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How to hold a debt conversation with your family?

Regardless of the composition of your family, ignoring family finances or accumulating debts can have an impact on each member. Launch an annual family reunion this month for Financial Literacy Month. This meeting brings together all family members to discuss topics such as spending behavior, household budget and debts, if any. It offers the opportunity to present the situation to the whole family and to discuss plans and objectives for the future. For families who have debts, this annual meeting also makes it possible to discuss debt solutions, from strategies to be implemented yourself to official solutions such as the consumer proposal.

The meeting makes it possible to approach debt in an open environment. According to a 2015 CCO survey, only half of Canadians are honest with their families, friends and co-workers about their finances. The reason: they don’t want to worry those they love.

Here’s a way to have open and honest discussions about finance in two different family contexts.

 

Families with some adult children living at home

More than millennials live in family homes these days. An annual family reunion may provide an opportunity to discuss the possibility that the adult child living in the home may pay rent, time he intends to stay and other household contributions he may make. The two parties will be able to discuss the debt and the financial pressures they face. If you or your child are worried about your accumulated debts, it would be good to schedule another meeting, but this time with a Licensed Insolvency Trustee (SAI) to discuss debt solutions. An SAI can explain all of your options, from budgeting to formal solutions like consumer proposal or bankruptcy to debt consolidation.

 

Couples with children

Couples with children

Newly married couples, in particular, should take the time to establish some basic rules and goals for spending, budgeting, emergency funds, and retirement.

Talking about your debts as a couple is also important. Even if the subject is unpleasant, quickly exploring debt solutions can avoid having to file a consumer proposal or declare bankruptcy afterwards. Do some research online or schedule a meeting with an SAI to explore debt relief strategies. The role of a trustee is not only to administer consumer proposals and declarations of bankruptcy. He will explain all debt solutions to you, including debt consolidation, debt management plans and credit counseling.

Although money is sometimes an emotional subject to discuss with the family, it is important to keep the conversation going. Open and honest discussions about things like spending, saving, and debt can help ensure that your family members are all working towards the same financial goals.

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How To Restore Credit After Bankruptcy

What Happens When You Have Declared Bankruptcy in Rubic and Want to Restore Your Finances and Credit? What resources are available to you to improve your financial knowledge? How can you get back on track? Below we will discuss your options for restoring your credit after a declaration of insolvency and how to avoid financial problems later.

 

You have eliminated your debts. What to do now?

You have eliminated your debts. What to do now?

An official solution to debt, whether bankruptcy or consumer proposal, can offer you relief from your debts and financial stress. In addition, even if bankruptcy is not an optimal outcome for any family, it offers you a fresh start and the opportunity to restore your financial situation. Restoring your situation will take time and patience, but here are a few tips to get you started:

1. Open a savings account

1. Open a savings account

The best thing to do for your finances now and in the future is to regularly spend money on your savings. Take the “pay yourself first” approach by setting aside a specific amount of money from each paycheck or by setting up a direct transfer to your savings account. Start with small amounts, then set up an emergency fund equivalent to all of your household expenses for 3 months, then start spending money on your long-term savings, such as retirement savings. The Financial Goals Calculator: Scoreboard from the Financial Consumer Agency of Canada can help you set your savings goals.

 

2. Stick to your budget

Savings and budgeting go hand in hand. If you don’t know where your money goes each month, you will be hard pressed to progress. Use a budget to anticipate future expenses and allocate money to specific categories to avoid excessive spending and achieve your savings goals. Learn how to build a balanced budget using a budget worksheet or budget calculator.

 

3. Pay your bills in full and on time

3. Pay your bills in full and on time

Whether it’s your rent or mortgage, insurance, car loan, utility or telephone bills, you have to pay it all on time. Otherwise, the cycle will continue and you will still need to catch up. The best way to keep track of multiple bill payments is to automate them from your account so that everything is always paid in full and on time.

 

4. Ask for a guaranteed credit card

When you feel you are in control of your budget and savings, you may want to apply for a secured credit card. To obtain such a card, a deposit is required as collateral to ensure that high-risk borrowers are less likely to find themselves in default. You can use the card as a regular credit card to make purchases. However, it’s best to start off slowly by making small, easy monthly payments, like a Netflix subscription, and adding small, manageable purchases.

 

5. Improve your financial knowledge

4. Ask for a guaranteed credit card

Look for money management workshops offered online or in your community. Otherwise, visit FCAC for free budgeting, savings and planning resources that will help you regain control of your finances. Manage Your Money Better can also help you save for the darker days, estimate the amount of money you will need to withdraw, and stay on top of your budget using online calculators. .

