Debt Free in 30: Recent Episodes
Doug Hoyes
Each week Doug Hoyes talks to industry experts about debt, money, and personal finance. Don't be confused; listen as the guest experts cut through the jargon and share practical advice.
Are you struggling with financial tightness despite making all your minimum payments? Learn how to break the cycle of debt today with our cleverly constructed Best Of Compilation. Financial stress can persist even when you are staying on top of your bills. In this conversation with Doug Hoyes from Debt Free in 30, we examine why many people feel trapped by their monthly obligations and what steps can be taken to gain actual breathing room in a budget. Making minimum payments is a baseline for credit health, but it often does not lead to becoming debt free. We discuss the reality of living paycheck to paycheck and the mental fatigue that comes with consistent financial tightness. This session is designed for anyone who feels like they are running in place with their finances. By analyzing your current debt management strategy, you can identify where your money is actually going and move toward a more stable financial future. Subscribe for weekly personal finance tips and debt management strategies, and comment below with your biggest question about managing monthly bills.
Chapters:
00:07 You Can Have Good Credit & Still Be Going Broke?
02:26 When Housing Costs Become The Problem
04:41 Before You Borrow Ask These Questions!
07:15 Can You Trust The Banks?
09:36 Does Debt Consolidation Actually Solve the Problem?
13:04 Debt First or Emergency Fund?
15:04 Borrowing to Pay CRA Tax Debt
17:18 What If You Can't Keep Up With Your Credit Cards?
20:49 The First Step to Getting Control of Your Money
24:22 A Hopeful Way Forward
#BestOf #Debt #debtfreejourney #debtdecisions #debtrelief #debtrelief #debtsolutions
What happens when a Licensed Insolvency Trustee gets five minutes to tell Parliament what's really happening with debt in Canada?
Doug Hoyes shares his firsthand experience testifying before the House of Commons Standing Committee on Finance, explaining why Canadians are taking longer before reaching a financial breaking point, how affordability challenges are changing the nature of debt, and why issues like CRA repayment demands continue to push some people toward insolvency. The conversation also explores the growing divide between homeowners and renters, debt layering, and why insolvency is often a lagging indicator of financial stress.
Get a firsthand look inside Parliament and discover what Canada's debt trends could mean for the future of household finances.
01:02 Being invited to testify before Parliament 03:18 Inside the House of Commons committee process 06:18 The three messages presented to MPs 08:50 Why financial collapse now takes years 10:32 What MPs asked during the hearing 13:30 CRA repayment demands and consumer bankruptcies 16:12 Why the same CRA issues remain after 18 years 18:10 Affordability, rising costs, and structural debt problems 22:05 Debt layering: how Canadians stay afloat until they can't 24:15 Homeowners vs. renters: a growing financial divide 26:05 Mortgage renewals and what's coming next 29:15 Doug's biggest takeaway from testifying before Parliament 31:45 Why real financial stress isn't reflected in the headlines 📚 FREE Canadian Credit Repair Course and NEW Budgeting Resources ✅ Licensed Debt Relief in Canada – Debt Help Starts Here 📩 Debt Free Digest Monthly E-Newsletter Sign Up Here 🧮 Debt Repayment & Consumer Proposal Calculator 🎥 Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Avoid the convenience spending trap and stop accidental debt. Learn how small everyday habits trap you in financial stress and how to break free. This podcast episode from Debt Free 30 explores the hidden dangers of the convenience trap. If you are trying to escape debt and take control of your personal finances, this conversation breaks down the exact spending patterns that drain your bank account without you noticing. Discover practical financial advice to help you spot convenience spending before it leads to more debt. Two hosts discuss realistic ways to change your habits, manage your money better, and build long-term financial stability starting today. Subscribe for weekly debt free living breakdowns, and comment below with your biggest budgeting challenge.
Are these financial apps just payday loans in disguise? Learn the sneaky ways modern tech keeps you hooked on debt and how to avoid it. Many popular money apps market themselves as helpful tools, but often hide high-cost borrowing structures beneath a clean interface. This conversation breaks down the mechanics behind these predatory lending tactics, specifically focusing on how they encourage users to borrow money, keeping you in a cycle of repayment. If you are trying to become debt free, understanding these traps is essential to protecting your finances. Doug & Ted examine the psychological hooks that keep people cycling through high-interest debt. By identifying these patterns early, you can take control of your spending habits and avoid falling for slick marketing that hides the cost of credit. Subscribe for weekly debt free strategy breakdowns, and comment below if you have ever spotted a suspicious lending feature in a finance app.
Chapters:
00:00 Intro
00:38 What Payday Loans Were & What They Are Today
03:11 The Categories of Online Loans Starting with Payday Loan Apps
07:40 Credit Building Products & The Dangers
08:40 Buy Now Pay Later Apps
12:30 The Dangers of Online Lending, Money Apps, & BNPL
14:30 Credit Adjacent Products - What Are They - Why It Matters!
15:40 The Differences Between Traditional Payday Loans & New Cash Apps
21:00 The Problem With Modern Cash Apps & Practical Advice
What happens when you stop paying credit card bills? Learn the real consequences of missed payments and how to protect your financial health. This discussion breaks down exactly what occurs after you miss a credit card payment. If you are worried about mounting debt or are unsure how creditors handle unpaid balances, this conversation provides clear, actionable answers. We discuss the timeline of collections, the impact on your credit score, and the steps to take if you find yourself unable to meet your monthly obligations. Understanding credit card debt consequences is essential for anyone struggling with personal finance management. By identifying how credit card bills affect your long-term stability, you can make better decisions today. This session aims to cut through the confusion surrounding debt collection processes so you can navigate your financial situation with confidence. Subscribe for weekly debt management breakdowns and comment below with your biggest question about handling credit card debt. Chapters: 00:00 Intro
00:34 Why people start missing credit card payments?
03:36 When do missed payments get reported?
04:07 Missed payment example - How much will you pay in interest?
05:25 How do companies deal with late or missed payments early on?
07:10 What third-party collectors must do when taking over the debt?
09:10 Can collections keep calling me every hour? Ontario Collections Act
10:13 When third-party collection laws matter & the right of offset
13:00 Can you really get sued for unpaid debt?
16:25 What is the limitations act and how does it impact collections?
19:50 Credit Card Debt Myths Busted
25:58 Practical Advice - Take Stock & Be Proactive
Is saving money while in debt a smart financial move? Doug & Ted break down the strategy to help you decide how to manage your cash. Many people struggle with the dilemma of whether to prioritize building savings or paying off debt aggressively. This conversation explores the logic behind both approaches, offering a practical analysis for anyone currently carrying a balance. We look at the trade-offs involved in debt repayment strategy and how to balance your immediate financial health with long-term goals. If you have been wondering if saving money while in debt is counterproductive, this discussion provides the perspective you need. We examine the math and the psychology behind these choices, helping you determine which path makes the most sense for your specific situation. This is essential listening for anyone seeking clear financial advice on how to handle their debt repayment strategy while maintaining a safety net. Whether you are focused on debt elimination or building an emergency fund, understanding the nuance of saving money while in debt changes your approach. We break down the pros and cons of prioritizing these competing financial goals. Subscribe for weekly personal finance tips and let us know in the comments if you prioritize saving or debt payoff first.
00:00 Intro
00:26 Smart or Stupid? Should you save while paying off debt?
00:59 Why it might not be stupid to save while in debt.
01:45 Real world example of saving vs debt pay off
03:05 Changing your state of mind and how it helps
03:51 When saving while in debt doesn't make sense
06:05 Not all debt is created equal - Putting context to debt type
08:44 What is a Consumer Proposal
11:14 How much should you save in a Consumer Proposal?
14:05 When should paying down debt be a priority over savings?
18:02 Using a hybrid approach to pay debt and save - Does it work?
20:08 What should I do with my tax refund with no savings and debt
22:44 Automating payments and how it helps or hinders
24:43 Answer to todays question - Is it smart or stupid to save while in debt?
#debt #dfi30 #podcast #debtfreejourney #debtfreein30 #personalfinance
Learn how to survive a financial crisis by building resilience and strengthening your personal finance foundation. This conversation provides practical steps to prepare for economic instability. We discuss the core principles of protecting your assets and maintaining stability during uncertain times. Whether you are concerned about market volatility or personal budget security, this discussion offers a clear perspective on how to build financial resilience effectively. We break down the mindset and tactical adjustments necessary to weather a storm. Implementing these money management strategies can help you maintain control over your future. We examine why proactive planning is the most effective tool for financial crisis survival and how to adjust your habits before trouble starts. Subscribe for weekly personal finance tips and comment below with your biggest worry regarding the current economy.
Related Links:
What Many Canadians Still Get Wrong About Debt:
https://youtu.be/VS50UtDNWRA
The Dangers Of Installment Loans:
https://youtu.be/fmN23pIWbWg
Behind on Payments? Here's What To Pay First:
https://youtu.be/1oVaraaWaH4
Warning Signs You Have Too Much Debt & How To Deal With It:
https://www.hoyes.com/blog/15-warning...
Our Free Online Budgeting Course:
https://courses.hoyes.com/courses/how...
Is your credit limit too high? Learn how to safely request a lower credit limit to manage your personal finances more effectively. Most financial advice focuses on getting more credit, but having too much available can be a liability for some borrowers. This video explains why you might want to reduce your total credit limit and the specific steps required to contact your bank to make this adjustment. We cover the potential impact on your credit score and the practical reasons for keeping your credit card management simple. Understanding how your bank views a request to lower your credit limit is essential for maintaining control over your debt. By the end of this video, you will know exactly how to handle your credit limit if you decide it is simply too high. Subscribe for weekly credit card management breakdowns, and comment below if you have ever had to ask a bank to reduce your borrowing power.
00:00 Intro
00:19 Case Study - Client example of Bank Giving More Than Asked For
01:28 How Do Banks Decide Your Credit Limit
04:50 Debtasized & Brief Credit Card History
07:08 How People Very Easily Become Over Extended with Credit
09:28 What is Lifestyle Inflation
10:50 When High Credit Limits Are Actually Useful
13:01 High Credit Limit Risks & Downsides
16:08 Practical Advice on Managing High Credit Limits
20:28 Implications of Lowering Credit Limits
22:15 Keeping Up With Payments On Lines Of Credit
24:23 Dos and Don'ts of Using Credit
Related Links:
Debtasized Documentary: • DEBTASIZED - How Our Reliance On Credit L...
Banks Are Not Your Friends - Here's Why • Banks Aren't Your Friends - Here's Why
FREE How To Budget Course: https://courses.hoyes.com/courses/how...
Debt Free Digest Monthly E-Newsletter Sign Up Here https://hoyes.tips/debt-free-digest-s...
Debt Repayment & Consumer Proposal Calculator https://hoyes.tips/repayment-calculat...
Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts / @hoyesmichalos
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
No one enters a relationship expecting to one day untangle joint credit cards, co-signed loans, or shared lines of credit. Yet when a relationship ends, many people discover they're still financially connected long after they've gone their separate ways.
Doug Hoyes and Ted Michalos discuss who is legally responsible for shared debt after a breakup, how separation can affect your credit score, common mistakes that can become costly, and the options available when the debt becomes too much to manage alone. 🔗 Bankruptcy & Insolvency Act, Commonality of Debt, section 66.12 (1.1) 🔗 Directive 2R – Joint Filing 🤝 Hoyes Michalos Guide to Joint Debt 📚 FREE Canadian Credit Repair Course and NEW Budgeting Resources ✅ Licensed Debt Relief in Canada – Debt Help Starts Here 📩Debt Free Digest Monthly E-Newsletter Sign Up Here 🧮 Debt Repayment & Consumer Proposal Calculator 🎥 Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
0:50 Why Breakups Become Financial Crises 3:20 The Biggest Misunderstanding About Joint Debt 6:45 Joint Borrower vs. Authorized User 8:15 What Actually Goes Wrong After a Breakup 12:05 Why People Delay Separating Their Finances 15:10 What To Do Immediately After Separating 19:45 Questions Everyone Should Ask After a Breakup 22:10 How Breakups Can Damage Your Credit Score 25:05 When Debt Becomes Too Much to Handle 26:40 Consumer Proposals and Joint Debt Explained 29:10 Joint Consumer Proposals: Pros and Cons 30:45 Rebuilding Financially After a Breakup
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Canadians hear a lot of advice about credit scores, but much of it is outdated, oversimplified, or borrowed from the U.S. and simply doesn't apply here.
Does carrying a balance help? Does checking your score hurt it? Can you pay to remove bad credit? Does having a high income automatically mean a strong score?
Listen to learn what actually moves the needle when it comes to building stronger financial health, and if you've been trying to "optimize" your credit score, this episode may change how you think about credit entirely.
👍 Like, subscribe, and share with someone who still thinks carrying a balance helps their credit. FREE Canadian Credit Repair Course and NEW Budgeting Resources How Does Debt Relief Impact Credit Scores? 00:00 The credit myths costing Canadians money 03:12 The 5 factors that affect your score 05:08 Can you pay to remove bad credit? 07:12 Carrying a balance builds credit 09:40 Does checking your score hurt it? 11:58 Your credit score isn't everything 14:10 Why scores differ between lenders 16:28 Paying early hurts your score? 18:16 Does income affect credit? 20:12 Are credit scores regulated? 27:32 What actually builds credit in Canada Licensed Debt Relief in Canada – Debt Help Starts Here FAQs on Debt Relief Debt Free Digest Monthly E-Newsletter Sign Up Here Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Most people assume paying their credit card on the due date means they're managing debt responsibly. But timing matters more than most people realize.
Doug Hoyes and Ted Michalos explain why people who always make their payments on time can still end up carrying balances, paying unnecessary interest, and struggling to make progress.
Whether your goal is reducing interest, staying organized, or building healthier credit habits, this conversation offers simple changes that can make a bigger difference than you might expect.
FREE Canadian Credit Repair Course and NEW Budgeting Resources 00:00 Are you paying your credit card at the wrong time? 02:30 Why people who never miss payments still end up in debt 05:00 Statement date vs due date vs grace period 08:00 The risk of waiting until the due date 10:30 Strategy #1: Paying for purchases immediately 13:00 Strategy #2: Weekly payments & avoiding balance creep 16:00 Strategy #3 & #4: Statement payments and automation 20:00 How payment timing affects your credit score 23:00 Choosing the right system for your habits 26:00 Credit utilization explained 28:30 Final challenge and key takeaways Licensed Debt Relief in Canada – Debt Help Starts Here
FAQs on Debt Relief Debt Free Digest Monthly E-Newsletter Sign Up Here Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Most people do not end up in serious debt because of one huge mistake. It is usually a series of small decisions that felt reasonable at the time.
Doug Hoyes and Ted Michalos discuss seven important questions everyone should ask before borrowing money, whether it is for a car loan, line of credit, credit card purchase, or buy-now-pay-later financing.
From calculating the true cost of borrowing to understanding what happens if your income changes, this conversation offers practical ways to avoid years of debt regret. Debt "Forgiveness" Options in Ontario https://hoyes.info/debt-forgiveness-optionsFAQs on Debt Relief FREE Canadian Credit Repair Course and NEW Budgeting Resources Licensed Debt Relief in Canada – Debt Help Starts Here Debt Free Digest Monthly E-Newsletter Sign Up Here Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
01:05 – Borrowing is easier than ever 04:18 – Question #1: Do I actually need this? 07:02 – Question #2: What's the total cost? 10:15 – Why minimum payments keep people trapped 12:08 – Question #3: Can I really afford it? 15:02 – How income changes create debt problems 17:06 – Question #4: Do I have other options? 19:28 – Easy financing can be a warning sign 21:02 – Question #5: What's my exit plan? 23:10 – Question #6: Have I been honest about my debt? 25:14 – Question #7: Why am I making this decision today? 27:35 – How small decisions can lead to major debt 29:00 – What to do if debt already feels overwhelming Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
From social media influencer culture to "buy now, pay later" spending, financial FOMO can quietly push people deeper into debt without realizing it.
Licensed Insolvency Trustee Maureen Parent from Hoyes Michalos breaks down how the fear of missing out impacts our financial decisions, why comparison culture can lead to overspending, and the warning signs that your spending habits may be emotionally driven.
Whether it's vacations, weddings, tech upgrades, or everyday treat- yourself purchases, this conversation explores how small habits can snowball into bigger debt problems, and how to stop the cycle before it gets worse.
FREE Canadian Credit Repair Course and NEW Budgeting Resources Licensed Debt Relief in Canada – Debt Help Starts Here Debt Free Digest Monthly E-Newsletter Sign Up Here Consumer Proposals in Ontario: Everything You Need To Know Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
01:10 – How comparison culture affects spending 05:12 – Social media, influencers, and lifestyle pressure 08:03 – The rise of buy now, pay later spending 10:27 – How marketing and algorithms encourage overspending 15:18 – Credit cards, loans, and treat-yourself spending 20:11 – Signs you may be a FOMO spender 24:41 – Budgeting for fun without going overboard 26:18 – Learning to say no and talk openly about money 27:52 – Redefining success beyond appearances
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Credit card insurance is often presented as an easy way to protect yourself, but the details can be more complex than they appear.
We break down how it works, the different types of coverage available, and the fine print that can impact whether a claim is approved. From rising costs tied to your balance to common exclusions, understanding the structure of this coverage matters.
We also look at when it might be worth considering, where it may offer limited value, and what to review before opting in. If you're carrying a balance or reviewing monthly expenses, this is an area that deserves a closer look. Credit Card Balance Insurance – Government of Canada
FREE Canadian Credit Repair Course and NEW Budgeting Resources Licensed Debt Relief in Canada – Debt Help Starts Here Debt Free Digest Monthly E-Newsletter Sign Up Here Consumer Proposals in Ontario: Everything You Need To Know Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
00:00 What credit card insurance is 03:30 Types of coverage explained 07:30 How the cost is calculated 11:00 Why lenders offer it 14:00 Common exclusions and fine print 18:00 What the insurance covers 21:00 Cost versus benefit 24:00 When it may make sense 26:30 Questions to ask before signing up
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Most Canadians trust their bank to help them make smart financial decisions. But sometimes, what feels like advice is shaped by something else.
We talk about how bank incentives influence recommendations, why that can lead to confusion, and what it means for your money. You'll also learn how to ask better questions to feel more confident in the choices you're making. A clearer look at what's really happening behind the scenes, and how to approach your financial decisions without the bank. FREE Canadian Credit Repair Course and NEW Budgeting Resources Licensed Debt Relief in Canada – Debt Help Starts Debt Free Digest Monthly E-Newsletter Sign Up Here Consumer Proposals in Ontario: Everything You Need To Know Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 00:00 Advice or sales pitch? 02:00 Why trust in banks is breaking down 05:00 What it's like inside a bank 08:00 Sales targets vs real advice 11:00 Misaligned incentives explained 14:00 Evidence this is systemic 17:00 Real consequences for Canadians 21:00 How to protect yourself 25:00 Alternatives to traditional banks 28:00 Final takeaway, asking the right questions
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
A high score does not always indicate stable finances.
It is possible to keep up with most of your bills and maintain a decent credit score while still feeling like you are falling behind. When cash flow is stretched, even when you are trying your best to stay on top of things, the situation can quietly get worse.
This episode breaks down why cash flow, not a credit score, determines whether you can keep up with real expenses. It covers the warning signs, the common advice that backfires, and what to focus on when money is tight. If debt is not going down and money is not lasting the month, this conversation reframes what matters most and what to do next. FREE Canadian Credit Repair Course and NEW Budgeting Resources Licensed Debt Relief in Canada – Debt Help Starts Debt Free Digest Monthly E-Newsletter Sign Up Here Consumer Proposals in Ontario: Everything You Need To Know Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 00:00 Good credit score, but still struggling 04:00 What a score doesn't tell you 06:15 Cash flow explained (and why it matters more) 09:00 The tipping point: negative cash flow 11:30 Advice that sounds right (but backfires) 15:00 How people end up worse when protecting their score 21:00 What to prioritize in a financial crisis 24:00 How fixing cash flow improves your credit 26:30 When your credit score does matter 28:30 Practical first steps and warning signs
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
When rent takes up too much of your income, debt often follows, not because of overspending, but because the numbers no longer work. Many Canadians are finding that even after cutting back and budgeting carefully, there simply isn't enough left at the end of the month. Doug Hoyes and Ted Michalos explain why rising housing costs are a key driver of debt, how to recognize when your situation is more than just a temporary squeeze, and the practical steps to take when your income and expenses no longer align.
Licensed Debt Relief in Canada Advice for Renting with Bad Credit Can Bankruptcy Stop Eviction for Rent Arrears in Canada? Debt Free Digest Monthly E-Newsletter Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 00:00 – When rent eats your paycheque 03:00 – Why it's a math problem, not budgeting 06:30 – The 30% rule vs. today's reality 10:30 – When high rent becomes financially risky 13:30 – Key warning signs to watch for 16:30 – Budget issue vs. structural shortfall 19:00 – Short-term strategies to stabilize 21:30 – What to avoid when money is tight 24:00 – Long-term solutions if the math doesn't work 27:00 – Final takeaways and when to seek help
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Owing money to the CRA can feel urgent, and taking out a loan might seem like the fastest way to fix it. But in many cases, it can make your situation worse.
Doug Hoyes and Ted Michalos break down when borrowing to pay off tax debt might work, and when it creates bigger financial risk. From self-employed Canadians stuck in a cycle of owing taxes every year, to homeowners refinancing and increasing long-term pressure, this conversation walks through the real consequences of using a loan to solve CRA debt.
You'll also learn:
- Why CRA debt feels more serious than other debt
- What steps to take before considering a loan
- How CRA payment plans work
- When a consumer proposal may be the better option
If your tax bill feels overwhelming, this will help you understand your options and avoid common mistakes.
👉 Need help with CRA tax debt?
01:30 Why people end up owing tax debt 03:00 How to avoid tax debt (pay-as-you-go strategies) 04:30 Why CRA debt feels more urgent than other debt 07:00 CRA's collection powers explained 09:00 3 steps before considering a loan 12:00 CRA payment plans – how they work 14:30 When borrowing might make sense 19:00 When borrowing makes things worse 21:30 Refinancing your home to pay CRA 26:00 Loan vs consumer proposal – how to decide 28:00 Final checklist before borrowing
10 Tips for Dealing with CRA and Tax Debt Problems CRA Property Liens and Your Home – What Are Your Options? Debt Free Digest Monthly E-Newsletter Debt Repayment & Consumer Proposal Calculator Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Installment loans are often marketed as a safer alternative to payday loans because payments are predictable and structured. However, fixed payments do not always mean lower cost or less financial risk.
Learn the warning signs of high-cost borrowing, common misconceptions about structured payments, and practical ways to evaluate whether an installment loan helps or makes debt harder to manage. Risks of Buy Now, Pay Later Common Factors Affecting Credit Scores Debt Relief in Ontario Start Here Debt Repayment Calculator Debt Free Digest – a free monthly e-newsletter Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 01:30 What is an installment loan 04:00 How installment loans are structured 07:00 Why lenders promote installment loans 10:30 Common misconceptions about predictable payments 14:00 When installment loans can create long-term debt pressure 18:00 Warning signs the loan may not be affordable 22:00 Comparing installment loans to other borrowing options 26:00 Installment loans vs overall financial health 28:30 Practical advice before applying
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Tax issues are not just about deductions. They come down to timing, habits, and the small decisions that add up over the year. This episode focuses on the practical systems that help you stay organized and avoid costly surprises at filing time.
Learn how to manage CRA accounts, avoid common filing mistakes, and build simple routines that can help prevent tax debt in 2026. Register for a CRA Account
Interest on Overdue Taxes Debt Repayment Calculator Debt Free Digest – a free monthly e-newsletter Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 01:20 Two Things Many People Don't Know 07:05 CRA Time Lag 09:00 Filing Early vs Filing Smart 11:00 Installments: The Quiet Problem 13:00 Multiple Jobs and Side Income 15:00 Direct Deposit is Protection 15:40 Refund Psychology 17:00 If CRA Reassesses You 18:00 If You Owe CRA
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Many Canadians worry that they started saving for retirement too late. The numbers can feel discouraging, especially if debt, minimum payments, or everyday expenses delay investing for years.
This conversation breaks down the math behind retirement saving and why delay matters more than age. Instead of focusing solely on hitting a "$1 million retirement goal," the discussion shifts to more practical goals: eliminating debt, understanding government benefits like CPP and OAS, and building financial stability over time. Debt Relief For Canadian Seniors – Know Your Options Pre and Post Retirement Debt Repayment Calculator Debt Free Digest – a free monthly e-newsletter Joe Debtor- Hoyes Michalos Annual Consumer Debt Study Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts 00:00 Is it ever too late to save for retirement? 02:05 The real problem isn't age 04:40 The math behind starting at 25 vs 45 vs 55 07:20 Why most households can't outrun the numbers 09:30 What the Joe Debtor study reveals about financial delay 12:10 How minimum payments quietly destroy retirement runway 14:20 Should retirement saving happen while carrying debt? 17:00 What happens to retirement plans during a proposal or bankruptcy 20:10 When saving becomes urgent (20s vs 40s vs 50s) 23:00 When retirement saving becomes a lifestyle planning question 26:00 The reality of CPP, OAS and retirement income in Canada
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Financial advice is everywhere online. Some of it is mathematically correct, but that does not mean it is right for your situation.
Popular tips can sound smart, but if money is already tight, those strategies can sometimes make things worse instead of better.
Hear the full episode to learn about some of the most common financial tips circulating online and why, in the wrong situation, they can quietly push people deeper into debt.
Using Home Equity for Debt – What You Need To Know First Credit Counselling vs Consumer Proposal Reliable Financial Motivation – Our Monthly Newsletter Free Budgeting Planner – For Realistic Tracking Hoyes Michalos YouTube Channel – Free Canadian Debt Answers 00:00 – The problem with financial advice on the internet 02:20 – Why good advice can still be wrong for your situation 04:50 – Bad advice #1: "Just transfer the balance to a 0% card" 08:40 – Why moving debt doesn't actually reduce debt 11:40 – Bad advice #2: "Invest instead of paying down debt" 15:00 – Why guaranteed interest beats theoretical returns 18:00 – Bad advice #3: "Use your HELOC to fix everything" 21:10 – Turning unsecured debt into secured debt 23:40 – Bad advice #4: "Just hustle harder" 26:10 – The three tests for evaluating financial advice 28:40 – Why context matters more than internet tips
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
In this milestone episode, Doug Hoyes and Ted Michalos discuss the biggest myths about debt that refuse to die, the one behaviour that most reliably predicts insolvency, and explain what people who successfully recover from debt tend to do differently.
After working with more than 75,000 Canadians over nearly three decades, one theme stands out: debt problems rarely explode overnight. They compound quietly, and clarity, not optimism, is what changes the outcome.
Subscribe to the monthly Debt Free Digest e-newsletter – Don't miss monthly gift card giveaways! Ontario Debt Relief Starting Point Free Budgeting Workbook Debt Relief Calculator Learn more about Canadian debt relief on the Hoyes Michalos YouTube channel
00:00 – What 27 years have taught us about debt 02:30 – Why most debt problems aren't caused by one crisis 05:10 – The biggest myth about debt 08:00 – The temporary mindset trap 11:00 – The one behaviour that predicts insolvency 14:20 – Why minimum payments are more dangerous than they look 17:00 – The "Still Current" illusion and credit scores 20:00 – Utilization normalization: being maxed out feels normal 23:00 – What's structurally different about debt in 2026 26:00 – What people who recover do differently 29:00 – Why debt is a math problem, not a motivation problem Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Owning a home is supposed to bring stability, but for many Canadian households, the numbers are getting harder to manage. Mortgage renewals at higher rates, unexpected repairs, and rising day-to-day costs can quietly shift a manageable situation into one that no longer works.
This conversation explores the early warning signs that homeownership may be becoming unsustainable, including relying on credit to cover housing costs or delaying necessary maintenance. It also looks at practical options homeowners can consider before things become urgent, and why acting early can help preserve both financial control and home equity.
(00:00) Owning a home but struggling to afford it (03:05) Mortgage renewals, repairs, and rising housing costs (05:20) The early warning signs that affordability is breaking (08:10) Borrowing to stay housed - why that's a red flag (10:02) The emotional resistance to selling a home (13:05) Why timing matters and protecting your equity (15:10) Downsizing vs. selling and renting (17:45) What happens if you fall behind on mortgage payments (20:05) Talking to your lender and possible relief options (22:30) When homeowners should consider insolvency solutions (25:00) Can you keep your house in a consumer proposal or bankruptcy?
What to do if your mortgage is in arrears?
Subscribe to the monthly Debt Free Digest e-newsletter – Don't miss monthly gift card giveaways! Ontario Debt Relief Starting Point Free Budgeting Workbook Debt Relief Calculator Learn more about Canadian debt relief on the Hoyes Michalos YouTube channel
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
The numbers tell a story of deferred pressure. Consumer insolvency filings in Ontario were essentially flat in 2025, but our latest Joe Debtor study shows debt is still rising as Canadians layer on borrowing across more accounts, cards, and lenders.
Doug Hoyes and Ted Michalos look at how these numbers point to a structural shift in the Canadian economy, how "death by a thousand minimum payments" keeps people treading water, and what today's data suggests about the pressure building for the year ahead. Read the Hoyes Michalos 2025 Joe Debtor Study Ontario Debt Relief Starting Point Free Budgeting Workbook Debt Relief Calculator Subscribe to Debt Free Digest Learn more about Canadian debt relief on the Hoyes Michalos YouTube channel
1:05 – What is the Joe Debtor study? 3:20 - Debt layering explained: more accounts, bigger balances, record unsecured debt 7:10 - Credit cards, number of creditors, and the payday loan trap 10:45 - Structural pressure vs temporary problems 14:05 - Pressure #1: food inflation 16:40 – Pressure #2: job unemployment and income instability 19:10 - Pressure #3: high debt, housing, and homeowners showing up in insolvency 21:55 - Why insolvencies haven't surged (yet) 24:30 - Bankruptcies vs consumer proposals – a shift is happening 26:40 - 2026 outlook and practical advice Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Some Canadians are waking up to a surprise: reduced credit limits, frozen lines of credit, or cancelled credit cards…even with solid credit scores and no missed payments.
Banks are pulling back on credit, and a good score might not be enough to protect you anymore. Find out why lenders are reassessing risk, why they are closing unused accounts, and what these changes mean for your finances as we head into 2026. 00:00 – Why people with good credit are losing access to credit 02:30 – Real examples of credit cards being cut or reduced 05:10 – Why this isn't personal, it's structural 07:20 – How banks have shifted from growth to defence 10:00 – Rising credit losses and what banks see first 13:10 – The connection to the 2026 mortgage renewal wave 16:00 – Why credit scores aren't protecting borrowers anymore 18:50 – The "shadow cut": limits reduced without warning 21:30 – Common mistakes borrowers are making right now 24:10 – Practical steps to protect liquidity 26:40 – Why this is a credit cycle shift, not a personal failure Debt Relief Starting Point Free Budgeting Workbook Debt Relief Calculator Subscribe to Debt Free Digest Learn more about Canadian debt relief on the Hoyes Michalos YouTube channel Disclaimer:The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Behind on bills and not sure where to start?
If money is tight and payments are stacking up, this episode gives you a clear starting point. Doug Hoyes and Licensed Insolvency Trustee Maureen Parent break down what to prioritize first, what can safely wait, how to handle creditor calls, and when it makes sense to look at a more permanent fix.
A practical, no-panic roadmap for protecting the basics, stabilizing cash flow, and making informed next steps when the math isn't working.
If debt is keeping you up at night, you don't have to endure forever – Start Here
Free Hoyes Michalos Budgeting Workbook Debt Relief Repayment Calculator
Subscribe to the Debt Free Digest – A free monthly e-newsletter Learn more about Canadian debt relief on the Hoyes Michalos YouTube channel!
(00:00) Falling behind doesn't mean you failed (03:10) The first 48 hours: what to pay first (07:00) Rent, mortgage, and car payments: how to prioritize (11:00) Utilities, phone, and internet: hardship options (14:30) Credit cards and lines of credit: what can wait (17:45) Payday loans and why they make things worse (20:30) Taxes and CRA debt: what actually helps (23:00) Calling creditors: what to say and what to track (25:30) Building a 30-day survival budget (28:00) When to consider a formal solution Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Millions of Canadian mortgages taken out at ultra-low rates between 2020 and 2022 are now coming up for renewal – at much higher rates. That reality has led many to warn about a "mortgage renewal cliff" in 2026.
Doug Hoyes is joined by Ron Butler (Butler Mortgage, Angry Mortgage Podcast) to unpack what's behind the renewal headlines, why renewal is a cash-flow test (not a crystal ball) and how homeowners can think clearly about their options as low-rate mortgages reset.
A clear look at who may feel pressure at renewal, and how borrowers can think through their options before renewal letters arrive.
00:00 – What the "mortgage renewal cliff" actually means 03:10 – Which mortgages are renewing in 2026 06:00 – Why renewal math is very different from origination 09:30 – How bond yields flow through to mortgage rates 12:30 – Cash flow vs home equity at renewal 16:20 – Who is most at risk — and why 20:10 – House prices, equity, and renewal decisions 23:40 – Why even small delinquency increases matter 26:10 – How borrowers should think about renewal decisions 29:15 – Why renewal is a math test, not a market prediction
Butler Mortgage
Angry Mortgage Podcast on YouTube Scott Terrio on the Angry Mortgage Podcast Ron Butler live stream on Debt Free in 30
Mortgage Rate Charts
Butler Mortgage Rates
Butler Mortgage Calculator
Toronto Real Estate Price History Subscribe to Debt Free Digest Newsletter – Don't Miss the Chance to WIN a Copy of The Wealthy Barber!
Other sources:
https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/
https://www.bankofcanada.ca/2025/01/staff-analytical-note-2025-1/
https://wowa.ca/infographics-finance-realestate-canada/mortgage-renewals-of-major-canadian-lenders
https://www.canadianmortgagetrends.com/2025/10/canada-faces-400-mortgage-payment-spike-how-banks-are-preparing-for-the-renewal-storm/
https://economics.bmo.com/en/publications/detail/f9a87ba8-9962-4265-a2a9-e51303e269ca/
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310053001 Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
More and more high-income Canadians are finding themselves under financial pressure. Doug Hoyes and Ted Michalos examine the shift they are seeing firsthand and challenge some common assumptions about who struggles with debt.
They discuss how rising costs, borrowing capacity, and income complexity can quietly change financial outcomes, even for people who appear financially secure. Subscribe to the Debt Free Digest Newsletter Here – Don't Miss the Chance to Win a Copy of The Wealthy Barber Book! CPI Data Statistics Canada Debt Free in 30: What's Breaking Canadian Consumers' Budgets?
Need Help with Debt?
If debt is keeping you up at night, you don't have to endure forever. Start here!
Free Budgeting Workbook – Hoyes Michalos Debt Relief Calculator 01:10 – The myth of the "typical" insolvency filer 05:10 – Rising share of higher-income insolvency filings 07:20 – Inflation and rising living costs 09:40 – Housing costs, mortgages, and payment shock 12:00 – Lifestyle creep and fixed-cost stacking 14:30 – Variable income vs fixed monthly obligations 16:40 – Easy access to credit and leverage loops 21:30 – High income vs real cash-flow health 23:40 – When refinancing and balance transfers fail 27:20 – Practical next steps for high earners in trouble Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Financial planning doesn't have to start with investing or retirement, and it doesn't require everything to be "under control" first.
This is a practical, non-judgmental conversation that explains what financial planning really means, how it differs from budgeting, and where to start when money is tight or debt is part of the picture.
You'll be able to understand cash flow, set priorities, and reduce stress by knowing what to tackle first – even during a consumer proposal or bankruptcy. Subscribe to Debt Free Digest Newsletter – Don't Miss the Chance to WIN a Copy of The Wealthy Barber!
Need Help with Debt?
If debt is keeping you up at night, you don't have to endure forever. Start here! Debt Free in 30: Getting Out of Debt Requires a System Debt Free in 30: Budget Without Burnout
Free Budgeting Workbook – Hoyes Michalos Debt Relief Calculator 00:00 – Why most people don't start planning until a crisis 03:30 – What financial planning really means 07:45 – Budgeting vs financial planning 12:20 – Why prioritization matters more than perfection 17:30 – Where to start when money is tight 20:10 – Planning to deal with debt 25:10 – When a consumer proposal becomes part of the plan 29:15 – Why having a plan reduces stress Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
David Chilton, author of The Wealthy Barber and one of Canada's most influential voices on personal finance, joins Doug Hoyes on Debt Free in 30 for an extra special double–long episode.
Doug and David dig into the issues Canadians are struggling with most: the true cost of inflation, a "K-shaped" economy, housing affordability, rising student debt, the growing gap between financial knowledge and financial discipline, and more. Subscribe to Debt Free Digest Newsletter – Don't Miss The Chance To Win a Copy of The Wealthy Barber
Buy the Wealthy Barber on Indigo
Buy the Wealthy Barber Audiobook
The Wealthy Barber – David Chilton's Web Page
00:00 – David Chilton on the updated Wealthy Barber book 02:27 – Why storytelling works for personal finance (and how he tested it) 06:52 – TFSA vs RRSP: how to decide in real life 15:21 – Financial literacy vs discipline in today's economy 18:29 – "K-shaped" Canada: who's thriving and who's squeezed 21:27 – First steps: debt payoff vs RRSP match priorities 22:54 – Spending summaries vs budgets: the method that actually changes behaviour 34:29 – Housing affordability, down payments, and parental help 38:06 – Gambling, meme stocks, crypto: a fast-growing driver of debt trouble 55:16 – Hope and next steps: learning money basics + building side income
Need Help With Debt?
If debt is keeping you up at night, you don't have to endure forever.
Talking to a Licensed Insolvency Trustee isn't about filing sooner — it's about understanding your options and reducing stress.
