Types of debt that you can consolidate with a debt management program

Image result for Types of debt that you can consolidate with a debt management programWhen your debts become too large, it is in your interest to ask for help. Deciding what kind of help you need can be complicated, especially if you take a look at all the options that exist. Depending on the types of debt you have and your current financial situation, a debt management program might be exactly what you need to deal with your debts and move in the right direction. Let’s see in more detail what a program like this is.

What to expect

Unlike more drastic forms of debt relief, such as a consumer proposal or bankruptcy, a debt management program is not a legal action. Instead of working with a licensed insolvency lawyer or trustee, you will be dealing with a certified credit counselor who will assist you throughout the process. Your main goal when meeting your advisor is to provide as much information as possible about your finances. The more information he has, the more he can help you. Your credit advisor:

  • Determine exactly how much money you owe and to whom
  • You will create a personalized budget to help you in your process
  • Negotiate with your creditors in the hope of finding common ground in repaying your debts

The bus of a debt management program is to consolidate your eligible debts into a single, more manageable monthly payment. The credit counselor with whom you will be dealing will negotiate, on your behalf, with your creditors and lenders to reduce your interest rates and eliminate penalties that you may have accumulated. In this way, you can continue to pay for your necessities while paying off your debts. In most cases, people can get out of debt fast enough and save on interest charges while making easy-to-manage monthly payments.

What types of debt can be consolidated with a debt management program?

Image result for debt consolidation

A debt management program is a great option for many consumers who have trouble keeping their debts in order. That being said, not all types of debt can be included in such a program.

Seeking the help of a professional and making the decision to join a debt management program is not a decision that should be taken lightly. That’s why we think it’s important for you to know before making your final decisions. For information and to help you make the right choices, here is a complete list of debts that can be consolidated with a debt management program.

Credit card debt

A credit card debt is not a secured debt, which means it can be included in a debt management program. In fact, credit card debt is one of the most common reasons why consumers choose this form of debt relief.

Retail Store Credit Card Debt

As with other credit cards, retail credit cards are also eligible for a debt management program.

Unsecured personal loan debt

Personal loans that are not guaranteed, ie when you originally applied for the loan, you did not have to put any form of collateral, such as a vehicle, can also be included in a management program debts.

Unsecured Credit Union Loans and Credit Card Debts

If you have received an unsecured loan from a Caisse Populaire or you have accumulated too much credit card debt on a credit card, it is possible that these two debts may be included in your debt management program.

Automobile restitution debt

If your vehicle was repossessed because you could no longer make your payments, you could include that debt in a debt management program.

Gas Cards

A debt that has been created by a gas card is also eligible to be included in a debt management program.

Non-government student loan debt

If you have private or non-government insured student loan debts that are causing you financial stress, a debt management program might be a good option for you.

Previous cellular bills

If you have unpaid cellular bills and no longer use the same service, you may be able to include this debt in a debt management program.

Previous service accounts

Like a past cell phone bill, a utility bill that you no longer use can also be included in a debt management program.

Medical bills

All medical bills are not eligible in a debt consolidation program but some are. If this is the main reason you are considering a debt management program, we recommend that you first seek the advice of a credit counselor.

Make the right choice for you

Image result for make the right choice

You should know that creditors and lenders are not required by law to cooperate with your credit counselor. Therefore, the above list should be used only as a reference tool. It is possible that all your unsecured debts may be included in your debt management program. That being said, such a program is the best option for many Canadians who are facing a lot of debt that they can not pay back. If you are currently looking for a solution to relieve yourself of the burden of your debts, we can help you by putting you in touch with a credit counselor in your area.

Posted on

Custody transfer: This is how you easily transfer your securities

Custody transfer: How to transfer your securities

Image result for transfer securitiesA custody transfer can take place for many reasons: High fees are associated with the old custody account and you want to save costs in the future. You want a better overview by having all the securities in one deposit together. You are dissatisfied with the current customer service or the performance of your bank. Whatever the reason, a custody transfer is a straightforward affair.
How do you transfer your deposit?

If you want to change your deposit, you first open a new deposit at the bank of your choice. Make an advance deposit fee comparison to find the best conditions for yourself. With the deposit change service you can carry out the deposit transfer online. The securities account can then transfer both your old and your new bank. The rest is actually done automatically: The commissioned bank is now taking care that your securities are transferred electronically to the new depot. Depending on what you arrange, you can switch to a different bank or transfer only individual securities with your entire securities account. Basically, it’s no different than transferring money from one account to another, except that you transfer securities in this case.