Learn more about what happens if you file for bankruptcy and how to restore your credit by following us on Twitter and Facebook.

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Understand everything about credit consolidation

Sometimes criticized, the grouping of credits can be scary. However, in some cases, it has financial and administrative advantages. We present these advantages to you, as well as the points to be careful about before choosing this solution

 

What is credit consolidation?

Some people sometimes have to repay several credits at the same time: a loan to finance a car, personal projects, a credit card with a reserve of money, a credit card taken out in supermarkets …

Credit consolidation is an installment loan which consists of consolidating your loans (excluding mortgage credit) into a single credit. The duration, the rate and the monthly payment are fixed and determined from the opening of the contract.

 

Who is concerned?

Who is concerned?

Anyone who has used consumer loans (personal loans, home improvement loans, car loans, store credit cards or credit reserves linked to a payment card) can make a request for credit consolidation.

 

Why make a credit grouping?

credit grouping?

The main reason for pooling loans is to decrease your debt ratio:

  • by adjusting and extending the total duration of the credit, one single monthly payment is paid which is smaller than the sum of all the monthly payments currently due each month. There is however a maximum duration depending on the amount, the financial body can inform you about this.
  • in some cases, by obtaining a more advantageous interest rate.

At the same time, the grouping of credits allows administrative simplification. There is only one payment per month and only one direct debit date, one contact company, and we know the one and only date on which the reimbursement will be finished. Less risk of errors therefore.

 

What should you watch out for?

credit consolidation

If the repayment of outstanding credits is almost finished, it is generally not advantageous to carry out a consolidation.

Likewise, if you combine credits that originally had fairly low interest rates, it is possible that the consolidation rate will be higher and that it will ultimately cost more.

It is therefore important to fully integrate all the parameters and do your calculations with your financial institution before making a decision.

 

How to proceed?

credit loan

Generally, the organization that offers to group all the credits takes care of everything. We often benefit from an expert who is entirely dedicated to us. He will therefore know our file directly with each contact: this can be very practical. This person will take care of the administrative procedures and regulate the formalities for termination and reimbursement. Which can also make our lives easier.

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What is good debt?

In its optimal version, a good debt is one that will allow the one who contracts it to generate higher income than interest charges. It will thus be said that indebtedness serves as a lever for bringing in money.

The purchase of an income property is a case in point. In the context where your interest payments are lower than the profit from the difference between rents and expenses, your mortgage will be considered as good debt. Of course, other factors come into play, including the opportunity costs related to the time you spend managing the property and investing a down payment, as well as the rate of increase in its value. Here, mortgage financing acts as a sort of loan to start a business. Read our article to learn more about what it means to own an income property.

 

Buy instead of rent. Good debt?

Good debt?

Buying a condo or a house to live in obviously does not provide the same income opportunities, but with sharing economy platforms like Airbnb, it is now possible to reduce the impact of debt by optimizing the use of the property. Since it is practically unthinkable for the majority to pay the entire sum at once for the purchase of a house, we will not speak of good or bad debt, but rather of healthy debt and the constitution of a patrimony. In a way, these amounts to forced savings and capital can also be used as leverage for one day making investments that will yield a higher return than the mortgage rate.

 

It all depends on our needs and ambitions

It all depends on our needs and ambitions

Generally, a good debt excludes all expenses contracted with the help of financing which will be used only for the consumption of goods and services. If your budget does not place you in a position to provide emergency funds, purchasing non-essential property on credit is most likely an undesirable debt. However, the concept of good or bad debt can differ depending on the situation and the subjectivity of each and everyone.

Putting a few thousand dollars on a line of credit in order to travel is certainly not a budgetary approach, but a globetrotter will see a very meager price to pay to go there. discovery of new landscapes. On the other hand, his accountant would probably advise him to save for a few months before leaving.

Receiving loans while studying is similar to the previous example, in that the acquisition of knowledge has great intangible value, but it is still easier to see it as a good form of debt since the A university degree or technical training generally contributions to a more profitable career in financial terms.

 

Finance the purchase of a car

Finance the purchase of a car

Buying a car using interest rate financing is in the vast majority of cases bad debt. It is a good whose value depreciates quickly and which incurs a lot of costs. Note that for those whose trade or distance from the workplace requires a car, this debt often has a lower opportunity cost than being unemployed. Of course, the car is also essential for family reasons, but in these cases it is desirable to stick to a vehicle that respects our financial capacity.

 

Interest-free financing and points program

Interest-free financing and points program

Using credit can be very beneficial in these circumstances, but it requires great discipline. Too many consumers will buy furniture and other finance-like goods without payment or interest for a certain period of time without planning to set aside the money needed to make the payment at expiration. The same is true for credit card rewards programs. If you put everything on your card to get a 1% rebate while paying 19% interest on an unpaid balance, you better curb your spending.

