Comments on: Handling credit wisely. It’s in the cards.

By: Laurie Campbell

Laurie Campbell — Thu, 29 Jul 2010 16:06:51 +0000

Ryan, your comments are right on the mark. As someone who just bought a car all of your advise hit home for me. It is certainly true that we become caught up in the glitz of what we purchase rather than thinking about what we really need. It is also true that debt can cause severe stress. Leading a simple life does have its merits!

By: Ryan Atlas Financial Planning

Ryan Atlas Financial Planning — Tue, 27 Jul 2010 21:27:27 +0000

Consumer debt is the biggest hurdle for most Canadians (and Americans) to achieving there financial goals. Debt should only be taking on as a way to save money, or make money.
Buying a home is an investment and worth borrowing for.
Buying a big screen TV is not an investment, if you want one you should save up and pay cash.
Paying for an education is a way to improve your furture earning power and if borrowing is the only way to do it then can be worthwhile.
Paying for a vacation is a way to have fun and if you want to go then save up and pay cash.
Buying a car can potentially be worth borrowing for as it could be needed to get to and from work therefore helping make money and will help out in many other ways as well. However, if you borrow for a car then make sure you are not over spending you income level. A Toyota Yaris gets you to work just as well as a Toyota Venza at half the price. Pay attention to the total cost of the car, not just monthly payments, say no to the overpriced extended warranties, and take no longer the four years to pay it off. If you can not afford the payment to pay off the car in four years the get something cheaper, perhaps a used car, or save up for a big enough down payment that you can afford the payments before you buy it. Once the four years are up and your loan is paid for keep the payments you were making going into a savings account for a down payment on the next car, eventually you will be paying cash for your cars instead of borrowing for them. If you can get 0% financing you can always invest the funds in a low risk investment and make withdrawals from the investments to make the car payments.
Properly managing debt will put most people in a position to be able to meet any savings goals they have and reduce the financial stress many people face.

By: Tessa-Marie Shillingford

Tessa-Marie Shillingford — Fri, 23 Jul 2010 15:04:45 +0000

Love this blog if each and everyone of us who has the opportunity keeps putting the information out in any way we can maybe we will get some people to take a good look at what credit cards, and lines of credit secured or unsecured can do to their financial life. These two credit vehicles unless you kill them will only die when you die. Great advice and I am passing it on by word or reference. Check out simmilar blogs at…… http://controllingthedebtmonster.wordpress.com

By: Laurie Campbell

Laurie Campbell — Thu, 22 Jul 2010 18:52:59 +0000

Thanks for all the great comments! As to your point Brian, it is not broken down between secured and unsecured. Nevertheless debt levels in Canada have been rising significantly year over year.

By: Brian

Brian — Thu, 22 Jul 2010 16:00:02 +0000

What percentage of the overall household debt is secured versus consumer debt? Thanks for the interesting statistics.

By: Duke

Duke — Thu, 22 Jul 2010 15:37:32 +0000

Great write up ! Too bad you couldn’t find a way to get this article in every mail box (email or otherwise) to every resident in Canada and beyond. —Keep up the good work Credit Canada !!

By: Al

Al — Thu, 22 Jul 2010 15:18:52 +0000

It is heart breaking to think of all the good people struggling with outrageous credit card debt and interest. Just remember there is light at the end of the tunnel. The good work of the people at Credit Canada like Laurie is so needed.