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Reverse Mortgage Good Or Bad Idea To Fund Your Retirement

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Reverse Mortgage Good Or Bad Idea

Reverse Mortgage Good Or Bad Idea: Introduction

There are certainly differing opinions on reverse mortgage good or bad idea. There’s a lot of buzz lately about seniors using a reverse mortgage to fund retirement – on television and radio commercials, articles in magazines and newspapers and on talk shows. But, how much do you really know about reverse mortgages? Most of these promotional pieces are from companies who stand to make money from your reverse mortgage.

The Ira Smith Team is here to give you impartial and balanced advice so that you can make an informed decision whether or not a reverse mortgage is right for you.

Reverse Mortgage Good Or Bad Idea: What is a reverse mortgage?

A reverse mortgage is a loan. It’s designed for home owners who are 55+ so that you can get money without having to sell your house.

Reverse Mortgage Good Or Bad Idea: How does a reverse mortgage work?

A reverse mortgage (loan) is secured by the equity (difference between the value of your home and the unpaid balance of your current mortgage). Based on the equity in your home, you can get cash. And you don’t have to make any payments. Instead of making payments, the interest on your reverse mortgage accumulates and the equity that you have in your home decreases with time. However, if you sell your house or it’s no longer is your principal residence, you must repay the loan and any interest that has accumulated.

Reverse Mortgage Good Or Bad Idea: What are the advantages of a reverse mortgage?

  • You can get cash without having to sell your home
  • You don’t have to make payments on your reverse mortgage
  • It provides you with tax-free income
  • The income from a reverse mortgage doesn’t affect Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits

Reverse Mortgage Good Or Bad Idea: What are the disadvantages of a reverse mortgage?

  • They’re subject to higher interest rates than most other types of mortgages
  • The associated costs are quite high
  • The equity in your home decreases as the interest on your reverse mortgage accumulates
  • At your death your estate will have to repay the loan and interest in full within a limited time

Reverse Mortgage Good Or Bad Idea: Do You Need To Refinance Debt?

As you can see, there are pros and cons to a reverse mortgage and every situation is different. If you’re considering a reverse mortgage to deal with debt contact Ira Smith Trustee & Receiver Inc. There are many ways to deal with debt. As experts we can help you make the best choice and set you on a path to debt free living Starting Over, Starting Now. Make an appointment for a free, no obligation today.

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#VIDEO-TOP CONSUMER SCAMS TO WATCH FOR IN 2017#

This video is courtesy of ABC News. References to IRS can be replaced with CRA. The top consumer scams to watch for in 2017 will know no geographical boundaries.

Top Consumer Scams To Watch For In 2017: Introduction

Consumer experts are already predicting the rip-offs and top consumer scams to watch for in 2017. Our video and blog shows you what new scams to watch out for this year or new twists put on some old scams tricking you out of your money.

Top Consumer Scams To Watch For In 2017: The IRS/CRA Scam

Polk county resident Sherry Gordy fell for the number one rip off in the United States. They said they were with the IRS and that I owed $2,773.00 dollars in back taxes. So far the IRS scheme cost Sherry and thousands of other Americans more than $30 million dollars.

Most now know that the IRS and Canada Revenue Agency (CRA) will issue a statement showing the amount of tax owing, by year, but will never first contact a taxpayer by calling on the telephone. So this year, look for phony letters notifying people they owe taxes. I just can’t believe people still fall for this scam. It may be the biggest scams to watch for in 2017.

Top Consumer Scams To Watch For In 2017: The Computer Virus and Jury Duty Scams

Consumer experts predict that bogus notices involving a virus on your computer and missing jury duty will make the rounds this year.

The computer virus scam is not a new one, but people fall for it. This is how it works. You receive a phone call from someone pretending to be from your internet service provider, advising you that they have noticed irregular traffic, irregular internet connectivity and a potential virus from your computer. They ask you to go to your computer, put in certain keystrokes, and “test” your internet service by providing key details of your computer and its passwords. People who fall for this don’t realize that the scammers are asking you for your IP address, and then passwords, so that they can after the call hack your system and use your passwords for their criminal activities such as hacking bank accounts or stealing your identity.

