A new type of creature has infested Ontario. I believe its scientific name in Latin is something like Horribili Reatu Sedes Aranea, which translates to horrible debt settlement spider. It’s a creepy animal, often getting inside TV sets or crawling across the face of things like outdoor posters where it weaves endless webs through mind-numbing advertising.

I’m referring here to what are called debt settlement services, or debt reduction services, offered by a bevy of new companies that have set up digs in Ontario. Be careful if they bite you when you’re looking for help with a troublesome personal debt load. These agencies may wrap you up financially and eat you alive through promises that go unfulfilled – and even through outright deception.

That, at least, is the recent verdict of government watchdogs in both Canada and the United States.

In January, the Financial Consumer Agency of Canada (FCAC) issued a consumer alert about questionable claims by debt settlement agencies now operating in our country.  FCAC warned Canadians to be very cautious about companies that say they can negotiate a deal to magically cut the amount of debt that must be repaid to creditors. This process is often called ‘debt reduction,’ ‘debt settlement,’ ‘debt relief’ or ‘debt negotiation.’

Said FCAC Commissioner Ursula Menke: “Unfortunately, people do not always see the benefits that debt reduction companies lead them to expect – and some people wind up even deeper in debt than they were before. If an offer to reduce your debts seems too good to be true, it probably is.”

High pressure sales tactics.

Unrealistic claims about slashing your debt.

Misleading information about protecting your credit rating.

False claims about government involvement or approval.

These appear to be the operating principles of the debt settlement agencies in question.

Debt settlement agencies frequently tell clients with debt problems to simply stop making payments on unsecured debts (relating to credit cards, personal loans, lines of credit, and the like). Clients are advised to put their money aside in monthly savings and allow it to build to a point where a “lump sum” settlement can be arrived at with creditors at just a fraction of what is owed – in other words, a “pennies on the dollar” settlement.

But often as time goes on and the lump sum builds, creditors are left in the lurch, receiving no money in the framework of unreliable – or even entirely absent – negotiations on the part of the debt settlement agency.

Of course, when trouble brews with creditors, the debt settlement agencies are often above the fray, because they charge their clients big up-front fees, meaning the agencies get their money – often thousands of dollars – long before the judge’s gavel starts hitting wood over the delinquent debt. As well, even in cases where no legal action is taken up to the point where a lump sum settlement is offered, many creditors simply refuse to make a settlement for “pennies on the dollar.”

By this point creditors are often fed up, and the you-know-what hits the fan.

The result can be that you’ve paid the debt settlement company thousands of dollars for the privilege of being taken to court by your creditor – and seeing your credit rating go up in smoke – while at the same time facing the same debt problem you thought would be resolved. There’s news of one case where a person owing $42,000 was charged $7,000 in up-front fees by a debt settlement agency, only to be left with the full debt still owing and the $7,000 in agency fees long gone.

Ain’t that a fine, financial how-do-you-do.

Fortunately, you can protect yourself from questionable debt settlement services. The FCAC suggests four steps you can take in this regard, and I quote them verbatim from the FCAC consumer alert at http://www.fcac-acfc.gc.ca/eng/resources/consumerAlerts/alerts_posting-eng.asp?postingId=393:

• “Do a background check. 
Before you agree to anything, first do some research to see whether the company is trustworthy and reputable. Check with the government office that handles consumer affairs in your province or territory, as well as the Better Business Bureau.

• “Watch out for upfront fees
Many debt reduction companies will require you to pay a large fee in advance before you see any reduction in your debt. These upfront fees can cost you hundreds of dollars or even more than a thousand. Don’t count on a refund if debt negotiations are unsuccessful.

“Be very cautious about paying any fees before you have written confirmation that the company has worked out a deal with your creditors to reduce your debt. There may also be other fees, such as ongoing monthly fees and fees for cheques sent to creditors.

• “Make sure you know what’s happening with your creditors
A company may encourage you to stop all direct contact with your creditors. Instead, the company will offer to handle all communications for you, including sending your payments to the creditors. Sometimes the company may ask you to sign a document giving it power of attorney.

“Be aware that letting the company act without your involvement could mean that you know nothing if problems arise. For example, the company could be making late payments to your creditors. Even worse, it might be making no payments at all.

“Consider your other options
There are other ways to deal with your debts besides debt reduction. Another approach may work better for you.”