Learn more at: https://www.hoyes.com Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Debt is at record highs, yet insolvencies are flat. Why? In this episode of Debt Free in 30, Licensed Insolvency Trustees Doug Hoyes and Ted Michalos explain a financial paradox that's leaving millions of Canadians stressed, exhausted, and confused.
The answer isn't that people are okay. It's that people are enduring.
If you're paying your bills but still feel like you're drowning, this episode is for you.
Coming Up Next
Next episode: a special double episode with David Chilton (The Wealthy Barber) — a practical conversation about money, debt, and what Canadians are really facing heading into 2026.
2025 Predictions Show
Office of the Superintendent of Bankruptcy, Insolvency Statistics
Statistics Canada, Household debt levels (including credit cards) Statistics Canada, CPI (Inflation)
Mortgage Rates, Bank of Canada Hoyes Michalos Homeowners Bankruptcy Index
TransUnion, Canadian Consumer Debt Continues to Grow Despite Macroeconomic Relief
Hoyes Michalos Credit Repair Strategies and Rebuilding Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario
In This Episode, You'll Learn:
· Why people don't file when debt rises — they file when cash flow breaks
· How inflation pushed credit card balances higher without immediate defaults
· Why paying the minimum isn't a solution — it's a delay
· How balance transfers and mortgage equity are masking financial stress
· Why insolvencies tend to stay flat, then jump
· What would trigger a surge in personal insolvencies
· Our 2026 insolvency predictions for Ontario
· Why relief isn't failure — and how getting advice early preserves options (00:00) You're Not Failing — You're Enduring (02:30) Debt Is Exploding, So Why Aren't Bankruptcies Rising? (05:20) People Don't File When Debt Rises — They File When Cash Flow Breaks (08:10) Why Credit Card Debt Is Rising Without Defaults (11:00) Paying the Minimum Is Buying Time — Not Solving the Problem (14:00) Who's Carrying the Debt Now (And Why That Matters) (17:10) Why Inflation Changed How Insolvencies Work (20:20) The Hidden Delay: Interest Rates Haven't Fully Hit Yet (23:40) Mortgage Equity Is Masking Financial Stress (27:00) Why Insolvencies Don't Rise Gradually — They Snap (30:00) Why Convexity Shows Up Later (32:40) The Paperclip Effect: Endurance vs. Breaking (34:10) What Would Trigger a Surge in Insolvencies? (35:30) Our 2026 Insolvency Predictions (38:00) Relief Isn't Failure — It's a Reset Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
If you're carrying serious debt but also have money in an RRSP, TFSA, or other investments, one of the biggest fears is this: Will I lose everything if I get help?
Doug Hoyes and Ted Michalos, Licensed Insolvency Trustees, break down what actually happens to your investments when debt becomes unmanageable. They explain which assets are protected under Canadian insolvency law, which are at risk, and when cashing out savings can do more long-term harm than good.
CRA TFSA Contribution Calculator
Bankruptcy & Insolvency Act, paragraph 67
Hoyes Michalos Credit Repair Strategies and Rebuilding Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario (00:00) Debt and investments: will savings survive serious debt? (02:10) The fear of "losing everything" when seeking debt help (04:20) Pressure to cash in investments before asking for help (06:30) Using a TFSA to pay debt: when it makes sense (09:10) RRSP withdrawals and the real tax consequences (12:45) Why multiple RRSP withdrawals don't reduce total tax owed (15:30) What happens to RRSPs and pensions in bankruptcy (18:40) Which investments are not protected in insolvency (21:30) Consumer proposals vs. bankruptcy: what you keep (24:30) Can you still invest while repaying debt? Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other
Debt collectors are contacting Canadians more than ever. In this episode, Doug Hoyes and Ted Michalos explain why activity is increasing, what collectors are actually looking for, and how to respond without accidentally restarting the clock on old debts. They also cover how to spot scams, understand your rights, and know when it's time to get professional help. Ontario Limitations Act
Collection Agency Rules, Ontario
Search the Ontario government's website to verify that a collection agency is licensed here Hoyes Michalos Credit Repair Strategies and Rebuilding Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario
(00:00) Why debt collectors are busier than ever (02:00) What's driving higher delinquencies in Canada (04:10) When creditors typically begin collection efforts (06:00) What collectors want besides money (08:00) How small payments or acknowledgments reset the 2-year clock (10:00) Why collectors ask for employer and contact information (12:00) Should you answer if you can't pay? (14:00) How to verify a real collector vs. a scam (17:00) Your rights when dealing with collection calls (19:00) When it's time to speak with a Licensed Insolvency Trustee Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Start investing because your numbers say "go," not because the internet says "now." This episode will remove the guesswork from entering the world of investing and provide a straightforward way for you to judge your readiness. Using simple math in layman's terms (think "why paying 20% interest beats chasing a maybe 10% return"), we discuss what to do first, how to keep bills safe from market swings, and when it makes sense to get professional help. (00:00) Welcome Charlie Kovacs from Hoyes Michalos (02:00) Do Canadians need to take big risks to get ahead? Myth vs. Reality (05:00) Pay debt vs. Invest (08:00) Fitness Test: Do you know your ins and outs? (11:00) Using your credit score as a tool, not a toy (13:00) Emergency fund and liquidity (16:30) Defining your "why" goals (20:00) Is saving for a first home realistic? (23:00) Are you knowledgeable enough to invest? Core concepts to know (27:00) Choosing vehicles: TFSA, RRSP, employer match, and more
Should You Use a Bonus to Pay Debt or Invest? Which Debts Should You Pay First? What is the Right of Offset and What Should You Do About It? Credit Repair Strategies and Rebuilding Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
With housing costs, student loans, and everyday expenses skyrocketing, more young adults are turning to their parents for financial support. Doug Hoyes and Ted Michalos unpack the emotional, financial, and practical realities behind "helping" adult children, including why many parents feel compelled to assist, and break down the real risks of co-signing, lending money, or tapping home equity to solve a child's debt issues. (00:00) How costs, debt, and housing pressures shape young adults' expectations (03:10) Why parents feel compelled to help financially (06:20) When helping becomes risky for parents approaching or in retirement (10:00) Enabling, dependency, and how money strains family dynamics (12:00) Co-signing explained: what parents are really responsible for (13:30) When support prevents children from developing budgeting or financial skills (15:05) Alternatives to direct financial help (17:10) When to involve a Licensed Insolvency Trustee (18:40) Conditional help vs. open-ended rescue (25:00) Key takeaway: protect your own financial future first
How Can I Help My Adult Child With A Lot Of Debt? Joint Consumer Proposal – Who Can File Together? DIY Free Credit Repair Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Turn your home equity into a plan, not a panic button! This episode gives a clear, practical checklist for using a HELOC or second mortgage wisely: how they work, what they cost, when they help, and when alternatives (like a consumer proposal) will protect your cash flow and your home better. Listen first, then decide with the numbers. (00:00) Toronto condo stress and Welcome to Scott Terrio (05:00) What a HELOC is and how it works (07:30) Second mortgages: key risks (09:00) Home "value" is changing in this market (11:00) HELOC pitfalls and personal risk (15:30) Why many homeowners resist selling (17:00) Could creditors place a lien anyway? Get the numbers (21:00) Banks can cut credit access—even existing limits (25:00) Snapshot of cash flow: budget vs. "budgeting," emergency funds (31:00) Rebuilding plan: why it isn't too late
Think Twice Before Getting a Home Equity Line of Credit Episode with Scott Terrio – Debt Free in 30 HELOC Debt: Is a Home Equity Line of Credit Right for You? Hoyes Michalos DIY Free Credit Repair Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Many Ontario small business owners use personal credit to get a venture off the ground, because banks rarely lend to brand-new businesses. That convenience can help with early cash-flow gaps and sometimes costs less than a high-risk business loan, but it also creates serious personal exposure: guarantees, blurred books, CRA headaches, and credit-score damage. Doug and Ted walk through when using personal debt might make sense, the major risks to watch for, and practical ways to structure your finances.
(00:00) Self-employment: Opportunity vs. Necessity (02:00) Capital-Intensive vs. Lean Start-Ups (with examples) (04:00) Why banks don't fund brand-new businesses and what "collateral" means (06:30) Pro #1- Easier access to credit for start-ups (08:00) Pro #2 - Cash flow and other short-term advantages (09:30) Con #1- Personal liability: when business failure becomes personal insolvency (12:00) Con #2 - Blurred finances: bookkeeping pitfalls, CRA risk, and collection stress (14:00) Con #3 - Credit-score impact: utilization and missed-payment damage (16:00) Best practices and tips (19:00) The three roles every small business owner needs
Debt Traps of Buying a Business with David Barnett – Debt Free in 30
Bad Funding Choices for Small Businesses with David Barnett – Debt Free in 30
Want to Buy a Business? Here's What to Know First – Debt Free in 30
Starting or Buying A Business Out of Necessity – Debt Free in 30 DIY Free Credit Repair Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Drawing on experience from 25+ years and 73,000+ filings, Doug and Ted break down the top debt mistakes Canadians make, and how to avoid them. They explain how problems creep up, why waiting narrows your options, high-cost credit and payday-loan cycles, CRA's real collection powers, and so much more. Canada-specific guidance for debtors with tips on protecting your long-term financial health. (00:00) How debt mistakes happen (02:00) Spotting debt problems early (04:30) Waiting too long is costly: interest, stress, fewer options (06:30) Choosing the right help: Licensed Insolvency Trustees vs. "debt consultants" (08:30) Minimum payments: is it ever a good strategy? (10:30) High-cost credit & payday loan cycle (13:30) Ignoring CRA debt: the powers of the Canada Revenue Agency (15:30) RRSPs to pay debt? Taxes, exemptions, and better paths (18:00) The credit-score trap (21:00) Practical resets, scam red flags Hoyes Michalos Joe Debtor Consumer Insolvency Study 2024 DIY Free Credit Repair Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Learn About Debt Relief Options in Ontario Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Laid off or let go? Your first 30 days matter. This is a practical, Canada-specific guide to unemployment, covering everything from applying for EI to discussing when upskilling or a pivot makes sense, as well as the risks of jumping into self-employment and how to handle debt while unemployed. If you're currently employed, treat this episode as a readiness checklist to ensure you feel prepared and confident about whatever comes next. (00:00) Why the first 30 days of unemployment matter (02:00) Day-one checklist: severance, benefits, documents (05:30) EI basics: ROE, timing with severance, applying early (08:30) Money triage: cut variable costs, protect cash flow (12:30) Job search that works: résumé/LinkedIn refresh + networking (17:00) If your field is shrinking: upskill or pivot? (21:00) Self-employment/freelance: risks, cash needs, taxes (24:30) Debt decisions: the best time to file bankruptcy or a consumer proposal
How To Check If You Qualify For Employment Insurance (EI Benefits)
Payday Loans Aren't Worth It: How To Break The Cycle
Should I Get a Loan To Pay Off My Credit Cards?
DIY Free Credit Repair Course
Sign Up for the Monthly Debt Free Digest
Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
When money is tight, everything feels urgent. Rent, groceries, a credit card bill, and that unexpected car repair. In this episode, we walk through a survival-mode framework for prioritizing essentials, organizing a bare-minimum budget, and avoiding common traps that lead to a deeper debt spiral. We discuss why "loud" debts aren't always the ones you should pay first, and when it makes sense to speak with a Licensed Insolvency Trustee about a consumer proposal. If the math "isn't mathing" this guide helps you focus on stability right now and a path to rebuild next. 00:00 – How to Make Smart Decisions in Survival Mode 03:30 – Inflation Pressure: Why Everything Feels Urgent 06:00 – What Comes First: Rent, Utilities, and Food 09:00 – Organizing Finances: Your Personal Priority Order 12:00 – Grocery Strategies That Stretch a Tight Budget 13:30 – Collections 101: Small Debts Are Loud, Big Debts Need a Plan 15:00 – Shame, Stress, and the Realities Canadians Face 19:00 – Don't Let the Loudest Creditor Set Your Budget 23:00 – Joe Debtor Study: What We Know & Why You Have Options 26:00 – Negotiating with Creditors & How Consumer Proposals Work 28:00 – Survival First, Debt Strategy Second: Keep Moving Forward Hidden Costs on Food in Canada: The Food Professor on Debt Free in 30 Blows Up Our TikTok Food Inflation Exposed: The Surprising Truth About Grocery Prices - The Food Professor on Debt Free in 30 Ways To Survive Without A Credit Card Personal Budgeting Help and Free Spreadsheet DIY Credit Repair Strategies and Free Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Ever feel like the best financial advice sounds... boring and hard to stick to? Doug Hoyes and guest Licensed Insolvency Trustee Maureen Parent discuss why the most effective money habits are often the least exciting. From the myth of quick fixes to the power of slow, steady progress, they explore how consistency, not complexity, builds lasting financial stability. You'll also hear practical, realistic ways to start building better habits today (even when life gets in the way). (00:00) – Does money management have to be complicated? The myth of the quick fix (05:00) – Everyday challenges to managing money (11:00) – Discipline vs. intelligence: which matters more? (15:30) – The "first three months suck" mindset (17:00) – Why boring habits beat willpower (19:00) – Needs vs. wants and being realistic (21:30) – Starting with just one small habit (28:30) – Avoiding a financial hangover How To Find a Credible Financial Planner Personal Budgeting Help and Free Spreadsheet DIY Credit Repair Strategies and Free Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Can you live without debt in today’s Canada? In this myth-busting episode, Doug and Ted explore the real cost of going debt-free. They unpack the difference between credit and debt, challenge the necessity of mortgages and student loans, and share strategies to reduce or eliminate debt, whether you're starting out or retiring soon. From rising housing costs to the fear of missing out (FOMO), this episode offers practical, age-specific advice for Canadians trying to regain control of their finances. [00:00] What Does ‘Living Without Debt’ Really Mean? [05:00] Why Life Feels Pricier: Inflation vs. Reality [06:30] Homeownership in Canada: Is Debt Inevitable? [08:00] The Canadian Dream: How Culture Fuels Housing Debt [11:00] Is University Worth the Debt? Alternatives to Student Loans [13:00] How to Minimize or Eliminate Debt: Real Strategies [15:30] Crunching the Numbers: Real-Life Debt Scenarios [19:00] What’s the Cost of Avoiding Debt Entirely? [22:00] Debt in Retirement: Smart Advice for Seniors [26:40] When Debt Feels Overwhelming: What to Do Next [28:00] Credit vs. Debt: Focus on What Really Matters Free full length Canadian documentary: Debtasized Personal Budgeting Help and Free Spreadsheet DIY Credit Repair Strategies and Free Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Is tracking every single expense the key to taking control of your finances, or just a fast track to burnout? What are the pros and cons of meticulous money tracking? Doug Hoyes and guest Charlie Kovacs debate who benefits most from detailed spending logs, when it’s OK to simplify, and strategies to build a money system that actually sticks. 00:00 – Welcome & Introduction: Charlie explains why he’s a fan of tracking expenses 08:00 – Variable vs. Fixed Expenses: Focusing on variable expenses to reveal patterns 10:00 – How to Create a Simple Spending Summary 11:30 – The Motivation Problem: Why staying on track is hard 13:30 – Start Small: Charlie’s advice for tackling one category at a time 14:30 – One-Week Tracking Tip: Find Your Spending Baseline 20:00 – The Subtraction Method: Identifying savings opportunities 23:00 – Should You Have More Than One Bank Account? Pros and cons explained 26:00 – Finding What Works: Progress, not perfection Personal Budgeting Help and Free Spreadsheet DIY Credit Repair Strategies and Free Course 80/20 Money Management Rule Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Student loans can follow Canadians for years after graduation, sometimes delaying life milestones like buying a home or starting a family. In this episode, Doug Hoyes and Ted Michalos explain why student debt is so difficult to repay in Canada, the risks of borrowing for education, and the Supreme Court’s latest ruling on the “7-year rule” for government student loans. If you’re still paying off your education years later, this conversation sheds light on the challenges and options for relief.
00:00 – Why student loans in Canada are a massive problem 04:00 – When can government student loans be included in insolvency? 05:00 – Why does it take so long to pay off student loans? 06:15 – The future of specific jobs—and risks of student debt 08:50 – The hidden risks of borrowing for education 11:35 – Interest on student loans: federal vs. provincial rules 12:30 – Practical tips to pay off student loans faster 13:30 – The hidden costs of prolonged repayment 16:00 – How a consumer proposal might help with student loan repayment 18:45 – The Supreme Court’s decision and the 7-year rule explained 25:00 – Planning for the future beyond student debt
Section 178(1)(g)(ii) of the Bankruptcy & Insolvency Act Piekut v. Canada (National Revenue). National Student Loan Service Centre (NSLSC) Bank of Canada Inflation Calculator University of Toronto Tuition Fees Info 2025 DIY Credit Repair Strategies and Free Course Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Making only the minimum payment on credit cards may feel manageable, but it’s one of the riskiest financial habits for Canadians today. Doug Hoyes and Ted Michalos explain the real math behind minimum payments and share practical strategies for breaking out of the cycle for good. 00:00 – Setting the stage: the shift from “getting by” to falling behind 02:30 – The math behind minimum payments 08:30 – Quebec’s new rules - will increasing minimum payments make a difference? 12:00 – Canada’s credit card landscape after the pandemic: the growing debt burden 17:05 – Red flags that you’re stuck in a minimum payment trap 22:00 – Strategies to recover from minimum payment habits 24:00 – Converting credit card balances to fixed-term loans 27:00 – How to break the cycle for good
How Credit Card Micropayments Can Reduce Your Debt Faster DIY Credit Repair Strategies and Free Course Credit Card Debt Help in Canada Sign Up for the Monthly Debt Free Digest Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Are you considering stepping into the world of homeownership? This episode is packed with insights every first-time homebuyer needs. Doug Hoyes and Ted Michalos discuss why a declining market might benefit new buyers, the emotional traps leading to risky financial decisions, and the true cost of homeownership – beyond the mortgage. Learn how unexpected expenses (from land transfer taxes to home repairs) can derail your budget if you’re not prepared, the biggest regrets homeowners face, and how to avoid being “burned” by your first purchase. 00:00 - Why a declining market can be an opportunity for new homebuyers 02:30 - The emotional reasons people want to own a home over renting 04:45 - The biggest emotional mistake of buying a house 10:40 - The mortgage is just the tip of the iceberg for home costs 16:00 - Emergency fund vs. line of credit for home maintenance 18:00 - The inevitability of things needing repair 19:00 - Land transfer tax, and so much more 21:00 - The many other costs of buying a home: lawyer fees, moving, and HOAs 23:00 - The biggest regrets new homeowners have 27:00 - How to avoid being "burned" by buying a house 29:00 - The pressure of "keeping up with the Joneses” A House Is Not An Investment If You Can’t Afford It – Debt Free in 30 Episode “What to do if I can’t pay my mortgage?” Hoyes Michalos YouTube Channel
“I can’t afford my mortgage renewal, now what?” – Hoyes Michalos FAQ Sign Up for the Monthly Debt Free Digest Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Staying financially stable in Canada has never been harder. Even when you’re working, budgeting, and “doing everything right,” rising insolvencies, higher debt loads, and a cooling housing market are leaving many Canadians struggling to stay afloat in 2025. If you’ve ever wondered why it feels impossible to get ahead financially (even when you’re trying your best!?), this episode helps explain the challenges in today’s economy and offers practical strategies to help Canadians move forward. 0:00 – Season 12 kicks off, Doug Hoyes and Ted Michalos discuss the future of DFI30 2:00 – Canada’s economy today: rising insolvencies and financial strain 4:00 – The impact of higher unemployment and growing uncertainty 7:15 – Why home equity isn’t the financial safety net it once was 10:50 – How financial exhaustion affects mental health and overall wellness 13:00 – Breaking the stigma: addressing shame around debt 14:30 – Key warning signs that you may have too much debt 17:00 – Why many Canadians underestimate how much debt they carry 20:00 – First steps to take when debt feels unmanageable 23:30 – Why working more hours won’t solve financial problems 24:20 – How consumer proposals help Canadians get back on track Indicators of Financial Vulnerabilities – Household Credit Performance Chart Who’s Filing Insolvency in Canada and Why? Joe Debtor Bankruptcy Study Free Canadian Credit Repair Resources Hoyes Michalos YouTube Channel Sign Up for the Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed
Looking to save more and spend smarter? This episode is packed with practical, expert-backed tips - from insider grocery hacks and avoiding hidden fees to smarter banking strategies. Learn how simple shifts, like opening a second bank account or using preloaded credit cards, can help you take control of your money and reach your financial goals faster. (01:00) Avoiding hidden service charges (04:00) Top Canadian grocery tips: Snacks vs. Groceries with The Food Professor (05:40) How preventive costs can save you big (09:45) Why you should open a second bank account (10:30) More grocery hacks to cut your bill (15:00) The payoff of investing in insurance (17:50) Top 3 shopping tips to save money (20:00) Why a home isn’t always an investment: Renting vs. owning (24:00) The benefits of preloaded credit cards with digital banks (28:00) The importance of diversifying your money
Free Canadian Credit Repair Resources
10 Tips for Dealing With Collection Agencies Ontario Consumer Proposal and Bankruptcy FAQ Hoyes Michalos YouTube Channel Sign Up for the Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Listen for great get-out-of-debt advice from some of our most popular guests! Featuring Canadian financial experts from Hoyes Michalos and Chris Enns, founder of Rags to Reasonable, and Danielle Park, author of Juggling Dynamite.
From spotting predatory financial advisors to the importance of building an emergency fund, this episode is packed with practical, real-world tips and strategies you can start using today to get out of debt!
00:00 – The Snowball vs. Avalanche Method with Licensed Insolvency Trustee Joel Sandwith 01:20 – How to Avoid Predatory Financial Advice with Danielle Park 04:40 – How to Realistically Start Managing Your Money with Chris Enns 07:45 – Predatory Credit Advisors – What You Need to Know cont. 11:30 – Why Canadians Aren’t Prepared for Financial Emergencies with Scott Terrio 13:00 – Snowball and Avalanche Method – Advanced Tips 16:30 – Why Your Perspective on Loans Matters 19:50 – Getting Out of Debt and Building Savings Has To Be Practical with Danielle Park 22:35 – Key Indicators of Debt Trouble – When to Seek Help 25:00 – A “Holistic” Approach to Paying Off Debt? Danielle Park on Debt Free in 30: Building Wealth In A Challenging World Chris Enns on Debt Free in 30: Managing Money on a Variable Income Juggling Dynamite | Debtasized: How our reliance on credit leads to price inflation Learn More: Snowball Vs. Avalanche Debt Methods – Which One is Best?
Hoyes Michalos Free Canadian Credit Rebuilding and Repair CourseSign Up for the Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
This special compilation episode is packed with nuggets of wisdom and strategies for getting out of debt. We've pulled together the best clips on avoiding credit traps, building emergency funds, and implementing practical “budgeting” strategies.
00:00 – August is a special month before launching a new season 01:00 – Why people end up in debt 02:10 – How to avoid the minimum payment trap 03:40 – Building and maintaining an emergency fund 06:00 – How insolvency clients are a leading indicator of the economy 07:30 – Why you shouldn’t rely on credit in an emergency 10:00 – First steps to begin getting out of debt 12:05 – The problems with consolidation loans 14:00 – Practical budgeting tips: tracking income and expenses 16:00 – The benefits of putting your bills on autopay 19:00 – Don’t ignore your finances 21:10 – Why paying off high-interest debt is the best strategy (and why you still need an emergency fund) 24:00 – Why debt consultants send their clients to Licensed Insolvency Trustees Debt Relief in Ontario Debt Relief Biggest FAQs Hoyes Michalos Free Canadian Credit Rebuilding and Repair Course Hoyes Michalos YouTube Channel Sign Up For The Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
From shady loan offers to AI voice fraud and everything in between, this special edition of Debt Free in 30 is your go-to for avoiding financial scams.
We’ve compiled some of the most important scam warnings from past episodes. These are real risks facing Canadians today, and knowing the red flags could protect your money, identity, and peace of mind. 00:00 – August is a special episode month before launching a new season this fall 01:30 – Housing and rental scams 03:55 – Payday loan and installment loan traps 05:00 – Debt consultant scams 06:30 – “Granny scams” and AI voice fraud 08:00 – Upfront fee fraud 10:30 – Pig butchering scams (crypto and romance fraud) 14:45 – The truth about so-called “savings loans” 17:00 – Red flags and scam warning signs 20:00 – CRA impersonation and email phishing scams 23:30 – Another look at pig butchering scams 24:45 – Final thoughts: trust, but verify… verify, verify
Fraud Can Cause Debt Problems: How To Stay Protected
Beware of Fake CRA Calls Hoyes Michalos Free Canadian Credit Rebuilding and Repair Course Hoyes Michalos YouTube Channel Sign Up For The Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
While we're known for expert debt advice, let’s say it’s a good thing we’re better at being LITs than we are at staying on script! Join us for a compilation of our funniest on-air flubs, the kind of candid moments that usually end up on the cutting room floor. It's the perfect mix of lighthearted fun and the valuable debt insights you've come to expect. Don't miss this special (and hilarious) blooper episode! 00:00 – A long-requested episode: bloopers and funny moments from Debt Free in 30! 00:30 – Leaky Boat Incident 03:30 – "Size Matters" 04:30 – To Ted's Wife – We Are Sorry 06:10 – Debt, Death, and Zombies’ Discussion 09:30 – Maureen Forgets Her Name 10:00 – Scott Terrio on Watching the Podcast
Hoyes Michalos Free Canadian Credit Rebuilding and Repair Course Debt Repayment / Consumer Proposal Calculator Hoyes Michalos Debt-to-Income Ratio Calculator Hoyes Michalos YouTube Channel Sign Up For The Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
You need strategies that go beyond budgeting apps. Doug Hoyes and Ted Michalos are experts who’ve seen it all – and they offer practical, honest advice to build momentum and pay off debt faster. Learn what you can do before considering insolvency, how to know if you’re at that point, and what to do if you are—a clear, actionable guide for Canadians.
(00:30) How Interest Works (and How to Make It Work for You) (04:00) Why You Should Pay Off High-Interest Credit Cards First (08:00) Realistic DIY Strategies to Eliminate Debt (13:10) What to Do with Windfalls or Extra Income (14:30) Micropayments: Small but Mighty (15:30) Paying Bills with Debt in Mind (17:00) Boosting and Rebuilding Your Credit Score (19:30) How and Why to Automate Your Finances (22:00) Debt Consolidation: Pros and Cons (26:00) When to Consider a Consumer Proposal or Bankruptcy (28:00) What’s Coming Next on Debt Free in 30
Financial Consumer Agency of Canada – Tools and Calculators Debt Repayment Worksheet Debt Repayment / Consumer Proposal Calculator Hoyes Michalos Debt-to-Income Ratio Calculator Hoyes Michalos YouTube Channel
Sign Up For The Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Is debt still avoidable, or has borrowing become a fact of life in Canada? Ontario Licensed Insolvency Trustees Doug Hoyes and Ted Michalos answer our questions, share a simple test to assess new debt, and provide an action plan for those struggling to make ends meet.
(00:00) What’s changed in Canada’s economy recently? (02:30) The problem with “good debt” as conventional wisdom (04:00) Auto loans: smart purchase or risky commitment? (10:00) Student loans: are they worth it? (14:00) What the household debt-to-income ratio tells us (17:00) Red and green flags when borrowing money (18:45) Is it still possible to live debt-free in Canada? (20:00) Doug & Ted’s 5-point test for smart borrowing (22:00) Understanding the hidden risks of borrowing (23:50) Your debt action plan: what to do starting today (25:00) Mortgage tips: borrowing for a home in today’s market (27:30) The best kind of debt - and what to do if yours isn’t working for you
DEBTASIZED – Full Length Documentary Debt Repayment / Consumer Proposal Calculator Hoyes Michalos Debt-to-Income Ratio Calculator Joe Debtor – Canadian Insolvency Statistics Explained Reducing Tax Debt in Ontario Sign Up For The Monthly Debt Free Digest Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Don't just brace for a recession, prepare to come out stronger. This conversation is about turning Canada’s economic uncertainty into an opportunity for financial growth (or, at least, stability). We'll equip you with proactive strategies for managing debt, finding new income streams, and building a mindset of resilience. Learn how to take decisive control of your financial future, no matter what the economy throws at you.
(00:00) – Prediction: How We Knew a Recession Was Coming
(02:30) – Rising Costs & Reduced Work Hours Impacting Households
(04:00) – Forecast: Hitting Recession Thresholds by End of Summer
(05:30) – Managing Money vs. Managing Debt: Good Times vs. Bad
(07:45) – First Steps When You Feel Financial Pressure
(11:00) – Side Hustles 101: Pros & Cons of Supplemental Income
(14:00) – Leveraging Networks & Community Support
(15:45) – How to Start (and Grow) an Emergency Fund
(18:00) – Recession-Proofing Strategies for Homeowners
(19:15) – Top Tips for Canadians in Debt as Recession Hits
(27:00) – Building Mental Resilience & Setting Realistic Goals
Reducing Tax Debt in Ontario Planning For Retirement When You Have Debt Why You Absolutely Need An Emergency Fund Sign Up For The Monthly Debt Free Digest Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Is it ever “too late” to get out of debt? Whether you're mid-career, nearing retirement, or already retired, this episode will shatter the “too late” myth and walk you through clear, actionable steps to take control of your finances, no matter your age or life stage. Visit hoyes.com to get personalized support in Ontario from a Licensed Insolvency Trustee to reduce debt before retirement, and access the FREE Hoyes Michalos credit rebuilding course.
(00:45) Age & Debt: Does Your Age Limit Your Options? (03:00) Why It Feels “Too Late” – Common Concerns Explained (04:45) Step 1: Identify Your Income Streams (06:40) Step 2: Track Your Expenses and Spending Habits (10:00) Step 3: Review All Your Debts and Available Credit (10:45) Step 4: Build a Realistic Repayment Plan (Budget) (14:20) Approaching Retirement? Key Actions You Need to Take (17:00) Where to Apply Extra Payments: Tackling High-Interest Loans First (20:00) Why Debt Consolidation Often Falls Short (22:00) Downsizing, Selling Assets & Tapping Savings: Pros & Cons (24:00) Can it be too late for a Bankruptcy or a Consumer Proposal? (26:00) The One Debt That Never Disappears on Its Own: CRA (28:00) It’s Never Too Late: Reducing Debt Legally Planning For Retirement When You Have Debt Debt Relief for Seniors in Canada: Your Options and Solutions RRSP and Bankruptcy in Canada: Will I Lose My Retirement Savings? Sign Up For The Monthly Debt Free Digest Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
When parents ask their adult children to co-sign a loan, add their name to a mortgage, or take out a car loan “for the family,” it can feel impossible to say no. But what are the risks?
Ontario Licensed Insolvency Trustees Doug Hoyes and Ted Michalos break down the financial (and emotional) minefield of taking on debt for your parents. From credit utilization issues to legal responsibility and long-term credit damage, they explain how even well-meaning help can backfire, and offer solutions to support aging parents without risking your financial stability. (00:00) Risks of Co-Signing for Your Parents' Credit (02:30) Why Parents Ask Their Kids to Co-Sign Loans (05:50) Supplemental vs. Joint Credit: What’s the Difference? (07:30) Co-Signing Auto Loans: Why It’s Risky (09:00) Credit Utilization: How It Hurts Even If Payments Are On Time (12:30) Planning for the Worst: Protecting Yourself from Family Debt (14:45) What to Do If You Can’t (or Don’t Want to) Help Your Parents (16:30) Safe Ways to Support Parents Without Taking on Debt (19:45) Helping Your Parents Manage Money as They Age (26:30) How to Help Parents with Unmanageable Debt
How Co-Signed Debt Is Dealt with in a Consumer Proposal Is a Secondary Credit Card Holder Responsible for Debt? Can a Joint Bank Account be Garnished in Canada? Best Debt Relief Options Ontario Free Credit Rebuilding Course and learning resources Sign Up For The Monthly Debt Free Digest
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
For many newcomers to Canada, the Canadian credit system can feel like a high-stakes challenge. Although it's essential for building a financial life, aggressive lending practices, cultural mindsets around credit, and a lack of clear guidance can lead to overwhelming debt before fully understanding how the system works.
In this essential episode, Ontario Licensed Insolvency Trustees Doug Hoyes and Ted Michalos discuss the challenges newcomers may face, explain how banks and lenders operate, and pinpoint the critical warning signs to watch for when navigating a new financial life in Canada. 00:00 – Why do banks and lenders target new Canadians?
03:30 – How Canada’s credit culture affects immigrants
06:00 – How do credit and banks work in Canada? Can they be trusted?
09:00 – Unique financial challenges for newcomers
11:00 – What banks consider when lending to new Canadians
12:30 – Is building credit the only way to succeed? Ted’s advice
14:00 – Red flags for immigrants seeking financial help: Who can you trust?
22:00 – Credit advice everyone should know (not just newcomers)
23:30 – Real-life scenario that illustrates key credit considerations for new Canadians
26:00 – What to do if you’re an immigrant (or anyone) with unmanageable debt in Canada Bankruptcy, Sponsorship, and Citizenship in Canada Student Loan Debt Forgiveness Best Debt Relief Options Ontario Free Credit Rebuilding Course and learning resources Sign Up For The Monthly Debt Free Digest Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Boomer budgeting tips collide with millennial money challenges in this candid conversation about debt, savings, housing costs, and the rise of gig-work income. Whether saving for a first home or paying off old credit cards, this episode bridges the generation gap with actionable insights for any age, complete with tried-and-true tactics Boomers still swear by, tech-savvy hacks Millennials can’t live without.
0:00 - Do Boomers Have It Easier? Debunking Generational Money Myths 3:10 - Why Millennials Lead Insolvency Filings & Credit-Card Debt 6:00 - “Credential Creep”: Rising Education Costs and Student Loans 9:00 - Buying a Home: 1980s Down Payment vs. 2020s Reality 13:00 - Starting Adulthood in Debt: How Timing Shapes Finances 16:00 - Shifting Attitudes: From Debt-Free Dreams to “Normal” Borrowing 18:00 - Gig Economy 101: Income Streams Boomers Never Faced 19:30 - Interest-Rate Shocks: Then (18%) vs. Now (Variable & Rising) 22:00 - 31 Flavours of Credit: BNPL, Lines of Credit, & More 25:00 - Boomer Money Rules That Still Work Today 28:00 - Reverse Mentorship: What Millennials Can Teach Boomers Joe Debtor Study https://hoyes.info/joe-debtor-study Student Loan Debt Help Ontario https://hoyes.info/student-loan-rules-ontario Free Credit Rebuilding Course and learning resources https://hoyes.info/credit-rebuilding-course-free Sign Up For The Monthly Debt Free Digest https://hoyes.info/newsletter Check out our other YouTube Channel: @hoyesmichalos https://www.youtube.com/@hoyesmichalos
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Have you ever wondered what life would look like if your credit score didn’t exist? Licensed Insolvency Trustees Doug Hoyes and Ted Michalos compare Canada’s score-driven system with France’s radically different, no-score approach.
You’ll learn:
- How France decides who can borrow—without a three-digit score.
- The cultural attitudes that shape lending and spending in France and Canada
- Why credit-report errors and identity theft are bigger issues than most Canadians realize.
- Whether Canada could (or should) adopt parts of France’s model—and what you can do right now to work the system in your favour.
(00:00) Intro – How Canada Tracks Credit with TransUnion & Equifax
(04:45) France’s “No-Score” System: How Trustworthiness Is Judged
(07:10) Lending Culture in France: Relationships Over Ratings
(09:00) Lending Culture in Canada: Why Scores Still Rule
(13:00) Could Canada Move Toward a French-Style Model?
(15:50) Credit-Report Errors: The Hidden Cost of Scores
(19:00) Building Rapport with Lenders: Help or Hindrance?
(20:30) Identity Theft Risks: Centralized Data vs. Decentralized Files
(22:00) Which System Carries Less Bias—France or Canada?
(26:30) Is Canada’s Credit Reporting Actually Working?
(28:00) Takeaways: How to Navigate Canada’s System to Your Advantage
The Big Credit Score Scam Solutions for Maxed-Out Credit Cards Hoyes Michalos FREE Credit Rebuilding Course and Learning Resources Sign Up For The Monthly Debt Free Digest The Best Canadian Personal Finance and Debt Management TikToks
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Zombie memberships are real – and they’re feasting on your budget every month.
Forgotten fitness app? Digital subscription you thought was cancelled? Auto-renewals can quietly drain your finances if you're not paying attention.
Doug Hoyes and Ted Michalos discuss why some subscriptions are so easy to miss, and how to track, cancel, and avoid them going forward. This episode includes real examples, expert tips, and even a personal story from the Hoyes Michalos team, proving it can happen to anyone.
(00:00) Are You Paying for Subscriptions You Forgot About?
(03:00) Fitness Classes, Digital Apps & Other Zombie Memberships
(07:00) Why Auto-Renewal Is a Red Flag
(12:00) How to Identify What’s Draining Your Cash
(16:00) Our Own Zombie Membership Story
(17:30) Why Cancelling Is So Hard
(19:30) Track It and Cancel It Fast
(21:00) Use the “One In, One Out” Rule
(24:00) Try Before You Buy: Avoid Entering Credit Card Info
(27:00) You Don’t Have to Give Up What Works for You Hoyes Michalos FREE Credit Rebuilding Course and Learning Resources Balancing Needs Vs Wants When Budgeting What To Do About Credit Card Debt In Collections Sign Up For The Monthly Debt Free Digest Get A Personalized Debt Plan
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
What legal actions can creditors take if you stop paying your debts? From collection calls to lawsuits and wage garnishments, Licensed Insolvency Trustees explain the real timeline of creditor actions—including how the CRA (Canada Revenue Agency) collects without going to court, and how to avoid scams when seeking help.