The jury duty notice trick, sent mainly to business owners, will make the rounds in 2017. This is how this scam works. The business owner receives an official looking notice using a lot of legal terms. The warrant advises that you failed to show up for the jury duty selection. The scammers hope that the business owner thinks that they must have misplaced the original jury duty notice, which of course, was never sent.

The warrant goes on to say that the person can avoid further fines and prosecution, by paying a certain amount of money now. People are paying and of course it’s a scam.

Top Consumer Scams To Watch For In 2017: What Do Consumer Protection Experts Advise?

Consumer protection experts recommend that anytime you’re hit with an unsolicited call, email or letter, look up the real number for the agency they claim to be with. Then call the real agency to find if what you received was a real communication or a bogus one.

Consumer protection experts also recommend that if you are online checking your bank accounts, or other sites that contain your personal information or money, make sure you have plugged in the right web address. The bad guys have purchased domain names with common typos and have made them look like the real websites they are impersonating. They have done so with the hopes that you’ll accidentally put in your login information and they’ll gain access to your account.

Also be on the lookout for smarter phishing scams. The bogus emails that look like</font> they’re coming from your bank credit card or utility company. Instead of clicking on the link, open a new browser and go directly to the real website.

Top Consumer Scams To Watch For In 2017: Been Scammed and Now Can’t Pay Your Bills?

There are many scammers who think nothing of bilking innocent people out of their money. In extreme cases, you might be left without enough money to pay your bills. Your debts are now too much for you to handle, and you will never be able to recoup the money you have lost.

If you have too much debt, for whatever reason, contact the Ira Smith Team. We will give you a free consultation, where we will discuss your problems, treat you with the respect that you deserve, and create a plan for you, often to avoid bankruptcy, and regain a stress free life, Starting Over, Staring Now.

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How Much Interest Am I Paying Every Month? Read The Bizarre Truth Here!

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How Much Interest Am I Paying Every Month?: Introduction

From my experience, how much interest am I paying every month is a question that nobody asks themselves. We’ve become a society based on credit. We have multiple credit cards, lines of credit, mortgages, car loans, student loans…

If I asked you how much interest you were paying each month I’d be willing to bet that not a single person could give me a correct answer. A monthly statement arrives either in the mail or electronically or an automatic payment comes out of your bank account or billed to your credit card. If you’re like most people the two things you see on a statement are the amount owing and the due date.

How Much Interest Am I Paying Every Month?: Start With Credit Cards

I think you’d be totally shocked at the amount of interest you’re paying each month, especially on high interest debt like credit cards. According to Capital Direct if you carry a balance of $8,000 on your credit card:

  • Your statement will show a minimum payment of $240. That may not seem like a big deal but did you know that if you pay the monthly minimum each month at an interest rate of 18.9%, it will take you 4 years to pay off the debt?
  • During this period you will pay $3,461 in interest charges.
  • The $8,000 debt will end up costing you $11,461.

How Much Interest Am I Paying Every Month?: How You Can Find Out

If you look at your credit card statement there will be a section that looks like this:

Document1 001

This is the area of your credit card statement that everyone ignores. By focusing on this area, it will allow you to calculate the amount and answer the question “how much interest do I pay every month”

How Much Interest Am I Paying Every Month?: The Bizarre Truth

According to TransUnion:

  • Credit card delinquency rates jumped 14% year-over-year from 1.81% in the first quarter of 2015 to 2.06% in the first quarter of 2016.
  • Subprime borrowing is up. Subprime borrowers pay a higher interest rate because they have a poor credit history.
  • The average monthly balance for subprime credit card borrowers rose 5.7% to $6,601 in the first quarter.