Regarding the FCAC’s last bit of advice, need I say that the best option for people seeking help with debt is my not-for-profit-agency Credit Canada, or any of our associated not-for-profit credit counselling agencies with membership in the Canadian Association of Credit Counselling Services (CACCS) or  Ontario Association of Credit Counselling Services (OACCS).  A good idea when seeking help with debt is to look for these logos:

When you see these logos, you know you’re in good hands. OACCS and Credit Canada have been serving Ontario communities for more than 40 years, offering trustworthy services through accredited, highly skilled financial professionals. In fact, during 2011, OACCS members – including Credit Canada – successfully helped almost 195,000 Ontarians in financial need, with more than $730 million in consumer debt under management.

Unlike us, debt settlement agencies are not recognized for exemptions under provincial legislation. Nor do they contribute much – if anything – in the way of educational outreach involving financial literacy, which Credit Canada and OACCS are deeply committed to through community work, and through government and private sector partnerships and initiatives.

To put all this into perspective, let me just say that in matters involving the resolution of personal debt, avoid the spiders, and instead turn your attention to the busy bees in Ontario who are making honey.

Embarrassment. No spirit for romance.

Both highlight what money worries are doing to a lot of Canadians in the Sandwich Generation, according to a recent survey commissioned by Credit Canada and Capital One Canada. Sandwichers – or those between the ages of 40 and 60 who are caught in the middle of supporting both a child and aging parents – are a stressed out bunch, the survey reveals.

Consider Canadians with a family income of less than $50,000 who help to support an aging parent. Among those in this group who share a romantic relationship, 70 per cent report that the relationship is suffering as a result of financial and emotional stress. Meanwhile, four in ten Sandwichers are concerned they will have to financially support their aging parents in the future. Yet most (82 per cent) are not yet prepared – or fear they’ll never be prepared – to do so.

Compounding this lack of preparation, the majority of Canadians (54 per cent) in the Sandwich Generation have not talked with their aging parents about their ability to support themselves in the future.  Being uncomfortable or embarrassed about the subject was the main reason cited by almost 40 per cent of Sandwichers. Surprisingly, the survey also found that the more money people make, the more embarrassed they become.

And there were further findings.

• Of those Canadians in the Sandwich Generation who are already financially supporting their aging parents, almost half (48 per cent) were not financially prepared to do so.

• A staggering 70 per cent of Canadians in the Sandwich Generation aged 40 to 50 are concerned that they will not be able to properly support their aging parents if or when the need arises.

• A third of Canadians in this group provide support of more than $500 a month.

• Two-thirds of the Sandwich Generation are going deeper into debt to support both their children and an aging parent.

So what are we to make of all this?

Well, for this year’s fifth annual Credit Education Week Canada – which recently focused on the Sandwich Generation – sound words of advice came from the President of Capital One Canada, Rob Livingston.

“We want to encourage families to talk to each other about their finances so they have a clear view of their parents’ savings plan, and so they have transparency into any outstanding money they might owe. Simply put, communication is key to ensuring everyone has a clear picture of what those financial obligations might be, and what they need to do to meet those obligations,” Mr. Livingston said.

To his words I would add that Sandwichers must set aside their pride and get past issues of embarrassment concerning money.  As the saying reminds us, pride goes before a fall. Indeed, silence in matters of financial analysis and planning is far from golden. Sandwichers do neither themselves nor their families any favours by delaying the inevitable.

For Sandwichers who have not saved from an early date, there is no time like the present to start. A good idea is to enlist the aid of an expert like a financial advisor or credit counsellor to improve the chances of finding the right financial solutions. At the same time, what helps in all cases is speaking openly and candidly about finances and planning with kids and parents who require support.

In a nutshell, open communication tends to relieve stress, and even free up space for the return of romance in a couple’s life.

For a lot of us in Canada, the buzz this past week surrounded a sandwich. A triple decker to be exact. But I’m not talking about a Club House here. I’m talking about The Sandwich Generation, otherwise known as Baby Boomers between the ages of 40 and 60 who face the dual challenge of caring for aging parents while at the same time supporting live-at-home adult children. Three layers, with Boomers in the middle – get it?

The Sandwich Generation was the focus of this year’s Credit Education Week Canada (CEWC), and we had a fine time with it from the point of view of financial literacy, which is the CEWC mission. That is to say, CEWC strives to educate as many Canadians as possible about credit, debt and personal money management so we can all find financial peace of mind.