✅ Know your rights✅ Understand the legal process✅ Learn when (and how) to take action with confidence 00:00 – Can You Go to Jail for Not Paying Debt in Canada? 03:00 – When Do Creditors Start Calling After Missed Payments? 06:45 – When Can Creditors Start Legal Action Against You? 09:40 – Understanding the Statute of Limitations on Debt in Canada 12:20 – Debt Collections vs. Debt Buyers: Why Debts Are Sold 16:00 – How to Know If You're Actually Being Sued 17:00 – Superior Court vs. Small Claims Court: What If You Ignore It? 20:00 – CRA Collection Powers: Wage Garnishment Without Court 24:00 – Court-Ordered Support Payments (e.g., Child or Spousal Support) 26:00 – Practical Tips for Dealing with Debt Collectors 27:30 – What to Do If You're Facing a Wage Garnishment 29:00 – Avoiding Debt Relief Scams: Why You Need a Licensed Insolvency Trustee
How To Find Legitimate Debt Help in Canada Legal Actions Creditors Can Take When You Don’t Pay
Hoyes Michalos YouTube: Will a Debt Collector Sue Me?
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Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Denied credit when you need it most? Learn why creditors reject credit and loan applications and what steps you can take next. This guide covers real solutions to dealing with emergency credit denial, from avoiding payday loan traps to protecting yourself financially in tough times. Doug and Ted also recommend using the links below to access your free credit reports, a right for all Canadians! You do not need to pay for your credit score, and finding the free report option on these websites can sometimes be tricky: Link to access your FREE Equifax Credit Report
Link to access your FREE TransUnion Report Sign Up for the Debt Free Digest (A monthly financial-motivation newsletter to your inbox!) (00:00) - Why You May Be Denied Credit
(02:35) – What Is and Is Not on Your Credit Report
(05:30) – Why Banks Prefer Lending Large Amounts
(07:00) – How Lending Criteria Differs Between Lenders
(08:00) – Why People Are Relying on Credit in Emergencies
(10:00) – What to Do Before Considering a Payday Loan
(13:00) – The Payday Loan Cycle: Why It’s Hard to Escape
(15:00) – Credit-Building Tips to Improve Your Chances
(19:00) – Should You Cash Out an RRSP or TFSA? Pros and Cons
(22:30) – Talking to Creditors: Can You Defer a Payment?
(25:00) – Emergency Solutions When All Else Fails
(27:00) – How to Protect Yourself Financially in a Survival Situation Break the Payday Loan Cycle 13 Myths About Credit Card Debt in Canada What Debt Relief Options Are Available in Ontario?
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
What does it mean to be house poor in today’s Canadian economy? With home prices rising much faster than wages, more people are stretching their finances to buy property, only to find themselves stressed, overleveraged, and without a financial safety net. We explore how the definition of "house poor" has evolved, the role gig work and income instability play, and whether it's ever worth it to stretch your finances for a home. Most importantly, we share practical tools to help you avoid becoming house poor—or to recover if you’re already there. (0:00) Defining "House Poor": Understanding the Basics (2:00) The Changing Definition of House Poor Over Time (3:45) House Prices vs. Wages & Inflation (6:00) Gig Work & the Modern Workforce (8:30) When Is Being House Poor Acceptable? (13:00) Rethinking Homeownership as Investment (14:30) Practical Advice: How to Avoid Becoming House Poor (19:30) Financial Planning Tools: Calculating Your Homeownership Affordability (22:00) The Link Between Homeownership & Unsecured Debt (26:00) Getting Out of the House Poor Situation: Actionable Strategies What To Do If You Can’t Pay Your Mortgage Second Mortgage Home Equity Loan or Interest Free Consumer Proposal?
Can You Get A Mortgage With Bad Credit? DEBTASIZED - How Our Reliance on Credit Leads to Price Inflation FREE YouTube Doc Sign Up for the Debt Free Digest E-Newsletter Debt Free in 30 Podcast YouTube Channel Hoyes Michalos YouTube Channel Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Loans are getting longer, interest rates are getting higher, and that shiny new car? It could lead to serious debt. We dive into Canadian data to help you make informed choices when it comes to buying, leasing, or walking away from a car loan that no longer makes sense.
Can I Buy a Car With Bad Credit? Car Buying Options Keep You In a Debt Cycle How GMC Revolutionized the Car Loan Industry DocumentaryWhat Not To Do When Getting a Car Loan DEBTASIZED - How Our Reliance on Credit Leads to Price Inflation FREE YouTube Doc Sign Up for the Debt Free Digest
(00:00) – How to Get a Car Loan in Canada (02:00) – Exchange Rates & the Canadian Dollar Impact (03:30) – Used Car Prices Explained (04:30) – What Influences Interest Rates? (12:00) – Is Your Car Loan Secured? Risks of Repossession (13:30) – What Happens If You Miss Car Loan Payments? (15:00) – When and Why Do Lenders Repossess Cars? (19:00) – Smart Car Buying Tips: Save Money with Strategic Choices (22:00) – Car Leasing in Canada: Pros and Cons Compared (25:00) – How to Get Out of a Car Loan Legally and Strategically Visit us on social media for the best clips from the show and more! Instagram Tik TokX Facebook LinkedIn Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Saving money: the basic idea is easy, but the reality for Canadians often presents unexpected challenges. Join trusted Ontario experts Doug Hoyes and Ted Michalos as they discuss “saving” in today’s challenging economy. Learn how to calculate your personal savings rate, understand the obstacles many face (and strategies to overcome them!), and discover the true priorities, aspirations, and concerns driving those hard-earned Canadian dollars.
(0:00) Defining Savings: More Than Just Money in the Bank (2:20) Calculating Your Personal Savings Rate (4:00) The History of Canadian Savings Rates: Trends and Insights (8:45) Canadian Savings Today: Analyzing Current Rates (11:00) Understanding Financial Vulnerability: Populations Struggling to Save in Canada (16:00) What Canadians Are Saving For: Current Financial Priorities (19:00) Setting Savings Goals: How Much Should You Aim to Save? (24:00) Practical Tips for Easier Saving (28:00) Debt vs. Savings: Prioritizing Your Financial Health
4 Personal Finance Ratios That Measure Debt Risk Debt Repayment Calculator How To Deal With Debt in Retirement Sign Up for the Debt Free Digest FREE Credit Rebuilding Course Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Artificial intelligence is no longer just a futuristic concept – it's actively reshaping the landscape of scams and posing a significant threat to your financial well-being. Are you prepared for this new era of fraud?
In this episode, we delve into the alarming ways AI is being used to create more sophisticated and personalized scams that could directly impact your debt. We'll explore how even familiar cons are evolving and, crucially, equip you with the knowledge you need to recognize the red flags and protect yourself online. (0:00) The Rise of AI Scams (2:00) The Growing Sophistication of Granny Scams (5:45) How Scammers Obtain Your Personal Information: Protecting Your Data (6:45) The Pig Butchering Scam: Understanding This Long-Term Financial Con (10:20) AI-Powered: How Technology Targets You (11:40) Recognizing Scam Red Flags: What to Do If You Suspect Fraud (16:30) Avoiding False Government Notices: Spotting Official-Looking Scams (21:00) Identifying False Advertisements: Protecting Yourself from Misleading Offers (23:30) Online Safety Tips: Protecting Your Finances (29:10) The Double-Edged Sword of AI: Benefits and Risks in the Digital Age Fraud Can Cause Debt Problems: Here’s How To Stay Protected How To Find Legitimate Debt Consultants in Canada Sign Up for the Debt Free Digest
FREE Credit Rebuilding Course
Debt Repayment Calculator
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed.
Ever feel like managing money comes with its own set of challenges? If you're neurodivergent, those challenges can sometimes feel amplified. In this episode, we welcome Licensed Insolvency Trustee Maureen Parent and dive into the crucial intersection of neurodivergence and debt, exploring how executive dysfunction, time blindness, and impulse spending can impact your financial life. Discover the power of habit stacking, mind mapping, "body-doubling" (hello, budget buddy!), and how tech can be a tool for embracing simplicity. Plus, we'll discuss guilt-free spending and why it's okay to invest in what truly supports you. Tune in for actionable advice and a fresh perspective on navigating your finances! (0:00) - Understanding Neurodivergence: Impact & Why It Matters (4:45) - The Impact of Executive Dysfunction on Debt Management(7:00) - Strategies for Reducing Decision Fatigue in Finances(9:00) - Building Low-Effort Financial Habits with Habit Stacking(10:45) - How Time Blindness Can Affect Your Financial Planning (12:50) - Using Mind Mapping for a Visual Approach to Finances (14:00) - The Power of Body Doubling: Finding Your Budget Buddy (15:30) - Reframing Your Perspective on Financial Management (17:00) - Leveraging AI and Tech (or Simplicity) for Financial Success (20:00) - Coping Strategies for Impulse Spending (23:00) - Practical Financial Advice for Neurodivergent Individuals (and Everyone!) (27:10) - The Importance of Guilt-Free Spending and Investing in Your Needs Hoyes Michalos Effective Money Management Strategies Explore Credit Card Debt Relief Why We Overspend and How To Break Bad Money Habits Sign Up for the Debt Free Digest
FREE Credit Rebuilding Course
Debt Repayment Calculator Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized guidance from a qualified financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Is shopping becoming a dangerous game? From live streams to influencer deals to 'Buy Now, Pay Later' offers—your brain's reward system is constantly being triggered to encourage constant spending.
Join us for a discussion with Credit Counsellor Charlie Kovacs, who exposes the risks tied to retailer financing, debunks the myth of discount savings, and explores the real impact these marketing 'tricks' have on your financial health. (1:30) – The Modern-Day Shopping Channel: How Retailers Keep You Hooked (4:00) – Live Shopping & Influencers: The New Age of Consumer Marketing (7:45) – Dopamine & Shopping: How Social Media Fuels Impulse Buys (14:00) – How Algorithms Are Designed to Make You Spend More (15:10) – Buy Now, Pay Later: The Rise of Consumer Credit Debt (17:00) – The Hidden Risks of Financing Through Retailers (21:00) – The Gamification of Consumerism: How Retailers Turn Shopping into a Game (23:30) – The Gamification of Credit: Why Your Debt Feels Manageable (But Isn't) (25:00) – Credit Counsellor Charlie Kovacs Explains Why Discounts Don’t Save You Money (29:00) – Everyone Is Selling Something: Recognizing the Marketing Tricks Hoyes Michalos Effective Money Management Strategies Explore Credit Card Debt Relief Why We Overspend and How To Break Bad Money Habits Sign Up for the Debt Free Digest FREE Credit Rebuilding Course
Debt Repayment Calculator Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized guidance from a qualified financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Did you know the price of your dinner tonight might be tied to decisions made in the US? Doug and Ted explain the surprising impact of the Canadian dollar on your everyday spending. They'll break down how this affects your wallet, from filling up your gas tank to putting food on the table. Discover the surprising upsides and downsides of our tightly linked economy, and as always, arm yourself with practical tips to manage your debt and build lasting financial security. Tune in to understand the forces shaping your everyday spending!
(0:00) – What’s happening with the Canadian dollar right now? (3:30) – What makes the Canadian dollar rise and fall? (5:00) – How interest rates affect the Canadian dollar (7:45) – The “reserve” currency and maintaining buying power (8:50) – How currency changes impact the average Canadian (12:00) – How US food and gas prices affect Canadians (14:00) – The pros and cons of connected economies (20:00) – Why are so many things priced in US dollars? (25:00) – The benefits of shopping Canadian (27:30) – Strengthen your finances by managing debt (29:00) – Practical tips to protect your money Trump's 25% Tariffs: Financial Survival Guide for Canadians Myths About Credit Card Debt in Canada How to Eliminate Debt in Ontario Sign Up for the Debt Free Digest
FREE Credit Rebuilding Course
Debt Repayment Calculator Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized guidance from a qualified financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Debt often gets a bad rap, but what if you could use it to your advantage?
This episode unlocks the power of strategic debt! Learn to leverage other people's money, distinguish between good and bad debt, and manage borrowing effectively. Doug and Ted, co-founders of Hoyes Michalos, provide practical strategies for building wealth with debt, including a look at crypto's role.
Learn how to make debt work for you, not against you.
(0:00) - Using Debt as a Wealth-Building Tool (4:00) - Understanding Leverage and Margin: Risks and Rewards of Investing with Borrowed Money (7:00) - Good Debt vs. Bad Debt: Identify the Difference (15:45) - Building Wealth While in Debt, Is It Possible? (17:30) - Opportunity Cost and Interest Rates (20:00) - The Challenge of Paying Interest While Building Assets (22:40) - Cryptocurrency and Debt: A Viable Investment Strategy? (24:00) - Practical Debt Management Strategies for Wealth Growth (26:30) - Strategic Borrowing: Using Debt for Investments?
Myths About Credit Card Debt in Canada How to Eliminate Debt in Ontario Is Another Loan a Good Idea? Sign Up for the Debt Free Digest
FREE Credit Rebuilding Course
Debt Repayment Calculator
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Alarming trend: Canadians are finding themselves unable to follow through on pre-con real estate purchases. So, what happens if you can’t close on a pre-construction real estate deal?
In this episode, the co-founders of Hoyes Michalos break down the reality of pre-construction deals in Canada, including assignment sales, how rising rates and blanket appraisals impact your deal, and what happens if you can’t secure financing. They also explore the legal and financial consequences of “walking away” and whether solutions like a consumer proposal or bankruptcy might apply to your situation. Walking Away From a Pre-Con Deal with Consumer Proposal What To Do When You Can’t Close The Real Problem with Pre-Con Deals by Doug Hoyes LinkedIn
(0:00) – What is a pre-construction deal in real estate? (3:30) – What is an assignment sale? (5:15) – Trends in Canadian pre-construction real estate deals (8:00) – “Blanket appraisals” and why they matter (11:45) – The financial and legal consequences of “walking away” (13:00) – Timing issues and pre-con purchases (14:00) – What happens if interest rates go up or down before your closing date? (17:00) – When builders run into problems — how it affects you (20:00) – Practical steps if you can’t close on your pre-construction home (22:00) – Can a consumer proposal help you walk away from a pre-con deal? (26:00) – Are you at risk of being sued by the builder? (28:00) – Bankruptcy: when it becomes an option for pre-construction buyers Sign Up for the Debt Free Digest
FREE Credit Rebuilding Course Debt Repayment Calculator Debt To Income Ratio Calculator Read the FULL JOE DEBTOR CONSUMER INSOLVENCY STUDY 2024 ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Canadian credit card debt is surging! Many people are feeling the squeeze of rising costs, stagnant wages, and mounting unsecured debt.
This crucial episode offers timely financial guidance on improving credit card habits (which you may not realize are hurting your finances!) and effectively managing debt.
FREE Credit Rebuilding Course (0:00) – Credit Cards Are Now the Norm, Should They Be? (4:00) – What minimum purchase amount should you charge to credit? (5:45) – The biggest problem with credit cards (7:20) – Everyone knows about interest- why do people use credit regardless? (9:00) – The positives of using credit cards (11:00) – Paying off one credit card with another – pros and cons (13:00) – Being “mindful” aka having a plan (14:00) – Gaming the points system – travel points, buy now pay later, (17:00) – Canadians are in hot water – the numbers of unsecured debt are up – prices are up and wages are not, credit cards are a survival tool (19:00) – Is debit a better idea for better financial decisions? (22:00) – Practical advice for better credit card management (27:00) – Practical advice for when credit card debt is completely unmanageable How to Pay Credit Cards
5 Ways to Survive Without Credit Cards Sign Up for the Debt Free Digest Debt Repayment Calculator Debt To Income Ratio Calculator Read the FULL JOE DEBTOR CONSUMER INSOLVENCY STUDY 2024 ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Is having zero debt the key to financial freedom, or could it hold you back? Expert Licensed Insolvency Trustees Doug and Ted explore the pros and cons of being completely debt-free, from psychological and financial benefits to the impact on your credit score and long-term opportunities. (0:00) – Introduction: What does financial independence really mean? (5:00) – Is Zero Debt a good goal for everyone? (6:15) – The benefits of being debt-free: Psychological and financial impacts (10:25) – The downside of Zero Debt: Credit score considerations (13:30) – The hidden cost of Zero Debt: Opportunity costs explained (17:00) – The role of credit: Why access to credit matters (19:00) – Debt as a financial tool: When and how to use it wisely (23:00) – Forget budgeting—why you need a financial plan instead (28:00) – Setting realistic financial goals for long-term success
Read the FULL JOE DEBTOR CONSUMER INSOLVENCY STUDY 2024 How Much Debt Does It Take To File Bankruptcy? Debt Repayment Calculator https://www.hoyes.com/debt-repayment-calculator/ Debt To Income Ratio Calculator https://www.hoyes.com/debt-to-income-ratio-calculator/ FREE Credit Rebuilding Course https://www.hoyes.com/blog/category/credit-repair/ ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Sign Up for the Debt Free Digest Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Canadians are being crushed by debt—and we have the data to prove it.
In this exclusive episode, Hoyes Michalos co-founders Doug Hoyes and Ted Michalos break down the findings from the 2024 Joe Debtor study, Canada’s leading consumer insolvency report.
Our research reveals how rising debt levels are impacting Canadians like never before. From millennials facing record-high debt to homeowners running out of options, we analyze the trends, why they matter, and what the average insolvent Canadian looked like in 2024.
You won’t hear this anywhere else—tune in for expert insights from Canada’s leading Licensed Insolvency Trustees. Read the FULL JOE DEBTOR CONSUMER INSOLVENCY STUDY 2024 (0:00) – Who is Hoyes Michalos? What is the Joe Debtor study? (2:15) – Studies vs. Surveys, and understanding the term “Consumer Insolvencies” (4:00) – Debt is Surging – even we’re shocked by the numbers (8:10) – Why did Millennials have the most significant increases in debt? (12:30) – The average monthly income of an insolvent individual in Canada (14:30) – Income is rising, but Canadians are still struggling – here’s why (17:00) – Home equity used to help people - why that’s no longer an option (20:00) – Homeowners are increasingly in debt, and vehicle loans are a huge problem (24:00) – Owing CRA: How taxes and interest rates hurt (28:00) – Key questions to ask yourself and expert advice to help your finances Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Sign Up for the Debt Free Digest Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Why is it so hard to break bad money habits? Doug Hoyes and Ted Michalos dig into the psychology of impulse buying, the powerful influence of marketing on buying decisions, and the easy-purchase pathway spending cycle that keeps so many people stuck. They share personal anecdotes from decades in the insolvency industry and provide real-world strategies for building sustainable financial habits. (0:00) – Has Ted ever regretted an impulse buy? (4:30) – Marketing tactics: how fear and urgency drive sales (8:00) – Spending triggers: product placements and targeted ads (11:00) – The Influencer Effect (15:00) – Easy purchase pathways encourage overspending (17:30) – Debt is normalized by society (19:30) – Resisting change: people are creatures of habit (21:00) – Practical tips to curb spending and build better habits (23:30) – How reflection and mindfulness can change your financial future
Dealing With Debt When Living Paycheque to Paycheque Needs vs. Wants – A Budget Should Balance Both Break The Payday Loan Cycle Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course ‘Debtasized’ Full Length Documentary – Free on YouTube Sign Up for the Debt Free Digest Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
More credit means a higher score, right? Not exactly. #debtfreein30 Many assume more loans and higher credit means a higher score, but the reality is more complex. Doug Hoyes and Ted Michalos break down how multiple loans impact your credit score and share expert advice on when accessing more credit makes sense—and when it doesn’t. (0:00) – What impacts your credit score? (5:35) – How important is your credit score in Canada’s unique rating system? (6:45) – Understanding credit utilization rate and debt-to-income ratio (9:00) – What’s the difference between hard and soft inquiries? (14:30) – The impact of credit history and canceling accounts (16:30) – Why missed payments hurt more than you think (17:40) – A fictional but realistic debt scenario (24:20) – Why dealing with your debt should be your priority—and how to start (26:00) – How to decide if taking out another loan is the right move Credit Card Debt Consolidation in Canada - What You Need to Know What is Credit History and How To Influence It What To Do About Credit Card Debt in Collections Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Sign Up for the Debt Free Digest Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Can you identify and escape the pitfalls of debt traps?
Learn from the co-founders of Hoyes Michalos how marketing and psychology fuel debt cycles. Spot the warning signs of financial trouble—from payday loans to student debt—and understand the emotional toll that debt can take. Plus, gain practical, proven strategies to break free from the cycle and achieve financial stability.
(0:00) – What is a debt trap, and how does it work? (3:30) – Inflation still stretching budgets (4:30) – The student loan dilemma (5:30) – Homeownership can be a debt trap (7:15) – Utilization Rate – borrowing more than you can handle (8:30) – Stress and the emotional toll of being trapped in debt (11:00) – How a debt traps are created– the power of marketing and psychology (21:20) – Warning signs you’re falling into a debt trap (24:30) – Practical solutions to escape the cycle of debt (27:45) – What’s really keeping you stuck in a debt trap ‘Debtasized’ Full Length Documentary – Free on YouTube HERE Payday Loan Debt Relief in Ontario: Break the Cycle Pros and Cons of Using Payday Loans in Emergencies Does Debt Consolidation Impact My Credit Score Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Are credit card points and rewards as beneficial as they seem, or are they secretly costing you more than you realize?
Doug Hoyes and Ted Michalos discuss the truths behind credit card reward systems, revealing how spending habits, annual fees, and high-interest cards may affect your financial health. Learn how credit card companies use your data, the psychology behind reward marketing, and whether these points and rewards are worth it in the long run. (0:50) – Have you changed your spending habits to earn credit card rewards? (1:45) – The history of credit card rewards: How they started and why they’re popular. (5:45) – What personal data do credit card companies collect from you? (8:00) – How credit card companies market rewards and why we’re drawn to them. (10:45) – The biggest downside of credit card rewards (12:55) – Doug and Ted's advice: How many credit cards should you really have? (14:30) – Why using high-interest cards can lead to risky financial situations. (18:20) – How credit card usage affects your credit score: Tips to avoid negative impacts. (22:30) – The overlooked cost of annual fees (26:00) – The risk of losing your points during insolvency: Use them, or lose them. (27:00) – Expert advice on credit card rewards Learn more from Hoyes Michalos: What Happens to Points If You Go Bankrupt? Pros and Cons of Preapproved Limit Increase Unpaid Credit Card Consequences Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE https://www.hoyes.com/subscribe-newsletter/ Watch the Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Real estate is often seen as the ultimate investment, but is it really?
Doug and Ted discuss the financial realities of homeownership, from the hidden costs of maintenance and repairs to the risks of negative equity, pre-con agreements, and even becoming a landlord.
This episode explains why a house may not always be the wealth-building asset it’s made out to be—especially if it’s beyond your financial reach.
(2:00) – What exactly qualifies as an investment? (3:45) – Liquidity and diversification: why they matter (6:00) – Doug’s take: a house is a consumer good, not an investment (10:00) – Why owning a home is often more expensive than renting (13:30) – The forced savings argument: does it hold up? (15:00) – Negative equity and the risks of market downturns (16:10) – Preconstruction agreements and the challenges they could bring in 2025 (18:20) – The overlooked costs of maintenance and repairs (24:15) – Forced holding: why homeownership limits your flexibility (25:45) – Renting out your home doesn’t automatically make it a profitable investment (27:20) – Ted’s perspective: is owning a house truly an investment? Learn more from Hoyes Michalos: What Happens If You Miss A Mortgage Payment? Will A Second Mortgage Clean Up Your Debts? What To Do If You Can’t Pay Deferred Mortgage Payments Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
It’s crucial to stay informed about the recent revision to the criminal interest rate cap, effective January 1, 2025. How will Canadians be impacted? Doug and Ted provide insight into potential lending trends, emerging marketing tactics, unintended consequences, and how this change will impact the most vulnerable borrowers and secondary lenders in the future.
Timestamps:
(0:30) – Short explanation of the Criminal Interest Rate
(2:40) – What is changing, and who does it impact?
(3:30) – Payday Loans and Vulnerable Borrowers
(9:20) – “Net Charge Off Rate” a rationale for high interest
(12:30) – The “dubious speculation part of the show that is not based on fact”
(14:00) - Unintended consequences – predatory lenders pivoting
(18:30) – Secondary lenders diversifying product lines? To what?
(21:00) – Microloans, Insurance, Rent to Own, and more
(28:00) – Heads up for new marketing tactics – Buyer Beware
Learn more from Hoyes Michalos:
Episode 491 of DFI30 (Thorough Background of Criminal Interest Rate)
Payday Loan in Collection? What To Do Next
Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
As 2024 comes to an end, Doug Hoyes and Ted Michalos revisit their past predictions to see what they nailed—and what surprised them.
They cover everything from inflation and insolvency to unemployment and real estate and, using the latest economic data and trends, share their evidence-based predictions for 2025. Do you agree with Doug and Ted, or do you have a different perspective to share? Let us know in the comments!
Timestamps:
(2:00) – Doug and Ted’s 2024 predictions on inflation
(6:00) – Insolvency trends and forecasts from 2024
(10:00) – Returning to pre-pandemic insolvency numbers and trending upward
(10:50) – Discussion on unemployment rates
(14:20) – A closer look at rising credit card debt
(15:15) – Real estate, homeownership, and pre-construction agreements
(19:00) – Is Canada in a recession? Examining GDP trends
(23:00) – Doug’s take: Why Canada is already in a recession
(24:00) – Predictions for 2025 in key economic areas
(26:00) – Wildcard topic: Should Canada be concerned about tariffs?
(27:00) – Insolvency Predictions for 2025
Learn more from Hoyes Michalos: Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
How do you balance financial well-being with the responsibility of supporting aging parents?
This important episode tackles the complexities of financial caregiving, highlighting the challenges of the "sandwich generation"—those caring for both children and elderly parents—all while managing personal debt.
Doug and Ted cover the pros and cons, from government benefits to taxes to practical steps for initiating conversations with your parents; you’ll learn essential tools and strategies for confidently navigating financial caregiving.
Timestamps:
(0:40) – What’s the Average Age for Insolvency? (2:00) – Understanding the “Sandwich” Generation: Caught Between Debt and Aging Parents (5:00) – Financial Caregiving Explained: What Does It Entail? (8:00) – Should You Prioritize Paying Off Debt or Helping Your Parents? (9:45) – Sidebar: Why Ted Hates Reverse Mortgages (14:00) – Government and Community Benefits for Caregivers and Their Aging Parents (16:00) – The Impacts and Downsides of Financial Caregiving (19:20) – Why Filing Taxes Is Crucial for Caregivers (22:30) – Making Tough Decisions on Behalf of Your Parents (24:00) – Practical Advice: Preparing for Financial Caregiving (28:00) – How to Start the Money Conversation with Your Parents
Learn more from Hoyes Michalos: Cosigned Debt in a Consumer Proposal Power of Attorney – Can I Deal With My Parents Debts? Debt Repayment Calculator Debt To Income Ratio Calculator FREE Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Have you ever stopped to consider the real costs—and sacrifices—of borrowing someone else’s money?
Whether it’s a mortgage, car loan, or another form of financing, the hidden fees, penalties, and long-term credit impacts can quickly add up. Beyond the numbers, debt can bring stress, limit opportunities, and force tough choices in your personal and professional life.
Doug Hoyes and Ted Michalos provide expert insights to help you confidently navigate borrowing, avoid costly mistakes, and make decisions that protect your finances and peace of mind.
Timestamps:
(1:00) – Get Interested in Your Interest Rates
(3:25) – Understanding Origination Fees and Insurance Costs
(8:05) – Why Doug and Ted Recommend Paying on Time
(10:15) – Prepayment Penalties and Other “Hidden” Fees
(15:10) – Discretionary Spending or Needing to Borrow More
(17:10) – How Borrowing Impacts Your Credit Score
(19:30) – Debt Causes Stress and Limits Opportunities
(21:15) – Why Banks Encourage You to Finance
(24:00) – Practical Advice – How to Read Your Loan Contract
(26:50) – The Bottom Line: Calculating the Total Cost
(29:00) – Knowing When to Seek Professional Help
Learn more from Hoyes Michalos: Debt Repayment Calculator Debt To Income Ratio Calculator Budgeting Course Sign Up for Our Newsletter HERE Smart Borrowing and Loan Management Tips Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Is the thought of maxed-out credit cards keeping you up at night? This guide unpacks the pitfalls of credit card debt and offers clear strategies to break free from the cycle.
Doug Hoyes and Ted Michalos discuss why your credit utilization rate matters, how many credit cards you should really have, the pros (but mostly cons) of opening new credit accounts, and the best options when you’re in a pinch.
(1:45) – What’s the problem with maxing out your credit cards?
(4:00) – How a credit card should be used (cash substitute vs. borrowing tool)
(5:00) – Credit limit, available credit, and utilization rate – what’s the difference?
(7:00) – Strategies for a maxed-out situation: Short-term fixes that work.
(8:45) – Taking out additional credit cards: A double-edged sword.
(11:15) – Should you have one or two credit cards? More?
(14:30) – Signs your financial situation is serious: When to seek help.
(16:15) – Practical advice for maxed-out cards
(19:30) – The downside of debt consolidation loans
(23:40) – Can calling your bank help? Exploring referral programs and renegotiation.
(27:00) – Consumer proposals explained: Why creditors accept less payment.
Learn more from Hoyes Michalos: Budgeting Course Sign Up for Our Newsletter HERE Should You Pay Credit Card Debt With Another Credit Card? Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Many Canadians have seasonal employment or variable income, making financial planning more complex.
Doug Hoyes and Ted Michalos provide practical strategies for managing income fluctuations, saving effectively, dealing with debt, and handling taxes during off-seasons.
This episode is a must-listen for anyone navigating seasonal employment or variable income.
Timestamps:
(2:00) – The Seasonality of Jobs: Challenges for Canadian workers
(4:00) – Saving Money: Why it’s easier said than done
(6:45) – Financial Planning: Why every seasonal worker needs a plan
(8:50) – E.I. Eligibility in Canada: Can you qualify during the off-season?
(10:00) – Emergency Funds: Essential for seasonal employment stability
(12:15) – Boosting Income: ways to earn extra during off-seasons.
(15:20) – Strategic Use of Credit Cards
(16:30) – Pay Off Debt or Invest? How to prioritize your money
(19:00) – Smart Savings: Where to put your money
(22:00) – Taxes for Seasonal and Self-Employed Canadians: What to know
(25:00) – Staying Flexible: Preparing for life’s financial uncertainties
Learn more from Hoyes Michalos: Managing Money on a Variable Income First-time Home Buyer Podcast Credit Rebuilding Course Sign Up for Our Newsletter HERE Hoyes Michalos YouTube Channel Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Straight Talk on Your Money by Doug Hoyes Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Struggling to stay motivated while repaying debt? You're not alone!
Charlie Kovacs, BIA Insolvency Counselor with Hoyes Michalos, joins Debt Free in 30 to share practical strategies to help you stay focused, celebrate small victories, and shift your mindset from guilt to empowerment.
Whether juggling student loans, tackling "life quakes," or just figuring out how to prioritize debt, this episode offers expert advice to keep you on track. Sign up for the monthly Debt Free Digest HERE
Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn
Credit Rebuilding Course
Timestamps
(2:50) – Is Tracking Progress Essential for Debt Repayment?
(4:30) – The Power of Small, Daily Financial Decisions
(5:40) – How Often Should You Review Your Progress?
(6:40) – Celebrating Wins: The Role of Little Rewards
(8:30) – Ontario Student Loans: Current Trends
(10:15) – Prioritizing Debt: Revolving vs. Installment Loans
(11:20) – Life Quakes: Handling Major Financial Disruptions
(15:30) – How a Financial Professional Can Transform Your Debt Journey
(18:20) – Support Systems: Friends and Family's Impact on Motivation
(20:50) – Shifting Your Financial Mindset
(25:00) – Your Emergency Fund’s Purpose
(28:30) – Practical Advice for Tracking Progress
Should I Pay Off a Credit Card with a Credit Card? Can You Be Forced into Involuntary Bankruptcy? Straight Talk on Your Money by Doug Hoyes
Hoyes Michalos Blog Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
If you’re a homeowner in Canada, you can’t miss this episode! Canadian homeowners are increasingly facing the tough reality of missed payments and rising financial pressures.
Licensed Insolvency Trustee Scott Terrio joins Debt Free in 30 to unpack the potential warning signs of mortgage trouble, troubleshoot possible solutions, and provides guidance on how to handle worst-case scenarios.
Timestamps:
(1:25) – Canada is at the beginning of a mortgage crisis
(3:50) – Early warning signs of potential mortgage struggles
(8:30) – What to do if you think you might miss a payment
(11:00) – Mortgage deferral programs: How they work
(12:40) – Refinancing or modification of your mortgage
(15:00) – HELOCs (Home Equity Line of Credit)
(17:15) – Selling your house: An extreme or smart option?
(23:15) – If you miss one payment what exactly happens?
(25:45) – Consequences of missing multiple payments
(27:45) – Worst-case scenario: How it unfolds
(28:55) – Can you buy a home again if you lose your current one?
(32:30) – Why an insolvency proceeding might be a good idea
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A, and more! Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Sign Up for Our Newsletter HERE
Credit Rebuilding Course
What Happens If You Miss a Mortgage Payment? Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
How do you know if you're financially fit?
Doug Hoyes and Ted Michalos break down the essentials of financial "fitness", covering the importance (or unimportance) of positive net worth, stable cash flow, emergency funds, retirement planning, life insurance, budgeting, and more. This episode is packed with expert insights to help you evaluate your financial health and make informed decisions for a financially “fit” future.
Timestamps:
(0:45) – Ted Michalos on Financial Literacy Month
(2:00) – What does it mean to be financially "fit"?
(3:35) – Defining positive net worth and positive cash flow, which is more important?
(7:30) – Example of a cash flow analysis
(9:10) – The importance of an emergency fund (do you need one?)
(12:00) – Is a retirement plan essential?
(14:30) – Financial jargon sounds complex – Doug and Ted keep it practical
(16:00) – Do you need a budget or any financial plan at all?
(21:30) – Setting a savings goal: Why it matters
(24:30) – Life insurance and financial security
(25:00) – Final financial literacy advice from Doug and Ted
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A, and more! Hoyes Michalos InstagramHoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X) Hoyes Michalos LinkedIn Episode Links Why Budgets Fail and How to Succeed Straight Talk on Your Money by Doug Hoyes Hoyes Michalos Blog Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Ready to break all the budgeting rules? This episode is a lively debate that flips the script on traditional money management. Doug Hoyes isn’t holding back on his opinions about the Government of Canada’s “Financial Literacy Month,” challenging its effectiveness and taking a skeptical eye to the budgeting advice we’ve all heard before. Maureen and Doug discuss outdated budgeting norms, explore innovative approaches, and provide expert-backed tips for rethinking your money strategies. Join the conversation! Comment and let us know whose approach you more strongly align with—or maybe you have your own budgeting philosophy to share?
Timestamps:
(1:00) – Why “Financial Literacy Month” might be missing the mark
(2:30) – The truth about budgeting: why it often doesn’t work
(5:35) – A breakdown of popular budgeting styles… and why Doug thinks they fail
(10:50) – Pre-budget essentials: what you need to do before creating a budget
(16:00) – The pitfalls of old-school budgeting and how to revamp it
(19:00) – Zero-Based Budgeting vs. its polar opposite: which works best?
(23:30) – When budgets spiral out of control and what you can do about it
(27:00) – Real-world money management advice from top experts
(30:20) – Are you on Team Doug or Team Maureen? Share your budgeting philosophy!
Episode Links: Why Budgeting is A Bad Idea 7 Reasons Budgets Fail
Straight Talk on Your Money by Doug Hoyes Hoyes Michalos Free Money Management Resources Find a Hoyes Michalos Office in Your Area Here
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A, and more! Hoyes Michalos InstagramHoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn
Disclaimer:The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
How much do you really know about the impact of credit cards on your credit score?
Doug Hoyes and Ted Michalos bust common myths and reveal the true influence of credit cards on your financial health. Learn how credit scores work, get expert tips on managing your credit responsibly, and explore strategies to improve your credit standing. Whether you're new to building credit or refining your approach, these actionable insights will empower you to make smarter financial decisions.
Timestamps:
(1:00) – What’s more important than a credit score?
(6:00) – Breaking down the algorithm behind your credit score
(10:30) – Credit vs. Debt: Understanding utilization rates
(13:30) – Soft vs. hard credit inquiries—what you need to know
(15:20) – The right way to manage your credit card
(18:00) – Payment history is more important than you think
(21:00) – Financial stability tips
(24:00) – When should you actually check your credit score?
(27:30) – Should you use credit cards to build credit? Final Answer
Episode Links
DEBTASIZED Documentary What is Credit History? What is Revolving Credit? How Long Does it Take to Get Credit Back After Bankruptcy? Straight Talk on Your Money by Doug Hoyes Hoyes Michalos YouTube Hoyes Michalos Blog Find a Hoyes Michalos Office in Your Area Here
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A, and more! Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Is all debt bad, or can borrowing sometimes be a smart financial move?
Doug Hoyes and Ted Michalos discuss debt’s dual nature as both a financial tool and a potential burden. They break down the differences between "good debt" and "bad debt," providing clear advice on assessing what's manageable, when taking on new debt might be a smart move, and how to avoid common pitfalls.
Tune in for actionable insights on leveraging debt without letting it control your financial future!
Timestamps:
(0:00) – Conventional advice on “good debt” and “bad debt” (4:30) – Understanding your Debt-to-Income Ratio (DTI) (6:00) – Can you afford the payment? Key considerations (10:45) – Warning signs you have too much debt: What to watch out for (19:40) – Managing your Credit Utilization Rate (21:50) – Feeling stressed about debt? You have too much. (23:30) – How to assess the risks of taking on new debt (26:00) – Debt as a financial tool: Pros and cons (27:30) – Strategies for dealing with financial distress caused by debt
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A, and more! Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTok Hoyes Michalos Twitter (X)Hoyes Michalos LinkedIn
Hoyes Michalos YouTube
Debt Free in 30 YouTube Resources: Straight Talk on Your Money https://www.hoyes.com/straight-talk/ Hoyes Michalos Blog Doug Hoyes on X Find a Hoyes Michalos Office in Your Area Here Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Back by popular demand: Canadian credit collector Blair DeMarco Wettlaufer! Even if you’re not currently dealing with prohibited debt collectors, this eye-opening episode is captivating and informative. Learn about your rights as a Canadian consumer, the tactics some creditors use to pressure debtors, and how to protect yourself from unethical and illegal debt collection practices. Covering key topics such as re-aged debt, prohibited collection methods, and how technology is transforming the debt collection industry. Whether you’re managing debt or simply want to be informed, this episode provides essential knowledge to help safeguard your financial future.