How Much Interest Am I Paying Every Month?: What to do if you have too much high interest debt

Don’t get trapped in the cycle of high interest debt. The Ira Smith Team is here to help. With immediate action and a solid financial plan you can get escape the high interest debt cycle Starting Over, Starting Now. Give us a call today. You’ll be happy you did.

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DEBT TO CRA : ARE YOU IN THE 10%?

9 out of 10

9 out of 10 Canadians do not have a debt to CRA because they pay their taxes on time. Beginning in February every year, people who not only have too much debt on their credit cards right after the Holidays, but they also owe income taxes, consult us.

We have written on the topic before, including:

  1. CRA: TAX RETURN FILED BUT NO MONEY TO PAY?
  2. TAX problems with the CRA? CONTACT A TRUSTEE!
  3. CANADA REVENUE AGENCY SOCIAL MEDIA
  4. VAUGHAN BANKRUPTCY TRUSTEE WARNS OF DANGERS IN TAKING FREE TAX ADVICE
  5. THE TAX LAWYER; EVEN A HIGH PROFILE TAX FIGHTING LAWYER HAS TO PAY HIS INCOME TAX

Their cute animated video

Do you have a debt to tax authorities? Do you owe taxes or other government amounts like overdue student loans, or EI and CPP overpayments? If so, the Canada Revenue Agency says it wants to help you get back on track. They tell you that paying what you owe to them is easier than ever with a variety of online payment alternatives. And if you can’t offer the full amount right off, they tell you that they can work with you to set up a payment plan that would allow you to make payments over a term.

Michael’s nice story

The tax collectors then tell you a nice story. Take Michael for instance. He has an indebtedness with and he can’t pay the full amount right now. On their website, he was able to set up a monthly pay plan to pay his debt to them. Michael was also happy to pay interest on his debt to CRA until it’s paid off.

This is such a nice sounding story. However, based on the people who consult with us over their debt to CRA, it ignores the fact that people with too much debt do not have the money to pay off their debt to CRA and their other debts. The people who consult with us want to pay off their debt to CRA, but can’t. Life has gotten in their way!

The real story

If you owe money to the CRA and you’ve been contacted by the CRA about it, collection acts could be underway. Shunning your indebtedness will not make it easier for you. By working together with the CRA as early as possible, you can hopefully avoid legal and monetary penalties.

However, there are issues in dealing with CRA directly and pitfalls to avoid. Here is our top list of things to be aware of:

  1. The CRA collector does not have the authority to agree to accept a lesser amount than what you owe. The collector can only agree to you’re paying off 100% of the tax, penalty and interest you owe.
  2. The CRA collector will be looking for you to pay off the full amount in a relatively short period of time; say, 6 months.
  3. The CRA collector has a lot of information t his or her fingertips. After all, you have provided CRA with very personal information for many years!
  4. The CRA collector will try to get updated financial information from you such as the identification of your bank accounts, current employment, do you own or rent, if you own, what mortgages are against your property. The reason for this is so that if you fail to reach a payment plan, or default on your payment plan, then they will try to garnish and seize your cash, wages and other assets. It is a lot easier for them to do so when you have already told them where to look!

What should you do if you have too much debt?

So if you can’t get some peace of mind by joining the 9 out of 10 Canadians who sleep easy knowing that their taxes are in order and their tax indebtedness has been paid – contact us. The Ira Smith Team has helped many individuals and corporations avoid bankruptcy and settle their debt to CRA for less than the full amount owing. Here is a little known secret – the only way CRA will accept less than 100% is if you are working with a professional licensed insolvency trustee in a debt restructuring proposal.

Starting Over, Starting Now, we can help you get squared away with CRA and return you to living a productive stress-free life. Call us today for our free consultation.

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DIFFERENCE BETWEEN CREDIT REPORT AND CREDIT SCORE: KNOW YOUR CREDIT REPORT SCORE CARD?

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Difference between credit report and credit score: Introduction

Many people we see don’t realize the difference between credit report and credit score and they often confuse a credit report with a credit score. So, let’s get back to basics. We’ll clarify credit reports for you and explain why you should check your credit report and how often.