This year’s fifth annual celebration went a long way toward strengthening that mission. Thanks to Capital One and a long list of other corporate and community sponsors, we explored money issues of importance to Boomers and their families through events and activities in Toronto, across Ontario, and throughout Canada.

Quite a brain trust of money experts and media personalities helped in this effort. We also got words of encouragement and support from Prime Minister Stephen Harper. With public forums, presentations, workshops, national essay writing contests, and a gala dinner, CEWC once more excelled in bringing important financial issues and insights to the table for discussion, analysis, and illumination. And, yes, we had some fun in the process, too.

We got off to a rousing start with the CEWC launch at Toronto’s central YMCA downtown. Alison Griffiths – award winning co-author of 10 books and the host of W Network’s popular and critically acclaimed financial show Maxed Out – once again graciously served as master of ceremonies for the launch.

Wunderkind Neil Pasricha – whose award winning blog 1000 Awesome Things made him an international celebrity and a best-selling author – offered words of inspiration with his keynote presentation, followed by other notable speakers during the course of CEWC’s Professional Development Day.

Jonathan Chevreau – columnist for The Financial Post and author of the remarkable financial novel Findependence Day – provided all kinds of insight into the financial challenges facing Boomers today. It’s not surprising, given the work he put into Findependence Day. It’s a financial love story aimed at the children of wealthy Boomers: young people just embarking on careers, family formation and investing.

Much more of interest was supplied by speakers that included: Tom Hamza – President, Investor Education Fund; Jane Rooney – Director, Financial Literacy and Consumer Education – Financial Consumer Agency of Canada (FCAC); Judith Wahl, Executive Director and Senior Lawyer for The Advocacy Centre for the Elderly (ACE); and Bill Woods -Executive Director of Labour Market and Social Development Programs Branch with Service Canada. Lots was learned about the services and products the various agencies provide.

CEWC’s Gala Dinner at Toronto’s Four Seasons Hotel was a great success. Keynote speaker Debbie Travis regaled attendees with stories about her amazing rise to success as an international television personality, bestselling author, syndicated newspaper columnist, and home collection designer. The woman Oprah Winfrey described as the “master of paint and plaster” has faced many trials and tribulations in her career as a home design specialist, not least of these challenges being what to do with all the money that has flowed her way. She engaged everyone at the gala as she discussed her life with wit and wisdom.

Highlights of the evening included the presentation of cash awards to winners of CEWC’s Grade 12 Essay Writing Contest and Adult Essay Writing Contest, the latter being a new development this year. We were delighted with this year’s response of 1,500 submissions from Grade 12 students. A total of 35 awards – with prizes ranging from $1,000 to $5,000 – were presented to students from across Canada (winners are listed at the end of this blog).

Students brought insight and humour to essays that answered the question: “What is the dumbest thing I have ever done with my money and what did I learn from it?”  Grand prize student essayist Filip Zekic from Windsor, Ontario, presented his work at the Gala and had the audience in stitches as he described how his blind infatuation with a young woman compelled him to squander a big chunk of his youthful savings.

Meanwhile, this year CEWC introduced an adult essay-writing component focusing on “credit conquest” stories with prizes ranging from $1,000 to $5,000. Adults from across Canada were challenged to describe how they conquered a formidable financial challenge, and we were encouraged by the response (winners of this competition are also listed at the end of this blog).

All in all, the week CEWC dedicated to The Sandwich Generation turned out to be a grand feast on many levels, including another first – the full-blown development of an event publication entitled CEWC Focus Magazine, whose 40 pages offered in-depth coverage of issues and services of interest to The Sandwich Generation.

Of course, any discussion of the week requires mention of a special survey about The Sandwich Generation commissioned by Credit Canada and Capital One Canada this last September, with interesting findings released as CEWC got underway. Statistics from the survey offer insight into the financial challenges and situations Boomers are facing. I will be discussing those findings in detail in my next blog.

In the meantime, all of us at Credit Canada wish to extend our sincere gratitude to all sponsors and participants for coming on board to reprise the success of CEWC. Here’s looking forward to more of the same next year.