Timestamps: (0:00) - Introduction of Blair DeMarco Wettlaufer from Kingston Data and Credit (1:10) - Provincial differences in debt collection laws (2:25) - Why should creditors follow the rules? (5:15) - Common unethical creditor tactics (6:40) - Re-aged debt: What it is and how to avoid it (11:10) - Tips on making arrangements with creditors (17:25) - Predictive dialers and the impact of new technology (23:55) - Challenges with email communication in debt collection (27:45) - Are you talking to an AI collector without realizing it? (29:55) – Behind the curtain of prohibited practices in debt collection
We release new content every weekday! Follow our socials for funny podcast clips, money management tips, Q+A’s, and more! Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Resources:
Straight from the Horse’s Mouth - Things Collection Agents Can and Cannot Do With The Credit Bureaus
Your Top Debt Collections Questions Answered! Navigating Debt Collectors: Practical Advice Hoyes Michalos YouTube Hoyes Michalos Blog Doug Hoyes on X Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
A loved one can leave assets in their will, but what about debts? Can you inherit debt? What makes you legally responsible for debt, and what should you do if creditors come calling?
Doug Hoyes and Ted Michalos tackle common concerns about a sensitive topic with a touch of lighthearted fun. They discuss joint accounts and credit cards, the role of executors, and life insurance paying off mortgages. They break down what happens to debt after death in Canada and offer important advice for seniors and families planning their financial futures. Whether you're an executor, a spouse with joint accounts, or just curious, this episode provides clear (and candid) answers and essential insights for Canadians.
Timestamps:
(0:00) Creditors Calling About a Loved One’s Debts
(2:30) Joint Credit Cards and Supplementary Credit Cards
(5:30) Estates and Executors
(8:10) Can You Go Bankrupt After Death?
(9:00) Can You File a Consumer Proposal for a Deceased Person?
(9:50) Key Responsibilities of an Executor When Managing Debt
(11:00) Should You Have a Joint Account with Your Spouse (or Anyone Else)?
(14:10) Using Life Insurance to Pay Off Mortgages: What You Need to Know
(17:00) Planning for the Future: Family Conversations About Debt
(19:00) Advice for Seniors: What Happens to Your Debts After Death?
(26:00) The Final Answer: Can You Inherit Debt in Canada?
Follow us: Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Resources: What Happens to Debt When You Die in Canada Hoyes Michalos YouTube Hoyes Michalos Blog Doug Hoyes on X Find a Hoyes Michalos Office in Your Area Here
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Is credit repair a scam? Learn the truth from experts about repairing damaged credit, understanding credit scores, and managing debt. Doug Hoyes and Ted Michalos explain essential topics like credit utilization rate, responsible credit card usage, and when you should worry about your credit score.
Whether you’re working to rebuild your credit or aiming to maintain a healthy score, this episode is full of practical advice on credit and debt management for all Canadians.
Timestamps:
(0:00) Humorous introduction: Doug Hoyes and Ted Michalos on modern credit
(2:00) Should you worry about your credit score?
(5:10) Credit utilization rate and access to debt
(7:40) How many credit cards are too many?
(11:10) Can items be removed from your credit report?
(12:25) How often should you check your credit report?
(14:00) Practical strategies for reducing debt
(17:10) What is a consumer proposal? How does it impact your credit score?
(20:00) Why saving cash is more important than you think
(21:50) The importance of paying your bills on time
(24:00) The “223 Rule” explained
(26:00) Two new “trade lines” and additional credit repair tips Subscribe to the DFI30 Newsletter here (only one email per month!)
Follow: Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Episode Resources:
Rules to Master Your Credit with Richard Moxley
Why Are Credit Reports Always Wrong? Fixing Errors w/ Richard Moxley “The Credit Game: Play To Win – Richard Moxley”
Straight Talk On Your Money – Doug Hoyes
Hoyes Michalos YouTube Hoyes Michalos Blog Doug Hoyes on X Find a Hoyes Michalos Office in Your Area Here Disclaimer:The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Does it feel impossible to make any progress with your debt? Getting out of debt is a battle against high interest rates, financial traps like payday loans, and the emotional toll that debt takes on your mental health.
Doug Hoyes and Ted Michalos explore the hidden factors that keep you stuck, from the predatory lending practices that pile on to your balance to the family pressures and stress that make it harder to break free. Learn how to stop the cycle of borrowing and why ignoring debt only makes things worse. Discover the tools available to help you, including guidance from licensed insolvency trustees who will review all the options available to you and your unique financial situation.
You can get out of debt! 🎧 Subscribe to the Debt Free in 30 Podcast, hit the notification bell 🔔, and follow us on social media for actionable expert advice. Timestamps:
(0:00) Introduction: Debt is more common than you think
(2:00) How debt accumulates over time
(3:50) The math of debt: Interest rates
(6:05) Predatory lending and the danger of payday loans
(8:10) Why a consolidation loan isn’t a simple fix for everyone
(12:00) Family pressures and their impact on your debt decisions
(13:55) Mental health struggles: Why many ignore their debt problems
(15:30) Debt fatigue: What it is and how it affects your motivation
(16:50) What happens when you ignore your debt and where to turn for help
(20:25) Step 1: How to begin tackling your debt
(25:25) Professional help: Realizing when your debt is too much
(28:00) The role of a Licensed Insolvency Trustee and exploring your options
Follow: Hoyes Michalos InstagramHoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Resources: Hoyes Michalos YouTube Hoyes Michalos Blog Doug Hoyes on X Find a Hoyes Michalos Office in Your Area Here DEBTASIZED DOCUMENTARY Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Thinking about starting a side hustle or going out on your own? Whether you're a seasoned entrepreneur or a first-timer, this insightful episode with author and business expert David Barnett is packed with valuable advice.
David returns to Debt Free in 30 to delve into starting or buying a business out of necessity. Discussing the importance of market research—when it’s needed and not—along with creative strategies for securing funding when resources are scarce. He also provides practical guidance on starting with limited or no capital, and the types of businesses that align with your abilities, financial situation, and more.
Timestamps:
(0:00) Introduction to David Barnett: Business Broker, Consultant, and Entrepreneur
(3:50) Excerpt from David’s Book: Why People Start Businesses Out of Necessity
(5:25) Choosing the Right Business When You Have to Start One
(6:40) Effectuation: Starting a Business Based on What You Can Do
(10:00) Conducting Market Research for Your Business Idea
(12:00) Starting a Business with No Money: Is It Possible?
(16:50) Top Tips for Launching a Business Without Capital
(19:50) Exploring Funding Sources for Small Businesses
(21:20) Side Hustles While Keeping Your Day Job
(22:30) Deciding Whether to Buy or Start a Business
(26:40) Understanding Bank Lending Motives for Business Loans
(29:30) The Importance of Community Support in Business
🎧 Subscribe to the Debt Free in 30 Podcast, hit the notification bell 🔔, and follow us on social media for actionable expert advice Hoyes Michalos Instagram Hoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn
Episode Resources:
David Barnett YouTube Hoyes Michalos YouTube David’s New Book: “Starting or Buying a Business” David Barnett’s Website
David’s Online Business Course Hoyes Michalos Blog
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Welcome to Season 11, unofficially deemed our practical era.
Are your expenses outpacing your income? With inflation rising and wages lagging, many Canadians are feeling financial strain. Doug Hoyes and Ted Michalos discuss why government stats might not tell the whole story, why lowering interest rates won’t solve everything, and share practical advice for anyone struggling to keep up with debt.
Timestamps:
(0:00) Spending More, Not Making More? Hilarious Season 11 Premier with Doug Hoyes and Ted Michalos (1:00) How Different Groups Have Fared from 2019 to Now (3:00) Discrepancies in Government Stats: Inflation vs. Wage Growth (4:50) How Has Everyone Been Coping with Rising Prices and Stagnant Wages? (8:10) Looking Ahead: Why Falling Behind Might Be Inevitable for Some (9:20) Bank of Canada Rate Cuts: Why They Won't Make a Big Impact (10:28) The Reality of Recession: Focusing on the Most Vulnerable (13:10) The Pitfalls of Side Gigs and Increasing Income (14:50) Strategies to Decrease Expenses (17:22) Mindset Matters: Breaking Out of Unhelpful Financial Habits (19:15) The Future of Debt Free in 30: What to Expect
Master Your Money! Subscribe to the Debt Free in 30 podcast, enable notifications, and follow us on socials for practical expert advice and engaging content: Watch: Debt Free in 30 YouTube Follow: Hoyes Michalos InstagramHoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Resources:“Joe Debtor” Hoyes Michalos Annual Bankruptcy StudyRising Interest Rates and Debt – Current Rates Tips to Avoid Debt Inflation is Driving Up Credit Card Usage What To Do? Advice for Overwhelming Debt Disclaimer:The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized guidance from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Pros and Cons of Budgeting: What Works, What Doesn't, and What to Do Instead | Debt Free in 30 | Episode 522
Is budgeting the best way to manage your finances, or is there a more practical approach? Debt Free in 30’s Doug Hoyes discusses the pros and cons of budgeting, breaking down popular budgeting methods like the 50/30/20 rule and the practicality of saving 20% of your income. Explore why traditional budgets can often be overly simplistic, why it’s hard to start budgeting, and how to find a method that truly works for you. Doug shares his perspective on effectively managing money without being a "budget guy" and offers practical tips for those who struggle with budgeting. From understanding different budgeting styles to finding the right balance between debt repayment and saving, this season finale has everything you need to know to make budgeting work for you. Episode Timestamps:
(0:00) Doug Hoyes Isn’t a “Budget Guy”
(0:50) Maureen Explains the 50/30/20 Budget Concept
(4:20) Is Traditional Budgeting Overly Simplistic?
(5:50) Doug Reconsiders His Stance on the Value of Budgeting
(6:45) Budgeting Based on Pay Cycle
(9:50) Is Saving 20% of Your Income Realistic? A Breakdown of Saving vs. Debt Repayment
(14:40) Annual Budgeting: Why It Can Be Helpful and Practical Tips
(19:20) Consumer Proposal Budgeting Sessions: What to Expect
(21:20) Overcoming Difficulties of Starting a Budget
(22:10) Exploring Budgeting Styles
(23:45) The Importance of Being Realistic in Budgeting and Making Tools Work for You Stay ahead of financial challenges with expert advice delivered straight to your device. Subscribe to Debt Free in 30, turn on notifications, and follow us on your favorite social channels for more entertaining and educational content. Watch: YouTube Listen: AppleSpotify PodbayDeezerAmazon Music Follow: Hoyes Michalos InstagramHoyes Michalos Facebook Hoyes Michalos TikTokHoyes Michalos Twitter (X)Hoyes Michalos LinkedIn Resources:“Joe Debtor” Hoyes Michalos Annual Bankruptcy StudyZero Based Budgeting – Giving Every Dollar a Purpose 7 Reasons Budgets Fail and How to Succeed Budget Mistakes to Avoid (Youtube)Is the 50-30-20 Budget Rule Do-Able Today? Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
In this eye-opening episode of Debt Free in 30, host Doug Hoyes dives into the world of debt collection with Blair DeMarco of Kingston Data and Credit. Together, they unravel the complexities of debt collection and help you understand your rights from initial contact to facing settlement offers or legal threats. Whether you're grappling with old debts or dealing with aggressive collectors, this episode equips you with the knowledge and strategies you need to protect your credit and manage your debt effectively.
Timestamps and Titles:
00:00 - Introduction with Guest Blair DeMarco – How Collection Agencies Work
03:05 The Collection Process: Best Questions Answered
06:05 Understanding Your Rights: Statute of Limitations and Credit Reporting
12:10 Can You Be Sued by A Collection Agency? 15:00 Old Debt – How It’s Affecting Your Credit and What to Do About It 17:45 Insights on Handling Aggressive Debt Collectors 20:10 Consumer Proposals and Stay of Proceedings – Navigating Your Options
21:45 Debt Re-Aging – Creditors Can Reset the Clock
24:45 What to Say When Debt Collectors Call Stay ahead of financial challenges with expert advice delivered straight to your device. Subscribe and turn on notifications here: Watch: YouTube Listen: Apple Spotify Podbay Deezer Amazon Music
Resources: Kingston Data and Credit Wage Garnishing: Know Your Rights Frozen Bank Accounts: What You Can Do Next
Stop Debt Collection Calls for GOOD
Special Thanks: Blair DeMarco Scott Terrio Disclaimer The information provided in the Debt Free in 30 podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Explore essential financial topics and practical advice to overcome debt and achieve financial stability. If you’re struggling with high-interest debt, considering installment loans, or exploring mortgage refinancing, this compilation video offers valuable tips and actionable advice. Financial expert Doug Hoyes, co-founder of Hoyes Michalos, and his guests provide insights into effective debt management strategies, including the benefits and pitfalls of various financial tools and methods. Discover expert guidance on avoiding high-interest traps, practical steps for debt repayment, and effective strategies for reducing debt.
Timestamps: 0:00 Understanding Debt: What You Need To Know
2:55 What Are Installment Loans for Credit Cards?
8:30 Expert Credit Card Advice: Secrets Banks Don’t Share
10:45 Variable vs. Fixed Mortgage Rates Explained
11:45 Should You Sell Your House to Eliminate Debt?
16:00 Consumer Proposals: Mortgages and Home Equity
18:40 Considering Refinancing Your Mortgage
20:40 Avoiding High-Interest Debt Traps
21:50 Debt Consolidation Loans: Problems and Pitfalls (feat. Scott Terrio)
24:20 Installment Loans and Payday Lender Risks (feat. Scott Terrio)
28:10 Effective Ways to Start Paying Off Debt - Snowball vs. Avalanche
33:10 What to Do When Debt Repayment Methods Fail
Never miss a practical tip on improving your financial health. Subscribe below where you listen to podcasts: YouTube Apple Spotify Podbay Deezer Amazon Music
Resources:
Credit Card Debt Consolidation in Canada: What You Need to Know
Dealing With Debt Living Paycheque to Paycheque
Consumer Proposal FAQ’s Answered
Hoyes, Michalos and Associates YouTube Channel How To Deal With Higher Interest Rates When Debt Consolidation Doesn’t Go As Planned Rising Interest Rates And Debt: What Can You Do?
Special Thanks:
Scott Terrio - Manager, Consumer Insolvency at Hoyes Michalos https://ca.linkedin.com/in/scott-terrio
Disclaimer The information provided in the Debt Free in 30 podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.
Can You Improve Your Credit Score Without Debt? | Debt Free In 30 | Ep 381. If you’re new to credit or have recently completed an insolvency filing, you may be thinking about ways to improve your credit score without taking on more debt. While debt is necessary to have in order to build your credit, there are some strategies to improve your credit score without taking on more debt. On today’s podcast, Maureen Parent, LIT, returns to discuss what makes up a credit score and how you can strategically improve it without a lot of additional debt. She also talks about the importance of utilization rates, how to build a long credit history, why cash savings and rent payments don’t count towards your score, and what to avoid so you don’t harm your credit. Tune in for lots of practical advice!
Links: How to Check Your Credit Report for Free: https://www.hoyes.com/blog/how-to-check-your-credit-report/
Straight Talk on Your Money by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
Discover why chasing after more credit to achieve financial freedom may not be the most effective strategy, how it creates dependencies, and learn alternative paths to be more independent.
Links:
What To Do When You Have Too Much Debt to Handle: https://www.hoyes.com/blog/what-to-do-when-you-have-too-much-debt-to-handle/
You’ve got some extra cash. Should you pay down debt or invest it? In this episode, Doug and Ted discuss whether to use your extra money to tackle high-interest credit card debt, invest in an RRSP, or pay down a mortgage. They’ll also share their advice on what steps to take if you’re unable to pay off your debt—like turning to a consumer proposal. Tune in to learn how to effectively manage your finances and make the most of your money.
Time Stamps:
00:00 Pay off debt on your credit card
02:53 Pay off debt or put money in an RRSP?
04:54 Pay off your mortgage or invest in an RRSP?
06:16 Investing may be better than paying off debt for first time home buyers
07:03 Investing makes sense when you inherit a lot of money
08:08 RISK
11:42 The smart way to pay off your debt
13:17 Is there an advantage to paying off a secured debt vs an unsecured debt?
16:19 If you can’t pay your debts you can file a consumer proposal
21:29 Receiving a lump sum of money during a consumer proposal
27:18 Final thoughts
Related Links:
Should You Pay Down Debt or Invest in RRSP? - https://www.hoyes.com/blog/pay-down-debt-or-invest-in-rrsp/
Who Can File a Consumer Proposal? - https://www.hoyes.com/blog/who-can-file-a-consumer-proposal/
Calculating Payments in a Consumer Proposal - https://www.hoyes.com/blog/calculating-payments-in-a-consumer-proposal-the-last-step/
How to File a Consumer Proposal in Ontario - https://www.hoyes.com/consumer-proposals/filing-consumer-proposal-process/
Consumer Proposal Help When Expecting Lump Sum Payments - https://www.hoyes.com/blog/consumer-proposal-when-lump-sum-payments-received/
Hidden cameras reveal how big banks are upselling you (Marketplace) by CBC - https://youtu.be/htm38oM5WFE?si=jNfQ-euLVoS-p7Sn
Pay Down Debt or Invest Calculator - https://www.getsmarteraboutmoney.ca/calculators/pay-down-debt-or-invest-calculator/
Pay Down Your Mortgage, or Contribute to an RRSP? - https://www.taxtips.ca/rrsp/pay-down-mortgage-or-contribute-to-rrsp.htm
Should You Ever Borrow Money to Invest? - https://youtu.be/XSTycxxd4Zc?si=KODHy7BZ28x52Qc4
Doug is joined by BIA Insolvency Counsellor Charlie Kovacs. They discuss banking in the digital age and cover topics such as service fees, chequing accounts, digital transactions, payment methods (digital vs. cheques), prepaid cards, credit scores, mobile payment options, how to manage digital finances, free tax filing, and finding the best bank rates online. If you're new to digital banking or eager to learn insider tips from finance experts, this episode is a must-listen!
Time Stamps:
00:00 Introduction
01:25 How can you bank for free?
03:55 Using a mobile app for depositing cheques
05:14 Why do you have to open a new bank account if you file a consumer proposal or bankruptcy?
07:36 Cheques vs E-transfer
08:23 Debit Cards, Credit Cards, Prepaid Cards
14:57 What is the difference between a loadable credit card and secured credit card?
18:20 How do you keep track of your money digitally?
25:11 How do I file my taxes for free?
27:15 Shop around for the best rates
31:46 Final thoughts
Related Links:
Why You Should Bank at More Than One Bank - https://www.hoyes.com/blog/why-you-should-bank-at-more-than-one-bank/
Why Do I Need To Switch Banks? I Love My Bank - https://www.hoyes.com/blog/why-do-i-need-to-switch-banks-i-love-my-bank/
How to Open a New Bank Account For A Bankruptcy or Consumer Proposal - https://www.hoyes.com/blog/opening-a-new-bank-account-bankruptcy-consumer-proposal/
Selling your assets to pay off debt can be tricky. Depending on the asset, there may be unforeseen costs. Cashing in your savings may not completely deal with your debt problems. You may, in fact, have better options to eliminate your debt without losing your assets at all. Today we talk with Ted Michalos to explore how to pay off debt when you have assets.
Time Stamps:
00:00 Introduction
02:43 Are all assets treated the same?
06:31 Cashing out your RRSP to pay debt
13:50 Should you file a consumer proposal or bankruptcy?
22:39 Are RESP’s protected in a bankruptcy?
25:43 Owning a house and filing bankruptcy
30:44 Final thoughts
Related Links:
Should I Sell My Assets to Pay Off Debt?- https://www.hoyes.com/blog/should-i-sell-my-assets-to-pay-off-debt/
Should I Use My RRSP to Pay Off Debt? – https://www.hoyes.com/blog/should-i-use-my-rrsp-to-pay-off-debt/
Who Can File a Consumer Proposal? - https://www.hoyes.com/blog/how-much-debt-does-it-take-to-file-bankruptcy-in-canada/
How Much Debt Does it Take to File Bankruptcy in Canada? - https://www.hoyes.com/blog/how-much-debt-does-it-take-to-file-bankruptcy-in-canada/
How Do I Get Out of Debt Without Losing My Home? - https://www.hoyes.com/blog/how-do-i-get-out-of-debt-without-losing-my-home/
Can’t Pay Your Mortgage? Options To Keep Your Home- https://www.hoyes.com/blog/cant-pay-your-mortgage-options-to-keep-your-house/
Complete Guide to Bankruptcy and Mortgage Foreclosure - https://www.hoyes.com/blog/complete-guide-to-bankruptcy-and-mortgage-foreclosure/
In this episode, Doug and Ted address the growing issue of payday loans among seniors, highlighting factors such as fixed incomes, rising living expenses, and predatory lending practices. They also discuss the financial strain of supporting adult children and the risks associated with co-signing loans. Tune in for practical advice on managing debt, avoiding scams targeting seniors, and navigating financial challenges in retirement.
Time Stamps:
00:00 Introduction
01:48 Why are payday loans a problem if you are a senior?
04:03 How does a senior end up in debt?
05:45 Payday loans and rapid loans
08:10 Seniors supporting their adult children
10:38 Seniors carrying debt into retirement
11:54 Practical advice
12:30 How can you tell if your parents are in debt?
15:13 How to retire with no debt
21:12 Seniors and financial scams
22:55 Co-signing loans for friends and family
25:00 Should seniors’ cash in their RRSP to pay off debt?
27:15 Should seniors file a consumer proposal or bankruptcy?
Related Links:
Seniors Turning to Payday Loans a Scary Trend - https://www.hoyes.com/blog/seniors-turning-to-payday-loans-a-scary-trend/
Debt relief for seniors. What are your options? - https://www.hoyes.com/blog/debt-relief-for-seniors-what-are-your-options/
Do Senior Citizens Need to File Bankruptcy? - https://www.hoyes.com/blog/do-senior-citizens-need-to-file-bankruptcy/
Seniors – A Small Group Carrying High Risk Debt - https://www.hoyes.com/blog/seniors-a-small-group-carrying-high-risk-debt/
Seniors in Debt and Filing Bankruptcy - https://www.hoyes.com/press/joe-debtor/seniors-and-bankruptcy/
Managing Money in Your Golden Years - https://www.hoyes.com/newsletter/managing-money-in-your-golden-years/
In this episode, Doug and Ted discuss the challenges of credit card debt and the struggles the average person faces in today's economy. They touch on the impact of food and shelter inflation, the rise in credit card debt leading to insolvencies, and the decline in homeownership. They also share their predictions for the future, including whether inflation will continue to rise, and offer their advice on how to navigate these tough times.
Time Stamps:
00:00 Introduction
00:44 Why did credit card debt drop during the pandemic?
03:05 Inflation rate for food
04:16 Shelter inflation
05:45 Credit card debt leads to insolvencies
08:15 How inflation and credit card debt affects everyone
14:35 Why are we not seeing homeowners?
16:52 Predictions
19:32 Practical advice
Related Links:
What to Know About Credit Cards So You Use Credit Wisely - https://www.hoyes.com/blog/what-to-know-about-credit-cards-so-you-use-credit-wisely/
Unpaid Credit Card Debt: What Are the Consequences? – https://www.hoyes.com/blog/unpaid-credit-card-debt-what-are-the-consequences/
Can Bankruptcy Stop a Tenant Eviction for Rent Arrears? - https://www.hoyes.com/blog/can-bankruptcy-stop-a-tenant-eviction-for-rent-arrears/
Can’t Pay Your Mortgage? Options To Keep Your House – https://www.hoyes.com/blog/cant-pay-your-mortgage-options-to-keep-your-house/
Renewing Your Mortgage as Rates Change -https://www.hoyes.com/blog/get-ready-for-higher-interest-rates/
Statistics Canada. Table 36-10-0639-01 Credit liabilities of households (x 1,000,000) -https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted -
https://www150.statcan.gc.ca/n1/en/catalogue/1810000401
Bank of Canada, Monetary Aggregates https://www.bankofcanada.ca/rates/indicators/key-variables/monetary-aggregates/
In this episode, Doug and Maureen tackle a common financial question: should you build an emergency fund first or pay off debt? They explain why prioritizing an emergency fund can be important, even if you have debt. Learn how developing a savings habit can shield you from unexpected expenses and stop lenders from reducing your credit limit. They also discuss the risks of relying solely on debt for emergencies and how savings can keep you financially secure. Plus, they cover the benefits of paying off debt first, like saving on interest, boosting your credit score, and having the option to use credit for emergencies.
Time Stamps:
00:00 Introduction
01:50 What do you use your emergency fund for?
02:59 Reasons why an emergency fund is more important than paying down debt
06:40 The habit of savings
11:11 How much does your emergency fund need to be?
15:20 Where should you put your emergency savings?
23:11 Why should you pay off debt first before saving for an emergency fund
29:12 Final thoughts
Related Links:
Emergency Fund Critical For Single Parents - https://www.hoyes.com/blog/emergency-fund- - critical-for-single-parents/
Why You Need an Emergency Fund - https://www.hoyes.com/blog/why-you-need-an-emergency-fund/
Emergency Fund or Credit Card Debt? What’s the Better Choice? - https://www.hoyes.com/blog/emergency-fund-or-credit-card-debt-whats-the-better-choice/
Which Debts Should You Pay First? - https://www.hoyes.com/blog/which-debts-should-you-pay-first/
Dr. Brad Klontz Financial Psychologist - https://www.bradklontz.com/
Doug is joined by first-time guest Dr. Saul Schwartz, Professor Emeritus at the School of Public Administration at Carleton University in Ottawa, who holds a Ph.D. in Economics. They discuss Dr. Schwartz's recent paper titled "Tilting the Playing Field Away from the Discharge of Debts: The Case of Consumer Proposals in Canada." Together, they discuss the rise of consumer proposals over bankruptcies in Canada, surplus income, the influence of licensed insolvency trustees and creditors, unregulated debt advisors, and potential solutions for low-income debtors.
Time Stamps:
00:00 Introduction
03:35 Failure rate for consumer proposals
05:07 Why have consumer proposals overtaken bankruptcies in Canada?
08:33 Surplus income
12:12 Are the licensed insolvency trustees making more money on consumer proposals?
14:50 The creditors impact on a bankruptcy and consumer proposals
24:55 Unregulated debt advisors
33:39 Solutions for low-income debtors
44:22 Final thoughts
Related Links:
Dr. Saul Schwartz, Biography - https://carleton.ca/sppa/people/schwartz-saul/
The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System - https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/adverse-effects-of-the-debt-advisory-marketplace-on-the-insolvency-system
Consumer Proposal vs Personal Bankruptcy - https://www.hoyes.com/consumer-proposals/consumer-proposal-vs-bankruptcy/
Is a Consumer Proposal the same as a Bankruptcy? - https://www.hoyes.com/blog/consumer-proposal-bankruptcy/
Who Does What in a Bankruptcy and Consumer Proposal? - https://www.hoyes.com/blog/who-does-what-in-a-bankruptcy-and-consumer-proposal/
Bankruptcy & Your Credit Score - https://www.hoyes.com/personal-bankruptcy/effect-bankruptcy-credit-rating/
Consumer Proposal And Your Credit Rating - https://www.hoyes.com/consumer-proposals/consumer-proposal-affect-credit-rating/
Negotiating Consumer Proposals. What Your Creditors Expect - https://www.hoyes.com/blog/negotiating-consumer-proposals-what-your-creditors-are-expecting/
Avoid The Surplus Income Penalty With A Consumer Proposal -https://www.hoyes.com/blog/avoid-the-surplus-income-penalty-with-a-consumer-proposal/
Why Surplus Income Is an Important Part Of Your Debt Recovery - https://www.hoyes.com/blog/surplus-income-important-part-debt-recovery/
Surplus Income Bankruptcy Calculator - https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/
Surplus Income Payments - https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-payments/
Will the Federal Government Finally Put an End to Unregulated, Unlicensed Debt Consultants? - https://www.hoyes.com/blog/will-the-federal-government-finally-put-an-end-to-unregulated-unlicensed-debt-consultants/
Doug is joined by Kim Wilhelm, CEO of the Food Bank of Waterloo Region. Together, they talk about the various programs available to the local community in need of food. They discuss the impact cost of living has had on the food bank, issues of food inflation and food insecurity, changes in demand since the pandemic, ways to donate, and how those in need can access food.
Time Stamps:
00:00 Introduction
01:30 Food assistance programs
02:41 Hunger count
06:56 Food insecurity
08:13 How has the demand for the food bank changed since the pandemic
11:14 Food inflation
14:13 How does the food bank receive food
16:01 How can you donate cash to the food bank
16:51 The impact cost of living has had on food donations
18:20 How can you receive food from the food bank
22:04 Food bank delivery program
22:40 Food bank eligibility and agency support
29:44 Food banks most needed food items
33:40 Conclusion
Related Links:
Hoyes Michalos is a proud partner of the Food Bank of Waterloo Region - https://www.hoyes.com/community-involvement/
Food Bank of Waterloo Region - https://www.thefoodbank.ca/
Food for Thought Blog - https://www.thefoodbank.ca/blog/
Volunteer at the Food Bank - www.thefoodbank.ca/volunteer
Community Food Assistance Network- www.thefoodbank.ca/network/map
Hunger in Waterloo Region - www.thefoodbank.ca/about/hunger/
Join Doug and Ted as they uncover the hidden costs of home ownership that often surprise new homeowners. From maintenance and repairs to rising interest rates and potential job loss, they discuss real-life examples and offer practical advice on deciding whether to buy a home, mitigating risks, and estimating unforeseen costs. Plus, they break down the costs of renting versus buying in today's market. Don’t miss this informative discussion on the true cost of owning a home.
Time Stamps:
00:00 Introduction
01:20 Mortgage vs rent payments
03:31 Upfront costs of purchasing a home
04:41 Maintenance costs
16:05 Unexpected costs of home ownership
18:18 Practical advice
27:22 Conclusion
Related Links:
Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Renting Vs. Buying: Which One Makes More Sense?: https://www.hoyes.com/blog/renting-vs-buying-which-one-makes-more-sense/
Why Does Home Ownership Cause Financial Problems?: https://www.hoyes.com/blog/why-does-home-ownership-cause-financial-problems/
How to Avoid Being House Poor – https://www.hoyes.com/blog/how-to-avoid-being-house-poor/
Why a House Does Not Guarantee Financial Security: https://www.hoyes.com/blog/why-a-house-does-not-guarantee-financial-security/
How to Get a Mortgage Even After Bankruptcy: https://www.hoyes.com/blog/how-to-get-a-mortgage-after-bankruptcy/
Doug is joined by Technical Platform Cybersecurity Specialist, Eric Boivin from Flare. They discuss how cyber attacks can target your bank accounts and personal information, leading to money loss or identity theft. How weak cybersecurity can lead to debt, especially for those with student loans, mortgages, or credit card obligations. Eric shares practical advice on how to avoid fraud, choosing the best password using a password manager, and tools for watching financial accounts for suspicious activity.
Time Stamps:
00:00 Introduction
04:46 How can you protect yourself against cyber attacks
10:00 Passwords
20:51 What can you do to protect yourself from a cyberattack?
31:32 Practical advice
Related Links:
Flare Website - https://flare.io/
Flare LinkedIn - https://www.linkedin.com/company/flare-io/
Bitwarden Password Manager - https://bitwarden.com/
Doug is joined by special guest Canadian economist and author, Jeff Rubin. Jeff discusses his latest book A Map of the New Normal: How Inflation, War, and Sanctions Will Change Your World Forever. They discuss inflation, sanctions and their impact on Canadian wages and employment. The conversation also touches on the Bank of Canada, bond yields, mortgages, interest rates, international trade, and the potential for a recession soon and closes with practical advice for Canadians.
Time Stamps:
00:00 Introduction
03:45 Inflation
10:47 What does the central bank do to make inflation higher or lower?
19:33 Mortgages and Interest rates
24:15 Are we in a recession now?
26:07 Credit card debt
27:37 Predictions for the future of Canada’s economy
Related Links:
A Map of the New Normal: How Inflation, War, and Sanctions Will Change Your World Forever by Jeff Rubin on Amazon https://amzn.to/4a5dSQI
The Expendables - How the Middle Class Got Screwed by Globalization by Jeff Rubin on Amazon
https://amzn.to/3UKTorM
Globalization, Inequality and Debt with Jeff Rubin – Episode 317 https://www.youtube.com/watch?v=-4vvcQqFuxU
Jeff Rubin X https://twitter.com/JeffRubin
In this episode, Doug and Ted discuss the subtle ways debt accumulates over time, highlighting the unnoticed expenses that may lead you into debt. Have you ever calculated how much you spend monthly on subscriptions? Consider services like Amazon, Netflix, Disney, meal kits such as HelloFresh or Factor, pet and beauty subscriptions, car subscriptions, book clubs, and newspapers. These examples highlight how your money can slip away without you realizing it and potentially lead you toward bankruptcy. Tune in for practical advice on what to do to reduce these expenses, so you don’t find yourself in debt.
Time Stamps:
00:00 Introduction
03:00 Set it and forget it method
04:03 Subscriptions
13:01 Why would a business want you to be on a subscription service?
16:49 Practical advice
Related Links:
The Marketing of Consumer Debt. Avoid The Traps - https://www.hoyes.com/blog/the-marketing-of-consumer-debt-avoid-the-traps/
52 Tips to Avoid Debt - https://www.hoyes.com/blog/52-tips-avoid-debt/
5 Debt Lessons Every Student Should Know - https://www.hoyes.com/blog/5-debt-lessons-every-student-should-know/
How To Minimize Debt as a Millennial - https://www.hoyes.com/blog/how-to-minimize-debt-as-a-millennial/
How to Minimize Debt as Your Family Grows - https://www.hoyes.com/blog/how-to-minimize-debt-as-your-family-grows/
How to Minimize Debt Before and After Retirement – https://www.hoyes.com/blog/how-to-minimize-debt-before-and-after-retirement/
Doug is joined by Amanda Clayman, a financial therapist specializing in helping clients understand how their thoughts, feelings, and past experiences shape their financial choices through Cognitive Behavioral Therapy. Her expertise has been highlighted in various media outlets including CNBC, Forbes, The Wall Street Journal, The New York Times, and The Oprah Magazine.
In this episode, we look at the emotional aspects of financial challenges and address the impact it can have on our mental health. Amanda shares strategies for achieving financial objectives during times of struggle. We also discuss how financial decisions affect our relationships and the importance of values and goals.
Time Stamps:
00:00 Introduction
01:17 What is a financial therapist?
03:35 How can a financial therapist help you?
04:13 Do financial problems cause psychological stress?
06:07 How does financial therapy work?
09:01 What’s an example of how someone would describe their financial situation?
11:53 Advice for couples dealing with difficult financial decisions
17:00 Client trends in financial therapy
17:37 Values and goals
24:13 How many sessions of financial therapy will you need?
Related Links:
Are Debt and Mental Health Connected? Understanding Debt Stress: https://www.hoyes.com/blog/are-debt-and-mental-health-connected-understanding-debt-stress/
About Amanda: https://amandaclayman.com/about
Amanda Clayman Website: https://amandaclayman.com/
Amanda’s Podcast, Emotional Investment: www.Audible.com/emotionalinvestment
Amanda Clayman LinkedIn: https://www.linkedin.com/in/amandaclayman/
Amanda Clayman Twitter: https://twitter.com/mandaclay
Amanda Clayman Instagram: https://www.instagram.com/amandaclayman/
Amanda Clayman Facebook: https://www.facebook.com/AmandaClaymanFinancialTherapy/
Amanda Clayman Pinterest: https://www.pinterest.ca/claymanamanda/
Doug and Ted sit down to chat about the 2024 federal budget. Believe it or not Doug actually read the entire budget! They discuss taxes, what a budget means, making tax filing automatic, government single sign-in portal, reducing CRA call centre wait times, NSF fees, free and affordable bank accounts, cell phone charges, credit reports, and payday loans. They also get into detail about how credit for paying rent will impact Canadians.
Timestamps:
00:00 Documentary announcement
02:37 Why should you care about the Federal budget?
03:00 Taxes
06:28 What is a budget?
08:07 Automatic tax filing for low-income Canadians
10:29 Single sign in portal for government services
11:35 Reduce CRA call centre wait times
12:07 NSF Fees
14:23 Free and affordable bank accounts
17:47 Cell phone fees
18:38 Credit for paying rent
24:12 Credit utilization for rent
26:10 Student housing
27:45 Credit bureaus
29:03 Payday loans
29:55 Final thoughts
Related Links:
Should Rent Be a Part of a Credit Score?: https://www.hoyes.com/blog/should-rent-be-a-part-of-a-credit-score/
Federal Budget 2024: https://budget.canada.ca/2024/home-accueil-en.html
TurboTax Personal Tax Calculator: https://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp
Bretton Woods and Related Agreements Act: https://laws-lois.justice.gc.ca/eng/acts/b-7/index.html
How much does it cost to own a pet? Join Doug and special guest Maureen Parent as they break down the expenses, from breeder fees to food, vet bills, travel, dental, training, and more! Maureen offers valuable tips for managing your pet's expenses while avoiding debt.
Time Stamps:
00:00 Introduction
02:05 What are the upfront costs of owning a pet?
06:11 The regular costs of owning a pet
16:55 The unexpected costs of owning a pet
20:33 How much does it cost to board your pet?
21:55 Practical advice for owning a pet
24:04 Pet Insurance
25:42 Smaller pets vs. large pets
27:30 Can rescue pets save you money?