Difference between credit report and credit score: What is a credit report?

A credit report is a detailed record of your credit history – when you opened your account(s), how much you owe, if you make your payments on time, miss payments, go over your credit limit, etc. In Canada there are two major credit reporting agencies – Equifax Canada and TransUnion Canada. They collect information about how you use credit (lenders send them the information) and they create credit reports based on that information. Personal information that’s available in public records, such as a bankruptcy, is also included in your credit report.

Difference between credit report and credit score: What is a credit score?

A credit score is not the same as a credit report. A credit score is a three-digit number produced by a mathematical formula using the information in your credit report. You get points for using credit responsibly. You lose points if you’re having problems managing credit. In Canada, credit scores range from 300 to 900 points (900 is the best score).

Difference between credit report and credit score:: Why is your credit report so important?

As a society we are increasingly dependent on credit. Every time you apply for a credit card, a utility, mortgage, an apartment rental and often even a job, your credit history is checked. These lenders use your credit report and score to decide how risky it would be for them to lend you money or extend you credit. Your credit report and score may also be used to set your interest rate and credit limit. If you have a poor credit history it’s unlikely that you will be approved for credit cards, mortgages and other loans. And if you do get approved you will more than likely have to pay a higher interest rate than someone with a good credit history.

Difference between credit report and credit score: How often should you check your credit report?

According to the Financial Consumer Agency of Canada, you should check your credit report at least once a year. They also recommend that you order your credit report from both credit reporting agencies – Equifax Canada and TransUnion Canada and that you consider requesting your report from one agency and then waiting six months before you order from the other agency to detect any problems sooner. Mistakes on credit reports do happen so review them carefully and pay special attention to any signs of identity theft – accounts that you didn’t open, credit cards that you didn’t apply for, etc. Be aware that the credit reporting agencies charge a fee to order your credit score.

Difference between credit report and credit score:: How can I order my credit report or score for free?

You can get a free credit report. Equifax Canada offers what they call a “credit disclosure file” and TransUnion offers a “consumer disclosure”. However, these credit reports do NOT include your credit score. To get these free credit reports you must order them by mail, fax or phone and receive them by mail, fax or phone. If you prefer to get access to them online, you will have to pay a fee.

You may have seen commercials offering free credit scores. Beware! There’s no such thing. These companies are either fraudsters out to get your personal financial information or you’ll have to sign up for a paid service to get the free credit score.

Difference between credit report and credit score: Are you having trouble managing credit?

If so, contact Ira Smith Trustee & Receiver Inc. as quickly as possible. With immediate action and a solid financial plan for moving forward we can help you deal with debt and learn to manage it well in the future, Starting Over, Starting Now. We’re just a phone call away.

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2017 ECONOMIC OUTLOOK: IMPROVE YOUR PERSONAL ECONOMIC TREND TOO!

 

2017 economic outlook: Introduction

The precious metals advisory firm Illuminati Silver, discussed the implications of an International Monetary Fund (IMF) Report and its views on what it will mean for the 2017 economic outlook. The following is their analysis. Illuminati believes that emerging markets may actually help the world economy in 2017. The IMF believes that the emerging markets may be about to undergo a surprisingly rapid economic rebound.

2017 economic outlook: A brief 2016 review

The beginning of 2016 was fraught for global currency and commodity markets, with the oil price slumping towards $25 a barrel and a raft of emerging market currencies hit by the start of US monetary tightening. The resulting dip in global equity markets in the beginning of 2016 because of growing concerns over China’s economic slowdown.
However, there was a significant turnaround in investor sentiment, with global equity markets rallying to their pre-2016 highs and the oil price bouncing back to around $50 a barrel. Capital inflows into emerging markets resumed in 2016, following two years of outflows, and the stage may now be set for greater macroeconomic, currency and commodity stability, which could propel global growth, to 4% in 2017 (the highest level since 2010).

