Debt Free In 30

Whether your inheritance is included in a bankruptcy depends entirely on when you become entitled to receive the proceeds. As this is a complex issue, I talk with Ted Michalos and we take a detailed look at bankruptcy implications for inheritances.  While we discuss inheritances and bankruptcy specifically in this podcast, the advice applies to virtually any cash windfall including a cash gift, work bonus or lottery winnings.

The best way to control your auto expenses is to buy a car you can afford.  This keeps your monthly car loan payments low (since you borrow less) and ensures that you don't over-finance. But how do you buy an affordable car that fits within your budget?  Should you buy new or used?  If it's used, how can you know it's reliable? Enter Scott Marshall. With 30 years of experience in the driver training industry, he shares his first-hand knowledge of how to make car ownership affordable. He also suggests that there is a correlation between safe driving and saving money. 8 Ways to Make Car Ownership Affordable Scott shares the following tips for successfully keeping your car buying costs low: Buy used. According to Scott, a used car is a great way to achieve affordability. A used vehicle can be reliable if you're strategic in your purchase and maintain your car well.  Buy a car that's only 3 or 4 years old. Your car will still be very close to the most modern vehicle, but at only 60% of the cost. Don't worry abou

Every financial guru says that achieving success starts with setting a goal. I disagree.  While there is some benefit to setting goals, you are more likely to achieve success if, instead of focusing on goals, you have a system. I discuss goals vs systems on today’s podcast. Listen or read the transcript below. This is our first episode of 2019, and I’ve got a question for you: how did you do with your New Year’s resolutions last year?  How are you doing with your New Year’s resolutions this year?  If you’re like many people, you’ve probably already given up. If your goal is to get out of debt or to save more money, you might be a little frustrated knowing another year has come and gone without improving your finances. So what if your goal this year is to get out of debt? Or save more money? What’s the best way to achieve any goal? The answer may be to not focus on the goal at all, but instead to create a system to reach that goal.  Today on Debt Free in 30, I want to explain why, in most cases, systems are be

It’s been a long time coming, longer than Ted Michalos and I predicted in our past year-in-review podcasts. We predicted that 2014 and 2015 consumer insolvencies would remain flat, and they did. However, last year, we predicted that the seeds of a debt crisis had been planted, and we fully expected consumer insolvencies to begin to rise.  And they did, albeit not until the end of the year. As of October 2018, year-to-date Ontario bankruptcies and consumer proposal volumes were up 0.6%. That growth came mostly in the latter part of the year, with 5 of the previous 7 months showing year-over-year. We believe a consumer debt crisis will hit us in 2019; on today’s show we analyze the numbers, and give you our predictions for 2019.

If you just earned a bonus from your employer or received an unexpected sum of money, how should you use that bonus if you also have debt? On today’s show we talk with Scott Terrio and we outline what to prioritize to get the most bang for your buck. We also take a look at common mistakes people make when they receive a surprise lump sum of money and discuss the impact a bonus can have on a bankruptcy filing.

Financial technology, or fin-tech, has come a long way. Much more than just a budgeting app, now you can do your banking, money management, investing and even borrowing, online. In addition to apps, fin-tech companies are following the chatbot trend. On today’s show I talk with Alan Whitton, (known as the Big Cajun Man), who has spent 35 years working in the tech industry, about whether chatbots are good for us financially and security issues around fin-tech in general. Alan interestingly points out that there isn't a lot of fin-tech companies helping people get out of debt. Most fin-tech companies go where the big money is - and that's selling new stuff.  There are very few apps that tell you to prioritize savings, create an emergency fund, or pay off debt.  Instead, we hear about robo-investors and companies like Borrowell that make a lot of money offering 'free' credit scores to entice you to borrow more. Are chatbots just a sales pitch, or can they really help us?  Tune in for more on today’s show.