Sometimes the help of a counselor can help you see more clearly. For everything related to mortgage financing and the options available to you

  • In its optimal version, a good debt is one that will allow the one who contracts it to generate higher income than interest charges. It will thus be said that indebtedness serves as a lever for bringing in money.
  • The purchase of an income property is a prime example. In the context where your interest payments are lower than your profit from the difference between rents and expenses, your mortgage will be considered as good debt.
  • Buying a house: in a way, it comes down to forced savings and capital can also be used as leverage for one day making investments that will yield a higher return than the mortgage rate.
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Mortgage loans open to seniors.

With the extension of the lifespan and later retirement, many seniors want to invest in stone. However, borrowing for a real estate project after retirement age has not always been easy.

Access to the loan deemed difficult for seniors

Access to the loan deemed difficult for seniors

Despite advances in medicine and safer living conditions, most lending institutions are reluctant to provide a home loan for someone over the age of 60 who they consider “at risk”. We note that everything is done to dissuade clients of an older age, with in particular fairly difficult conditions, and high borrower insurance. Some banks even completely refuse loan requests. The real problem therefore concerns this age limit which is 75 years, even 70 years for some establishments.

And yet it is during retirement that seniors have the opportunity to do certain things that they did not have time to do before. It is in this context that solutions for pensioners are born.

A new offer is born

A new offer is born

Recently, a new offer of mortgage loan financing solution with no overnight contributions. This offer makes it possible to borrow up to 110% of the value of the purchase price of a new property, and also makes it possible to cover, in the financing envelope, the transfer costs as well as the ancillary costs of agency and notary. The financing of an old property is also possible. However, before making this loan, the household must not be more than 50% indebted.

This offer also allows the non-obligation to change banks to obtain financing, or to be domiciled at a bank.

With this new product, the age limit is completely pushed back. It is therefore possible to subscribe up to 90 years, with an age limit of 95 at the end of the loan. To avoid paying a large contribution, the subscription to a borrower insurance is not compulsory, and the insurance can be set up in the form of a pledge.

Finally, the repayment period is between 5 to 35 years, with a possible deferral period of 24 to 36 months.

Thus, retirees with real repayment capacity, but who are refused their loan requests because of their age, can now borrow.

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Points to Take into Consideration When Taking Credits

 

 

Would you like to get a loan or inform yourself about the subject in the near future? Then you have to be careful. You should be careful if you have the best credit conditions and want to take a loan. Take 10 minutes to the question of what are the things to consider when taking a loan from the bank, because the 10 tips and tricks below benefit you a lot.

Banks Want to Give You Credit

Banks Want to Give You Credit

Economically, we are now at a low-interest stage. Banks are now making more profit than customers who want to raise money with customers who need credit. You need to be very comfortable when you go to your bank and request credit. It is in the bank’s interest to give it to you. Maybe you can even negotiate the interest rate a bit. Banks always give two interest rates on credit, borrowing rate, old nominal rate and effective interest rate.

The borrowing rate includes only the interest of the loan, excluding additional costs. Therefore, borrowing rate is always cheaper than effective interest rate. It is important that you compare the effective interest rate because this reflects the current costs. Therefore, check the loan offer on the effective interest rate, or ask your bank for an effective interest rate when determining the interest.

Compare Banks

Compare Banks

You should take the time to compare different banks and loan offers. The differences from bank to bank can be serious. However, getting too many loan offers from different banks may affect you negatively. In order for a bank to make a proposal to you, banks must send approval requests to each person. The credit score shows how much you will repay the borrowed money to the bank.

Some banks are trying to sell you additional products, such as selling credit protection insurance that is offered to you by borrowing as well. For this, a financial control, for example, the consultant used without entering personal data and current living situation.

Choose the Right Amount of Credits

Choose the Right Amount of Credits

Also, when taking out loans, you should be careful that you choose a moderate repayment installment. Many banks will offer you a low refund rate. The monthly mini fee often claims that this creates a greater financial scope for other things. However, you should know how low the repayment rate is, how long the payment will take and how long the interest will be. Credit is more expensive.

Also, most banks need higher interest rates for longer terms. However, a very high depreciation rate can also be dangerous. Unexpected expenses can cause problems, as there is insufficient financial support. Therefore, it is up to you to set a balanced loan rate that should not be too small and not too large. Do not let your bank advisor leave you to badly thought decisions.

How Much Credit Can I Get?

How Much Credit Can I Get?