2017 economic outlook: What the IMF says about 2017

In its report the IMF stated that politics were weighing on the US and European economies, with uncertainty about the US Presidential election “contributing to a lag in investment.” In 2017, the IMF expects emerging economies to grow 4.6%. China’s economy, the world’s second largest, is forecast to expand 6.2% in 2017, which is slightly down but still significant.

Growth in emerging Asia, and especially India, continues to be resilient. India’s gross domestic product may expand 7.6% this year and next year, the fastest pace among the world’s major economies. If the IMF is correct and Europe and the UK are not too adversely affected post BREXIT short-term, this level of growth may be just enough to maintain things as they are and not allow world economies to dip any further into recession. This should mean as a result, the demand for gold and especially silver should remain robust into 2017 as industrial usage consolidates and begins to increase.

2017 economic outlook: What if the IMF is wrong?

Of course the IMF could be wrong and growth rates prove no-where near as high as it forecasts. However, some interesting words from the IMF’s chief economist, Maurice Obstfeld prove interesting: “By using monetary, fiscal, and structural policies in concert—within countries, consistent over time, and across countries—the whole can be greater than the sum of its parts,” In other words he is both suggesting and perhaps hinting that; world leaders, central banks and industries may work to some degree in concert with one another to make sure a soft landing occurs.

Of course none of us know whether they will be successful, however, despite the doom and gloom by people predicting global economic collapse since even before 2008, we have not experienced it on the scale they have forecast.

2017 economic outlook: Does your personal economic trend need fixing?

What is your personal economic 2017 forecast? Will you have enough income growth to meet your expenses and pay down debt? Or, will you still have too much debt that is causing stress in your life?
The Ira Smith Team is here to help you get out of debt and back on a path to financial health Starting Over, Starting Now. All it takes is one phone call to book your free, no obligation consultation. Call us today and take the first step towards debt free living.

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2017 economic outlook

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FINANCIAL RESOLUTIONS WORTH KEEPING: HERE ARE OUR TOP 6

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financial resolutions worth keeping

Financial resolutions worth keeping: Happy New Year to all of our readers!

The new year is the season of making resolutions, but more often than not it is very difficult to keep new year’s resolutions. The most common resolution year over year is losing weight. How about if this year you vow to lose debt instead? The Ira Smith team can help you lose debt. We put together a list of 6 financial resolutions worth keeping that you should make this year if you’re serious about losing debt.

Financial resolutions worth keeping: Our Ira Smith Trustee top 6 list

  1. Stop wasting money: Have a hard look at your expenses – mobile plan(s), landline(s), car insurance, house insurance, cable TV, etc. Get rid of what you don’t need and make sure you’re getting the best deals possible for the services that you decide to keep.
  2. Make a budget and stick to it: You may be shocked at what you’re actually spending and what those designer lattes are really costing you.
  3. Use cash more and credit less: Get into the habit of shopping with cash. Take out the amount that you can afford to spend and don’t resort to using credit. This will put a stop to impulse shopping for things you don’t need and can’t afford even if they are great bargains. You can go broke saving money.
  4. Don’t use high interest credit (like a credit card) to pay your bills: If you have to resort to credit cards to pay your bills, then it’s time to recognize that you are in serious financial difficulty and you need professional help, not more debt.
  5. NEVER go to a payday loan company: Those commercials offering you money with bad credit or no credit can trap you in a never-ending cycle of debt with annual interest rates of up to 596% annually.
  6. At the first sign of financial trouble contact a professional trustee: The sooner you seek help, the more options you’ll have. Managing debt is not a do-it-yourself project; it requires a professional.

Financial resolutions worth keeping: We can help you have a great New Year

The Ira Smith Team is here to help you get out of debt and back on a path to financial health Starting Over, Starting Now. All it takes is one phone call to book your free, no obligation consultation. Call us today and take the first step towards debt free living.