27:55 Toy and treat tips to save you money
29:59 Conclusion
Related Links:
The Cost of Dog Parenthood in 2024 - https://www.rover.com/ca/blog/cost-of-dog-parenthood/
Should you buy a home or rent in Canada? We look at the risks and expenses involved when it comes to purchasing a home. From the unpredictable market trends to steep mortgage penalties and ongoing maintenance costs. As we weigh at the pros and cons, this episode may make you rethink your views on homeownership, not only as an investment but as a consumer choice. Could renting be the smarter choice in 2024? Watch the episode now to find out.
Time Stamps:
00:00 Introduction
01:00 Reasons you should own a home
03:38 Is a mortgage a forced savings plan?
06:10 Reasons not to buy a home
06:21 Timing is everything in real estate
08:17 Variable rate interest only mortgage vs. amortization mortgage
12:03 Moving if you own a home vs. if you rent
15:29 Maintenance
18:50 Credit creep
24:11 Practical advice
Related Links:
Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Why Does Home Ownership Cause Financial Problems?: https://www.hoyes.com/blog/why-does-home-ownership-cause-financial-problems/
Think Twice Before You Get a Home Equity Line of Credit: https://www.hoyes.com/blog/think-twice-before-you-get-a-home-equity-line-of-credit/
Why a House Does Not Guarantee Financial Security: https://www.hoyes.com/blog/why-a-house-does-not-guarantee-financial-security/
Blair DeMarco-Wettlaufer, the Chief of Operations Officer of Kingston Data & Credit joins Doug to discuss the consequences of unpaid debts and their impact on your credit score. They look at real-life scenarios and provide practical advice to manage your credit report. They also discuss what collection agents can and cannot do when it comes to reporting your debts to the credit bureau and how to dispute old debts, so they don’t affect your credit.
Timestamps:
00:00 Introduction
01:45 If you don’t pay a collection agent can it affect your credit score?
04:33 The Statute of Limitations Act.
05:30 The Credit Bureau.
09:45 How and when do collection agents report to the credit bureau?
16:20 What collection agents cannot do when reporting to the credit bureau.
18:14 Can a collection agency remove a debt from your credit report?
23:24 What happens if a collection agency keeps calling the wrong number?
26:07 How owing a collection agent can affect your credit score.
27:43 Practical advice from a collection agent.
34:05 How to reach out to Blair DeMarco-Wettlaufer.
Related Links:
How Old Tickets and Fines Can Destroy your Credit Score: https://www.hoyes.com/blog/how-old-tickets-and-fines-can-destroy-your-credit-score/
'Insanely old' city ticket wreaks havoc on Ottawa man's credit score: https://www.cbc.ca/news/canada/ottawa/insanely-old-city-ticket-wreaks-havoc-on-ottawa-man-s-credit-score-1.7141166 Long-forgotten fines won't linger on credit records, city assures residents: https://www.cbc.ca/news/canada/ottawa/city-of-ottawa-parking-ticket-debt-owed-collection-credit-score-1.7152329 Blair Demarco-Wettlaufer’s Blog “Receivable/Accounts - Information for Credit and Collection Issues”: https://receivableaccounts.blogspot.com/
Legislation Links Cited in the Podcast:
Collection and Debt Settlement Services Act of Ontario: https://www.ontario.ca/laws/statute/90c14
The Provincial Offenses Act, section 76: https://www.ontario.ca/laws/statute/90p33#BK105
The Limitations Act of Ontario sets a basic limitation period of two years: https://www.ontario.ca/laws/statute/02l24#BK16
The Consumer Reporting Act of Ontario: https://www.ontario.ca/laws/statute/90c33#BK11
Blair Demarco-Wettlaufer’s Previous Appearance Links on Debt Free in 30:
Episode 20 – January 17, 2015 - Stop The Collection Calls: Advice from Blair Demarco-Wettlaufer: https://www.youtube.com/watch?v=0tsrKacdx4U
Episode 57 – October 3, 2025 Collection Agents: How Did They Find Me?: https://www.youtube.com/watch?v=0SMU1R5N0ms
Episode 70 – January 2, 2016 – Top 10 Tips for Dealing with a Collection Agent: https://www.youtube.com/watch?v=736J-IefWrI
Episode 264 – September 21, 2019 - How to Negotiate With a Collection Agent: https://www.youtube.com/watch?v=ZgNWpKfBUwU
Episode 296 – May 2, 2020 - Dealing with Collection Calls in COVID-19: Debt Negotiations, Deferrals, and Credit Report Impact: https://www.youtube.com/watch?v=S86gnBEkeUY
Episode 373 – October 23, 2021 - Your Top Collections Questions Answered by a Debt Collector!: https://www.youtube.com/watch?v=Ue8gFE2Z48w
Episode 477 – October 21,2023 The Messy World of Debt Collection and Statute-Barred Claims: https://www.youtube.com/watch?v=6uN82x3ts1k&t=115s
This is episode 500, and Doug does a solo rant exploring the factors contributing to the despair felt by Canadians. He reflects on how the past four years has affected our economy. He touches on the cost of real estate, the stock market, fatalistic YOLO, inflation, and strategies for achieving wealth. Enjoy!
Related Links:
Build a Get Out of Debt Repayment Plan - https://www.hoyes.com/debt-relief/get-out-of-debt/
Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted -https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
Statistics Canada, Wealth Gap - https://www150.statcan.gc.ca/n1/daily-quotidien/230331/dq230331b-eng.htm
CPI Basked Weight Visualization - https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm
National balance sheet and financial flow accounts, fourth quarter 2023 -https://www150.statcan.gc.ca/n1/daily-quotidien/240313/dq240313a-eng.htm
Wealth Gap, Statistics Canada - https://www150.statcan.gc.ca/n1/daily-quotidien/240122/dq240122a-eng.htm
Bank of Canada, Monetary Aggregates (Money Supply) - https://www.bankofcanada.ca/?p=47527
Canadian Real Estate Association, National Statistics - https://stats.crea.ca/en-CA/
November 2023 Federal Government Fall Economic Update - https://www.budget.canada.ca/fes-eea/2023/report-rapport/anx1-en.html#a1
Episode 270, The Fable of the 20 Dollar Bill - https://youtu.be/5fYfAvSnNps?si=ziTAfuUWwbdmYHvk
Did you know a car is stolen every 5 minutes across Canada? Car thefts and VIN scams are on the rise. Michael Rothe, President and CEO of Canadian Finance & Leasing Association, joins Doug and discusses Canada’s auto theft epidemic. They explore topics such as re-vinning, the impact of stolen vehicles on insurance premiums, steps to take if you unwittingly purchase a stolen vehicle, precautions against potential car theft, and government enforcement. This discussion is essential for Canadian vehicle owners looking to stay safe and understand what actions to take in case of a car theft and how to prevent yourself from falling victim.
Timestamps:
00:00 Introduction
02:10 The latest update on car thefts in Canada
04:40 How many stolen vehicles end up departing Canada?
06:14 What is a VIN number and what is re-vinning?
10:44 What happens if you purchase a stolen used vehicle?
12:25 What is the solution to prevent car thefts?
17:45 What measures can individuals take to defend themselves against car theft?
28:40 The cost of enforcement
33:31 Conclusion
Related Links:
Can You Include Your Car Loan in a Consumer Proposal? -
https://www.hoyes.com/blog/can-you-include-your-car-loan-in-a-consumer-proposal/
What Happens to a Financed or Leased Car in Bankruptcy? - https://www.hoyes.com/blog/what-happens-to-a-financed-or-leased-car-in-bankruptcy/
Should You Consolidate or Pay Bills with a Car Title Loan? -https://www.hoyes.com/blog/should-you-consolidate-or-pay-bills-with-a-car-title-loan/
How Car Loans and Car Loan Rollovers Lead to Insolvency - https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Car Thefts Have Reached Crisis Levels Across Canada. How did we get here? -
https://macleans.ca/society/car-thefts-have-reached-crisis-levels-across-canada-how-did-we-get-here/
Michael Rothe LinkedIn - https://www.linkedin.com/in/michael-rothe/
Canadian Finance & Leasing Association - https://cfla-acfl.ca/
Planning a wedding on a budget? In this episode, Jessica Bishop, founder of The Budget Savvy Bride, shares expert advice on keeping your big day affordable without sacrificing style.
Whether you are dreaming of a traditional ceremony or considering eloping, Jessica's insights will help you celebrate your love without breaking the bank. We discuss micro weddings, destination weddings, the cost of having an open bar, wedding party attire, and more! Don't miss out on these essential tips for a budget-friendly wedding!
Time Stamps:
00:00 Introduction
01:42 What does a wedding cost?
03:50 How has the wedding world changed since the pandemic?
05:58 What is a micro wedding?
06:43 How do you save money on your wedding?
10:36 Wedding resources and finances
12:31 Do you consider the potential gift contributions from your guests when planning your wedding budget?
17:09 What amount of money is appropriate to give as a wedding gift?
21:06 Strategies for reducing wedding budget expenses
25:07 Are destination weddings more affordable?
26:59 Wedding party attire
30:29 Should I have an open bar?
32:47 Where to find The Budget Savvy Bride
Related Links:
Should You Get a Wedding Loan? - https://www.hoyes.com/blog/should-you-get-a-wedding-loan/
The Budget Savvy Bride - https://thebudgetsavvybride.com/
The Budget Savvy Bride Real Wedding Budgets - https://thebudgetsavvybride.com/real-weddings/
Book: The Budget-Savvy Wedding Planner & Organizer: Checklists, Worksheets, and Essential Tools to Plan the Perfect Wedding on a Small Budget – on Amazon
https://www.amazon.ca/Budget-Savvy-Wedding-Planner-Organizer-Checklists/dp/1623159857/ref=sr_1_1_sspa?&_encoding=UTF8&tag=moneyproblems-20&linkCode=ur2&linkId=a64ef88027584470ba33c94dfd58c76e&camp=15121&creative=330641
The Budget Savvy Bride on TikTok - https://www.tiktok.com/@budgetsavvybride
The Budget Savvy Bride on YouTube - https://www.youtube.com/@TheBudgetSavvyBride
The Budget Savvy Bride Twitter - https://twitter.com/savvybride
The Budget Savvy Bride Threads - https://threads.net/@budgetsavvybride
The Budget Savvy Bride Facebook - https://facebook.com/budgetsavvybride
The Budget Savvy Bride Pinterest - https://pinterest.com/savvybride
The Budget Savvy Bride Instagram - https://instagram.com/budgetsavvybride
Jessica Bishop LinkedIn - https://linkedin.com/in/jessicalehrybishop
The Bouquet Toss: A Wedding Planning Podcast - https://thebudgetsavvybride.com/the-bouquet-toss-podcast/
Marriage or Mortgage Podcast Episode - https://thebudgetsavvybride.com/podcast/episode-66-marriage-or-mortgage/
The Wedding Report - https://wedding.report/
Honeyfund - https://www.honeyfund.com/
Something Borrowed Blooms- https://www.somethingborrowedblooms.com/
Top tips on how to file taxes. How to file taxes in Canada, setup your CRA my account, deadlines, government benefits and how to receive your refund with no additional fees. We also discuss tax discounting services, the importance of gathering all your documents, claiming all legitimate deductions such as moving expenses and tuition and notifying CRA of any changes such as your marital status, address, etc. Tune in for great practical advice and recommendations on which tools to use to file your taxes for free in 2024.
Time Stamps:
00:00 - Why should you file your taxes?
06:07 - Government benefits
08:30 - Deadlines
14:52 - Set up for CRA my account
24:20 - Do your taxes yourself and file for free
26:54 - Notify CRA of any changes
27:46 - Tax discounting services
32:24 - What if you cannot afford to pay your tax debts?
Related Links:
Avoid Instant Cash Back: https://www.hoyes.com/blog/instant-cash-back-on-tax-refunds-is-it-worth-it/
Tax Debt Relief in Canada: https://www.hoyes.com/debt-relief/tax-debt/
Tax Returns Not Filed Because You Are Afraid You Have Tax Debts?: https://www.hoyes.com/blog/tax-returns-not-filed/
Income Taxes and Bankruptcy - What You Need to Know: https://www.hoyes.com/blog/income-taxes-and-bankruptcy-what-you-need-to-know/
CRA – My Account for Individuals: https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/account-individuals.html
CRA – Due Dates and Payment Dates: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html
CRA - Interest and Penalties on Late Taxes: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/interest-penalties/late-filing-penalty.html
CRA – Prescribed Interest Rates: https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates.html
CRA – Tax Credits and Benefits for Individuals: https://www.canada.ca/en/services/taxes/child-and-family-benefits.html
CRA – Child and Family Benefits Calculator: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/child-family-benefits-calculator.html
CRA - Tuition Tax Credit: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/eligible-tuition-fees.html
CRA - Free Tax Filing Software: https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/netfile-overview/certified-software-netfile-program.html
In this episode, Doug and Ted discuss the risks of co-signing on a loan. They discuss the differences between joint loans and co-signed loans and the impact they can have on your credit. They address common scenarios such as parental co-signing and provide advice on alternative ways to assist friends or children financially without assuming the burden of co-signing. This episode is a must-listen if you've ever considered co-signing a loan.
Related Links:
How Is Cosigned Debt Treated in a Consumer Proposal? https://www.hoyes.com/blog/how-is-cosigned-debt-treated-in-a-consumer-proposal/ A Complete Guide To Joint Debts https://www.hoyes.com/blog/a-complete-guide-to-joint-debts/ Should Married Couples Get a Joint Consolidation Loan?
https://www.hoyes.com/blog/should-married-couples-get-a-joint-consolidation-loan/
Co-Signer vs Co-Borrower | What's the difference?
https://www.youtube.com/watch?v=ee4R7mKxp1w
Joint Debt and Co-Signing. Am I Responsible For My Spouse’s Debt?
https://www.youtube.com/watch?v=M9gBlzJXnG0
Don’t Lend to Family or Co-Sign – It Can Hurt Your Finances
https://www.youtube.com/watch?v=KGpQ4CX_IB4
What Is Joint Debt?
https://www.youtube.com/watch?v=jRGcHSWl_nw
In this episode of Debt Free in 30, Ted and Doug discuss RRSP early withdrawals. They weigh the pros and cons of tapping into your savings before retirement and discuss tax implications, CPP and exceptions such as the Home Buyer's Program and the Lifelong Learning Plan. This helpful discussion will give you the knowledge to make the right decisions when it comes to withdrawing your RRSP.
Time Stamps:
00:00 - Introduction
00:39 - What is an RRSP?
01:43 - Is there a good time to cash in an RRSP?
2:41 - Withdrawing money from your RRSP
4:38 - TFSA vs RRSP
6:29 - Is there a good time to cash in an RRSP before retirement?
8:23 - If you are buying a home for the first time is it a good idea to take out your RRSP?
10:28 - The lifelong learning plan
12:51 – Should I use my RRSP for living expenses?
15:00 – When should I take my CPP
17:58 – Creditors can’t go after RRSP
22:42 – Bankruptcy vs. Consumer Proposal
28:03 – Conclusion
Related Links:
Canadian Retirement Income Calculator https://www.canada.ca/en/services/benefits/publicpensions/cpp/retirement-income-calculator.html
RRSP New Home Buyer’s Plan https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
RRSP Life Long Learning Plan https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/lifelong-learning-plan.html
Should I Use My RRSP to Pay Off Debt? https://www.hoyes.com/blog/should-i-use-my-rrsp-to-pay-off-debt/
RRSP, Registered Savings Accounts and Bankruptcy Laws https://www.hoyes.com/blog/rrsp-bankruptcy-laws-canada/
In this episode, Maureen and Doug explore financial habits and discuss why we spend the way we do and how we can make better choices. Maureen shares how habits form and how you can be influenced to spend money. From understanding the psychology behind spending to learning strategies for breaking bad habits and building good ones, this episode will give you tools to take charge of your finances and break bad habits!
Related Links:
Maureen Parent - https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Learn Price Matching Tips on the Flipp App to Save Big on Groceries - https://www.youtube.com/watch?v=VHu_cWGlUR8&t=1s
What’s Really Causing Grocery & Food Inflation? w/ The Food Professor https://www.youtube.com/watch?v=bZrsL4LgI2A&t=3s
How to Improve Your Financial Wellness https://www.hoyes.com/blog/how-to-improve-your-financial-wellness/
PSYCHOLOGY OF SPENDING, PROF DRAZAN PRELEC https://betterworld.mit.edu/spectrum/issues/winter-1999/the-psychology-of-spending/
PSYCHOLOGY OF MONEY: SAVING AND SPENDING HABITS- by Erin Bruehl-journalist https://current.com/blog/the-psychology-of-money-saving-and-spending-habits/
HABITS MATTER MORE… REBECCA STRONG- MEDICALLY REVIEWED BY JOSLYN JELINEK LCSW https://www.healthline.com/health/mental-health/why-are-habits-important
CONSUMER FINANCIAL PROTECTION BUREAU https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/learn/financial-habits-norms/
7 SIMPLE WAYS TO BUILD GOOD MONEY HABITS- RENE BENNETT https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/learn/financial-habits-norms/
In this episode, Doug Hoyes and Ted Michalos discuss the annual Hoyes Michalos Joe Debtor Bankruptcy Study for 2023. They talk about why credit card debt is driving consumer insolvencies, challenges faced by homeowners, and why we are seeing an increase in insolvencies among higher-income individuals. For more information, you can access the detailed report at joedebtor.ca.
Related Links:
Hoyes Michalos Joe Debtor Bankruptcy Study: www.joedebtor.ca
Office of the Superintendent of Bankruptcy – Canadian Consumer Debtor Profile – 2021: https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/statistics-and-research/canadian-consumer-debtor-profile-2021
Credit Card Debt is a Problem For A Lot of Canadians: https://www.hoyes.com/debt-relief/credit-card-debt/
2023 Debt Statistics and What It Means for Consumer Insolvencies: https://www.hoyes.com/blog/2023-debt-statistics-and-what-it-means-for-consumer-insolvencies/
How Car Loans and Car Loan Rollovers Lead to Insolvency: https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Student Loans and the 7 Year Rule: https://www.hoyes.com/blog/are-your-student-loans-past-the-7-year-rule-a-vaughan-bankruptcy-story/
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
In this episode, Doug chats with Janette Martin, a Credit Counsellor at Hoyes Michalos. Janette shares her tips on saving money while grocery shopping, focusing on the Flipp app. They discuss using the app to review online flyers, price matching across various stores, the checkout process, potential savings and time commitments. They also touch on the pros and cons of using the app for smarter shopping. Additionally, Janette also explains the rebate app Checkout 51. Enjoy!
Related Links:
Flipp: https://flipp.com/
Checkout 51: https://www.checkout51.com/
Jannette Martin: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/janette-martin/
In this episode, Doug and Ted discuss the government's intention to lower Canada's criminal interest rate from 60% EAR to 35% APR and set the maximum cost of borrowing for payday loans at $14 per $100 borrowed. They explore the implications for borrowers and lenders, particularly in the payday loan sector. Doug and Ted touch on compound interest, presenting arguments from both perspectives, with insights from the Canadian Lenders Association. Ted also discusses alternative lenders' and how they are assisting Canadians in rebuilding credit. Enjoy!
Related Links:
Canada Gazette, Regulations
https://www.gazette.gc.ca/rp-pr/p1/2023/2023-12-23/html/reg3-eng.html
Criminal Code
https://laws-lois.justice.gc.ca/eng/acts/c-46/page-51.html#h-122004
In this eye-opening episode of Debt Free in 30 host Doug Hoyes is joined by guest Richard Dunwoody to unravel the often-overlooked connection between human trafficking and coerced debt. With Ontario facing the second-highest rate of police-reported human trafficking in Canada, the conversation sheds light on how traffickers exploit victims financially. The focus turns to Bill 41, the "Protection from Coerced Debts Incurred in relation to Human Trafficking Act, 2023," exploring its role in safeguarding victims from crushing debts. From explaining what coerced debt means to tackling potential challenges, the episode breaks down the proposed legislation's impact on creditors, unlicensed debt consultants, and, most importantly, the victims. Join us for a discussion on how this legislation could be a crucial shield for those affected by human trafficking and coerced debts.
Related Links:
Human Trafficking and Financial Fraud: A Survivor’s Story
https://www.youtube.com/watch?v=9z8kNmVuFpY
A Different View of Credit Counselling & Getting Out of Debt
https://www.youtube.com/watch?v=qLWWNREu4x4
Concord Adex Survivors Fund https://www.survivorsfund.ca/
In this episode of Debt Free in 30, Doug and Ted discuss the ongoing battle against unregulated debt consultants. They dive into the recent developments, including the conversation with Superintendent of Bankruptcy Elisabeth Lang and the release of a comprehensive position paper. The paper exposes the deceptive practices of these consultants, who have cost consumers a staggering $21 million in fees over the last two years! Doug questions the effectiveness of government actions while providing practical tips to avoid falling prey to debt relief scams.
Related Links:
Position Paper on the Adverse Effects of the Debt Advisory Marketplace on the Insolvency System.
https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/adverse-effects-of-the-debt-advisory-marketplace-on-the-insolvency-system
The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System
https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/adverse-effects-of-the-debt-advisory-marketplace-on-the-insolvency-system
OSB Statutory Complaint Portal
https://www.ic.gc.ca/eic/site/bsf-osb.nsf/frm-eng/LSMH-BB2MMW
Competition Bureau’s Complaint Form
https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/frm-eng/GH%C3%89T-7TDNA5
Debt Consultants: Why You Should Avoid the Extra Cost
https://www.hoyes.com/blog/debt-consultants-why-you-should-avoid-the-extra-cost/
The Problem with Debt Consultants
https://www.hoyes.com/blog/the-problem-with-debt-consultants/
Debt Counsellors and Debt Coaches - Real or Scam?
https://www.hoyes.com/blog/debt-counsellors-and-debt-coaches-real-or-scam/
Use of Debt Consultants Questioned by OSB
https://www.hoyes.com/blog/use-of-debt-consultants-questioned-by-office-of-the-superintendent-of-bankruptcy/
Debt Consultants or Licensed Insolvency Trustees? Who to Trust
https://www.hoyes.com/blog/debt-consultants-or-licensed-insolvency-trustees/
The Cold-Hard Truth About Unlicensed Debt Consultants
https://www.hoyes.com/blog/the-cold-hard-truth-about-unlicensed-debt-consultants/
Get ready for 2024 with our first episode of the year! Join Doug Hoyes as he gives a straightforward take on New Year's resolutions, highlighting the need for a practical plan and figuring out what really matters to you. He talks about why arbitrary resolutions may not work and gives advice on making changes that actually stick. Doug shares easy steps to cut debt, handle expenses, and boost income, offering practical tips to make your financial journey in 2024 a success. Don't wait – hit play now and make this your best financial year yet!
Related Links:
How are habits formed: Modelling habit formation in the real world, European Journal of Social Psychology, Phillipa Lally
https://onlinelibrary.wiley.com/doi/abs/10.1002/ejsp.674
Getting Out Of Debt Requires A System, Not Just A Goal
https://youtu.be/ysvkV0uN7mM?si=tcUHlcE7gWVzdAK9
https://www.hoyes.com/blog/getting-out-of-debt-requires-a-system-not-just-a-goal/
Debt Management Plan
https://www.hoyes.com/debt-relief/debt-management-plan/
Build a Get Out of Debt Repayment Plan
https://www.hoyes.com/debt-relief/get-out-of-debt/
In this year-end podcast, Doug and Ted review their 2023 predictions and share insights on what to expect in 2024. They discuss the accuracy of last year's forecasts on inflation, interest rates, and insolvency rates. Doug predicts a decline in inflation due to an anticipated recession, and Ted adds insights on borrowing for essential living costs and the potential rise in insolvencies. They acknowledge wildcard factors like the real estate market and unemployment rates. Tune in for predictions on what is on the horizon for 2024 and how it could shape your financial future.
Related Links:
2023 Debt Statistics and What It Means for Consumer Insolvencies https://www.hoyes.com/blog/2023-debt-statistics-and-what-it-means-for-consumer-insolvencies/
Why Are Consumer Insolvencies Back Up? [Year-End Analysis + 2023 Predictions] https://youtu.be/3i22JpmcozY
Bank of Canada Interest Rates https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Federal Budget Deficit https://hillnotes.ca/2023/04/06/the-2023-federal-budget-at-a-glance/
Bank of Canada: Definition of M2 https://www.bankofcanada.ca/rates/indicators/key-variables/monetary-aggregates/
Statistics Canada. Table 36-10-0639-01, Credit liabilities of households (x 1,000,000)
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
Statistics and Research from Statistics Canada
https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/statistics-and-research https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410032001
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110006501 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3810023801
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Join Doug and Ted as they break down simple strategies for financial success in 2024. Whether you're dreaming of starting a business, planning for retirement, or making big purchases, their advice can make a real impact. They discuss the importance of having a personal plan and explore the significance of setting long-term goals. Don't miss out on valuable insights. Take charge of your financial future in 2024!
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
Episode 482 - Setting Yourself Up for Success in 2024 – Annual Financial Check Up
https://youtu.be/yBJZkk6JSjk?si=_-3JSHJtzDtjwpI3
Episode 227 – Getting Out of Debt Requires a System, Not Just a Goal
https://youtu.be/ysvkV0uN7mM?si=K2L_Yuo_D5h4GXll
Getting Out Of Debt Requires A System, Not Just A Goal https://www.hoyes.com/blog/getting-out-of-debt-requires-a-system-not-just-a-goal/
Save Money with Recipes from Cashflow Cookbook https://www.hoyes.com/blog/save-money-with-recipes-from-cashflow-cookbook/
Planning for Retirement? Pay Off Debt & Start Practicing https://www.hoyes.com/blog/planning-for-retirement-pay-off-debt-start-practicing/
How to Minimize Debt Before and After Retirement https://www.hoyes.com/blog/how-to-minimize-debt-before-and-after-retirement/
Build a Get Out of Debt Repayment Plan https://www.hoyes.com/debt-relief/get-out-of-debt/
Does the cost-of-living soar when you're flying solo? Join Doug in this episode as he's joined by Heather Cudmore, a Certified Credit Counsellor, and Client Service Specialist at Hoyes Michalos. Together, they delve into the concept of the 'single tax' and discuss the unique financial hurdles that singles often encounter.
Drawing on her extensive experience assisting single clients, Heather shares valuable insights and practical advice. She discusses the importance of building an emergency fund to navigate unexpected life events and advocates for budgeting to uncover potential savings. From housing and transportation to entertainment, pets and food, Heather provides actionable tips, including exploring unconventional living arrangements, embracing online grocery shopping, and minimizing food waste.
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
Heather Cudmore (BA, Certified Credit Counsellor and Client Service Specialist) - https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/heather-cudmore/
Statistics Canada. 2023. Census Profile. 2021 Census. Statistics Canada Catalogue no. 98-316-X2021001. Ottawa. Released February 8 2023: https://www12.statcan.gc.ca/census-recensement/2021/dp-pd/prof/index.cfm
Financial Stress Facing Single Parents: https://www.hoyes.com/blog/financial-stress-facing-single-parents/
Emergency Fund Critical for Single Parents: https://www.hoyes.com/blog/emergency-fund-critical-for-single-parents/
Dealing with Debt When Living Paycheque to Paycheque: https://www.hoyes.com/blog/dealing-with-debt-when-living-paycheque-to-paycheque/
In this episode, Doug sits down with Joel Sandwith, a Licensed Insolvency Trustee based at the Hoyes Michalos London office. Together, they explore effective debt management strategies and delve into optimal approaches for debt repayment. The episode provides a comprehensive comparison of the snowball and avalanche methods. If you're trying to figure out the best way to pay off your debts, this episode is a helpful guide. It's here to support you on your journey to financial freedom, giving you insights into different methods and assisting you in selecting the one that suits you best.
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
Joel Sandwith BA, Licensed Insolvency Trustee - https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/joel-sandwith/
Debt Snowball Method vs High Interest First - https://www.hoyes.com/blog/debt-snowball-method-vs-high-interest-first/
Debt Repayment Worksheet - https://www.hoyes.com/debt-repayment-worksheet/
Debt Repayment & Consumer Proposal Calculator - https://www.hoyes.com/debt-repayment-calculator/
In this week’s episode of Debt Free in 30, credit expert Richard Moxley returns to tackle the burning question: Why are credit reports always wrong? From the importance of credit ratings to practical tips on finding and fixing errors, we cover it all. Discover how to navigate post-insolvency challenges, handle account changes, and conquer stubborn collection accounts. Don't miss this deep dive into credit report complexities with actionable solutions!
Timestamps:
00:00 Introduction
01:21 Why is my credit rating important?
04:19 Do I care what’s on my credit report if I don’t plan to borrow?
07:54 Should you check your credit report for errors?
09:40 Is current employment updated on your credit report?
11:00 How do you I find errors on my credit report and what errors do I look for?
14:11 I filed a consumer proposal why is a creditor reporting I am behind on my payments?
17:25 What happens if you sue the credit bureaus.
20:36 Can you go to individual creditors to fix errors on late payments?
23:21 Are there any strategies you can use to fix errors on your credit report?
28:00 How much will it cost to have a credit expert fix the errors on my credit report?
29:08 Are free credit score apps worth it?
33:14 Disputes and account numbers
37:24 Concluding comments
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
Richard Moxley’s Website: https://creditgame.net/
The Credit Game: Rules Every Canadian Must Know to Win: https://www.amazon.ca/Credit-Game-Rules-Every-Canadian-ebook/dp/B07XKG1VHP
TransUnion Credit Report Explained: https://www.youtube.com/watch?v=BWFO_C336BM
How to get and print your FREE Equifax report: https://www.youtube.com/watch?v=Z03_DvfFY38
How to get and print your Free credit report from TransUnion: https://www.youtube.com/watch?v=K6a_R8gZFnw
How to Dispute Errors on Your Credit Report: https://www.youtube.com/watch?v=zuuGtBR40QY
How to Rebuild Your Credit Score Fast!: https://www.youtube.com/watch?v=Y6OJoQPia28
How to Read a Credit Bureau: Equifax Canada: https://www.youtube.com/watch?v=PEVHQOAFw64
Debt Free in 30 Episode #284 - Rules to Master Your Credit with Richard Moxley https://www.youtube.com/watch?v=jP6etPo_CQc February 8, 2020 (from Toronto)
Debt Free in 30 Episode #329 - Fix Bad Credit Yourself - Tips & Tricks From an Expert https://www.youtube.com/watch?v=BtncJCxN4So December 19, 2020 (by Zoom)
7 Facts About Your Credit Rating (What’s in your Credit Score?)
https://www.hoyes.com/blog/7-facts-credit-rating/
Free Credit Score Comes With a Catch:
https://www.hoyes.com/blog/free-credit-score-comes-with-a-catch/
The Big Credit Score Scam:
https://www.hoyes.com/blog/the-big-credit-score-scam/
What Are The Common Factors That Affect A Credit Score?:
https://www.hoyes.com/blog/what-are-the-common-factors-that-affect-a-credit-score/
In this episode, Doug Hoyes is joined by Ted Michalos as they discuss the importance of doing an annual financial checkup. Doug explains the importance of having a plan and touches on various topics such as updating your will, insurance, investments, bank accounts, taxes, passwords, and debt. Now is the time to review your finances and make a plan for the new year so you can set yourself up for success!
Time Stamps
00:00 Introduction
01:20 Self Assessment
02:03 Review and Update Your Will
02:57 Power of Attorney for Personal Care & Power of Attorney Over Property
04:18 Insurance
04:24 Life Insurance
05:16 Term Insurance
06:15 Mortgage Insurance vs. Life Insurance
08:15 Medical/Disability Insurance
09:23 Asset Insurance (Car Insurance, Homeowners Insurance)
10:31 Credit Insurance
11:32 Investments
11:39 Do Investments Still Make Sense?
13:53 Bank Accounts
14:41 Should You Have More Than One Bank Account?
18:30 Big Banks vs. Virtual Banks Interest Rates and Fees
23:41 Should You Reconcile Your Bank Account?
25:36 Passwords
26:30 Taxes
26:58 Debt – Make a Plan
Related Links:
Why You Should Bank at More Than One Bank
https://www.hoyes.com/blog/why-you-should-bank-at-more-than-one-bank/
Why Do I Need To Switch Banks? I Love My Bank.
https://www.hoyes.com/blog/why-do-i-need-to-switch-banks-i-love-my-bank/
How to Open a New Bank Account For A Bankruptcy or Consumer Proposal
https://www.hoyes.com/blog/opening-a-new-bank-account-bankruptcy-consumer-proposal/
RRSP, Registered Savings Accounts and Bankruptcy Laws
https://www.hoyes.com/blog/rrsp-bankruptcy-laws-canada/
Power of Attorney: Can I Deal With My Parents’ Debts?
https://www.hoyes.com/blog/power-of-attorney-parents-debts/
Income Taxes and Bankruptcy – What You Need to Know
https://www.hoyes.com/blog/income-taxes-and-bankruptcy-what-you-need-to-know/
Crushing Debt. Why Canadians Should Drop Everything and Pay Off Debt
https://www.hoyes.com/blog/crushing-debt-why-canadians-should-drop-everything-and-pay-off-debt/
What is a Debt Free in 30 Debt Assessment?
https://www.hoyes.com/about-hoyes-michalos/debt-free-in-30/
In this episode, Doug Hoyes discusses retirement planning with special guest Rona Birenbaum, a Certified Financial Planner at Caring for Clients. The episode covers various retirement-related topics, including the importance of financial planning, the role of financial advisors, and the complexities of decisions such as when to retire and when to start receiving government benefits like CPP.
The discussion emphasizes the need for careful consideration of lifestyle preferences, budgeting, and financial goals when planning for retirement. The conversation also touches on the role of debt in retirement planning, highlighting the benefits of entering retirement with minimal debt. The episode aims to provide valuable information and perspectives to help individuals navigate the complexities of retirement planning.
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
Caring for Clients: www.careingforclients.com
Caring for Clients Facebook: https://www.facebook.com/profile.php?id=100033419084831
Caring for Clients YouTube: https://www.youtube.com/channel/UCZZL3BipR9-ZCLgUsOXE3Ag
Caring for Clients Twitter: https://twitter.com/Caring4Clients
Caring for Clients Blog: https://www.caringforclients.com/blog/
Rona Birenbaum, Episode 215, What is a Robo-Planner: Automated Financial Planning
https://youtu.be/rXW7a7EdCKA?si=fHVry4vas4tIJbCo
Planning for Retirement? Pay Off Debt & Start Practicing: https://www.hoyes.com/blog/planning-for-retirement-pay-off-debt-start-practicing/
How to Minimize Debt Before and After Retirement: https://www.hoyes.com/blog/how-to-minimize-debt-before-and-after-retirement/
Debt Relief for Seniors. What are Your Options?: https://www.hoyes.com/blog/debt-relief-for-seniors-what-are-your-options/
Seniors in Debt and Filing Bankruptcy: https://www.hoyes.com/press/joe-debtor/seniors-and-bankruptcy/
Doug Hoyes and Ted discuss a pressing issue that many Canadians face: the challenge of closing on a house when real estate prices have taken a hit. They discuss the complexities of the real estate market, particularly the implications for those who bought pre-construction homes or condos. They also explain the risks associated with pre-construction purchases, such as the potential loss of deposits and the financial difficulties of closing on a property with a lower appraised value. This episode provides practical advice and raises thought-provoking questions about the need for changes in deposit protection laws, shedding light on a crucial topic in today's housing market.
Related Links:
StateView homes receivership https://www.tarion.com/media/important-information-purchasers-and-owners-stateview-homes
Tarion New Home Deposit Protection https://www.tarion.com/media/deposit-protection-takes-stress-out-buying-new-homes
Why a House Does Not Guarantee Financial Security https://www.hoyes.com/blog/why-a-house-does-not-guarantee-financial-security/
Doug Hoyes and Ted Michalos discuss the state of the economy and explore the possibility of a silent depression. Their discussion includes topics such as unemployment rates, the challenges confronted by the Millennial and Gen-Z generations, the recent increase in credit card debt, and the state of the real estate market. They also offer guidance on how to regain hope and devise a path towards achieving success amidst these challenging circumstances.
Related Links:
Have a question or comment for a future show? Leave us a voice message here: https://www.hoyes.com/dfi30comments
The State of Mortgages with Ron Butler: https://www.youtube.com/live/e9lVf-moV1E?si=5O96QM8NfJbRc5Fo
Statistics Canada. Table 14-10-0287-01 Labour Force Characteristics, Monthly, Seasonally Adjusted and Trend-Cycle, Last 5 Months: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Statistics Canada. Table 18-10-0004-01 Consumer Price Index, Monthly, Not Seasonally Adjusted: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
Millennials Heavy Payday Loan Users and It’s Costing Them Bigtime: https://www.hoyes.com/blog/millennials-heavy-payday-loan-users-and-its-costing-them-bigtime/
How To Minimize Debt as a Millennial: https://www.hoyes.com/blog/how-to-minimize-debt-as-a-millennial/
Student Debt Crisis – A Generation Buried in Student Debt: https://www.hoyes.com/press/joe-debtor/the-student-debtor/
I Can’t Pay My Bills. What Are My Alternatives?: https://www.hoyes.com/blog/cant-pay-bills-alternatives/
7 Reasons Why Credit Cards Can Be So Dangerous: https://www.hoyes.com/blog/why-credit-cards-can-be-so-dangerous/
How Long Can You Run From Your Debt? And Should You?: https://www.hoyes.com/page/3/?s=can+i+afford+a+home
My Child Has A Lot of Debt. How Can I Help?: https://www.hoyes.com/blog/my-child-has-a-lot-of-debt-how-can-i-help/
Debt Relief for Seniors. What are Your Options?: https://www.hoyes.com/blog/debt-relief-for-seniors-what-are-your-options/
Seniors in Debt and Filing Bankruptcy: https://www.hoyes.com/press/joe-debtor/seniors-and-bankruptcy/
Doug Hoyes and special guest Ron Butler from The Angry Mortgage Podcast came together for a live episode on Monday, October 23rd. During this special event, they talked about current mortgage trends, real estate, Bank of Canada interest rates, inflation, and addressed questions from their audience. Whether you own a home or are planning to buy one in the near future, this conversation is definitely one you should listen to.