To do this, you must first determine your free disposable income. Note your monthly net income and reduce your monthly fixed costs. Car, insurance and gasoline costs should be saved such as telephone, internet available credit installments. Now consider your remaining costs of living, for example, from food, clothing and things.

The more restrictions you make, the easier it is to pay off your loan. Because unexpected expenses such as cars and washing machines can always arise from insurance expenses of the year you will need short term money.

Get Credits Let Us Inform You Personally?

Get Credits Let Us Inform You Personally?

The biggest advantage of a loan is probably the interest rate. Since you do not need on-site advice, you will save your banks time and money and reward them with better interest rates than choosing a loan in the store. However, the internet can never answer your individual questions and the banking of your trust.

Find a lending bank in a local branch. So you can get a cheap online loan and if you have any questions, you can get advice from the store. Of course, it is especially wise to get advice first in a branch and then finish the home loan online.

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The Zero Rate Loan: More Flexibility

The Zero Rate Loan is granted, subject to means test, to households wishing to acquire their first main residence in new or old. As of January 1, 2016, the Zero Rate Loan (PTZ) is more accessible, in new as in old. This loan can thus finance up to 40% of real estate, all geographic areas combined. In addition, the income limits are increased, allowing a greater number of borrowers to benefit from the PTZ.

The reference tax income (RFR) of the persons intended to occupy the financed housing must not exceed, according to the geographical areas, an amount varying between 24,000 USD to 37,000 USD for a share of family quotient. The reference year to be taken into account is the penultimate year preceding the offer (year n-2). For example, for the PTZ offer in 2016, the income taken into account will be that of 2014 indicated on your 2015 tax notice.

The PTZ is granted without administrative fees and without interest, these being borne by the State: this loan allows you to repay only 20,000 dollars if you borrowed 20,000 dollars. However, you will have to pay the borrower insurance premiums.

 

The zero rate loan does not allow you to finance your entire purchase

The zero rate loan does not allow you to finance your entire purchase

It always comes in addition to other loans, which can also be combined: bank real estate loan, approved loan, social accession loan, home savings loan … Finally, last condition to benefit from it, you must not have been the owner of a main residence in the last two years, with certain exceptions (holder of a disability card, beneficiary of the disabled adult allowance AAH or AES, victim of a disaster making your old accommodation uninhabitable).

 

Variable loan amount

Variable loan amount

The amount of the PTZ will depend on both the location of the accommodation and the number of people in the household. It is therefore necessary, before launching, to carry out some simulations. You can find out more on the website www.service-public.fr, as well as on the website of the National Agency for Information on Housing.

 

The term of the loan

The term of the loan

Once the loan is acquired, you will repay it by constant monthly payments, depending on your income, the location of the accommodation, over a period of 20 to 25 years.

The repayment term of the PTZ depends on your income, the composition of the household and the geographic area in which you buy your future home. As a general rule, the repayment period will be shorter the higher your income. It extends from 20 to 25 years depending on the case, and includes two periods:

  • the deferred period, during which you do not reimburse the PTZ (this period is, depending on your income, 5, 10 or 15 years)
  • the loan repayment period, which follows the deferral, varies between 10 and 15 years.
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Retired: buy a house with the credit buyback.

If the repurchase of credits is well known to allow a more peaceful retirement, thanks in particular to a reduction in the amount of charges, it should be known that this financing can allow many retired borrowers to invest in stone.

Retirement: buy a property

Retirement: buy a property

The borrowing profiles of retired households are very often faced with obstacles to obtaining their mortgage, many senior households plan to buy a second home in France or abroad (Portugal, Spain, Greece, etc.) or to change the habitat for the color of happy days.

However, when the latter already repay credits, the banks do not necessarily have banking products allowing them to group the credits and include the amount of the new need, this is what the creditor site offers with its offer to buy back loans.

The idea being to take into account the transition to retirement for households still active, to group the loans in progress and to include the amount of the desired real estate, this product meets a real success because it responds to an atypical need to which banks have no solutions to offer. There are 3 other ways to finance real estate apart from the repurchase of credit, namely equity, conventional mortgage or sponsorship.

Buy a house with the repurchase of credit

The principle of the operation is simple, it suffices to establish a first request on the website, which opens the door to a completely free feasibility study carried out within 48 hours. This first study makes it possible to propose a financing offer to the borrower, taking into account his situation as well as his financing need.

The examination of the file then leads to the release of funds. The real estate need must be defined as soon as the file is examined by providing supporting documents for the property to be purchased. The analyst is responsible for calculating the grouping of credits with the amount of the new project, the whole of this study is free and without obligation.