• Grand Prize Winner - Grade 12 CEWC Student Essay by Filip Zekic (we will publish his essay in full in tomorrow’s blog)

• CEWC Grade 12 Essay Winners:
Alice Gauntley from Toronto Ontario, sponsored by Sun Life Financial for $3,000
Edmund Siu from Toronto, Ontario, sponsored by RBC Royal Bank for $2,500
Alex Duffield from Stoney Creek, Ontario, sponsored by TD Bank for $2,500
Paige Addesi from Richmond Hill, Ontario, sponsored by Ontario Lottery and Gaming Corp. for $2,500
Adam Claybo from Port Coquitlam, British Columbia, sponsored by Money Mart for $2,500
Cris DeArmero from Windsor, Ontario, sponsored by RBC Royal Bank for $2,500
Rebecca Peterson from Delta, British Columbia, sponsored by TD Bank for $2,500
Alexa Rochfort from Vancouver, British Columbia, sponsored by Capital One for $2,000
Mathieu Catellier from St. Malo, Manitoba, sponsored by Sun Life Financial for $1,500
Eddie Song from Toronto, Ontario, sponsored by Money Mart for $1,500
Caitlyn Conrad from Woodstock, New Brunswick, sponsored by Sun Life Financial for $1,500
Kaitlin Bracko from Calgary, Alberta, sponsored by Ontario Lottery and Gaming Corp. for $1,500
Kyle Hodder from St. John’s Newfoundland, sponsored by Capital One for $1,000
Kristina Caunt from Surrey, British Columbia, sponsored by Money Mart for $1,000
Nulifar Atadjanova from Toronto, Ontario, sponsored by BMO Bank of Montreal for $1,000
Michael Wolk from Mississauga, Ontario, sponsored by Canada Mortgage and Housing Corp. for $1,000
Vlada Replete from Toronto, Ontario, sponsored by Harris & Partners Inc. for $1,000
Sagel Osman from Scarborough, Ontario, sponsored by Canadian Bankers Association for $1,000
Jessica Dejewski from Pickering, Ontario, sponsored by Meyers Norris Penny Inc for $1,000
Minal Patel from Pickering, Ontario, sponsored by The Oakman Group for $1,000
Manuri Srikugan from Milton, Ontario, sponsored by VISA Canada for $1,000
Katy Martin from Oshawa, Ontario, sponsored by Davis + Henderson for $1,000
Zi Wei Li from Richmond, British Columbia, sponsored by Deloitte for $1,000
Anna Longrigg from Oakville, Ontario, sponsored by Trans Union for $1,000
Meghan Mcleod from Tower Road, Nova Scotia, sponsored by Trans Union for $1,000
Susmita Sarkar from Toronto, Ontario, sponsored by Citi Bank for $1,000
Japreet Kaler from Brampton, Ontario, sponsored by Financial Planning Standards Council
Winston Cheung from Mississauga, Ontario, sponsored by Credit Education Week Canada for $1,000
Nikhile Mookerji from Mississauga, Ontario, sponsored by Credit Education Week Canada for $1,000
Dylan Padkowka from Edmonton, Ontario, sponsored by Ontario Lottery and Gaming Corp. for $1,000
Timothy Leung from Toronto, Ontario, sponsored by Deloitte for $1,000
Christine Lyons from Ajax, Ontario, sponsored by CAAMP for $1,000
Louise Chow from Scarborough, Ontario, sponsored by CAGT for $1,000
Samantha Lee from Barrie, Ontario, sponsored by Rotary Club Barrie for $1,000

• CEWC Adult Essay Winners:
Dale Koe for $5,000
Dawn Erstelle for $2,000
Esme Gosling for $1,000

In 2007, Credit Canada and Capital One Canada teamed up to create the first Credit Education Week Canada, with the objective to raise public awareness and educate Canadians about the many issues and challenges we all face managing our finances, spending and savings.  Five years later, Credit Education Week Canada is still going strong.

As part of Canada’s first National Financial Literacy Month, Credit Education Week Canada 2011 (CEWC 2011) is organizing a week of financial literacy activities that will focus on raising awareness and increasing the financial literacy of Canada’s “Sandwich Generation”.   During the week November 14-18, CEWC will be holding over 100 events and financial literacy workshops at YMCAs and community centres right across the country, thanks to the support and funding of all CEWC sponsors.

On November 15th, the founding sponsors of CEWC – Credit Canada and Capital One Canada, will officially kick-off the week with the launch of its Professional Development Day at the Toronto YMCA.  CEWC’s event launch and nationwide activities have proven invaluable in providing professionals, front-line service providers and community members with the opportunity to build capacity across inter-related services.

CEWC Launch Invitation:

Date:  Tuesday, November 15th, 2011

Location:
YMCA Downtown Toronto
20 Grosvenor St.  Toronto, ON M4Y 2V5
To register email: Launch@CreditCanada.com
Call: Elena Jara 416 228-2535

Time:  8:30 am – 3pm
Cost:  FREE
Light Breakfast and Lunch Provided

Attendees- Front Line Service providers, Community and Media

Morning Key note Speakers:
•  Neil Pasricha  – Author of “The Book of Awesome”
•  Jonathan Chevreau –  Columnist -  Financial Post

Afternoon Speakers:
•  Tom Hamza – President, Investor Education Fund
•  Laura Watts – Chief Executive Officer of SEDI
•  William Woods – Executive Director -Service Canada
•  Jane Rooney – Director, Financial Literacy and Consumer Education – Financial Consumer Agency of Canada (FCAC)

This professional development day provides the opportunity for all Professionals, Front Line Service Providers and community members to build capacity by acquiring knowledge and developing their skills in the area of government resources, services and tools.

During the professional development day participants will get to:
•  Hear the experts explain the services and products that their agencies provide
•  Take a close look at the value offered by the government agencies
•  Gain awareness of existing services and increase your clients’knowledge on how they can advocate for themselves
•  Opportunity to ask the experts questions
•  Network with people from all areas of private and public sector

‘If your children are clueless about your household finances, it’s your fault. That’s what makes a survey from the Canadian Institute of Chartered Accountants (CICA) so significant.’

To read the full article click here .

A sure way to attract eyeballs in the world of blogging is to tell folks they can win lots of green by entering a fun contest. Get right to the point, too. Put the dollar figure in your blog headline
.
I knew I had your rapt attention just seconds ago. Here’s the deal.

This November, Credit Canada, Capital One and many other corporate and community sponsors will be hosting another Credit Education Week Canada (CEWC). It’s year five for the event, which promises to be the best we’ve ever staged (which is saying a lot, because CEWC’s success has been growing in leaps and bounds year by year).

Highlights of the event include cash awards and scholarships for adults and Grade 12 students who participate in two separate essay-writing contests.

The adult essay-writing contest is a new addition to the event. As a legal, adult resident of Canada, you can put your essay-writing cap on for a chance to win $1,000, $2,000 or a grand prize of $5,000. It’s easy.

In 300 words or less, simply share an inspiring or compelling story that answers the question: What was your biggest money mistake and how did you fix it. Poignant and humorous stories about your conquest will put you in the running to win. Use all of your descriptive powers to tell us about how you conquered your money and/or credit issues and how the experience changed your life.

Meanwhile, if you are a Grade 12 student in Canada, check out how you can write an essay of 1,000 words or less and win $1,000, $2,500, $3,000 or a grand prize of $5,000. Again, we are looking for inspiring, compelling stories. Good description and humour are always a plus. Student essays must answer the question: What’s the dumbest thing I have ever done with my money and what did I learn from it?

Visit www.crediteducationweekcanada.com for details about both contests. Follow the instructions closely to ensure your eligibility. Both the adult and the student essays come with a strict entry deadline. Submit them before the end of day October 21st , 2011.

While you’re visiting the CEWC Web site, check out what the week has to offer between November 14th and 18th this fall. This year’s theme has to do with The Sandwich Generation – people aged 40 to 60 who are caught in the financial and emotional crunch of caring for their parents and adult children (possibly along with grandchildren) at the same time.

Toronto will serve as the hub of CEWC events, where there will be much discussion about The Sandwich Generation and financial literacy issues in general. As in past years, the week will highlight the launch event with a professional services day, a gala dinner, and special financial literacy sessions in cities and communities across Ontario and throughout Canada.

Alison Griffiths – author and host of W Network’s popular and critically acclaimed financial show, Maxed Out – again joins us at Toronto’s downtown YMCA as master of ceremony for the launch, with a great line up of guest speakers.

On hand will be Neil Pasricha, whose Webby Award-winning blog 1000 Awesome Things has made him an Internet icon, and set the stage for his international best-selling, The Book of Awesome. Other speakers include financial literacy expert Jane Rooney, with the Financial Consumer Agency of Canada (FCAC), and another financial literacy expert, Laura Watts, with Social and Enterprise Development Innovations (SEDI).

This year’s gala dinner, to be held at Toronto’s Four Seasons Hotel, invites CBC TV’s George Stroumboulopoulos as keynote speaker. For six years George has captured the hearts and minds of Canadians through his popular show The Hour. Now he’s building on that success through George Stroumboulopoulos Tonight. Always engaging, he is sure to light up the night.

The gala, among other things, will feature award ceremonies for winners of this year’s essay writing contests. That, added to the cash awards, ought to be enough incentive for you to start putting your essay together now.

Here’s an exercise for you to determine what kind of “money personality” you have. No, I’m not suggesting that you are on the brink of experiencing multiple personality disorder. The truth is, we all have a money personality based on our attitude towards money, which stems from what we have observed concerning money matters since we were kids.

Money types are not written in stone. As adults, we also have the power to change our money personalities. That always means a change in attitude, and a sometimes an uncomfortable measure of sustained self-awareness. To determine what kind of money personality you have, take an honest account of what you do with money, not what you say about it, either to yourself or to others.

Another thing to keep in mind, money types can be only generally categorized. As human beings, we are far too complex to be rigidly defined. So in examining the following types, focus on the general, overall tendencies you display. For example, you may be a tightwad who experiences moments of philanthropy, or a spendthrift who treats an investment with respect. With this in mind, see what overall tendencies you share most with one of the following five types.

1) The Tightwad

• Is afraid of running out of money before dying
• Saves money with no goal or purpose
• Deprives him/herself of a higher standard of living
• Grumbles about the high cost of living

2) The Spendthrift

• Has haphazard spending habits
• Feels tomorrow may not come – spend it today
• Does not save for emergencies, major purchases, or the future
• Has lots of credit and lots of debt

3) The Conservative Planner

• Has goals and a financial plan for the future
• Follows a flexible budget plan
• Lives within means
• Has minimum debt

4) The Liberal Planner

• Has goals and a general plan
• Understands and plays the leveraging game
• Has moderate to heavy debts
• Has some savings

5) The Gambler

• Has grandiose dreams and chases get-rich-quick schemes
• Has no savings
• Has no real plan
• Takes chances and is always waiting for “the ship to come in”
• Has heavy debts
• Wins big sometimes, and loses big often

One last word of advice. If you are a spendthrift or a gambler who is worried sick about money, contact us here at Credit Canada. We have a good track record with personality makeovers.

It’s fair to say that Canada’s banks enjoy a good measure of respect among the citizenry at large. Why? Well, aside from occupying Bay Street rather than Wall Street, they offer security and services quite unlike those of many of their international contemporaries. Case in point:  Bank of Montreal (BMO), which is right now advertising a terrific new program called Money Logic – a one-stop shop for online personal money management.

Programs like Money Logic assist in strengthening financial literacy among the populace big time. It is a free resource available to all BMO customers, and it is quite remarkable. Through it, individuals and families can manage their finances in smart, easy ways.  Money Logic is a totally automated way to track and analyze all accounts – from banking and savings to credit cards (Mastercard) and loans. You can consolidate your transactions, set your savings goals and spending budgets, and track your spending habits at will. Indeed, Money Logic’s user-friendly, step-by-step online guide can make just about anybody master of their personal financial universe.

I took a quick tour of the program and noted how thorough and detailed it is. Not to mention, it can be customized to meet specific needs. Most interesting to me are the spending analysis and budgeting tools. You can quickly identify your spending patterns right down to those daily Starbucks’ expenditures, and you can set realistic budgets that keep you on track through notifications of your spending on everything from bills, utilities and entertainment, to transportation, food, dining and more. Color-coded progress bars and percentage figures tell you at a glance where you are at with the budget and savings goals you set.

Provision of the Money Logic program reflects BMO’s market savvy. Just last week the bank reported through a survey that more Canadians are embracing financial planning after the recent recession caught so many unprepared. According to the BMO poll, more than one-half (56 per cent) of 1,002 respondents had a financial plan in place at the end of 2010, compared to 34 per cent one year earlier, and 25 per cent the year before that.

“People have recognized that it’s more important than ever to stay on top of finances,” said Caroline Dabu, vice-president of retirement and financial planning strategy at BMO Financial Group. She added it is a common misconception that creating a financial plan requires a lot of financial knowledge. “It’s all about taking small steps, putting the first pieces into place and having a clear financial picture.”