Related Links
Ron’s Links
Ron Butler on Twitter: @ronmortgageguy - https://twitter.com/ronmortgageguy
Ron Butler on Instagram: @ronmortgageguy https://www.instagram.com/ronmortgageguy/
Ron Butler LinkedIn: https://www.linkedin.com/in/ron-butler-345531b/
Butler Mortgage (mortgage rates) - https://www.butlermortgage.ca/mortgage-calculator/ Angry Mortgage Podcast - https://www.youtube.com/channel/UC8vl-_vvvf7VZcxKPJ-v-Xg
Hoyes Blog Links
High Interest Rates: What Can You Do/ - https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Bank of Canada, share of mortgages with high Debt Service Ratio - https://www.bankofcanada.ca/rates/indicators/indicators-of-financial-vulnerabilities/
Average Toronto house prices: https://wowa.ca/toronto-housing-market
What To Do If Your Mortgage Is In Arrears - https://www.hoyes.com/blog/what-to-do-if-your-mortgage-is-in-arrears/
Mortgages and Bankruptcy in Ontario: What You Need to Know - https://www.hoyes.com/blog/mortgages-and-bankruptcy-in-ontario-what-you-need-to-know/
Can’t Pay Your Mortgage? Options to Keep Your House - https://www.hoyes.com/blog/cant-pay-your-mortgage-options-to-keep-your-house/
Walking Away from a Mortgage in Canada - https://www.hoyes.com/blog/walking-away-from-a-mortgage-in-canada/
Renewing Your Mortgage as Rates Change - https://www.hoyes.com/blog/get-ready-for-higher-interest-rates/
Does The Mortgage Lender You Choose Matter? - https://www.hoyes.com/blog/does-the-mortgage-lender-you-choose-matter/
Homeowners Bankruptcy Index - https://www.hoyes.com/press/homeowner-bankruptcy-index/
YouTube Links
293 Debt, HELOCs, and The New World of Mortgage Lending with Ron Butler - https://www.youtube.com/watch?v=VDSd6z5EJzA
334 Mortgages & Home Equity Refinancing: What Are The Risks in 2021? - https://www.youtube.com/watch?v=-CSt5J7CIQ0
376 Should You Help Your Child Get a Mortgage? with Ron Butler - https://www.youtube.com/watch?v=INc3t7ikv-w
403 What’s Happening Now that Mortgage Rates are up? - https://www.youtube.com/watch?v=Iw-HtqgOgJM
421 - Mortgage Challenges After Record Rate Hikes + Advice with Ron Butler - https://youtu.be/kJ9vyHA5pJw
440 What's Happening to Mortgages in 2023 with Ron Butler - https://youtu.be/3umCpEf8m4Y
Doug Hoyes is joined by special guest, Blair Demarco-Wettlaufer, a collection agent, who serves as the Chief Operations Officer at collection agency Kingston Data & Credit. This marks Blair's seventh appearance on the show! In this episode, Doug and Blair discuss the messy world of debt collection, statute-barred claims, and credit reporting. They answer questions such as, how long does it take for a credit card company to send your debt to collections? Does a statute-barred debt affect your credit report? What happens if you don't pay it? Can you be sued and when is it time to speak to a Licensed Insolvency Trustee? Tune in for lots of great advice and tips!
00:00 Introduction
01:44 How long does it take for collection agencies to report to a collection agency?
04:44 How does a collection agency receive new files to collect?
06:36 How do collection agencies contact and monitor those in debt?
09:59 When do collection agencies report to the credit bureau?
11:05 What is the difference between a trade line and a registered item?
15:11 What is the difference between soft inquiries and hard inquires and how do they affect your credit score?
16:34 How often should you pull your credit bureau?
18:56 Statute-Barred Claims: Do I Have to Pay?
23:13 Proof of Claim Forms
29:12 Creditors plan
32:49 Settlements
37:14 Concluding comments
Related Links:
Blair Demarco-Wettlaufer on Twitter (X) https://twitter.com/kdcblair
Blair’s blog: https://receivableaccounts.blogspot.com/
Blair Demarco-Wettlaufer’s previous appearances on Debt Free in 30:
Episode 20, January 17, 2025 – Stop the Collection Calls https://www.youtube.com/watch?v=0tsrKacdx4U
Episode 57, October 3, 2015, Collection Agents – How Did They Find Me? https://www.youtube.com/watch?v=0SMU1R5N0ms
Episode 70, January 2, 2016, Top 10 Tips for Dealing with a Collection Agent https://www.youtube.com/watch?v=736J-IefWrI
Episode 264, September 21, 2019, How to Negotiate with a Collection Agent, https://youtu.be/ZgNWpKfBUwU?si=czAQLjQqWTOLctml 59,000 Views
Episode 296, May 2, 2020 - Dealing with Collection Calls in COVID-19: Debt Negotiations, Deferrals, and Credit Report Impact https://youtu.be/S86gnBEkeUY?si=r0HLIpLHlWfTXdN_ (During Covid, I had a beard)
Episode 373, October 23, 2021, Your Top Collections Questioned Answered by a Debt Collector, https://www.youtube.com/watch?v=Ue8gFE2Z48w
Ontario Ministry of Government and Consumer Services https://www.ontario.ca/page/ministry-government-and-consumer-services
I’ve Filed Bankruptcy & Collection Agents Are Still Calling Blog: https://www.hoyes.com/blog/ive-filed-bankruptcy-collection-agents-are-still-calling/
Collection Agents: How Did They Find Me? Blog: https://www.hoyes.com/blog/collection-agents-how-did-they-find-me/
Top 10 Tips For Dealing With A Collection Agent Blog: https://www.hoyes.com/blog/top-10-tips-for-dealing-with-a-collection-agent/
How Long Can a Collection Agency Collect on Debt in Canada? Blog: https://www.hoyes.com/blog/how-long-can-a-collection-agency-collect-on-a-debt-in-canada/
Stop The Collection Calls: Advice from Blair Demarco-Wettlaufer Blog: https://www.hoyes.com/blog/stop-the-collection-calls-advice-from-blair-demarco-wettlaufer/
Can a Collection Agency Sue You in Canada? Blog: https://www.hoyes.com/blog/can-a-collection-agency-sue-you-in-canada/
What happens to debt when someone passes away? Host Doug Hoyes is joined by Ted Michalos to discuss a topic that might sound eerie but is incredibly important.
They chat about the different types of debt: credit card balances, car loans, and mortgages. Ted provides clear and valuable advice on important topics such as life insurance, wills, and power of attorney. Doug also highlights the significance of his "Death Checklist" and the importance of informing your spouse to guarantee seamless access to your accounts. This informative conversation gives great insights for financial planning when dealing with an inevitable part of life.
Related Links:
How many humans have ever lived? https://www.visualcapitalist.com/cp/how-many-humans-have-ever-lived/
Doug’s book, Straight Talk on Your Money https://www.hoyes.com/straight-talk/
You've probably noticed that Artificial Intelligence is everywhere these days, but can it help you out with debt and managing your money? Doug Hoyes and Scott Terrio are here to chat about just that! They discuss how AI looks at your spending habits, and discuss concerns related to biases and privacy, talk about the pros and cons of using ChatGPT to handle your finances, and help you understand what it can and can't do. Don't miss out on valuable tips and advice for making smart financial decisions in our AI-driven world.
Related Links:
Straight Talk on Your Money - https://www.hoyes.com/straight-talk/
How Credit Karma is Demystifying Personal Finance with AI - https://www.interactions.com/podcasts/how-credit-karma-is-demystifying-personal-finance-with-ai
Chat GPT - https://chat.openai.com/
Are you a small business dealing with the CEBA loan repayment dilemma? Ted Michalos and Doug Hoyes dive deep into the world of CEBA loans and the crucial decisions you need to make about repaying them. For many small businesses, the loan was a lifeline during the pandemic but as the repayment deadline is looming it’s time to evaluate your options. Join us as we help you to understand the pros and cons of getting a bank loan to repay the CEBA loan, tax considerations that could impact your decision and explore what to do if you don’t qualify for the CEBA loan repayment.
Related Links:
What happens it you can’t pay your CEBA loan blog: https://www.hoyes.com/blog/what-happens-if-you-cant-pay-your-ceba-loan/
Federal Government CEBA loan page: https://ceba-cuec.ca/
Join the conversation with Ian Penney, a Licensed Trustee from Janes & Noseworthy, and Doug Hoyes as they provide insights into managing your finances in the aftermath of the pandemic, with a focus on the distinctions between Newfoundland and Ontario. During the discussion, they delve into the economic landscapes of these regions, spotlighting key industries such as oil and gas, fishing, forestry, tourism, and mining. Tune in to gain valuable advice on navigating your financial journey post-pandemic.
Related Links:
Website: https://janesnoseworthy.ca/
LinkedIn Janes & Noseworthy: https://www.linkedin.com/company/janes-and-noseworthy/
Facebook: https://www.facebook.com/JanesNoseworthy
Twitter: https://twitter.com/JanesNoseworthy
Every successful budget makes room for fun spending. But how much is OK to spend on fun? What if you feel guilty? Is it ever wrong to spend money on your hobbies and interests? On today’s podcast, Maureen Parent returns to give advice on this less explored area of our budget and gives practical advice on how to allocate your income wisely towards leisure and why it’s essential for your mental and financial health to do so. Tune in!
Related Links:
The Secret To Budgeting? Don’t Budget https://youtu.be/u5q1Qge3k8s
The P.L.A.N. Account for Budgeting: https://youtu.be/pSQ3jvrFVHU
Is The 50/30/20 Budget Rule Even Possible Today? https://youtu.be/hANI5zadF2I
Higher education isn’t getting any cheaper. The cost of going to university has more than tripled since the 1990s and we see first-hand the financial burden caused by student loans. So, is it still worth it to get into debt for post-secondary schooling? With so many advancements in free online education, aren’t there cheaper alternatives? When is college the better option? Is an undergraduate degree still going to give you a job right away? Tune in to this discussion with Ted Michalos and Doug Hoyes as they share graduate statistics and give practical advice on how to think through your career and education choices.
Resources Mentioned in the Show:
Statistics Canada, National Student Survey: https://www150.statcan.gc.ca/n1/pub/75-006-x/2020001/article/00005-eng.htm
University of Toronto, Facts & Figures https://data.utoronto.ca/facts-and-figures/
Ontario, graduation rates: https://www.iaccess.gov.on.ca/OsapRatesWeb/enterapp/home.xhtml
Ontario budget, 2022-2023 https://www.ontario.ca/page/expenditure-estimates-ministry-colleges-and-universities-2023-24#vote2
Chat GPT: https://chat.openai.com/
Hoyes Michalos Annual Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
13 Stats on Average Student Debt in Canada: https://reviewmoose.ca/blog/average-student-debt-canada/
National Graduates Survey 2018 results: https://www150.statcan.gc.ca/n1/pub/75-006-x/2020001/article/00005-eng.htm
Statistics Canada – Student Debt from all sources: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3710003601
Welcome to Season #10 of Debt Free in 30. Debt is up. Interest rates are up. Not surprisingly, personal insolvency filings are way up. Many people are hitting the wall. On today’s abbreviated podcast, Doug Hoyes explains the numbers and why we live in a “Tale of Two Economies.” If you are rich, all is good. If you have depleted your savings and have debt, times are tough.
We explain the impact of the numbers and “tease” some of the topics we will be discussing in the coming weeks.
Tune in, and enjoy!
For our final rebroadcast of the summer, we are rebroadcasting episode #452. We know rising inflation is tough on Canadians. If your budget is getting tighter, you may be tempted to use credit (debt) to make ends meet, but that may not be a good strategy. On today’s podcast, Jennifer Kwon returns with some solid practical advice for what to do if you feel you’re living paycheque to paycheque and the dos and don’ts of using credit to get by. Jennifer and Doug Hoyes discuss common debt traps that should be avoided and what to do instead. They also help you think about the root causes of financial trouble so you can come up with good solutions. Tune in for a great discussion!
Related Links:
Dealing with Debt When Living Paycheque to Paycheque: https://www.hoyes.com/blog/dealing-with-debt-when-living-paycheque-to-paycheque/
Are Credit Cards Right for Credit Repair? https://youtu.be/Hy708HhFljk
Buy Now Pay Later – Is It Debt? https://youtu.be/KvCO7_PUCDI
Zero-based budgeting: How to Give Every Dollar a Purpose: https://www.hoyes.com/blog/zero-based-budgeting-how-to-give-every-dollar-a-purpose/
Today we rebroadcast episode #453. Online shopping isn’t new. Apps are not new. But is shopping supposed to be a game? That’s the angle a new shopping app called Temu appears to have taken. Since its launch in September 2022, the app has millions of monthly users, offers very deep discounts, and has strong incentives to keep users coming back. On today’s podcast, Doug Hoyes takes a closer look at how Temu works and interviews users from very different age groups for comparison. He also discusses whether we should be concerned about shopping gamification in general, how data is potentially treated on Temu, and whether cheaper is always better. Tune in for a unique show!
Links:
CNN Article: ‘One of China’s most popular apps has the ability to spy on its users’ https://www.cnn.com/2023/04/02/tech/china-pinduoduo-malware-cybersecurity-analysis-intl-hnk/index.html
How Temu topped by U.S. app charts by turning shopping into a game: https://restofworld.org/2023/temu-mobile-gaming/
Today we rebroadcast episode #448.
Most money experts will tell you that the best way to avoid money problems is to cut costs. And they’re right. But what about also increasing your income? After all, you can only cut so much. We have seen a lot of people struggle with rising living costs, with a limited income, and needing debt to make ends meet. On today’s podcast, Doug Hoyes and Ted Michalos discuss strategies for earning a higher pay without needing to do a side hustle or second job. They also explain when it’s best to go back to school to increase your earning potential. Finally, they review the dos and don’ts of increasing income if you have a lot of debt. Tune for great tips!
Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Bank of Canada Inflation Calculator: https://www.bankofcanada.ca/rates/related/inflation-calculator/
Avoid the Surplus Income Penalty With a Consumer Proposal: https://www.hoyes.com/blog/avoid-the-surplus-income-penalty-with-a-consumer-proposal/
Surplus Income Calculator 2023: https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/
Originally aired at episode 450 on April 15, 2023, the Food Professor returns. Food is now more expensive than ever. But why? Is it just corporate greed? Or something greater? Enter Dr. Sylvain Charlebois, a.k.a. The Food Professor. Sylvain is a Professor and the Scientific Director at Agri-Food Analytics Lab at Dalhousie University. On today’s podcast, he demystifies grocery pricing and explains why food inflation is a global phenomenon. Sylvain also discusses the part the Canadian government plays in grocery price hikes and gives lots of valuable practical advice for how to save on your food bill. You won’t want to miss this episode. Tune in!
Time Stamps
7:42 What is Shrinkflation?
8:31 Groceries vs. Snacks + Tax
11:55 Is the Grocery Rebate Even Helpful?
19:01 Which Days of The Week To Shop Groceries?
23:30 Shop at 3 Different Stores
27:04 Consumers Can Make a Difference
Links:
The Food Professor Podcast: https://the-food-professor.simplecast.com/episodes
Dr. Sylvain Charlebois on Twitter: https://twitter.com/FoodProfessor
CRA: GST/HST on food products: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-020/bars.html
Toronto Sun article on the food rebate: https://torontosun.com/opinion/columnists/charlebois-government-handouts-are-mirage-for-needy
Episode #254 – What Costco Can Teach Us About Making Financial Decisions: https://www.youtube.com/watch?v=-8PlGkHjHG8
Episode #270 – The Fable of the 20 Dollar Bill - https://www.youtube.com/watch?v=5fYfAvSnNps
In the season 9 finale episode of Debt Free in 30, Doug Hoyes and Ted Michalos discuss the current state of consumer insolvencies in Canada and why they’re going back up. They also discuss the impact of inflation remaining higher than wage increases, higher credit card debt, and higher interest rates. Where are we heading in the latter part of 2023? Has the recession begun? What can homeowners expect in this climate? Tune in for a great discussion!
Related Links:
Episode 435, Debt Free in 30 Year End Prediction Show https://youtu.be/3i22JpmcozY
Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
Statistics Canada, Average Weekly Earnings https://www150.statcan.gc.ca/n1/daily-quotidien/230629/dq230629a-eng.htm?HPA=1&indid=3555-1&indgeo=0
Statistics Canada. Table 36-10-0639-01 Credit liabilities of households (x 1,000,000) https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
Mortgage Rate History from Ratehub.ca: https://www.ratehub.ca/5-year-fixed-mortgage-rate-history
Mortgage Calculator, Butler Mortgage: https://www.butlermortgage.ca/mortgage-calculator/
Bank of Canada, Monetary Aggregates (Money Supply) https://www.bankofcanada.ca/rates/indicators/key-variables/monetary-aggregates/
Buying a car has never been more expensive. But what if you have no choice but to buy one? How can you avoid buying too much car these days? On today’s podcast, Ted Michalos and Doug Hoyes explain what’s causing high car prices in both the new and used car categories, as well as, how to buy without taking out a huge auto loan. Tune in for lots of practical tips on shopping for a car and dealing with salesmen.
Resources Mentioned i the Show:
Buying and Maintaining an Affordable Car: https://www.hoyes.com/blog/buying-and-maintaining-an-affordable-car/
Auto Trader Price Index March 2023: https://editorials.autotrader.ca/media/klxhaqq5/autotrader_priceindex_finalv3_march2023_en.pdf?_gl=1uou0k4_gcl_au*OTQ3ODQ3MTMzLjE2ODc0OTI1NDQ.&_ga=2.183395302.1188701862.1687492545-911279650.1687492545
Car Guru – Price Trends: https://www.cargurus.ca/Cars/price-trends/
CBC Car Market Analysis: https://www.cbc.ca/news/business/car-market-analysis-1.6873747
Maybe you’re tired of working for someone. Or you’re looking to be your own boss. You may consider buying a business. It’s not a bad idea, but just as there are advantages, there are also pitfalls you need to be aware of. Enter David Barnett. David is a seasoned expert in buying and selling small to medium-sized businesses. On today’s podcast, David demystifies the process of buying a business and provides insight on how to avoid debt problems when doing so. Tune in for a great discussion with lots of practical advice.
Related Links:
David Barnett’s Website: https://www.investlocalbook.com/
David Barnett on Twitter: https://twitter.com/DBarnettMoncton
Debt Traps of Buying a Business with David Barnett: https://www.youtube.com/watch?v=-HbW9ww2BNg
Bad Funding Choices for Small Business with David Barnett: https://www.youtube.com/watch?v=UaklFv3eBvI
Your bank is a business, so they’re always trying to sell to you because they want to make more money. How do you navigate their tricks? How do you avoid upsells when you just want to do a simple transaction? On today’s podcast, Scott Terrio and Doug Hoyes discuss the pervasive sales culture at financial institutions, what you need to look out for, and teach you the basics to making better money decisions on the spot. Tune in for a great discussion!
Related Links:
Pervasive Sales Culture at Canadian Banks – Globe and Mail article: https://www.theglobeandmail.com/investing/personal-finance/article-pervasive-sales-culture-at-canadian-banks-positions-system-against-its/
Investment Selling is Not Financial Planning: https://www.hoyes.com/blog/investment-selling-is-not-financial-planning/
Should I Use My RRSP to Pay Off Debt? https://www.hoyes.com/blog/should-i-use-my-rrsp-to-pay-off-debt/
With nine interest rate hikes since March 2022, mortgage borrowers have either already started to feel the increased payment pressures or will at renewal time. So, what if your mortgage payments become too much to manage? How do you avoid risking your home? On today’s podcast, Doug Hoyes and Ted Michalos give practical advice for what to do if you’re struggling with your mortgage payments, including the dos and don’ts, and ways to cut back on interest costs if you can afford it. Tune in for a great show!
Related Links:
Rising Interest Rates and Debt: What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Walking Away From a Mortgage in Canada: https://www.hoyes.com/blog/walking-away-from-a-mortgage-in-canada/
Can’t Pay Your Mortgage? Options to Keep Your House: https://www.hoyes.com/blog/cant-pay-your-mortgage-options-to-keep-your-house/
Bank of Canada Financial System Review: https://www.bankofcanada.ca/2023/05/financial-system-review-2023/#Households
Butler Mortgage Interest Rates: https://www.butlermortgage.ca/rates/
We know it can be daunting to start your credit repair journey. We are often asked where to begin and what is the fastest way to rebuild. On today’s podcast, Maureen Parent is back to answer some of the most common credit rebuilding questions and address fears and misconceptions about repairing your credit. Tune in for lots of great practical advice and recommendations on which tools to use.
Related Links:
Free Credit Rebuilding Course by Hoyes Michalos: https://courses.hoyes.com/courses/rebuild-credit
How to Repair and Rebuild Credit: https://www.hoyes.com/blog/how-to-rebuild-credit-5-simple-steps/
Are Credit Cards Right for Credit Repair: https://youtu.be/Hy708HhFljk
Fix Bad Credit Yourself – Tips & Tricks From an Expert: https://youtu.be/BtncJCxN4So
Self-employment has many advantages like you get to be your own boss, set your own hours, and even make more money. On the other hand, self-employment comes with challenges. Over the years, we’ve met with a lot of clients who were self-employed but became overwhelmed by unpaid tax debt. On today’s podcast, Doug Hoyes and Ted Michalos break down what it means to be a self-employed person, explaining the benefits and pitfalls you need to be aware of before you decide to become your own employer. Tune in for lots of great practical advice!
Links:
Should You Start Your Own Business: https://youtu.be/hhawMCZF_kw
Self-Employed: Financing Wisely to Avoid Debt Trouble: https://youtu.be/F_lo_0JP46Q
What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/
Keeping Your Small Business Afloat While Dealing with Debt: https://www.hoyes.com/blog/keeping-small-business-afloat-dealing-debt/
While bank failures are not a common occurrence in Canada, it may still be in your best interest to have more than one bank account. On today’s podcast, Joel Sandwith, our LIT in London, joins Doug Hoyes to discuss banking best practices, including how many accounts you should have, where to store your savings, and why it’s important to understand the right of offset if you owe your bank. They also explain how deposit insurance works and high-interest savings accounts. Tune in for an informative discussion and practical advice!
Links:
Why You Should Bank at More Than One Bank: https://www.hoyes.com/blog/why-you-should-bank-at-more-than-one-bank/
Frozen Bank Account. Your Rights and What To Do Next: https://www.hoyes.com/blog/frozen-bank-account-your-rights-and-what-to-do-next/
What is the Right of Offset and What Can You Do About It: https://www.hoyes.com/blog/what-is-the-right-of-offset-and-what-can-you-do-about-it/
Joel Sandwith, LIT in London: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/joel-sandwith/
The price at the gas pump includes a lot of hidden costs, and they are going up. How will this impact your budget? What does it mean for the future of car ownership? On today’s podcast, Ted Michalos and Doug Hoyes discuss the hidden costs of gas and how the increase in some of the price components will mean you’ll only be paying more to fuel your car. They also talk about the Ontario government’s plans to increase ethanol in oil and how that may impact fuel efficiency, and again, your budget. Tune in for an insightful conversation!
Related Links:
Statistics Canada. Table 18-10-0001-01 Monthly average retail prices for gasoline and fuel oil, by geography https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000101
Government of Ontario, Fuel Price Components: https://www.ontario.ca/motor-fuel-prices/
Government of Ontario, Cleaner Transportation Fuels: https://www.ontario.ca/page/cleaner-transportation-fuels
Ontario Regulation: O. Reg. 663/20: CLEANER TRANSPORTATION FUELS: RENEWABLE CONTENT REQUIREMENTS FOR GASOLINE AND DIESEL FUELS https://www.ontario.ca/laws/regulation/r20663
Government of Ontario Press Release, November 26, 2020: https://news.ontario.ca/en/release/59352/ontario-to-be-national-leader-and-require-cleaner-and-greener-gasoline
Ethanol Production Using Corn, Switchgrass, and Wood; Biodiesel Production Using Soybean and Sunflower, research study: https://link.springer.com/article/10.1007/s11053-005-4679-8
The effect of bioenergy expansion: Food, energy, and environment, research study: https://www.sciencedirect.com/science/article/pii/S1364032114000677?via%3Dihub
Federal government, Ethanol, https://natural-resources.canada.ca/energy-efficiency/transportation-alternative-fuels/alternative-fuels/biofuels/ethanol/3493
Environmental outcomes of the US Renewable Fuel Standard, research study: https://www.pnas.org/doi/10.1073/pnas.2101084119
Tipping has always been a part of the dining experience. But lately, the expectation to leave a tip has become so common that we have to make it a new budgeting item. So how do you navigate tip creep? On today’s podcast, we have a special guest, Sean Cassidy, who shares his experience with tipping prompts and how he’s adapted his budget. Doug and Sean discuss why tip nudges are so prevalent post-Covid and lots of practical advice on how to budget for this new cost and minimize social awkwardness. Tune in for a great discussion!
Resources Mentioned in the Show:
The Fable of the 20 Dollar Bill: https://youtu.be/5fYfAvSnNps
The Angry Mortgage Podcast with Ron Butler: https://www.youtube.com/@angrymortgage
What’s Really Causing Grocery & Food Inflation? https://youtu.be/bZrsL4LgI2A
Should Shopping Be a Game? Risks of Apps Like Temu: https://youtu.be/B7Duzop33mM
Zero-Based Budgeting – How To Give Every Dollar a Purpose: https://www.hoyes.com/blog/zero-based-budgeting-how-to-give-every-dollar-a-purpose/
Everyone says you need an emergency fund. But how much is enough? And what is an emergency vs. an inconvenience? Where should you store your savings? Enter Maureen Parent. Maureen returns to share lots of practical advice on how to setup a realistic system to create your emergency fund. She also explains how much you should have saved at different stages, the types of emergencies to prepare for, and why credit cards and lines of credit are not good rainy day fund tools to rely on. Tune in for lots of great tips!
Links:
Build an Annual Budget You Can Adjust For Inflation & Goals: https://youtu.be/4N9rX_x8Wjc
How to Manage Your Money in a Crisis: https://youtu.be/1iYKQAX1koI
Why You Need an Emergency Fund: https://www.hoyes.com/blog/why-you-need-an-emergency-fund/
Maureen Parent, LIT https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Maureen on Twitter: https://twitter.com/MaureenParent7
Say your bank offers you a credit limit increase. You may be tempted to take it, but should you? When is seeking more credit a sign that your finances aren’t in good shape? On today’s podcast, Mark Borysiak, our LIT in Barrie, joins Doug Hoyes to discuss just how much access to credit you should have and why getting an increase can cause debt problems. Mark and Doug also explain why the banks offer credit increases in the first place and why it’s good to first evaluate your finances before taking on any offers. Tune in for a great discussion!
Related Links:
The Pros & Cons of a Pre-Approved Credit Limit Increase: https://www.hoyes.com/blog/the-pros-cons-of-a-pre-approved-credit-limit-increase/
Mark Borysiak, LIT in Barrie: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/mark-borysiak/
Online shopping isn’t new. Apps are not new. But is shopping supposed to be a game? That’s the angle a new shopping app called Temu appears to have taken. Since its launch in September 2022, the app has millions of monthly users, offers very deep discounts, and has strong incentives to keep users coming back. On today’s podcast, Doug Hoyes takes a closer look at how Temu works and interviews users from very different age groups for comparison. He also discusses whether we should be concerned about shopping gamification in general, how data is potentially treated on Temu, and whether cheaper is always better. Tune in for a unique show!
Links:
CNN Article: ‘One of China’s most popular apps has the ability to spy on its users’ https://www.cnn.com/2023/04/02/tech/china-pinduoduo-malware-cybersecurity-analysis-intl-hnk/index.html
How Temu topped by U.S. app charts by turning shopping into a game: https://restofworld.org/2023/temu-mobile-gaming/
Time Stamps:
00:32 What is Temu?
1:20 An 87-year-old’s perspective of Temu
14:33 An 18-year-old’s perspective of Temu
21:37 What are the risks to Temu & making informed decisions about spending
We know rising inflation is tough on Canadians. If your budget is getting tighter, you may be tempted to use credit (debt) to make ends meet, but that may not be a good strategy. On today’s podcast, Jennifer Kwon returns with some solid practical advice for what to do if you feel you’re living paycheque to paycheque and the dos and don’ts of using credit to get by. Jennifer and Doug Hoyes discuss common debt traps that should be avoided and what to do instead. They also help you think about the root causes of financial trouble so you can come up with good solutions. Tune in for a great discussion!
Related Links:
Dealing with Debt When Living Paycheque to Paycheque: https://www.hoyes.com/blog/dealing-with-debt-when-living-paycheque-to-paycheque/
Are Credit Cards Right for Credit Repair? https://youtu.be/Hy708HhFljk
Buy Now Pay Later – Is It Debt? https://youtu.be/KvCO7_PUCDI
Zero-based budgeting: How to Give Every Dollar a Purpose: https://www.hoyes.com/blog/zero-based-budgeting-how-to-give-every-dollar-a-purpose/
According to TransUnion, the average credit consumer with a balance in Canada saw a 10% year-over-year increase in their minimum monthly debt payments in Q4 2022. If your minimum payments start going up, what should you do? What if they already have? On today’s podcast, Maureen Parent returns to discuss why minimum payments increase in the first place, and practical advice on how to get ahead of them. Maureen and Doug also share specific tips for you to negotiate with your credit card company to possibly reduce your debt costs. Tune in for a great discussion!
Related Links:
TransUnion Q4 2022 Release: https://newsroom.transunion.ca/credit-health-in-canada-remains-steady-despite-high-interest-rate-and-inflation-environment/
Podcast Ep 352 - The Minimum Payment Lie: https://youtu.be/6nbkc8UBW54
Minimum Payments on Credit Cards Are Keeping You In Debt: https://www.hoyes.com/blog/minimum-payments-on-credit-cards-are-keeping-you-in-debt/
Maureen Parent on Twitter: https://twitter.com/MaureenParent7
Maureen Parent, LIT: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Food is now more expensive than ever. But why? Is it just corporate greed? Or something greater? Enter Dr. Sylvain Charlebois, a.k.a. The Food Professor. Sylvain is a Professor and the Scientific Director at Agri-Food Analytics Lab at Dalhousie University. On today’s podcast, he demystifies grocery pricing and explains why food inflation is a global phenomenon. Sylvain also discusses the part the Canadian government plays in grocery price hikes and gives lots of valuable practical advice for how to save on your food bill. You won’t want to miss this episode. Tune in!
Time Stamps
7:42 What is Shrinkflation?
8:31 Groceries vs. Snacks + Tax
11:55 Is the Grocery Rebate Even Helpful?
19:01 Which Days of The Week To Shop Groceries?
23:30 Shop at 3 Different Stores
27:04 Consumers Can Make a Difference
Links:
The Food Professor Podcast: https://the-food-professor.simplecast.com/episodes
Dr. Sylvain Charlebois on Twitter: https://twitter.com/FoodProfessor
CRA: GST/HST on food products: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-020/bars.html
Toronto Sun article on the food rebate: https://torontosun.com/opinion/columnists/charlebois-government-handouts-are-mirage-for-needy
Episode #254 – What Costco Can Teach Us About Making Financial Decisions: https://www.youtube.com/watch?v=-8PlGkHjHG8
Episode #270 – The Fable of the 20 Dollar Bill - https://www.youtube.com/watch?v=5fYfAvSnNps
We are no strangers to inflation, with the cost of living soaring to new records. But what’s really causing inflation? Where are our dollars going and what’s the impact on the economy? On today’s podcast, David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, returns to discuss his research on why we see inflation and who benefits. David also shares his thoughts on employment, where wages are headed, and whether credit card debt will continue to trend upwards. Tune in for a very informative discussion!
Related Links:
Podcast 319: CERB Transition to EI https://youtu.be/piEhsYgWU8I
Podcast 114: Basic Income, Is it a Silver Bullet for Poverty? https://youtu.be/mi3tWjg1bC4
Where Are Your Inflation Dollars Going Report: https://policyalternatives.ca/publications/reports/where-are-your-inflation-dollars-going
David Macdonald on Twitter: https://twitter.com/DavidMacCdn
Canadian Centre for Policy Alternatives: https://policyalternatives.ca/ Episode 435 December 31, 2022, Year-End Predictions show, https://youtu.be/3i22JpmcozY Statistics Canada Consumer Price Index Portal: https://www.statcan.gc.ca/en/subjects-start/prices_and_price_indexes/consumer_price_indexes
Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
Time Stamps:
1:34 What is Inflation and Where Is It Going
5:10 Who Benefits From Inflation?
12:42 Wages vs. Inflation
16:27 Is Unemployment Actually Low?
18:48 Why We Didn’t Have the Great Resignation in Canada
24:30 Is Now the Best Time To Change Jobs?
27:10 Will Credit Card Debt Keep Going Up?
Most money experts will tell you that the best way to avoid money problems is to cut costs. And they’re right. But what about also increasing your income? After all, you can only cut so much. We have seen a lot of people struggle with rising living costs, with a limited income, and needing debt to make ends meet. On today’s podcast, Doug Hoyes and Ted Michalos discuss strategies for earning a higher pay without needing to do a side hustle or second job. They also explain when it’s best to go back to school to increase your earning potential. Finally, they review the dos and don’ts of increasing income if you have a lot of debt. Tune for great tips!
Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Bank of Canada Inflation Calculator: https://www.bankofcanada.ca/rates/related/inflation-calculator/
Avoid the Surplus Income Penalty With a Consumer Proposal: https://www.hoyes.com/blog/avoid-the-surplus-income-penalty-with-a-consumer-proposal/
Surplus Income Calculator 2022: https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/
The last three years have been quiet for Canada Revenue Agency collections. But that has started to change in 2023 – which is bad news for Canadian borrowers already struggling with inflation and record rate hikes. On today’s podcast Scott Terrio and Doug Hoyes breakdown how CERB, CRB, and CEBA loan repayments have impacted Canadians and small business owners, why 2023 is especially concerning for indebted households, and what stronger CRA collections mean if you owe tax debt. They also outline options for dealing with the CRA to avoid a headache. Tune in for an insightful discussion!
Links:
What Happens If You Can’t Pay Your CEBA Loan? https://www.hoyes.com/blog/what-happens-if-you-cant-pay-your-ceba-loan/
Hoyes Michalos Bankruptcy Study (Joe Debtor): https://www.hoyes.com/press/joe-debtor/
CERB and EI Statistics: https://web.archive.org/web/20220606110225/https:/www.canada.ca/en/services/benefits/ei/claims-report.html
CRB Statistics: https://web.archive.org/web/20220604110136/https://www.canada.ca/en/revenue-agency/services/benefits/recovery-benefit/crb-statistics.html
CRCB Statistics: https://web.archive.org/web/20220604103941/https://www.canada.ca/en/revenue-agency/services/benefits/recovery-caregiving-benefit/crcb-statistics.html
The Canadian government just announced a new Tax-Free First Home Savings Account (FHSA), which will launch on April 1, 2023. This new account gives first-time home buyers the ability to save $40,000 tax-free to put towards their first home. But don’t we already have this program through RRSPs First Time Home Buyers Plan? And what about Tax-Free Savings Accounts (TFSA)? How do these savings vehicles differ? That’s the discussion on today’s podcast, with guest Ted Michalos. Doug and Ted also discuss what happens to money in these accounts when you file a consumer proposal or bankruptcy and whether you should first pay down debt or invest. Tune in for lots of practical advice!
Helpful Links:
Design of the First Home Savings Account: https://www.canada.ca/en/department-finance/news/2022/08/design-of-the-tax-free-first-home-savings-account.html
Ottawa’s New Tax-Free Home Savings Account is Coming – What To Know: https://www.jamiegolombek.com/articledetail.php?article_id=1998
Should You Pay Down Debt or Invest in RRSP: https://www.hoyes.com/blog/pay-down-debt-or-invest-in-rrsp/
Should I Use My RRSP to Pay Off Debt? https://www.hoyes.com/blog/should-i-use-my-rrsp-to-pay-off-debt/
Fraudsters and scammers look for every available opportunity to prey on you. How can you protect yourself? Enter Rachel Jolicoeur. Rachel is the Director of Cyber Market Intelligence & Financial Crimes at Interac, and she is back on the podcast with Doug Hoyes to share the top scams she’s seeing in 2023, from renter scams to investment cons. Rachel shares lots of practical tips and helpful information to help you stay vigilant. You won’t want to miss this show. Tune in & share to spread awareness.
1:40 Renter Scams
5:55 Loan Scams
9:51 Employment/Job Scams
15:59 Investment Scams
21:06 Canada Revenue Agency (CRA) Scam
25:04 How Interac Auto-Deposit Prevents Fraud
Links:
How to Avoid E-Transfer Email Scams: https://youtu.be/971-DQWk4CI
Interac Digital Self-Care Checkup: https://www.interac.ca/en/content/life/digital-self-care-stay-safe-online-with-the-ultimate-cyber-security-checkup/
Online Investment Cyber Crime: https://ottawa.ctvnews.ca/it-s-heartbreaking-ottawa-woman-says-she-lost-100-000-in-an-online-investment-cyber-crime-1.6296899
A debt service ratio basically the amount of your monthly income that’s used to service your monthly debt payments. But why does this ratio matter and what’s a good debt service ratio to have? On today’s podcast, Doug Hoyes and Ted Michalos break down how a debt service ratio is calculated, what it means for your financial health and practical advice for how to avoid a high ratio and debt problems. Tune in to this episode, which also serves as a great introduction to financial literacy.