What happens to the old depot? You can also initiate the closure of the old depot with the depot exchange service.

Good to know: At which bank you run your portfolio, you decide yourself. From time to time, make a deposit fee comparison to find out if there is a bank that can offer you better conditions if necessary. If you decide to change your custody account, you do so. You do not have to have the custody transfer approved by your current credit institution.

What does the custody transfer cost?

According to a BGH judgment, a bank may not charge for the custody transfer.
The only exception: your securities are stored abroad. In this case, the bank may charge fees when you change your account.

How long does the custody transfer take?

How long the custody account changes exactly varies from bank to bank. Mostly the transfer takes place within a few days. Normally, you will have to wait no more than four weeks for all of the securities to be in your new repository. For special funds, the custody transfer may take longer (approximately up to six weeks). If necessary, ask your bank adviser if you believe that the transfer has already been completed, but the securities are not yet in your new custody account.
Can you trade in securities during the transfer?
While the securities are being transferred, trading is not possible. This will only happen again when the change is completed and the papers are in the new depot.

Can you trade in securities during the transfer?

Can you trade in securities during the transfer?

While the securities are being transferred, trading is not possible. This will only happen again when the change is completed and the papers are in the new depot.

Posted on

What is the difference between a tax credit and a tax deduction in Canada?

Image result for What is the difference between a tax credit and a tax deduction in Canada?Every year, during the tax season in Canada, you will see many people scrambling to pay their taxes at the last minute, or pay someone else to do them, like an accountant. Because of the stress this period may generate, there are some tax credits and deductions that many taxpayers might overlook or fail to realize they can benefit from. As a result, they will not make the most of their tax returns.

The fact is, people do not even know the subtle differences between tax credits and tax deductions, and they are often seen as the same thing. On the other hand, there are indeed some key differences between the two. In the article below you will find information that you can use when doing your taxes efficiently when the time comes.

What are the tax brackets?

Although this article is not a lesson on how to do your taxes, you should understand some aspects of the tax system generally, if and when you have trouble figuring out the differences between tax credits and tax deductions . Your tax bracket is based on the income you earn in a taxation year and the portion of that income that will be taxed by the federal and provincial governments. The higher the tax bracket, the more you pay taxes. If, for example, you earned $ 60,000 during the year, you will be taxed at a rate of 15% on the first $ 45,916, but at a rate of 20.5% (current rate of $ 45,916 $ 91,831) out of the remaining $ 14,084.

It is important to note here that most provincial tax rules are specific to each province. For example, the federal tax rates are the same in all provinces and, for 2017, start at 15% for the first $ 45,916 or less of taxable income. However, the provincial / territorial tax rate, say, in Ontario, is 5.05% on first income of $ 41,201 or less. To simplify matters, in this article, we will simply discuss tax credits and deductions for a better understanding.

One of the first differences between tax credits and tax deductions is related to your tax bracket. When a particular tax credit is approved, the taxpayer who has applied for a reduction will receive the same tax reduction, regardless of the tax bracket in which it is located. On the other hand, tax deductions depend on your tax bracket because the amount deducted is based on the net income of a taxpayer.

Other notable differences

In fact, there are some additional differences between tax credits and tax deductions that can be confusing to many taxpayers, especially when they try to file their taxes themselves rather than seeking the help of taxpayers. ‘a professional. Below you will find the main differences.

Refundable and non-refundable tax credits

<strong>Refundable and non-refundable tax credits</strong>

A tax credit is one type of benefit you can claim, which will reduce the amount of income tax you owe the federal government for the year. The amount of tax reduced by this tax credit, whether this amount is equal to $ 100 or $ 1,000, is calculated based on the lowest tax bracket, or 15%, regardless of the tax bracket. taxation in which you find yourself. For example, you are entitled to a tax credit of $ 5,000. 15% of this amount of $ 5,000 equals $ 750. So you will need $ 750 less federal income tax this year.

You can also benefit from two types of tax credits:

  • Non-Refundable Tax Credits – help reduce the amount of tax you owe. However, if your non-taxable tax credit is more than the taxes you owe. You will not receive the difference on your tax return. Some types of non-refundable tax credits include the spouse or common-law partner credit, medical expenses, public transit passes, charitable donations, and so on.
  • Refundable Tax Credits – also reduce the amount you owe in taxes. However, if you claim them on your tax return, any refundable tax credit will give you the money you do not already owe in taxes. Certain types of refundable tax credits include GST / HST credits (Goods and Services Tax / Harmonized Sales Tax), Work Income Tax Benefit, Children’s Fitness Tax Credit etc.