She might also have said that BMO’s Money Logic tools are available to make anyone’s financial picture clearer, because they meet and exceed the fundamentals of sound personal financial management and planning. They help define short-term and long-term savings goals; monitor daily cash flow and asset allocation; and set the stage for contingency plans in the event of unforeseen outcomes, like a job loss or illness.

Money Logic clearly shows that BMO is using its head.

Speaking of which, great minds think alike. At a time when BMO is promoting its Money Logic program, Credit Canada is in the marketplace promoting our new Financial Coaching Series. This program offers the last word on personal money management inasmuch as it includes comprehensive money management techniques but goes beyond all other programs to address deep-seated psychological issues, which are most often the root cause of money problems among the gainfully employed. The coaching series provides face-to -face and ongoing online interaction with an expert, personal money coach. You can read more about it by checking out this blog’s archives.

Of course, for more than four decades, Credit Canada has provided personal financial planning services in some form or another to consumers. Today, we salute organizations such as BMO for stepping up the plate with us.

I recently read a review in a Toronto newspaper lambasting the hot food counter of a small, family run supermarket because the writer’s $4.99 lunch was tasteless and too greasy. I was so moved to outrage by the writer’s arrogance that I actually yelled out “Are you freaking kidding me?! Ever heard of salt and pepper?!” I was on the subway at the time and several people moved to the end of the carriage. $4.99 and it wasn’t gourmet. Can you imagine? The hot food counter ain’t what it used to be. I’m really glad the writer named and shamed that family run business, they really deserved it. Give them a bad review in the middle of tough financial times, that’ll teach them!

People are outrageous when they’re basking under the safety of their keyboard, especially online. I log onto newspaper websites every morning just to read the comments section under the major headlines and laugh/cry at the ludacris remarks. T’internet has given us many gifts but none greater than anonymity. Oh the things you can do these days shame free, the things you can say, the things you can have delivered right to your door all packaged up nice and discretely. Self help books, for example.

I’m always saying in these blogs “Call us!” or ”C’mon in!”, but picking up the phone and telling a total stranger that you’re struggling financially can be an overwhelming thing to do. So overwhelming for some that they can’t make the call at all. Suffering in silence with a debt load you can’t manage is the single worst mistake that you will ever make financially. Finances aside, the stress, lack of sleep and constant worry of finding a way to meet a minimum payment will make you sick and turn you into a wreck. So, if you don’t want to call us then don’t! Take the online assessment and exercise your right to anonymity. If you have a question but don’t want to call then don’t! Email us us info@creditcanada.com. Be a keyboard ganster.

So go on, ”Call us!”, and when I say call us I really mean contact us in whatever way you please.

Thanks to the latest wave of soap opera newscasting I leapt out of bed this morning with the grace of a white tailed deer and ran to the window to see the promised ‘Great Snow Storm of Western Ontario 2011.’  

What a letdown!

I’m writing from work and I actually made it here early. Sure the journey was no picnic but this was not what I was hoping for. Our chance for redemption after the Army fiasco of 1999, to dig ourselves out of massive snow dump without declaring martial law is a nonstarter.  A day to skip work and still be able to look the boss in the eye but now Snow-mageddon has been downgraded faster than Bank of Ireland bonds. If I could do it all again I’d be a stockbroker or a meteorologist…no accountability. Of course school is out but who’s suprised by that?

How does this relate to money or finance I hear you cry, but wait it’s coming!

This is the perfect opportunity to point out habits that will have your credit card company downgrade you quicker then the Weather Network has just down graded the worst snowstorm Toronto has seen since 1999. The ironic thing about being downgraded is that your interest rate will be upgraded to account for a greater risk of default.

1) Not making the minimum payment by the due date. If you do this your interest rate can be increased from 2%-6% depending on your card issuer. The increase may be temporary but you can usually expect it to be permanent.

2) Dishonoured payments. If you make a credit card payment by cheque and it’s returned NSF you may face an interest hike on top of the NSF fee.

3) You go over your credit limit. Of course there’s the fee but also an interest rate hike depending on your credit card issuer.

If you’ve found yourself in any of these situations call us. Tackling a financial ‘situation’ is like shoveling snow…the longer you wait to deal with it, the heavier the burden.