Links:
What’s the Wealth Effect (And Why It Matters To You): https://youtu.be/jVjVS8gik2o
4 Personal Finance Ratios That Measure Debt Risk: https://www.hoyes.com/blog/4-personal-finance-ratios-that-measure-debt-risk/
When debt collectors start getting aggressive with their collection efforts, what do you do? What should you avoid saying to a collection agent? When does the Statute of Limitations on debt come into play? And what if you can repay only some of your debt? On today’s podcast, Scott Terrio returns with Doug Hoyes to give practical advice on dealing with collection agencies and spotting their tricks. They also share specific tips for approaching Canada Revenue Agency when you have unpaid tax debt. Tune in for a great show!
Related Links:
Exposing Collection Agencies’ Dirty Tricks: https://www.hoyes.com/blog/collection-agency-dirty-tricks/
Collection Agents: How Did They Find Me? https://www.hoyes.com/blog/collection-agency-dirty-tricks/
Top 10 Tips for Dealing with a Collection Agent: https://www.hoyes.com/blog/top-10-tips-for-dealing-with-a-collection-agent/
Can a Collection Agency Take Me to Court? https://youtu.be/6UHpCGqVP4k
We just released our 2022 Hoyes Michalos Consumer Insolvency Study which found that 49% of all insolvencies are now being filed by Millennials. Millennials were the only age demographic to see a rise in their unsecured debt obligations last year. On today’s podcast, Doug Hoyes and Ted Michalos explain why Millennial insolvencies are rising. They also discuss another alarming trend from our study – the growth in Rapid Loan (high-cost payday and installment loan) usage. Tune in for a great discussion!
Links:
Hoyes Michalos Consumer Insolvency Study 2022: https://www.hoyes.com/press/joe-debtor/
Rapid Loans & Insolvency Study 2022: https://www.hoyes.com/press/joe-debtor/how-insolvent-borrowers-use-payday-loans/
Amid layoff announcements and rising cost of living, you may be feeling like you’re in a crisis or about to face one. What do you do? And what should you avoid doing? How can you manage your financial health when your stress levels are at an all-time high? Enter Maureen Parent. On today’s podcast, Maureen gives lots of practical advice along with dos and don’ts of dealing with job loss, high food costs, and managing your bill payments when money is tight. Tune in for an inspiring discussion!
Links:
Five Tips to Survive an Economic Crisis: https://www.hoyes.com/blog/five-tips-survive-economic-crisis/
Maureen Parent, LIT: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Maureen Parent on Twitter: https://twitter.com/MaureenParent7
Less than one year ago, the Bank of Canada overnight rate was just 25 basis points. Today, it’s 450 basis points – an 18X increase. How have record rate increases affected homeowners and potential homebuyers? What about borrowers with a home equity line of credit (HELOC)? On today’s podcast, Ron Butler, mortgage broker extraordinaire, gives us insight into the mortgage world in 2023. He also discusses how recency bias affects our decision-making, with lots of practical advice to avoid paying more for your mortgage than you need to. Tune in!
Links:
Ron Butler on Twitter: @ronmortgageguy https://twitter.com/ronmortgageguy
Butler Mortgage (mortgage rates): https://www.butlermortgage.ca/mortgage-calculator/
High Interest Rates: What Can You Do/ https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Bank of Canada, share of mortgages with high Debt Service Ratio: https://www.bankofcanada.ca/rates/indicators/indicators-of-financial-vulnerabilities/
Average Toronto house prices: https://wowa.ca/toronto-housing-market
Podcast 293 - Debt, HELOCs, and The New World of Mortgage Lending with Ron Butler https://www.youtube.com/watch?v=VDSd6z5EJzA
Podcast 334 - Mortgages & Home Equity Refinancing: What Are The Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0
Podcast 376 - Should You Help Your Child Get a Mortgage? with Ron Butler https://www.youtube.com/watch?v=INc3t7ikv-w
Podcast 403 - What’s Happening Now that Mortgage Rates are up? https://www.youtube.com/watch?v=Iw-HtqgOgJM
Podcast 421 - Mortgage Challenges After Record Rate Hikes + Advice with Ron Butler https://youtu.be/kJ9vyHA5pJw
When you think you're rich, you’re more likely to spend more. And when you’re not so confident about money, you may hold back and save. This is how the wealth effect works. But are there any risks to this effect? On today’s podcast Doug Hoyes and Ted Michalos give real-life examples of how the wealth effect works and why it may cause you unwanted debt problems if you’re not careful. Tune in for a great discussion.
Links:
Are Wealth Effects Important For Canada? https://www.bankofcanada.ca/wp-content/uploads/2010/06/pichettee.pdf
Podcast 435 – Why Are Consumer Insolvencies Back Up? https://youtu.be/3i22JpmcozY
Sometimes borrowing money is a necessity. But do we always borrow because we need to? What role do banks, credit unions, and credit score providers play in influencing our decisions? On today’s podcast, Scott Terrio is back with Doug Hoyes to break down how lenders encourage borrowing and they share practical advice for how to say no. Tune in for a great discussion!
Related Links:
Loan Affordability – What To Know Before You Borrow: https://youtu.be/GgdykU5lGvw
Banks Can Take Your Money Without Warning: https://youtu.be/OgO-3JE6wGM
The Average Joe and Jane Guide to Smart Borrowing: https://www.hoyes.com/blog/average-joe-jane-guide-smart-borrowing/
When you’ve got a lot of debt to deal with, it can be tough to know where to start. Should you pay off the smallest debt first? Or the highest interest one? On today’s podcast, Doug Hoyes and Ted Michalos break down how to answer this age-old question with lots of practical advice, a discussion about the debt snowball vs. debt avalanche method, whether debt consolidation is a good idea, and when it’s time to speak to a Licensed Insolvency Trustee. Tune in for lots of great tips!
Links:
Which Debts Should You Pay First? https://www.hoyes.com/blog/which-debts-should-you-pay-first/
Debt Snowball Method vs. High Interest First https://www.hoyes.com/blog/debt-snowball-method-vs-high-interest-first/
It’s the start of a new year and a good time to plan your finances for the next few months. On today’s podcast, Maureen Parent is back to walk you through the steps. She explains how you can plan for your expenses and the importance of looking at costs on an annual basis instead of monthly. Maureen also gives practical advice on adjusting your budget for inflation as grocery costs keep rising, as well as on how to budget for longer-term goals. And, if you don’t like budgeting, there are lots of tips for you, too, so your finances are still organized! Tune in for a great discussion.
Related Links:
7 Reasons Why Budgets Fail & How You Can Succeed: https://www.hoyes.com/blog/7-reasons-why-budgets-fail-and-how-you-can-succeed/
Use a P.L.A.N. Account When Budgeting: https://youtu.be/pSQ3jvrFVHU
The Secret To Budgeting – Pay Your Bills As You Get Paid: https://www.hoyes.com/blog/the-secret-to-budgeting/
Free Budgeting Workbook: https://www.hoyes.com/free-budgeting-workbook/
Mint.com Budget App: https://mint.intuit.com/
Goodbudget App: https://goodbudget.com/
Investing Basics – Where To Start Now That You’re Debt Free: https://youtu.be/VSgb8POKcjs
Both consumer debt and insolvencies have turned sharply upward again. What’s contributing to this shift? Are record-high interest rates to blame? Inflation? Or are we just picking up where we left off pre-pandemic? Doug Hoyes and Ted Michalos are back with our year-end analysis and predictions podcast. They discuss the top statistics from 2022 that help explain what’s happened with bankruptcies this year and give their predictions for what’s the come in 2023. Tune in for a great discussion!
Sources & Related Links:
Top 10 Debt Statistics for 2022 & What’s Ahead for Consumer Insolvencies: https://www.hoyes.com/blog/top-10-debt-statistics-for-2022-and-whats-ahead-for-consumer-insolvencies/
National Rent Report, Rentals.ca: https://rentals.ca/national-rent-report
Teranet-National Bank House Price Index: https://housepriceindex.ca/2022/11/october2022/
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Consumer Price Index Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000401
Hourly Wages Data Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410032001
Credit Liabilities of Households: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
Last year's show: Predictions for Consumer Debt Coming Out Of The Pandemic, Ep. 383: https://youtu.be/LCE6EkOwi8E
We spend a lot of our time in the virtual world these days – on our phones, apps, social media – and sometimes the line between virtual reality and physical reality gets blurred. Sometimes even to the point where we make real world decisions based on what we see in the virtual world. On today’s special and short podcast, Doug Hoyes helps us understand why it’s important to distinguish between physical and virtual reality so we don’t end up in serious financial trouble.
For the last 30 years, credit card debt has been going up. In November 1990, Canadian households owed $9.8 billion on their credit cards. Today, they owe nearly $90 billion. Why has credit card spending surged in the last three decades? On today’s podcast, Doug Hoyes and Ted Michalos discuss how inflation and easier access to credit products have contributed to our indebtedness and provide practical advice for how to deal with your credit card debt. Tune in for a great discussion.
Related Links:
Statistics Canada. Table 36-10-0639-01 Credit liabilities of households https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
What to Know About Credit Cards To Use Credit Wisely: https://www.hoyes.com/blog/what-to-know-about-credit-cards-so-you-use-credit-wisely/
How to Pay Credit Cards – Pay More Than The Minimum: https://www.hoyes.com/blog/how-to-pay-credit-cards-minimum/
If a company goes bankrupt, should the employees lose their pension or have their benefits reduced? No, of course not. But it has happened. There is new legislation before Parliament to protect pensions, but will it have unintended consequences? What will this mean for average person? How does this affect businesses? On today’s podcast, Doug Hoyes and Ted Michalos explain the different types of pensions employers offer, what happens when a company goes out of business, and they discuss the broader implications of the incoming legislation. Tune in!
Related Links:
Should Company Pensions be Protected in Bankruptcy? https://www.hoyes.com/blog/should-pensions-be-protected-in-a-corporate-bankruptcy/
Hansard, debate on Bill C-228 https://www.ourcommons.ca/DocumentViewer/en/44-1/house/sitting-130/hansard
Sears Canada pension settlement: https://kmlaw.ca/cases/sears-canada/
Bankruptcy & Insolvency Act, section 60 (1.5) https://laws-lois.justice.gc.ca/eng/acts/B-3/page-10.html#docCont
Bankruptcy & Insolvency Act, section 136, Scheme of Distribution, Priority of Claims https://laws-lois.justice.gc.ca/eng/acts/b-3/page-24.html#h-27334
Bill C-228, House of Commons: https://www.parl.ca/legisinfo/en/bill/44-1/c-228
At some point in life, you’re going to need a loan. But before you sign on the dotted line for a loan, figure out if you can afford it. How? That’s the focus on today’s podcast. Ted Michalos is back to share practical advice for how to figure out loan costs by yourself so you don’t get take on more debt than you can handle. Ted and Doug review three common loan types: debt consolidation loans, auto loans, and installment loans. Tune in for lots of great tips!
Resources Mentioned in the Show:
Debt Consolidation Loan Calculator: https://www.calculator.net/debt-consolidation-calculator.html
Car Loan Calculator: https://wowa.ca/car-loan-calculator
Installment Loan Calculator: https://www.calculator.net/loan-calculator.html
We need good credit to get things like an apartment or a cell phone or to qualify for an affordable loan. But what if you’ve struggled with managing credit and now have bad credit? Is a credit card the solution to fixing bad credit? It can be if you know how to use it. On today’s podcast, Jennifer Kwon, LIT, returns with lots of practical advice for how to use a credit card wisely to rebuild credit, what types of credit cards exist, and the dos and don’ts of credit rebuilding. Tune in for the discussion with Jennifer Kwon and Doug Hoyes!
Some credit card issuers like CIBC and Canadian Tire now offer installment plans for specific credit card purchases. This means that if you buy something expensive, you may be able to spread the payments on it and pay less interest than the typical credit card rate, making repayment more affordable. The question is though – should you take a loan out on your credit card debt? How can a credit card installment plan go wrong? On today’s podcast, Ted Michalos and Doug Hoyes discuss the true cost of these installment plans, the extra fees you need to pay, and why they can put your finances at risk. Tune in for lots of practical advice.
Links Mentioned In The Show:
Should You Be Charged a Fee For Using Credit Cards? https://youtu.be/k-R_ipxjjHk
New Buy Now Pay Later Apps – Is It Debt? https://www.youtube.com/watch?v=KvCO7_PUCDI
CIBC Pace It https://www.cibc.com/en/personal-banking/credit-cards/manage/installment-plans.html
Canadian Tire Bank equal payment plan: https://triangle-uat15.cantire.net/en/financing.html
TD Payment Plans: https://www.td.com/ca/en/personal-banking/how-to/manage-my-credit-card/payments-plans/
RBC PayPlan https://www.rbcroyalbank.com/personal-loans/payplan-for-consumers.html
Scotiabank SelectPay https://www.scotiabank.com/ca/en/personal/credit-cards/selectpay.html
BMO PaySmart Installment Plan: https://www.bmo.com/main/personal/credit-cards/paysmart-installment-plans/
Interest calculator: https://www.calculatorsoup.com/calculators/financial/amortization-schedule-calculator.php
Some of our clients get the unhappy surprise of seeing a zero-dollar balance in their bank accounts because the bank took their money. Yes, this is legal. It’s called the right of offset. If you owe the bank money and you’re behind on payments, they can clear your bank account, without warning. How do you avoid this happening to you? Enter Scott Terrio. On today’s podcast, Scott and Doug discuss why, how, and when the bank can exercise their right of offset and how you can avoid this, even if you can’t afford to pay your debts as they come due. Tune in for lots of practical advice!
Related Links:
What is the Right of Offset and What Can You Do About It? https://www.hoyes.com/blog/what-is-the-right-of-offset-and-what-can-you-do-about-it/
Why Do I Need to Switch Banks? https://www.hoyes.com/blog/why-do-i-need-to-switch-banks-i-love-my-bank/
The price of everything has shot up. Christmas is going to be much more expensive this year because of record inflation… but does it really have to be? How can you avoid overspending this holiday season? The key is to start early. On today’s podcast, Heather Cudmore, Certified Credit Counsellor at Hoyes Michalos joins Doug Hoyes to give practical advice on how to approach Christmas spending with your family to make it affordable, while keeping creativity and fun in the picture. Tune in!
Links Mentioned in the Show:
What’s The Point of Financial Literacy Today? https://youtu.be/ALp2KEV5atw
Christmas Etiquette When You’re Dealing with Debt: https://www.hoyes.com/blog/christmas-etiquette-when-youre-dealing-with-debt/
Straight Talk on Your Money book by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
It’s that time of the year again – Financial Literacy Month (2022). Is there any point to it? Is Financial Literacy Month just an excuse for the Big Banks and credit card companies to market more debt to you?
Doug Hoyes has some thoughts he’d like to share with you regarding today’s economy, how it’s impacting Canadians, and what you can do.
#financialliteracymonth #FLM2022 #finlit #housing #personalfinance #recession #costofliving #debtrelief #debtsolutions #economy
Links:
Doug Hoyes on Twitter: https://twitter.com/doughoyes
Hoyes Michalos website: https://www.hoyes.com/
Mortgage rates are up, and real estate prices are down. What does this mean for you if you’re renewing your mortgage? Can your bank decline your renewal and what are your options if they do? On today’s podcast, Ted Michalos returns to give practical advice for how to approach your mortgage renewal in a rising rate environment, whether selling is a good option, and how to deal with unsecured debts if you’re overwhelmed. Tune in for lots of tips!
Related Links:
Mortgage Challenges After Record Rate Hikes with Ron Butler: https://youtu.be/kJ9vyHA5pJw
Renewing Your Mortgage as Rates Change: https://www.hoyes.com/blog/get-ready-for-higher-interest-rates/
Can’t Pay Your Mortgage? Options To Keep Your House: https://www.hoyes.com/blog/cant-pay-your-mortgage-options-to-keep-your-house/
Bad credit can mean a lot of things. But when is bad credit good and when is it actually bad? Is it worse to have bad credit because you owe too much or because you have no debt? Is there a difference between a credit score and a credit report? Maureen Parent is back on today’s podcast to answer all these questions and offer practical advice for maintaining healthy finances. Tune in.
Resources Mentioned in the Show:
Free Credit Rebuilding Course: https://courses.hoyes.com/courses/rebuild-credit
A Clean Credit Report Does Not Equal a Good Credit Report: https://www.hoyes.com/blog/a-clean-credit-report-does-not-equal-a-good-credit-report/
Effective October 6, 2022, merchants may now add a credit card surcharge of up to 2.4% when you pay with a credit card. Will they? Or will customers revolt and boycott stores that charge the extra fee? Are we all going to switch to cash? How will this affect our budgets? And is this even fair to the consumer? Ted Michalos is back to discuss and offer lots of practical advice. Tune in.
Resources Mentioned in the Show:
What You Need to Know About the New Credit Card Surcharge: https://www.cbc.ca/news/credit-card-surcharge-faq-1.6610356
Loblaws Financial Statements: https://www.loblaw.ca/en/investors-overview
Canadian Tire Financial Statements: https://corp.canadiantire.ca/English/investors/financials-reporting/annual-disclosures/default.aspx
Did you know that bankers often refer to debt consolidation loans as a ‘never, never plan,’ meaning the borrower will never become free of their debts? This may sound odd since consolidation loans often make total debt cheaper to service through a lower interest rate. But banks know how to keep their clients with just the right amount of debt to continue profiting from interest charges. On today’s podcast Ted Michalos and Doug Hoyes break down just how exactly banks keep their customers in a ‘never, never plan,’ and offer practical advice to help borrowers actually eliminate their debts. Tune in!
Links:
Risks of Debt Consolidation Loans – The Hidden Traps: https://www.hoyes.com/blog/debt-consolidation-loans-the-hidden-trap/
Hoyes Michalos Debt Repayment Calculator: https://www.hoyes.com/debt-repayment-calculator/
Hoyes Michalos Debt to Income Ratio Calculator: https://www.hoyes.com/debt-to-income-ratio-calculator/
Government of Canada Credit Card Payment Calculator: https://itools-ioutils.fcac-acfc.gc.ca/CCPC-CPCC/CCPCCalc-CPCCCalc-eng.aspx
With record inflation, many people are feeling the pinch, and we’ve even been asked if it’s possible to skip a bill or two just to get to the next month. Well, on today’s podcast, we’re addressing this exact question. Which bills can be skipped, if any? Which ones should you absolutely pay? Can you delay paying your rent? And if so, how should you approach this? What about car payments, taxes, credit cards, or other loans? Maureen Parent returns on the podcast with lots of practical tips to survive these trying times. Tune in.
Links:
Maureen Parent on Twitter: https://twitter.com/MaureenParent7
Hoyes Michalos Kanata Office: https://www.hoyes.com/ontario-offices/kanata/
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Ontario Government – search for a collection agency: https://www.ontario.ca/page/search-business-licence-registration-or-appointment
Government of Canada - search for a licensed insolvency trustee: https://www.ic.gc.ca/app/scr/tds/web
Credit Counselling and Getting Out of Debt https://www.hoyes.com/blog/a-different-view-of-credit-counselling/
https://www.hoyes.com/blog/are-not-for-profit-credit-counselling-agencies-now-just-debt-collectors/
Ontario Ministry of Government and Consumer Services https://www.ontario.ca/page/ministry-government-and-consumer-services
Interest rates are at 18-year highs in Canada and if you got a mortgage in the last few years, you’re probably dealing with higher mortgage payments today. If rates keep rising, what potential challenges will come up for mortgage holders? What happens when you hit a trigger rate? What do costly mortgages mean for renters? On today’s podcast, mortgage expert extraordinaire Ron Butler returns to discuss the impact five straight interest rate hikes have had on mortgages and whether now is a good time to buy. Ron also shares a special announcement at the end of the podcast – be sure to tune in for some great insights and practical advice.
Links:
Ron Butler on Twitter: https://twitter.com/ronmortgageguy
High Interest Rates and Debt: What Can You Do/ https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Average Toronto House Prices: https://wowa.ca/toronto-housing-market
Butler Mortgage (Mortgage Rates): https://www.butlermortgage.ca/mortgage-calculator/
Show 293: Debt, HELOCs, and The New World of Mortgage Lending with Ron Butler https://www.youtube.com/watch?v=VDSd6z5EJzA
Show 334: Mortgages & Home Equity Refinancing: What Are The Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0
Show 376: Should You Help Your Child Get a Mortgage? with Ron Butler https://www.youtube.com/watch?v=INc3t7ikv-w
Show 403: What’s Happening Now that Mortgage Rates Are Up? https://www.youtube.com/watch?v=Iw-HtqgOgJM
We’ve now had our fifth interest rate hike in 2022 alone. Mortgages are costing more to service. And so are callable debts – which are debts that can have their repayment terms changed whenever at the lender’s discretion. On today’s podcast guest Scott Terrio returns to discuss how rising rates are putting more homeowners at risk of serious debt issues and even insolvency, especially as credit tightens. Scott also explains what callable debts are, how they work, and the dangers of carrying high balances on them when rates are rising. Scott and Doug also share lots of practical advice to help you spot when your own finances may be at risk. Tune in for a great discussion!
Related Links:
Rising Interest Rates and Debt – What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
The Criminal Code of Canada says that it’s a criminal offence to charge an interest rate of more than 60%. The federal government is considering lowering that rate. Is this a good idea? What could go wrong? On today’s podcast, Ted Michalos returns to discuss whether this plan by the Government of Canada will make any meaningful difference, and what the unintended consequences of the proposal may be. Doug and Ted also share their four recommendations to the Government to better protect consumers when it comes to usury laws. Please note that the government will be accepting your comments until October 7, 2022, so tune in to this podcast to understand the issue and then send them an email with your thoughts at consultationconsumeraffairs.consultationconsommation@fin.gc.ca with ‘Predatory Lending Consultation’ as the subject line.
Resources Mentioned in the Show:
Department of Finance Canada Issues Consultation Paper on Criminal Rate of Interest: https://www.mccarthy.ca/en/insights/blogs/techlex/department-finance-canada-issues-consultation-paper-criminal-rate-interest
Garland vs. Consumers’ Gas Company: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/2138/index.do
Criminal Code, section 347, criminal interest rate: https://qweri.lexum.com/w/calegis/rsc-1985-c-c-46-en#!fragment/sec347/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoJC4BmAFgHYBKAGmW1MIgEVFDcBPaAHIhzSmFwIefQSLGEJCAMp5SAIUEAlAKIAZbQDUAggDkAwtuakwAI2ilscRoyA
Bank of Canada posted interest rates, chartered banks: https://www.bankofcanada.ca/rates/banking-and-financial-statistics/posted-interest-rates-offered-by-chartered-banks/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
It’s Season #9 of Debt Free in 30! Life is changing fast – there’s no question about it. How can you navigate this crazy economy? How do you deal with an ever-limited budget? Doug Hoyes returns in this short season premiere rant to share what you can expect from our show this season and helpful resources to get you through these tough times. Tune in.
Resources Mentioned in the Show:
How One Man Retired Debt-Free at Age 48: https://www.hoyes.com/blog/how-one-man-retired-debt-free-at-48/
Debt Free in 30 Newsletter Archive & Sign Up: https://www.hoyes.com/newsletter-archive/
Insolvency Updates Newsletter Sign Up: https://lp.constantcontactpages.com/su/wAp31r4/insolvencyupdates
How to Rebuild Credit course: https://courses.hoyes.com/
It’s Season #9 of Debt Free in 30! Life is changing fast – there’s no question about it. How can you navigate this crazy economy? How do you deal with an ever-limited budget? Doug Hoyes returns in this short season premiere rant to share what you can expect from our show this season and helpful resources to get you through these tough times. Tune in.
Resources Mentioned in the Show:
How One Man Retired Debt-Free at Age 48: https://www.hoyes.com/blog/how-one-man-retired-debt-free-at-48/
Debt Free in 30 Newsletter Archive & Sign Up: https://www.hoyes.com/newsletter-archive/
Insolvency Updates Newsletter Sign Up: https://lp.constantcontactpages.com/su/wAp31r4/insolvencyupdates
How to Rebuild Credit course: https://courses.hoyes.com/
It’s our final rebroadcast episode of the summer, and today we rebroadcast episode 400 of the Debt Free in 30 podcast and Doug Hoyes shares his wisdom on how to protect yourself against job loss. If the pandemic has taught us anything it’s that no job is secure. So, what can you do to avoid getting financially burned if you’re out of work? If you’re unhappy with your job, should you switch? What’s the smartest way to go about making a change? On today’s podcast Doug discusses three basic work truths and lots of practical advice you should understand to help you navigate the employment world.
Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Follow Doug Hoyes on Twitter: https://twitter.com/doughoyes
When the pandemic first started, the Canada Revenue Agency slowed their collection efforts on income tax debt owing. But with the economy reopened, we are starting to see notices filed by the CRA to individuals owing on income tax, including CERB and CRB debts. Is this a sign that the CRA is ramping up efforts again? What are your options if your employer is served with a Requirement to Pay notice from the government? What if you get a notice that you were overpaid for CERB/CRB or ineligible? Tune in to this panel discussion with Ian Martin, CPA, LIT and Scott Schaefer, CPA, LIT (our in-house tax experts) and host Doug Hoyes for lots of practical advice!
Additional Resources:
CRA Collection Letters for CERB Ineligibility or Overpayment. Can You File Bankruptcy? https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment/
What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/
Should I Borrow to Pay Taxes to CRA? https://www.hoyes.com/blog/should-i-borrow-to-pay-taxes-to-cra/
When the pandemic first started, the Canada Revenue Agency slowed their collection efforts on income tax debt owing. But with the economy reopened, we are starting to see notices filed by the CRA to individuals owing on income tax, including CERB and CRB debts. Is this a sign that the CRA is ramping up efforts again? What are your options if your employer is served with a Requirement to Pay notice from the government? What if you get a notice that you were overpaid for CERB/CRB or ineligible? Tune in to this panel discussion with Ian Martin, CPA, LIT and Scott Schaefer, CPA, LIT (our in-house tax experts) and host Doug Hoyes for lots of practical advice!
Additional Resources:
CRA Collection Letters for CERB Ineligibility or Overpayment. Can You File Bankruptcy? https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment/
What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/
Should I Borrow to Pay Taxes to CRA? https://www.hoyes.com/blog/should-i-borrow-to-pay-taxes-to-cra/
Today we rebroadcast episode #339 (and it’s even more timely today). For many people, a car is a necessary expense to get to work and run errands. But what if you unintentionally bought too much car and your car loan is now creating financial problems? What are your options? Is it possible to get out of a car loan? On today’s podcast, Ted Michalos and Doug Hoyes discuss when you might want to hand your vehicle back, how to do it, and what happens with the loan shortfall. Tune in for lots of practical advice!
Related link:
Voluntary Surrender: Should I Hand My Vehicle Back? https://www.hoyes.com/blog/voluntary-surrender-should-i-hand-my-vehicle-back/
For the average Canadian family, their largest monthly expense is their rent or mortgage payment, and unless they have a very expensive car, their second biggest expense is often food.
If you have a limited income, how can you manage your food budget effectively?
Is it possible eat healthy without breaking the bank?
On today’s show we welcome Heidi Pola, a Registered Dietician who gives practical advice on how to eat healthy and save money.
The summer is only half over, yet so much has happened to the economy in 2022. Gas prices have started to come down after intense surging, and interest rate hikes are at record highs and may keep going. What can we expect for the next six months of the year? Enter Doug and Ted. On today’s podcast, Doug Hoyes and Ted Michalos give us their mid-year review and share their predictions for consumer debt levels, inflation, bankruptcy filings, and whether CRA collections will intensify in the Fall. Tune in for a lively discussion and practical advice on managing your finances for the rest of the year.
Additional Resources:
Ontario Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
So far in 2022 the Bank of Canada has raised its overnight lending rate four times. Its most recent hike in July was the biggest one since 1998. If you’re trying to buy a home now, what can you do to make the purchase affordable? Is it a good time to even get a mortgage? Would it be better to rent and wait? On today’s podcast, Doug Hoyes and Ted Michalos walk you through the basics of mortgage borrowing, costs that comes with it, explain common mortgage terms, and discuss the factors to consider before buying a home in the first place. Tune in for lots of practical advice & explainers!
Links:
CMHC Mortgage Loan Insurance Cost: https://www.cmhc-schl.gc.ca/en/consumers/home-buying/mortgage-loan-insurance-for-consumers/cmhc-mortgage-loan-insurance-cost
What’s Happening to Mortgages Now That Rates Are Up? With Ron Butler: https://youtu.be/Iw-HtqgOgJM
What options do homeowners have when they’ve got a lot of home equity and a lot of unsecured debt, but the bank won’t let them refinance by borrowing against their home? On today’s podcast, Ted Michalos and Doug Hoyes explain why homeowners often carry so much more debt than non-homeowners, how to deal with your unsecured debts whether refinancing is an option or not, and how an insolvency filing can affect your home. Given today’s economic situation, this may sadly be a reality for many homeowners in the months and years to come. Tune in for lots of practical strategies and advice!
Helpful Links:
Second Mortgage or Interest-Free Consumer Proposal: https://www.hoyes.com/blog/second-mortgage-or-interest-free-consumer-proposal/
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
We often meet with clients who have struggled with their debt for a lot longer than they needed to. This is often because they feel embarrassed or ashamed to ask for help. But why do we struggle so much to talk about our financial situation? On today’s podcast, Maureen Parent, LIT in our Kanata office returns to give insight as to why we are so afraid to talk about debt. Maureen and Doug draw from their years of experience helping clients and share lots of practical advice to help you overcome the fear of talking debt. Tune in!
Additional Links:
Is the 50-30-20 Budget Rule Even Do-Able Today? https://youtu.be/hANI5zadF2I
Maureen Parent on Twitter: https://twitter.com/MaureenParent7
Doug Hoyes on Twitter: https://twitter.com/doughoyes
Hoyes Michalos Kanata office: https://www.hoyes.com/ontario-offices/kanata/
One of the most common borrow-to-invest strategies is to take money from your home equity to purchase an investment property. But is this always a good idea? What if you borrow to invest in the stock market instead? Is that riskier? Is it ever OK to take on debt to invest or is it something you should never do? On today’s podcast, Ted Michalos and Doug Hoyes walk you through how to decide when you are ready to invest, the three ways to invest in stocks, what risks are, and the general dos and don’ts of using your hard-earned money to potentially get a return on it. Tune in for lots of practical advice!
Resources Mentioned in the Show:
Straight Talk on Your Money book by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034/
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Residential House Prices, Historical Chart: https://fred.stlouisfed.org/series/QCAR628BIS
2022 has so far brought rapidly declining real estate prices, record high gas and food prices, and rising interest rates. It’s looking to be a perfect financial storm. So how are all these variables impacting indebted Canadians? On today’s podcast, Scott Terrio, Manager, Consumer Insolvency at Hoyes Michalos, returns to discuss what he’s seeing from individuals struggling with debt, borrowing trends, and the role inflation is playing in household budgets. Scott and Doug also share their thoughts on why homeowner-driven insolvencies may rise soon and give practical advice for what to do if you’re dealing with problem debt in this economic climate. Tune in for a lively discussion!
Links:
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Ontario Bankruptcy and Consumer Proposal Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Podcast 399 – Is the Housing Market Finally Slowing Down? with Nasma Ali https://youtu.be/4XjDd4JOvVc
We are still in unprecedented times. House prices are going down even though inventory is limited. The unemployment rate is at a 40-year low, and yet insolvencies remain at record lows. What’s going on? Will this climate last forever? Enter Ben Rabidoux. Ben returns to the podcast with Doug Hoyes to share his unique insights and research on where housing is heading, whether he sees mortgage rates coming back down, his thoughts on the employment rate and recession, and the show ends with the first-ever Debt Free in 30 wager
Links:
Ben Rabidoux on Twitter https://twitter.com/BenRabidoux
Edge Realty Analytics: https://edgeanalytics.ca/
Bank of Canada: Mortgage Rates: Bank of Canada: https://www.bankofcanada.ca/2022/06/financial-system-review-2022/#box1
Ontario Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Statistics Canada, Household Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Episode #379, Will Housing Ever Be Affordable with Ben Rabidoux: https://www.youtube.com/watch?v=exHteyKX5Tg
Bank of Canada, 5 Year Bond Yield: https://www.bankofcanada.ca/?p=39890
Monthly mortgage payment on a typical home: https://twitter.com/BenRabidoux/status/1528768057178476544
Rising Interest Rates: What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Average Toronto house prices: https://wowa.ca/toronto-housing-market
Butler Mortgage (mortgage rates): https://www.butlermortgage.ca/mortgage-calculator/
Canada Historical Mortgage Rates: https://www.ratehub.ca/5-year-fixed-mortgage-rate-history
Landlord Rescue Property Management https://landlordrescue.ca/
Statistics Canada. Table 14-10-0287-01 Labour force characteristics, monthly, seasonally adjusted and trend-cycle: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Statistics Canada. Table 36-10-0112-01 Current and capital accounts - Households, Canada, quarterly https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Statistics Canada. Table 36-10-0639-01 Credit liabilities of households (x 1,000,000) https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
Time Stamps:
00:57 Will housing ever be affordable?
04:25 Have mortgage pre-approvals impacted prices?
10:01 Will mortgage rates come down in the next few months?
11:25 Doug thinks we are in a recession already; Ben disagrees
11:50 The unemployment rate is at 40 year lows
14:55 Is the household savings rate going to tank?
16:40 Are credit card balances increasing?
22:30 Will insolvencies go up soon?
28:02 Ben and Doug make a wager
If you die with debt, does it get passed on to someone else in your family? Is it possible for an estate to file a bankruptcy or consumer proposal? On today’s podcast, Doug Hoyes and Ted Michalos discuss what happens when you still owe creditors after you’ve passed and the impact on your estate. They provide practical advice on dealing with joint debt when one spouse has passed, how adult children can navigate debt repayment for their aging parents, and other dos and don’ts when it comes to dealing with an insolvent estate, including whether it’s a good idea to file a bankruptcy or consumer proposal post-mortem. Tune in for lots of helpful tips! Links:
Does Debt Survive Death? https://www.hoyes.com/blog/does-debt-survive-death/
CPP Death Benefit: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-death-benefit.html
CPP Survivor’s Pension: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html
You may be wondering if you can strike a debt repayment deal with your creditors without going to a Licensed Insolvency Trustee and a formal insolvency filing. Well, it depends on how much you owe, who you owe, your assets, and lots of other factors. On today’s podcast, Doug Hoyes and Ted Michalos walk you through all the different scenarios in which you could deal with creditors by yourself, the risks to that, benefits, and they discuss when filing a consumer proposal or bankruptcy is the better option. Tune in! Related Links:
Can I Negotiate a Debt Settlement on My Own: https://www.hoyes.com/blog/can-i-negotiate-a-debt-settlement-on-my-own/
Negotiating Consumer Proposals – What Your Creditors Expect: https://www.hoyes.com/blog/negotiating-consumer-proposals-what-your-creditors-are-expecting/
Bankruptcy Protection in Canada: An Automatic Stay of Proceedings: https://www.hoyes.com/blog/bankruptcy-protection-in-canada-an-automatic-stay-of-proceedings/
We’re facing massive inflation with more and more people turning to debt to make ends meet. Bankruptcies are still at record lows, but perhaps not for much longer. On today’s podcast, Doug Hoyes and Ted Michalos give us an update on what’s going on now and how the rising cost of living is impacting our wallets. They also explain why someone would ever need to file bankruptcy by providing some realistic scenarios that lead one to financial trouble. Doug and Ted also share their predictions for what’s to come and give lots of practical advice for how to manage debt in today’s economy. Tune in!
Links:
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Why and How Does Someone go Bankrupt? https://www.hoyes.com/blog/why-and-how-does-someone-go-bankrupt/
Statistics Canada. Table 36-10-0112-01 Current and capital accounts - Households, Canada, quarterly https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Real estate prices are down in many parts of Ontario after record increases. Not surprising since the Bank of Canada has indicated it will raise rates again. But what has this done to mortgages? What’s happening when people renew? How has mortgage qualification changed? Enter Ron Butler, mortgage broker extraordinaire. On today’s podcast, Ron is back to give us an update on what he’s seeing on the ground with respect to mortgages. He also shares whether now is even a good time to buy. You won’t want to miss this discussion – lots of insight and great advice. Tune in! Links:
Butler Mortgage website: https://www.butlermortgage.ca/
Ron Butler on Twitter: @ronmortgageguy https://twitter.com/ronmortgageguy
Average Toronto house prices: https://wowa.ca/toronto-housing-market
Butler Mortgage (mortgage rates): https://www.butlermortgage.ca/mortgage-calculator/
Podcast 293 Debt, HELOCs, and The New World of Mortgage Lending with Ron Butler https://www.youtube.com/watch?v=VDSd6z5EJzA
Podcast 334 Mortgages & Home Equity Refinancing: What Are The Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0
Podcast 376 Should You Help Your Child Get a Mortgage? with Ron Butler https://www.youtube.com/watch?v=INc3t7ikv-w
Time Stamps:
4:43 When did the real estate market start to soften?
7:49 How are you supposed to afford a house in this market?
9:28 What is going on right now with the market?
13:49 How much more expensive is it to get a mortgage today?
19:20 What happens if you back out of a purchase?
26:03 This is the initial phase of a downturn
28:39 Should you buy now or rent?
32:10 Patience is a virtue – pause before you buy
A popular budgeting method called the 50-30-20 Rule dictates that you use 50% of your income on necessities like rent, 30% on wants, and 20% to savings and debt repayment. But is this even a realistic money management approach in 2022? With soaring cost of living, many people spend close to 70%-80% on necessities alone. So is this budgeting method a lie now? Enter Maureen Parent, LIT. On today’s podcast, Maureen and host Doug Hoyes discuss how this budget method can be adapted for today’s cost vs. income reality and offer practical tips for managing your money and building savings. Tune in for lots of great advice!