When you have debt, Christmas is a stressful time. With pressure to spend on family, friends, co-workers, and maybe even your barber, the season turns into more of a financial burden than a time to be merry. And even though you want to give, your budget is limited. Is it possible to say no to holiday spending without feeling guilty? Actually, it is. It's all in your approach. On today’s show I talk with Lisa Orr, an etiquette and protocol consultant, and we take a look at how to navigate the holiday season without awkwardness and forced overspending. Lisa also shares etiquette advice on common and sometimes uncomfortable spending scenarios like charitable donations, tipping, and re-gifting.

The death of a spouse and divorce bring an emotional burden, but sadly such catastrophic events also create financial consequences.  In fact, the death of a spouse or divorce are both common reasons why people file bankruptcy. Without proper financial planning, people can find themselves unable to cope with existing debt and often take on new debt to pay the bills.  Doris Belland, our guest today was left with $400,000 in debt after the death of her spouse. After struggling to repay that debt and rebuild her finances, she embarked on a mission to learn more about how to cope financially with a traumatic event like a death or divorce and now works as a financial literacy educator to help people be prepared when it comes to money. On today's podcast Doris shares her advice that is good for anyone struggling with debt or who want to be prepared financially for any unexpected life event including job loss, illness, divorce or the death of a spouse.

If you are out of work or laid-off and need to upgrade your skills to improve your employment potential, how can you do this without incurring more debt? The Ontario government has a Second Career program that offers financial support to retrain for in-demand jobs for those who qualify. On today’s show we talk with David Shumaker, an employment counsellor at The Working Centre in Kitchener, where he coaches program applicants through the process. We look at how Second Career works and provide advice on how to manage debt while you are retraining.

Indebted Canadians pay at least $24 million a year for what is often unnecessary debt advice. How does this happen? Well, when you have overwhelming debt, you're not just thinking about the money. There's also an emotional element: You're stressed, anxious, and worried about your future. Enter unlicensed debt consultants. They know that you fear going bankrupt, or even talking with a bankruptcy trustee. They take advantage of your vulnerability and offer you a comforting sales pitch about how they can get you a better plan to eliminate your debt. In the end, they do nothing except refer you to a Licensed Insolvency Trustee for a consumer proposal. But before they do, they also have you sign a contract to pay them thousands of dollars in fees for that referral. On today's podcast, we get some insight from our special guest who experienced this exact scenario and explain how you can avoid falling into this same trap.

Being injured or in an accident can have broad reaching financial implications. In addition to the costs of care, you can lose income if you are off work and may incur additional legal costs. Finding ways to recover some of those expenses can help you avoid the debt problems that can occur after an injury. Our guest, personal injury lawyer Lisa Morell, explains when you might want to talk to a personal injury lawyer to review your benefit options.

This year marks the 8th Financial Literacy Month in Canada, which begs the question: has our financial literacy improved in eight years?  Total household debt is at record highs while personal savings rates are at record lows. I'd say that's evidence that the program is not meeting its core objectives. On today's show we ask the question: "Can the government even teach Canadians to take better control of their finances and if not, what does it really take to become financially literate?" The cost of not developing some understanding of what impacts your finances is high. Credit is much more accessible than ever before. Corporate pension plans and job security are a thing of the past. An explosion of financial advisors and the introduction of technology and new products are making the world of personal finance more complex. Unfortunately, an annual government awareness program and a few tweets here and there is not going to stem this tide. It's up to you to take charge. To be considered truly 'financially lite

Whether you are about to start your post-secondary education, start a family, or are headed for retirement, debt problems can happen at any age. While the average person who files for bankruptcy in Canada is in their mid-40s, Hoyes Michalos has filed bankruptcy for people as young as 18 and as old as 93. Avoiding bankruptcy means taking charge of your debt choices at each of these milestones and being prepared to handle any challenges that occur along the way. On today's podcast we explain why you want to avoid debt at every age.