Tax deductions

A tax deduction reduces the amount of taxable income you must pay. For example, the RRSP. The more you contribute to your RRSP, the more you deduct the amount of your taxable income.

Let’s say that during the 2017 tax year, you earned up to the 15% tax bracket limit of $ 45,916. This means that the amount you owe for federal income tax this year will be $ 6,887.40. However, you managed to contribute $ 5,000 to your RRSP in the same year. This contribution will reduce your taxable income to $ 40,916. 15% of this amount equals $ 6,137.40. You will have saved $ 750 in federal taxes.

Deductions or credits?

In Canada, there are many types of deductions and federal, provincial and territorial tax credits and deductions that you can claim while doing your taxes. One of these deductions or credits may entitle you to a tax refund. However, you will withdraw more or less depending on your income generated on an annual basis. Whatever your income, it will certainly be beneficial for you to consider applying for this tax credit and deduction as soon as possible. In any case, you can contribute regularly to your RRSP to get a basic tax deduction. Once you have obtained a little more information, you can start claiming all the tax credits and deductions and make the most of your tax return.

Posted on

Learn to focus on the important and not the urgent, also in your finances

In a high life rate like the current one, we tend to focus on urgent decisions but not always on what is important. Changing the focus can be a good idea both for our finances and for the whole of our lives.


Image result for lifeIt is normal to want urgent tasks to be the first to be removed from our list of mental objectives, especially in the short term. However, these urgent tasks are not always the most important in our lives and make us, precisely, forget important issues such as:

  • The improvement of the family environment and the attention to the family
  • The improvement of our skills and knowledge
  • Long-term professional success
  • Health Care

Generally, these issues that really are a priority, escape us while we invest a lot of time in tasks of low importance, although they may seem relevant to us.

This is perfectly applicable to taking care of your personal finances . When you spend a lot of time on small decisions, or urgent but banal details, you lose the real perspective of what you want or need for your money, for example, how to save every month . These are some ideas to improve this scenario, and being able to focus better is what is important.

Program your goals and decide to control your finances the way forward

Controlling and dominating your personal finances in the long term is a complex task. To be able to do it, you need to start from a good base, and this base is an initial planning of what you are looking for with your money that can share objectives, for example, saving to buy a house and saving for retirement .

Each person is different in these objectives. There will be those who, correctly, prefer from the beginning to guide the objective to form a good portfolio of savings . There will be those who prefer to balance spending and, at certain times of life, allocate more of the income to consumption than to saving, investing positions in a given time. It’s the same, deep down the important thing is that you set goals and a way to go with your money.

Choose the savings products well; retirement plans , savings insurance, paid accounts, all those tools that will help you shape your savings portfolio over time. At the same time, choose well the model of relationship between what you enter and what you spend, create a good budget and follow the path you decide to mark yourself.

Distinguish the important from the shocking


In the same way that happens in other aspects of life, sometimes we do not distinguish the important from the shocking . The important thing is what happens and that, immediately, surprises us for good or for bad, but that, however, in the long term does not have to be relevant.

This is especially important for those who spend part of their money investing . Sometimes, the movements of the markets offer shocking moments that, however, in the long run, do not have a determining importance in our pocket.

Control anxiety for your money

Image result for anxiety money

The fear of losing money is logical, reasonable, and also, in its proper measure, healthy. This fear will make us be alert to the evolution of the products or investments that we have chosen.

However, from the fear of panic there is only one step, and that step can place you in the depth of the investor; Panicking is probably one of the worst things that can happen to any investor and lead to the ruin and bankruptcy of personal finances .

This is a clear example of focusing on what is important and not on what is urgent. Imagine that you participate in an investment in which, suddenly, the assets begin to lose value. To panic is to respond to the urgent, that is; Today you have lost money and you respond immediately leaving the investment. However, the variable income works by cycles and although, effectively, you can lose money, the panic is never a good adviser since it will make you to make decisions by anxiety and not reasoned.

If you had your programmed goals, you would know where the acceptable limit of losses is for you, and, you would keep quiet waiting for the evolution of the assets, knowing at all times when to leave if you have to do so.

But, eye. In the same way that panic is a bad friend of your finances, overconfidence, euphoria or foreboding, are also immediate decisions, usually not very thought out and based on anxiety and not on reasoning.

Posted on