Comments on: Panic Attack – A Cautionary Tale

By: Pauline

Pauline — Thu, 01 Jul 2010 20:37:15 +0000

Thanks for this article. It is heartening with good sound advice.We work really hard to stay ahead of debt but the real temptation is to do something fun to give our family some pleasure. Instead we do not go on big holidays or little else. We are considering buying a 2nd hand car as we both have recent raises and our current car is 20 years old! Any ideas for giving your family something pleasant to splurge on within reason? The HST has hit BC and we are hunkering down but no summer holiday in sight. Sigh.

By: Carol

Carol — Tue, 29 Jun 2010 18:59:34 +0000

I don’t see where Colin mention a RRSP. If it is implied by the reference to the mutual fund then my take is that it means the mutual fund was liquidated or partially liquidated to buy the computer and that created some extra taxes owing. The point is do you pay down debt before saving or try to save and pay debt at the same time. Depends on the cost of credit and your cash flow.

By: Janice

Janice — Tue, 29 Jun 2010 18:27:39 +0000

Most banks will give you an RRSP loan at a very reasonable rate (since it is basically a secured loan). You would be much better off getting a one-year loan and paying it off early with your tax refund. Carrying a balance on your credit card is an expensive way to borrow money.

By: Alan Hernden

Alan Hernden — Tue, 29 Jun 2010 15:50:37 +0000

I wonder about letting cc bills ride for a couple of months in order to have funds for RRSP contributions. The tax refund would be 38%, so maybe its worth it just for January and February to just make minimums and then play catch up until the refund arrives?

Thanks Al