If you owe a debt in Canada, but live elsewhere in the world, should you ignore past due Canadian debts you can't afford to pay, or can you file bankruptcy in Canada when living abroad? As the Licensed Insolvency Trustee in charge of our Windsor office, Rebecca Martyn deals with a lot of cross-border consumer insolvency questions and is often contacted by Canadians living across the border who receive multiple creditor calls a day on their Canadian debts. Rebecca explains the requirements for filing a Canadian bankruptcy when living in the United States, the principles of which apply to those living in any country outside of Canada.

The use of computer technology to manage money continues to explode across the financial services industry. Enter the robo-planner. The question is can an online computer platform help answer common financial questions like should you invest in an RRSP or TFSA, or should you pay off your mortgage sooner? Today we talk about the use and potential benefit of robo-planners with Rona Birenbaum of Viviplan, a new Canadian robo-planning website. Robo-planning vs robo-investing A robo-planner provides access to unbiased financial planning advice through an online platform, replacing much of the face-to-face engagement involved in working with an individual to create a personal financial plan. A robo-planner differs from a robo-advisor, which uses online technology to help you choose and manage your investments. While the terms robo-advisor and robo-planner are often used interchangeably, according to Rona, they don't provide the same service. A robo-advisor's primary aim is to gather assets. It focuses on your inves

A joint bank account is an account that allows two or more parties to each deposit, withdraw and manage funds in the account. Whether or not it's a good idea to get a joint account with your spouse, a friend or any family member depends on your personal situation. On today's show, with guest Ted Michalos, we take a look at the different types of joint accounts, their pros and cons, how they are treated in an insolvency filing, and help you decide whether you should or shouldn't get a joint account.

Current regulations allow financial advisors to sell products like mutual funds and give the appearance that they are giving you financial advice that fits your situation. The problem is embedded advisors, like those at your friendly neighbourhood bank, are paid on a commission matrix that rewards sales.  That means you don't really know if you are paying for the product or for good advice. So when should you pay a professional for investment advice who isn't going to try and sell you a product? Our guest today, Sandi Martin, an advice only Certified Financial Planner with Spring Financial Planning, calls this being 'solution agnostic'.  With Sandi's help, we outline when you can benefit from hiring a financial planner.

If you are over-mortgaged and facing negative equity in your home, can you walk away from your mortgage in Canada?  We explain what you can do if there is a shortfall on your mortgage after a sale or bank foreclosure. Canada has full recourse mortgage laws A theoretical shortfall is not a real shortfall. You don't have to sell. If you can keep your mortgage payments current, and expect that the market will return before you intend to sell you can hold tight. If you are in default your lender will begin proceedings to collect. If you do not respond and cannot catch up on missed mortgage payments, your bank or lender will likely begin proceedings to sell your home through a power of sale. If you sell with a shortfall, or your bank forecloses, you still owe your mortgage lender any deficiency between the money realized from the sale and the balance owing on your mortgage. Should you sell your home for less than you borrowed and find yourself unable to repay the shortfall, in Ontario, your lender can pursue you t

A recent Twitter headline claimed that actor Charlie Sheen is having a 'dire financial crisis' with less than $10 million to his name. While that might be a bit extreme, no matter how much money you have, if you have high debt obligations, you can face money troubles. On today's podcast we talk with Robert Brown, author of Wealthing Like Rabbits, about what it means to be facing a personal debt crisis and what's in your control to change.

Student loans are only automatically discharged when you file bankruptcy in Canada if you have ceased to be a student for more than seven years at the time you file.   However, there are cases in which clients cannot afford to wait for the seven year mark to discharge their student debts automatically. Financial hardship for student loans is an application you can make to bankruptcy court to have your student loans discharged five years after you cease to be a student. If the court agrees, it is possible to go bankrupt and have your student loans discharged after as little as five years instead of seven. It's important to note that the time frame is not based on when you got the loan, but when you stopped being a student. On today’s podcast, we dive deeper into what financial hardship for student loans is and how it works with Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto.