:
three-quarters have saved 25% or less of their retirement goal
You cannot expect when something might take place. Having monetary support throughout an emergency could bring peace of mind. Try to keep at the very least 6 months of living expenses or revenue in your emergency fund.
I need financial help right now: What to do if you find yourself in an emergency
Begin your savings program by conserving tiny bits from your spending every day.
I want to give some ideas on the best ways to handle an economic emergency:
Don’t panic
If you begin stressing, you might begin to make even worse monetary decisions. Think logically about what you need to do and your following steps. If you’re still not sure what to do discover somebody that understands just how to deal with such emergencies. Tell them “I need financial help right now” so they understand how severe your emergency is. Find that special someone you can trust and tell them everything.
Know your Priorities
See to it to prioritize your expenses. Only spend on the necessities of life, like food, living accommodations and basic clothing. I suggest that you produce a budget overview to help you plan your spending. Surviving a financial emergency can be made harder if you do not prioritize your costs.
Begin to Spend Less
With an excellent budget plan, you’ll realize what you need and do not need in your life. Say goodbye to spa days and say goodbye to dining in restaurants with pals. Reducing things that look like tiny expenditures really has a big influence later down the line.
Do not throw away cash on things you really do not need. If you know your priorities and can properly budget, “I need financial help right now” may just turn into “It will be tough but I can survive this emergency because I have savings”.
Request for Help!
It’s fine to ask when you need it, especially in a scenario where you cannot face your costs alone. Perhaps family or close friends could also be able to help you fundraise to get out of your debt problems.
You may have a great relationship with your banker. Explain to him or her your situation and perhaps your bank can help you. Before you say to your banker “I need financial help right now”, make sure you have prepared your budget. Your banker will want to understand how the bank is going to get repaid.
One thing you must not ever do. Do not borrow from a payday loan company or through a debt consultant. The interest rate and fees are so high, you will never be able to repay it in full.
i need financial help right now
I need financial help right now: Entitlement programs
Emergency help programs are hard to qualify for and often take months to supply repayment. They rarely can help you when you say to them “I need financial help right now”. However, I do want to give you a list of some emergency programs that are available from the government.
There are various assistance programs offered by the City of Toronto and the Province of Ontario providing financial help for families in need. Some resources to get access to are:
Ontario Ministry of Community and Social Services – If you qualify, Ontario Works can give you money to help you cover the costs of your basic needs (e.g. food) and housing costs. This is called financial help.
I need financial help right now: Nonprofits offering emergency financial help
There are many charities and not for profit organizations in the Greater Toronto Area and Ontario. Each one focuses on a different need or group of people. You should not overlook the role a charity or not for profit organization can play to help you through a financial emergency. Again, they can’t solve all of your problems all at once when you tell them “I need financial help right now”. But they are there to serve needy people and families facing a financial emergency.
I need financial help right now: What happens if you aren’t eligible for assistance programs?
Government assistance and nonprofit programs often have a lengthy application procedure and certain eligibility criteria. As well, it can take months to get support. Which makes it difficult to get economic aid immediately. Many times they cannot act fast enough when you tell them “I need financial help right now”.
There is one more source that could aid you to receive emergency funds quickly.
I need financial help right now: Crowdfunding may work for your needs
In times of economic stress, crowdfunding has shown in some cases to be a powerful tool that assists people to get the help they need. Many got help through a crowdfunding plea of “I need financial help right now”. You cannot plan for when you’ll be confronted with an emergency, or just how expensive it will be to recover from it. But you could use crowdfunding to discover support from people who sympathize with exactly what you are going through.
Take the time to acquaint yourself on your own with the various crowdfunding platforms.
I need financial help right now: What to do if you have too much debt
We hear many times “I need financial help right now” or “I need financial help immediately”. If that emergency arises and you have not planned for it and saved, your options are very limited.
Act before you find yourself in the throes of an emergency and financial crisis. Ira Smith Trustee & Receiver Inc. has helped many Canadian companies and people throughout the Greater Toronto Area (GTA) dealing with the economic crisis that needs a plan for Starting Over, Starting Now. Don’t delay. Give us a call today. Financial troubles can be solved with prompt activity and the ideal plan tailored just for you.
It’s important for kids to start learning about money at a young age. Financial literacy for kids is important so that they’ll be ready for the financial challenges of adulthood. Even something very simple like teaching a preschooler to save money in a piggy bank can be a good foundation for becoming financially literate and set up good money habits for life. That is why I put together this very simple three-step financial literacy curriculum.
Financial literacy for kids: Parents should prioritize a great financial literacy education for youth
In a world of virtual money with credit cards and online banking, our kids don’t often see transactions with money changing hands. Children are keen observers and they learn by example. If you create a program of financial literacy for kids, your children will be willing and eager students.
I heard a funny story about a mom and her young daughter. They were out and about and the child wanted her mom to buy her something. The mom thought the easiest way out was to say she had no money. So the child said, “You can go to the green machine and get some”.
The child understood that the ATM gives you money. But she had no idea about where money really came from or its value. Financial literacy for kids will teach them an appreciation for the value of money. They will know it is not earned easily. Parents need to teach their children about where money comes from, its value, saving, budgeting and goal setting.
Financial literacy for kids will also teach them about the need to make choices and that instant gratification through purchasing is wrong. And remember, children learn by example so make sure your financial house is in order. Financial literacy for kids is best taught when your children grow up in a household knowing and feeling that you and they are living the principles that you are teaching.
Financial literacy for kids: Teaching your kids of all ages about money should be part of your everyday life
Here is my simple 3 step financial literacy curriculum for great financial literacy education for youth:
Pre-schoolers: A piggy bank is an ideal way to instill the concept of saving.
Ages 5 –10: Take your child to the bank and open up a savings account for them. Help them to goal set. Is there something special they want to save up for? Every time they have some money to deposit take them to the bank and have them give the cash to the teller. You can also reward them financially for doing extra chores so that they begin to understand the concept of working for money. Set up an allowance system and teach them to save part of their allowance. Leave some of their money to spend on themselves, introducing the concept of budgeting.
Ages 10 –16: By now your kids should have an understanding of saving, working for money and budgeting. As they get closer to 16 they can begin working outside the home for extra money by babysitting, mowing lawns or having a paper route. Now is a good time to introduce the concept of credit, how to manage money and what happens if you don’t manage money properly. If they have mobile phones they should be taught how to keep track of their mobile data and what their limits are. You should also make sure that they know it is better to always check to make sure they’re on wi-fi so that they don’t run up big data bills.
Following these 3 simple steps in teaching financial literacy for kids will instill the necessary basic financial concepts. Your child will be well equipped to handle the financial challenges, issues and choices they will face in adulthood.
Financial literacy for kids: Everyone needs a financially healthy life
To instill the lessons of living a financially healthy life, you have to not only talk the talk, but you have to walk the walk. Perhaps you were not given the benefit of great financial literacy for kids when you were growing up.
Back to schoolmarketing knows that the older your child gets, the more you’ll be investing in education. This is not simply tuition.
Back to school marketing: Recent US and Canadian studies
Throughout the US and Canada, children, moms and dads are paying countless dollars on computer systems, school supplies, and clothes.Consulting company Deloitte claims back to school marketing results in back to school shopping statistics show that in the United States, preschool through university, will certainly set consumers back some $73 billion, with university being a lot of that. They state that the numbers are $27 billion for elementary and high school and $46 billion for university. You can see what is at stake for retailers. That is why they spend so much money on back to school marketing promotions.
University students as well as their family members will spend about $648 per student. The highest expenditures are not for tuition or room and board. An ordinary household will invest $1,347 on back-to-college expenditures. This is about the same from last year. Back to school advertising campaigns and back to school marketing have been ongoing for almost the last 7 weeks. Therefore, it isn’t hard to believe that the back to school shopping season begins as early as the end of July.
Canadians expect to invest a monstrous $883 for each family member going back to school. Just like in the United States, this is for both back-to-school products as well as clothing. This amount is $325 greater than they spent on holiday gifts last year, according to abrand-new Angus Reid poll.
Back to school marketing: back to school back to school stress
Over fifty percent of moms and dads claimed that purchasing to prepare for the firstday of school places a stress on Canadian household financial resources and thehousehold budget. Virtually 40 percent say that it takes months for them to pay it off. This means that they have just paid off the back to school spending debt in time to go into Christmas holiday gift spending debt. In some cases, the school spending debt has not even been fully paid off yet, when Christmas gifts debt is taken on. Of course you never see this mentioned in any back to school marketing!
Back to school marketing: Online and brick and mortar sales split evenly
While computer systems and other devices will certainly be expensive things for university students this year, on-line buying will not be the primary spending. Practically fifty percent of moms and dads will certainly go to bricks and mortar stores to get back to school products, About 25 percent will certainly go shoppingonline. When it concerns students that are getting their very own materials, greater than one-third will certainly purchase online.
A lot of moms and dads purchase exactly what their children want. But not always every little thing they ask for. That implies that university students are left to figure out how to come up with the funds to buy certain of the items they want on their own. Most of them typically aren’t shocked by it. What this means is that back to school marketing needs to be geared towards both parents and students.
back to school marketing
Back to school marketing: Students can be budget conscious
Deloitte claims 76 percent ofuniversity students consider themselves to be budget-conscious, which is exactly how they go shopping. University students use certain strategies to stretch their dollars, including:
Eighty-one percent use a strategy to purchase from stores that give free delivery
Seventy-six percent plan to get more pre-owned books
82 percent use a strategy to allocate funds for fraternizing with good friends
Greater than 50 percent want to spend for cultural and sports events
Greater than 50 percent look for textbook buy backs as selling books back at the end of the year is also seen as a way to budget and reduce costs
Possibly payments are in the eye of the beholder. Amajority of students expect they will have to contribute when it pertains to back-to-school costs. Just 21 percent of parents expect their children to really do so. Back to school marketing campaigns need to take these factors into account.
Back to school marketing: The earlier you start shopping the more you spend
Two-thirds of moms and dads are going shopping throughout the summertime for school-related items. Those that go shopping earlier finish up spending even more. Parents that go shopping earlier invest on average $100 more per student compared to those moms and dads that start shopping in July. This is one reason back to school marketing campaigns have begun so early in the summer.
Back to school marketing: Early shoppers and unsure shoppers are a retailer’s dream customer
Early consumers as well as unsure consumers – those that typically aren’t certain if they’ll browse the web or travel for in-store – are the most significant targets of stores. The earlier you buy, the more you are most likely to spend. The more not sure you are with where you will go shopping and exactly what you will get, the more you will certainly blow through your budget plan.
Thisback to school shopping season is worth billions and lets retailers to offer interesting deals as well as consumer interactions. Retailers that comprehend the undecided shoppers’ choices could get a large share of the household spending budget throughout the back-to-school period. Those retailers who direct back to school marketing to the undecided can score huge.
Back to school marketing: Prepackaged school supplies popular
One-third of moms and dads intend to purchase prepackaged school supplies. Bundles of products are made up so parents do not have to choose out every solitary thing. Moms and dads that get preconfigured supply packages invest an average of 40 percent even more compared to parents that purchase products individually. That is why back to school marketing campaigns many times promote savings on bundled items as well as offering convenience and peace of mind to parents.
Back to school marketing: You really need a household budget
The back to school shopping season provides families the opportunity to choose wisely together. It also provides the risk for parents to blow through the familyhousehold budget and take months to pay off the debt. The back to school marketing campaigns are slick and prey on our weaknesses. That is why it is essential to have a back to school buying budget and stick to it, to avoid back to school shopping mistakes.
Do you have too much debt because you succumbed to the back to school marketing promotions and spent too much on back to school shopping or for any other reason? If you’re trying to find a way to restructure your debt,contactIra Smith Trustee & Receiver Inc.
Our philosophy for every person is to develop an outcome where Starting Over, Starting Now happens, beginning the minute you come in the door. You’re just one call away from taking the essential action steps to get back to leading a healthy and balanced stress and anxiety free life.
Financial literacy for kids: Introduction