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#VIDEO – NEW YEAR’S DEBT RESOLUTION: 3 SIMPLE STEPS TO ACHIEVE SUCCESS

New year’s debt resolution: Introduction

New Year’s resolutions are hard to keep and new year’s debt resolution is no different. OK, so first, Happy New Year 2017. And maybe more importantly, the world didn’t end with Donald Trump’s election! Now because it’s the new year we know exactly what’s going to happen. People are going to go and make promises that they won’t keep. Get more fit, lose weight, start a business, have better relationships with family and friends, make more money, budget better and of course, pay off debt.

New Year’s debt resolution: How successful are we at keeping new year’s resolutions?

According to Wikipedia, the success rate for New Year’s resolutions is about 12%, which means that there has to be something wrong with our resolving, right? How often do you discover people you know resolving to do a whole range of things, like write a song, read 100 novels or go to the gym twice a week?

All of that is really hard. I mean, our hearts are in the best place, but it requires self-discipline, and periods of prolonged firmness. And willpower, much like those flabby muscles, requires an effort. Psychologist Roy Baumeister writes in “Willpower” that those bad at resolving should mention, “put the blame where it belongs, on the list.” Instead of resolving to learn to master the guitar, quit smoking, lose weight and climb all the mountains, just choose one. Start small-time and end large-scale.

New year’s debt resolution: 3 simple steps to meet success

3 Simple-minded tips for starting the new year right. It’s the start of a brand new year. It really is the start where people reevaluate their lives in originating resolutions to change for the better. So in the spirit of self-improvement why not widen this to your personal business.

Now are three improbably simple-minded tips that do really that:

1. Monitor your business. If you don’t already keep watch over your funds now’s the time to get started.

2. Prevent wasteful spending by creating a simple budget; and follow it! You can download our debt management spreadsheet for free at the bottom of this blog.

3. To jump-start your financial year it’s not a bad idea to get a good look at your credit report. Get any errors fixed and see what you need to do to improve your credit score. To get a copy of your credit report, you can get access to it through one of the two credit bureaus’s; Equifax or TransUnion.

New year’s debt resolution: We can help you make success

Whether you have just one year or several years of new year debt resolutions outstanding, it still needs to be dealt with. To deal with debt you need the help of a debt professional – a trustee. Dealing with debt is not something that you can put off any longer. Start the New Year off right by calling Ira Smith Trustee & Receiver Inc. today and make an appointment for a free, no obligation consultation. We can give you back peace of mind and put you on the road to stress free living Starting Over, Starting Now.

New Year’s Debt Resolution

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IDENTITY THEFT HORROR STORIES: BEWARE OF FRAUDSTERS & IDENTITY THIEVES

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Identity theft horror stories: Introduction

There always seems to be identity theft horror stories coming out right after the holiday shopping season. The holidays may be a time of good cheer, but for others who’ve been victimized by fraudsters and identity thieves, it can be a nightmare. Earlier in the month we posted a blog giving you 3 secret techniques to guard against identity theft, but we must still remain diligent.

Identity theft horror stories: What more can you do to protect yourself against fraudsters & identity thieves?

According to Equifax, Canadian consumers have indicated that they’ve taken the following steps:

· Shared less about self on social media· 87%
· Used an up-to-date computer anti-virus product· 81%
· Double-checked credit card statements· 79%
· Shopped less online· 56%
· Avoided using public WiFi· 47%
· Used cash more often· 46%
· Updated security passwords· 43%
· Used an identity theft product· 30%
· Checked my credit report· 28%

Identity theft horror stories: What can you do if identity theft happens to you?

The Financial Consumer Agency of Canada advises that you document in writing everything that’s happened since you first became aware of the fraud and that you follow these 4 steps:

  1. Contact your local police and file a police report.
  2. Contact the financial institutions, credit card companies, phone companies, and other lenders for any accounts you suspect are opened or tampered with.
  3. Contact the two credit bureaus in Canada, Equifax and TransUnion. Ask that a “Fraud alert” be placed in your credit file. At the same time, order copies of your credit report and review them. Make sure all the accounts and debts that show up on your report are yours. Report any incorrect information to the credit bureaus.
  4. Contact the Canadian Anti-Fraud Centre (CAFC) toll-free at 1-888-495-8501 to report the fraud and get advice. The CAFC plays a crucial role in educating the public about specific mass marketing fraud pitches and in collecting and disseminating victim evidence, statistics and documentation, all of which are made available to law enforcement agencies.

Identity theft horror stories: What should you do if you have your own Christmas credit card debt horror stories?

Remember to always protect your personal information at home, online, on the phone and in public places and follow our 3 secret techniques to guard against identity theft. Everyone is a potential victim so be on your guard. Unfortunately even taking precautions is not 100% foolproof, so if you’re now experiencing serious financial difficulties as a result of identity theft or for any other reason, give Ira Smith Trustee & Receiver Inc. a call immediately. We can help you solve your financial problems with immediate action and a solid financial plan Starting Over, Starting Now.

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#VIDEO – CHRISTMAS HOLIDAY CREDIT CARD DEBT: HOW TO CREATE A HAPPY HOLIDAY FREE OF CHRISTMAS HOLIDAY CREDIT CARD DEBT#

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Christmas holiday credit card debt: Introduction

Christmas holiday credit card debt is too many times the result of the holiday shopping season. Are you going to make it through December without getting yourself in Christmas holiday credit card debt? That’s a great question, since an examination by Consumer Reports indicates that millions of Americans are still in debt from last year’s holiday season.

Christmas holiday credit card debt: Creating your holiday strategy

With all the bargains on Black Friday and Cyber Monday, you may have found yourself invited to be the jolliest gift giver of the season, but creating a holiday strategy should be rooted in practicality, not holiday miracles. Rather than repeat last year’s missteps, you should try basing your gift spending plan on cash and not plastic. There is a disconnect between plastic and life that causes many people to spend well beyond their capacity to comfortably repay the costs of their charge card purchases that is. Using cash requires us to spend within our means, while plastic can drive us off the cliff. Simply put, money doesn’t feel like money “if you’re using” a piece of plastic, but chances are pretty good that you’ll stay painfully aware of what you’re spending if you were had to slide over a stack of $20 bills to purchase the latest techno gadget.

Christmas holiday credit card debt: Your skills and time can make the best gifts

Using cash allows us to stay aware of just how much we can spend, and helps to protect us from get carried away with plastic. Your neighbourhood mall or on-line retailers aren’t necessarily your only opportunity for gifts. Some of the best presents are those that have significance beyond their monetary value. If you are skilled in a particular area, use your talent for gifts.

For instance, if you’re skilled with your hands, you might consider making some presents for your loved ones. Knit a sweater, build a coffee table, or create a one-of-a-kind website for an acquaintance or loved one. Time is another prized talent. If you can’t devote a lot of money to holiday shopping, give your time. We all have jobs we’d like to complete, but sometimes we lack the ability to get it done. Gifting your time to pals and loved ones will not only help clean up their to-do list but will also be a way to spend quality time to strengthen relationships.

We all know people who despite their modest financial situation, they go all out on their spending during this season even when their situation says they shouldn’t. I don’t know about you, but I feel bad accepting a gift that I know the person cannot afford to give, and I feel worse if I was to refuse it and tell them to return it.

Christmas holiday credit card debt: Set achievable goals

If this describes you or someone you are familiar with, be sure to set achievable goals for managing your holiday obligations. Define your holiday budget with a repayment deadline, a few months at most, to avoid paying more than you can afford. Such a strategy is really a talent for yourself, since you don’t want to still be paying for this year’s gifts when the holidays come around next year.

Christmas holiday credit card debt: What to do if you have too much debt

Whether you have just one year or several years of holiday spending debt, it still needs to be dealt with. To deal with debt you need the help of a debt professional – a trustee. Dealing with debt is not something that you can put off any longer. Start the New Year off right by calling Ira Smith Trustee & Receiver Inc. today and make an appointment for a free, no obligation consultation. We can give you back peace of mind and put you on the road to debt free living Starting Over, Starting Now.

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