Related Links:
Top Tips to Help You Create Your First Budget: https://www.hoyes.com/blog/top-tips-to-help-you-create-your-first-budget/
Managing Money on a Variable Income: https://www.hoyes.com/blog/managing-money-on-a-variable-income/
The Secret to Budgeting: https://www.hoyes.com/blog/the-secret-to-budgeting/
Since the pandemic lockdowns, a large number of people became self-employed or started their own businesses. Why? Because of job loss or a desire for more flexibility. Makes perfect sense. But while there are many benefits to being your own boss – you get a lot of independence – is it always the right decision for you? What are the pitfalls and when is it just better to get a new job rather than start your own business? Tune in to today’s discussion with Doug Hoyes and Ted Michalos as they share the ups and downs of being self-employed (including the potential for debt problems), practical advice and personal experience to help guide your decision.
Related Links:
From Employee to Consultant Leads to Personal Debts https://www.hoyes.com/blog/from-employee-to-consultant-leads-to-personal-debts/
Self Employed: Financing Wisely to Avoid Debt Trouble: https://www.youtube.com/watch?v=F_lo_0JP46Q
Bad Funding Choices for Small Business: https://www.youtube.com/watch?v=UaklFv3eBvI
Debt Traps of Buying a Business: https://www.youtube.com/watch?v=-HbW9ww2BNg
It’s episode 400 of the Debt Free in 30 podcast and Doug Hoyes shares his wisdom on how to protect yourself against job loss. If the pandemic has taught us anything it’s that no job is secure. So, what can you do to avoid getting financially burned if you’re out of work? If you’re unhappy with your job, should you switch? What’s the smartest way to go about making a change? On today’s podcast Doug discusses three basic work truths and lots of practical advice you should understand to help you navigate the employment world.
Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Follow Doug Hoyes on Twitter: https://twitter.com/doughoyes
Ontario real estate prices are pulling back. Is this the end of the housing boom, or just a temporary slowdown? On today’s podcast we have first-time guest Nasma Ali, founder of One Group, a real estate agency based in Toronto. Nasma explains what’s currently happening with the real estate market. She also shares when she noticed the housing market slow down in the GTA, whether housing will ever drop by 50%, and whether now is a good time to buy. Nasma also discusses sales transparency and why it’s worth working with an experienced agent when making one of the most expensive financial decisions of your life. Tune in for lots of great practical advice and rare insight!
Related Links:
One Group website: https://onegroupre.com/
Nasma Ali on Twitter: https://twitter.com/nasmadotali
Nasma Ali on Instagram: https://www.instagram.com/nasmadotali/
Average Toronto house prices: https://wowa.ca/toronto-housing-market
Butler Mortgage rates: https://www.butlermortgage.ca/rates/
Time Stamps:
1:13 What is going on with real estate?
6:41 When did the slowdown start?
9:58 What is a bully offer?
13:29 Is now a good time to buy or should you wait?
20:30 Will housing ever be affordable? Will GTA prices drop 50%?
25:35 Sale price + transparency
30:55 Is there a real benefit to working with an agent? Can you DYI real estate sales?
More than 1 in 5 of our clients, people who file a bankruptcy or consumer proposal with Hoyes Michalos, are separated or divorced at the time they file with us. So, what happens when you have debt and are facing divorce? Can you divide debt in a separation agreement? What if it’s joint debt? On today’s podcast, Doug Hoyes and Ted Michalos explain how debt is managed when couples are facing separation and financial issues. They explain when it may be necessary for both parties to file insolvency if they have joint debt. They also discuss alimony, child support payments, and how joint assets are treated in an insolvency, among other issues. Tune in for lots of practical advice! Links:
Should You File Bankruptcy Before or After Divorce? https://www.hoyes.com/blog/should-you-file-bankruptcy-before-or-after-divorce/
What Happens to Joint Property in a Bankruptcy? https://www.hoyes.com/blog/what-happens-to-joint-property-in-a-bankruptcy/
Divorce and Bankruptcy Law in Canada https://www.hoyes.com/blog/divorce-and-bankruptcy-law-in-canada/
When the pandemic first started, the Canada Revenue Agency slowed their collection efforts on income tax debt owing. But with the economy reopened, we are starting to see notices filed by the CRA to individuals owing on income tax, including CERB and CRB debts. Is this a sign that the CRA is ramping up efforts again? What are your options if your employer is served with a Requirement to Pay notice from the government? What if you get a notice that you were overpaid for CERB/CRB or ineligible? Tune in to this panel discussion with Ian Martin, CPA, LIT and Scott Schaefer, CPA, LIT (our in-house tax experts) and host Doug Hoyes for lots of practical advice!
Additional Resources:
CRA Collection Letters for CERB Ineligibility or Overpayment. Can You File Bankruptcy? https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment/
What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/
Should I Borrow to Pay Taxes to CRA? https://www.hoyes.com/blog/should-i-borrow-to-pay-taxes-to-cra/
When you go bankrupt in Canada, you have to make a payment into your estate, for your creditors. This is called a surplus income payment. But are surplus income limits out of touch with today’s cost of living realities? How can it be fair that someone living in a major city like Toronto or Vancouver must pay the same amount into a bankruptcy as someone living in a small town, with lower living costs? On today’s podcast Doug Hoyes and Ted Michalos discuss the issues of surplus income payments, how debtors can make informed financial decisions before filing an insolvency, and when it may be better to file a consumer proposal instead of a bankruptcy. Tune in!
Resources Mentioned in the Show:
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Superintendent of Bankruptcy Directive No. 11R2-2022 Surplus Income https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03249.html
Hoyes Michalos What is Surplus Income? https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-payments/
Hoyes Michalos Surplus Income Calculator: https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/
Inflation Statistics, Statistics Canada https://www150.statcan.gc.ca/n1/daily-quotidien/220316/dq220316a-eng.htm
Average rents in Toronto: https://www.torontorentals.com/blog/toronto-gta-december-rent-report-2021
After two years of working from home, many people are being called back to work in the office. But since 2020, costs, like gas, have soared. How much more expensive is it going to be to go back to the office? Is it a good idea to look for another job that offers remote work instead? What are the risks to that? On today’s podcast, Doug Hoyes and Ted Michalos discuss which costs are now higher, who is more likely to be adversely affected, the potential risks of changing jobs, and give advice on how to cope financially. Tune in!
Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
We often want to help friends and family financially when they ask for help. But sometimes that help leads to financial problems for us (like co-signing a loan and ending up having to pay it!). How do you say no without seeming harsh or unhelpful? On today’s podcast, we have a panel discussion with Scott Schaefer, LIT Maureen Parent, LIT and host Doug Hoyes, with a special appearance by Ian Martin, LIT, sharing cautionary tales of financial help backfiring on their clients. They also explain why we find it so hard as human beings to say no to giving help and share practical advice for how to navigate requests for money from friends and family. Tune in! Links:
Never Loan Money to Family and Friends: https://www.hoyes.com/blog/never-loan-money-to-family-and-friends/
Straight Talk on Your Money Book: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
Maureen Parent, LIT, Kanata: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Scott Schaefer, LIT, Kitchener: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/scott-schaefer/
Ian Martin, LIT, Kitchener: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/ian-martin/
You’ve paid off your debts. Now you have some cash to invest. How do you get started? On today’s podcast, Doug Hoyes and Ted Michalos walk you through what you need to consider before you invest. They explain how TFSAs, RRSPs, RESPs, and RDSPs work and when you should put your money in each. They also discuss the risks that come with stock trading and the true costs of mutual funds. Doug and Ted also explain the different investor personality types so you can better understand yourself. Tune in for great practical advice!
Resources Mentioned in the Show:
RDSP & RESP expert – Big Cajun Man’s website: https://www.canajunfinances.com/about/
Jason Heath, Certified Financial Planner: https://objectivefinancialpartners.com/
Sandi Martin, Certified Financial Planner: https://springplans.ca/
Investment Selling is Not Financial Planning: https://www.hoyes.com/blog/investment-selling-is-not-financial-planning/
Podcast 360 – Planning Retirement with Limited Savings & Income: https://www.youtube.com/watch?v=nth1wjv5s8M
Podcast 215 – What is a Robo-Planner? Automated Financial Planning: https://www.youtube.com/watch?v=rXW7a7EdCKA
Our latest bankruptcy study revealed that the average female debtor's unsecured debt increased 6.5%, while her male counterpart only had a 0.7% increase in his unsecured debt load in 2021. Why is this? What are specific issues that women in debt face? On today’s podcast, we have an all-female panel of Trustees, who share their insights from client interactions, as well as personal experiences. They discuss why women have less take-home pay compared to men; share advice on how women can advocate for themselves in the workplace; discuss the pink tax and its effect on spending, and much more! Tune in for a great roundtable.
Related Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Why Women Face Higher Bankruptcy Risk: https://www.hoyes.com/blog/why-more-women-are-filing-bankruptcy/
Profile of Jennifer Kwon, LL.B., LIT, Mississauga: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/jennifer-kwon/
Profile of Rebecca Martyn, LIT, Windsor: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/rebecca-martyn/
Profile of Maureen Parent, LIT, Kanata: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Because there aren’t already enough lenders out there, Canada Post has now also come out with their own loan called the ‘MyMoney Loan,’ partnering with TD Bank. It’s a strategic alliance, aimed at Canadians in rural, remote, and Indigenous communities. But, this Canada Post loan is not so cheap. While it’s more affordable than a payday loan, is it really a viable option for Canadians who can’t easily access a traditional bank? Find out on today’s podcast with host Doug Hoyes and guests Rebecca Martyn, LIT, Jennifer Kwon, LIT, Maureen Parent, LIT, and with a special appearance by Tom Cooper from the Hamilton Roundtable for Poverty Reduction.
Related Links:
Canada Post Press Release https://www.newswire.ca/news-releases/canada-post-and-td-enter-strategic-alliance-to-expand-access-to-financial-services-for-canadians-861926361.html
Canada Post My Money Loan https://www.canadapost-postescanada.ca/cpc/en/personal/mymoney/loan.page
Canada Post 2020 Annual Report https://www.canadapost-postescanada.ca/cpc/doc/en/aboutus/financialreports/2020-annual-financial-report.pdf
Canada Post 2021 Quarterly Reports https://www.canadapost-postescanada.ca/cpc/en/our-company/about-us/financial-reports/quarterly-financial-reports.page?
DFI30 Episode 145 Poverty Reduction: What Can We Do? With Tom Cooper https://www.youtube.com/watch?v=juYQjuP0g9w
Hamilton Roundtable for Poverty Reduction https://hamiltonpoverty.ca
The Hoyes Michalos 2021 Joe Debtor Bankruptcy Study revealed that insolvent Canadians owed the highest level of unsecured debt since 2016. In 2021, the average insolvent debtor owed $50,484 in unsecured debt, with income tax debt and student loans driving insolvency filings. On today’s podcast, Doug Hoyes and Ted Michalos explain why this is just the tip of the iceberg and that student loans and tax debt balances are likely to go even higher in the future, along with other consumer debts. Doug and Ted also discuss other key findings from our Joe Debtor 2021 study. Tune in! Links:
Hoyes Michalos Annual Consumer Insolvency Study (Joe Debtor): https://www.hoyes.com/press/joe-debtor/
CRB Repayment: https://www.canada.ca/en/services/benefits/ei/cerb-application/transition/questions.html
CRA Interest Relief: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes/interest-relief.html
Predictions for Consumer Debt Coming Out of the Pandemic: https://youtu.be/LCE6EkOwi8E
Why Credit Card Debt Fell During the Pandemic & Will It Rise Again? https://youtu.be/Fqh_DF0xUrc
We know how hard it can be to live paycheque to paycheque or not have money available when a bill payment is due. Fintech is also recognizing this issue and developers have now created what’s called ‘early wage access’ or ‘pay advance’ apps. But are these apps really a good idea? Will getting paid sooner fix a cashflow problem or will it create more budgeting issues? How should you actually deal with a lack of income? Tune in to today’s podcast as Doug Hoyes and Ted Michalos discuss these apps, their risks, and what to do instead to budget successfully.
Links:
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Dayforce Wallet: https://www.dayforcewallet.com/ca/faq
Dayforce Prepaid Mastercard Fee Agreement https://www.dayforcewallet.com/dayforcewallet/media/wallet/documents/cha.pdf
Earnin App https://www.earnin.com/
Dave App https://dave.com/
Lenders sometimes ‘trick’ us by posting only the weekly cost of borrowing a loan (which is a much smaller number) than the monthly cost in their ads. Or they offer you an 8-year term on a car loan, which stretches the cost over more years, reducing your monthly payment, but increasing the total interest you pay. In both cases, the lender ‘wins’ by getting your sale and you end up owing a lot more than you originally planned for. So how can you avoid falling for lender tricks and approach offers more with a more critical eye? That’s the discussion on today’s podcast with guest Scott Terrio and host Doug Hoyes! Tune in. Links:
Scott Terrio on Twitter: https://twitter.com/ScottTerrioHMA
How Car Loans and Loan Rollovers Lead to Insolvency https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Although the Bank of Canada held interest rates steady in their January 26, 2022 announcement, rates are expected to increase in 2022. When that happens, will you be financially ready for higher borrowing costs? Could you afford to pay an extra, say, $50-$100 a month towards your debts? On today’s podcast, Doug Hoyes and Ted Michalos breakdown how a rate hike would impact your finances, whether it’s better to get a variable or fixed loan, and why it’s important to prioritize debt repayment in a low-rate environment. Tune in for a great discussion.
Links:
Rising Interest Rates and Debt – What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/
Bank of Canada Policy Interest Rate https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
Understanding the Bank of Canada Policy Interest Rate: https://www.bankofcanada.ca/2021/04/understanding-policy-interest-rate/
Bank of Canada Mandate: https://www.bankofcanada.ca/publications/annual-reports-quarterly-financial-reports/annual-report-2020/mandate-and-planning/#:~:text=The%20Bank%20of%20Canada%20is,committed%20to%20a%20better%20Canada
Statistics Canada, Consumer Price Index Graphic https://www150.statcan.gc.ca/n1/en/pub/11-627-m/11-627-m2022004-eng.pdf
Butler Mortgage, Mortgage Rates https://www.butlermortgage.ca/rates/
Episode 383, Predictions for Consumer Debt Coming Out of the Pandemic https://youtu.be/LCE6EkOwi8E
For the first time ever on Debt Free in 30, we’ve gathered some of our Licensed Insolvency Trustees from across Ontario to share what they’re seeing on the ground. How has the pandemic impacted indebted individuals? Has the vaccine mandate affected jobs and income? How is Canada Revenue Agency handling consumer proposals? All these questions answered and more, with insights from our Barrie, Mississauga, Oshawa, Cambridge/Brantford, Scarborough/Markham, Windsor, Kanata/Ottawa, and London area experts. Tune in for a great discussion.
Related Links:
Hoyes Michalos Homeowner's Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Hoyes Michalos annual Joe Debtor Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Our guests, in alphabetical order:
Mark Borysiak, Barrie https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/mark-borysiak/
Howard Hayes, Cambridge and Brantford: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/howard-hayes/
Jennifer Kwon, Mississauga https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/jennifer-kwon/
Rebecca Martyn, Windsor https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/rebecca-martyn/
Maureen Parent, Kanata and Ottawa https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/
Ianina Raguimov, Oshawa https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/ianina-raguimov/
Joel Sandwith, London https://www.hoyes.com/ontario-offices/london/
Nicholas To, Markham and Scarborough https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/nicholas-to/
Time Stamps:
1:26 – How is the pandemic impacting the average indebted person?
10:16 - How are vaccine mandates impacting people’s finances/jobs?
13:50 – What are creditors doing?
21:40 – How has rising real estate impacted people with high unsecured debt?
31:15 – How is the CRA handling income tax debt?
If you ignore an old debt, will it just go away? What if it’s been removed from your credit report already? What if a creditor hasn’t reached out to you about it in years? Does that mean you don’t have to pay? Not exactly. On today’s podcast, Doug Hoyes and Ted Michalos discuss how the Statute of Limitations works in Ontario, updates to the law, and which debts it does and doesn’t apply to. They also review three scenarios to help you understand what may or may not happen when it comes to owing old debts. Tune in for lots of practical advice!
Links:
Ontario Limitations Act and Old Debts: https://www.hoyes.com/blog/ontario-limitations-act-old-debts/
What is the Limitations Act: https://youtu.be/97h2u9lqCCY
Ontario Limitations Act via Ontario.ca: https://www.ontario.ca/laws/statute/02l24
Eyton Case, In re: John Trevor Eyton, 2021 ONSC 1819 (CanLII): https://www.canlii.org/en/on/onsc/doc/2021/2021onsc1719/2021onsc1719.html
Superintendent of Bankruptcy, Directive 6R: https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02402.html
Is it always worth the expense to have an accountant file your taxes? When is it OK to file them on your own? On today’s podcast, Ian Martin, LIT and CPA, returns to provide practical advice for how to approach tax filing on your own and when it’s time to seek professional help. Ian and Doug Hoyes also discuss the high cost of instant tax refunds, why not filing your taxes can be risky even if you don’t owe anything, and they address common myths about income tax filing. Tune in for a great discussion!
Links:
Instant Cash Back on Tax Refunds. Is It Worth It? https://www.hoyes.com/blog/instant-cash-back-on-tax-refunds-is-it-worth-it/
Tax Returns Not Filed Because You Are Afraid You Have Tax Debts? https://www.hoyes.com/blog/tax-returns-not-filed/
2021 was an interesting year for Canadian consumer debt. Insolvencies remained at record lows and many people were able to pay off their credit cards. But will these trends continue? On today’s podcast, Doug Hoyes and Ted Michalos review what happened with consumer debt, insolvencies, and savings in 2021 and, provide their predictions for what’s to come in 2022. With government income supplements winding down, collections activity starting again, and limitations periods near expiry, the new year should be interesting, to say the least! Tune in for their analysis.
Links:
Debt Statistics: What Happened to Debt During the Pandemic & Recovery of 2021 - https://hoyes.news/what-happened-to-debt-2021
Episode 348 – How Deflation Will Impact the Economy and Your Debt with Jeff Booth: https://youtu.be/7Kt7KBfemh8
Statistics Canada. Table: 36-10-0639-01. Credit Liabilities of Households: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501
Statistics Canada. Table: 36-10-0112-01. Current and Capital Accounts: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Statistics Canada. Table 14-10-0063-01. Employee wages by industry, monthly, unadjusted for seasonality: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006301
Statistics Canada, Labour Force Participation Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Hoyes Michalos Homeowner's Bankruptcy Index https://www.hoyes.com/press/homeowner-bankruptcy-index/
Federal government, fiscal update: https://budget.gc.ca/efu-meb/2021/report-rapport/intro-en.html
Bank of Canada, definition of Money Supply, and data: https://www.bankofcanada.ca/rates/indicators/key-variables/monetary-aggregates/
Money supply, Bank of Canada, https://www.bankofcanada.ca/rates/banking-and-financial-statistics/selected-monetary-aggregates-and-their-components-formerly-e1/
Monetary Aggregates, Bank of Canada, https://www.bankofcanada.ca/rates/banking-and-financial-statistics/selected-monetary-aggregates-and-their-components-formerly-e1/
Statistics Canada. Table 14-10-0063-01 Employee wages by industry, monthly, unadjusted for seasonality https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006301
Statistics Canada, Labour Force Participation Rate https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Statistics Canada. Table 17-10-0005-01 Population estimates on July 1st, by age and sex
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501
Statistics Canada, Household Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Consumer Price Index, annual avg, not seasonally adjusted: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501
We all agree that life is getting more difficult for the average person. The cost of living is going through the roof; wages are stagnant, and no matter what you do, it seems impossible to get ahead. On today’s podcast, Doug Hoyes explains the three forces that are conspiring against you: demographics, technology, and bad money. How did we get here? And how can you compete in today’s challenging economy? Tune in to this special episode for Doug’s insights and practical advice.
Resources Mentioned in the Show:
House Prices, Canadian Real Estate Association: https://creastats.crea.ca/en-CA/
Hourly Wages, Statistics Canada: shorturl.at/gGQT1
Rembrandt sketch, The Parable of the Talents: https://www.pubhist.com/w26841
NHL Statistics: https://www.quanthockey.com/nhl/seasons/2019-20-nhl-players-stats.html
Inflation, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501
2020 Canadian Federal Budget: https://www.budget.gc.ca/2021/report-rapport/anx1-en.html
Canada Emergency Wage Subsidy Statistics: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-statistics.html
Canada Emergency Response Benefit Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html
High-Income Tax Filers, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action
Baby Boom, Statistics Canada: https://www12.statcan.gc.ca/census-recensement/2011/as-sa/98-311-x/98-311-x2011003_2-eng.cfm
Historical Price of Oil: https://www.macrotrends.net/1369/crude-oil-price-history-chart
Historical Inflation Rate, Canada: https://www.macrotrends.net/countries/CAN/canada/inflation-rate-cpi
Historical Wages, Project Link Data from Statistics Canada & various sources: https://worthwhile.typepad.com/stephen/link/
Episode #271, TFSA, RRSP and Debt: https://youtu.be/7zn3JeAonV4
If you are new to credit or have recently completed an insolvency filing, you may be thinking about ways to improve your credit score without taking on more debt. While debt is necessary to have in order to build your credit, there are some strategies to improve your credit score without taking on more debt. On today’s podcast, Maureen Parent, LIT, returns to discuss what makes up a credit score and how you can improve it without a lot of additional debt. She also talks about the importance of utilization rates, how to build a long credit history, why cash savings and rent payments don’t count towards your score, and what to avoid so you don’t harm your credit. Tune in for lots of practical advice!
Links:
How to Check Your Credit Report for Free: https://www.hoyes.com/blog/how-to-check-your-credit-report/
Straight Talk on Your Money by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
Maureen Parent, LIT on Twitter: https://twitter.com/MaureenParent7
A lot of personal finance advice is out of touch with today’s reality of exorbitant house prices and stagnant wages. So how can a Millennial navigate our current economy and prepare themselves financially for the future? Enter Erica Alini, an experienced personal finance reporter at Global News. She’s also the author of the new book Money Like You Mean It – Personal Finance Tactics for the Real World. On today’s podcast Erica shares practical advice from her book about how Millennials should approach life milestones like home ownership, emergency events, student loans and how to deal with debt. Tune in for a great discussion!
Links:
Money Like You Mean It book on Amazon: https://www.amazon.ca/Money-Like-You-Mean-Personal/dp/1459748670
Money123 Newsletter by Erica Alini – how to sign up: https://globalnews.ca/news/4022683/money123-newsletter/
Erica Alini on Twitter: https://twitter.com/ealini
The price of the average home in Canada increased by a record $147,000 compared to last year. Is housing going up forever? How are first-time home buyers supposed to enter such a hot market? On today’s podcast, Ben Rabidoux, founder of North Cove Advisors and Edge Realty Analytics, returns with his insights on the Canadian housing market and predictions for 2022. Ben also gives his thoughts on inflation, the impact on consumers if interest rates go up, and whether consumer debt levels will rise substantially in the coming months. Tune in for a great discussion!
Links Mentioned in the Show:
Podcast 94 What Happens to Debt When House Prices Fall: https://youtu.be/ETkZEc5FLYk
Podcast 266 Real Estate, Personal Debt, and Recession Indicators: https://youtu.be/0TMRQ0f0_WQ
Podcast 292 Debt, Frozen Real Estate, Cancelled HELOCs, and a Guaranteed Recession: https://youtu.be/fek4xUoIkrc
Podcast 333 Mortgages, Consumer Debt and Delinquencies – What’s Real & What’s Fantasy: https://youtu.be/b-JYXZZ7eDQ
Edge Realty Analytics: https://edgeanalytics.ca/
Ben Rabidoux on Twitter: https://twitter.com/BenRabidoux
Employment chart, Statistics Canada: https://www150.statcan.gc.ca/n1/daily-quotidien/211105/cg-a001-eng.htm
Labour force characteristics chart, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701
Canadian Real Estate Association Chart: https://www.crea.ca/housing-market-stats/mls-home-price-index/hpi-tool/
Current and capital accounts chart, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Hoyes Michalos Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Time Stamps:
2:21 – The most important trend in the housing market today: inventory levels are plunging
5:43 – At what point will house prices start to fall?
6:54 – How did real estate prices get so high?
8:49 – If high prices for single family homes are partially a supply issue, why are we not building more single family houses?
12:09 – Why immigration numbers don't tell the full story about population growth
14:51 – Will inflation and interest rates increase in 2022?
19:25 – Ben disagrees with Doug's deflationary prognostications for 2022
21:37 – Has employment bounced back to pre-pandemic levels?
26:08 – Ben's predictions for 2022
28:52 – Are mortgage borrowers going variable or fixed on their mortgages now?
32:14 – Will debt levels increase in 2022?
On the surface, a debt consolidation loan sounds like a great idea because you’re left with only one monthly debt payment as opposed to several. But is consolidation always a good idea? And is it worth it if you’re paying more in interest than you were before? On today’s podcast, Scott Terrio and Doug Hoyes provide real stories of failed debt consolidation. While borrowers have good intentions and want to make their debts more manageable, consolidation loans can sometimes make debt repayment more difficult. Scott and Doug also give practical advice for when consolidation is the right move and which types of loans to steer clear of. Tune in for a great discussion!
Links Mentioned in the Show:
How Does a Debt Consolidation Loan Work: https://www.hoyes.com/blog/how-does-a-debt-consolidation-loan-work/
Should You Consolidate or Pay Bills with a Car Title Loan? https://www.hoyes.com/blog/should-you-consolidate-or-pay-bills-with-a-car-title-loan/
Podcast 231: Think Twice Before You Get a Home Equity Line of Credit: https://www.youtube.com/watch?v=RiKKbg_pyu8
Scott Terrio on Twitter: https://twitter.com/ScottTerrioHMA
According to a May 2021 survey by the Canadian Federation of Business (CFIB), only 39% of small businesses in Canada are currently making the sales they consider normal. CFIB also estimates that total Canadian small business debt related to COVID-19 sits at $139 billion. With ongoing pandemic restrictions and slow economic activity, will these small businesses recover? On today’s podcast, Ted Michalos and Doug Hoyes give practical advice for how a small business struggling with debt can do a self-test to ensure they are viable and when it may be time to consider professional debt solutions. They also discuss the impacts government subsidies have had on the economy and whether or not it’s a good idea to continue government financial support for small business. Tune in for a great discussion!
Related Links:
Small Business Debt: The COVID-19 Impact: https://content.cfib-fcei.ca/sites/default/files/2021-08/Small-Business-Debt-The-COVID-19-Impact.pdf
The new challenges facing Canada’s small businesses: https://thoughtleadership.rbc.com/the-new-challenges-facing-canadas-small-businesses/
Keeping Your Business Afloat While Dealing with Debt: https://www.hoyes.com/blog/keeping-small-business-afloat-dealing-debt/
Top 5 Bankruptcy Issues for Small Business Owners: https://www.hoyes.com/blog/top-5-bankruptcy-issues-for-small-business-owners-and-self-employed/
According to an October 2021 CIBC report, the average down payment gift from a parent to their child has risen to a record high of $82,000. But while most of these gifts are cash savings, and not debt, is it still wise to gift your child a down payment for their first home? Could there be repercussions and if so, what? On today’s podcast, mortgage broker extraordinaire Ron Butler, gives first-hand insight into the rise of down payment gifts for first-time home buyers and discusses the increase in co-signers on mortgages. Ron also explains whether an interest rate hike will affect home prices and much, much more! Tune in.
Related Links:
CIBC Report – “Gifting for a down payment – perspective” by Benjamin Tal: https://economics.cibccm.com/cds?id=9dc124d8-9764-4c1d-83b4-9e89a5d568b8&flag=E
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
Podcast 334 – Mortgage & Home Equity Refinancing: What Are the Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0
Ron Butler on Twitter: https://twitter.com/ronmortgageguy
Butler Mortgage Website: https://www.butlermortgage.ca/
TIME STAMPS:
2:18 Today’s mortgage rates
3:27 Have people regretted moving away from the city?
6:24 How are bank approvals for mortgages?
8:15 Variable vs. Fixed Rates – what’s better?
13:55 Are down payment gifts a good idea?
17:38 How are parents affording down payment gifts?
18:26 Cautionary tales of borrowing to help kids and cosigning on mortgages
20:22 If we have 70s-type inflation, what’s going to happen?
23:54 Is the US-style mortgage better for customers?
25:36 Where does Ron see rates in the future?
28:35 Is there more diversity in mortgage providers these days? (A vs. B lenders)
31:10 Should parents be gifting down payments and practical advice
If you don’t qualify for a regular credit card or don’t want one, but still need to make credit purchases, a good option may be to use a prepaid credit card. But are prepaid cards entirely safe? Can you ever get into money problems with them? On today’s podcast, Diane Cunha, a certified credit counsellor, breaks down how prepaid cards work, how they differ from regular credit cards, whether they’ll help your credit, the pros and cons of using them and potential pitfalls. Tune in for lots of practical advice!
Links:
NOT and AFFILIATE LINK: KOHO Card: https://www.hoyes.com/fresh-start/banking/koho/
Fresh Start to Banking after Insolvency: https://www.hoyes.com/fresh-start/banking/
Does a student in grade 9 with no income, savings or financial responsibilities really need to learn about down payments or how to calculate mortgage amortization schedules? Should we even be teaching these financial literacy concepts so early in life? Is there a more effective, practical way to teach kids how to understand money? On today’s podcast, Doug Hoyes and Ted Michalos critique the 2021 grade 9 and 10 financial literacy curriculum for Ontario and share their thoughts on money topics and scenarios that would be more fitting for young students. Tune in!
Links:
Financial Literacy: Does It Belong in Ontario’s Curriculum? https://www.hoyes.com/blog/financial-literacy-ontarios-curriculum/
Grade 9 Ontario Mathematics Curriculum 2021: https://assets-us-01.kc-usercontent.com/fbd574c4-da36-0066-a0c5-849ffb2de96e/2c41223a-5f39-4dd2-b94c-c75d2fae1fbd/Math_9_strand%20chart_AODA_06-May-21.pdf
You asked. We answered. On today’s podcast guest Blair Demarco-Wettlaufer, CEO of Kingston Data and Credit (a collection agency), returns to answer your most pressing debt collection questions, like whether a collection agency can add interest to your debt or force you to file bankruptcy. Blair also discusses whether you should even bother with collectors if the debt isn’t listed on your credit report and many, many more of your questions! Tune in for lots of great practical advice.
Resources:
Blair Demarco-Wettlaufer on Twitter: https://twitter.com/kdcblair
Blair’s blog for information on credit and collection issues: https://receivableaccounts.blogspot.com/
Hoyes Michalos free credit repair course: https://courses.hoyes.com/courses/rebuild-credit
Hoyes Michalos blogs on dealing with collections: https://www.hoyes.com/blog/tag/collection-calls/
Rights & Responsibilities – Collection Agencies – Ontario.ca: https://www.ontario.ca/page/stop-collection-agency-calls
Episode 264 How to Negotiate with a Collection Agent https://youtu.be/ZgNWpKfBUwU
Episode 240 Can a Collection Agency Take me to Court https://youtu.be/6UHpCGqVP4k
Episode 296 Dealing with Collection Calls in COVID-19: Debt Negotiations, Deferrals and Credit Report Impact https://youtu.be/S86gnBEkeUY
Time Stamps:
4:29 – Should I ignore a debt collector?
11:53 – Can debt collectors add interest or fees to a debt?
14:33 – Can a collection agency show up at my work or call my boss?
18:44 – Should I even bother with a collector if the debt is not listed on my credit report?
20:17 – Should I accept a settlement offer and pay it or don’t pay it? Will that reset the statute of limitations?
22:02 – What if you don’t have the cash to repay debt, how do you settle or negotiate?
23:55 – Can a credit collection agency force you to file for bankruptcy?
24:30 – I had to shut down my business during the pandemic. I had internet shut off and said I would pay off in payments. Now I got a collections letter directed to my business. Should I deal with the collector, and will this show on my personal credit score?
26:05 – Would a collection agency take the advice of a bank rep and ask family to repay a debt?
28:34 – How do collection agencies communicate with people who don’t have voice mail or answer the phone?
31:04 – How do collection agencies get paid?
Do you need a physical bank? Or are you better off using a virtual bank instead? On today's podcast, guest Scott Terrio and host Doug Hoyes do a deep dive on what to consider when choosing banks, including some recommendations for no-fee accounts, why you should switch banks entirely if you're filing a bankruptcy or consumer proposal, and how to protect yourself from the bank's right of offset. They also discuss why Canadians are so attached to their banks in general and how the banker-customer relationship has changed over the years and why that matters. There's tons of practical advice in this show, so be sure to tune in!
Helpful Links:
Hoyes Michalos Fresh Start Program – Banking Information: https://www.hoyes.com/fresh-start/banking/
Free Credit Repair Course: https://courses.hoyes.com/courses/rebuild-credit
What is the Right of Offset & What To Do About It: https://www.hoyes.com/blog/what-is-the-right-of-offset-and-what-can-you-do-about-it/
Why You Should Bank at More Than One Bank: https://www.hoyes.com/blog/why-you-should-bank-at-more-than-one-bank/
How to Open a New Bank Account for a Bankruptcy or Consumer Proposal: https://www.hoyes.com/blog/opening-a-new-bank-account-bankruptcy-consumer-proposal/
Depending on your financial situation, you may benefit from asking your employer to take more tax off your paycheque. But how can you know when that's a good idea? Enter Ian Martin. Ian is an LIT and CPA and spent 6 years working at Canada Revenue Agency, so he knows a fair bit about income taxes. On today's podcast, Ian explains when it's in your best interest to have your employer deduct higher taxes (like if you think you'll owe due to CERB/CRB, or if you'll owe because you work more than one job). He also gives tips for how to handle income taxes if you're self-employed or if you're bankrupt. Tune in for lots of practical advice!
Links:
CRA TD1 Form: https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later/td1.html
What if your car insurance rate was decided by your credit score? Well, this is the case in New Brunswick and may one day become a reality in Ontario. But is it fair? Are credit scores a good determinant of our driving habits? On today’s roundtable podcast, guests Scott Terrio, Maureen Parent, and host Doug Hoyes discuss the potential pitfalls to using credit scores to decide car insurance rates. They also discuss privacy issues and why this policy is particularly unfair to certain segments of the population (seniors, renters, newcomers). Tune in for a lively discussion!
Links:
Free Credit Repair Course: https://courses.hoyes.com/courses/rebuild-credit
Auto Insurers’ Interests in N.B. Credit Scores is Bad News for Many – CBC: https://www.cbc.ca/news/canada/new-brunswick/auto-insurers-credit-scores-new-brunswick-1.6172978
New Brunswick Insurance Board November 24, 2020 Decision: http://www.nbib-canb.org/assets/files/pdf/decisions/2020/2020_11_24%20TDHA%20PPV%20RFG-1%20Decision%20E.pdf
We Canadians consume a lot of American media, so it’s possible that the ideas we have about bankruptcy are actually what happens to indebted individuals in the United States, and not the Canadian reality. On today’s podcast, Doug Hoyes and Ted Michalos explain how bankruptcy in Canada is a rehabilitative and supportive process, with limited barriers. They address common fears and misconceptions and give insight on why filing bankruptcy is so much simpler in Canada than it is in America. Tune in for a great discussion!
Links:
Free Credit Repair Course: https://courses.hoyes.com/courses/rebuild-credit
Chapter 7 Bankruptcy: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics
Chapter 13 Wage Earner’s Plan: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics
Surplus income in a bankruptcy: https://www.hoyes.com/blog/new-surplus-income-limits-for-2021/
Hoyes Michalos Joe Debtor Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
How often should you check your credit score? Is it wrong to obsess over credit scores? Where is the best place to get your credit report? On today’s podcast, seasoned credit counsellor Diane Cunha and LIT (& lawyer!) Jennifer Kwon join Doug Hoyes in a roundtable discussion on whether or not Canadians need to worry about their credit scores and who credit scores are really designed for. They also share practical advice for managing your credit health and where to find accurate information about your credit activity. Tune in for a lively chat!
Resources Mentioned in the Show
Straight on Personal Finance Credit Repair Course: courses.hoyes.com
Did You Know You Have a Bankruptcy Score? https://www.hoyes.com/blog/forget-credit-score-did-you-know-you-have-a-bankruptcy-score/
Podcast 327: New Buy Now Pay Later Apps – Is It Debt? https://www.youtube.com/watch?v=KvCO7_PUCDI
Podcast 140: Banks Behaving Badly, Who To Trust, and Has Toronto Real Estate Peaked? https://www.youtube.com/watch?v=TNN-gAyODxg
Straight Talk On Your Money book by Doug Hoyes: https://www.hoyes.com/straight-talk/
Canadians with the lowest credit scores paid down their credit cards the most since the pandemic started. Incredible, right? So, will this downward trend in debt continue? Or is this temporary because most of us are still at home and collections activity is slim? Today we review the latest debt statistics and discuss why Canadians are paying off so much debt, who’s actually taking on more debt, and whether borrowing will rise again in the near future. We also share practical advice for managing debt and what to do if you owe the CRA. Tune in for a lively discussion!
Links:
Hoyes Michalos Straight Talk on Personal Finance Course on Credit Rebuilding: courses.hoyes.com
Trends in household non-mortgage loans: The evolution of Canadian household debt before and during COVID-19, Statistics Canada: https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2021004-eng.htm
Bank of Canada, Financial System Review – 2021 https://www.bankofcanada.ca/2021/05/financial-system-review-2021/
Canadians with Lowest Credit Scores Led Wave of Pandemic Credit Card Debt Repayment: https://www.reddeeradvocate.com/business/canadians-with-lowest-credit-scores-led-wave-of-pandemic-credit-card-debt-repayment/
Hoyes Michalos Bankruptcy Study www.joedebtor.ca
Time Stamps:
0:50 Bank of Canada says Canadians increased “prudence”
2:00 Household non-mortgage debt collapses
3:00 Spending dropped during the pandemic
6:00 Credit card debt collapses
9:15 HELOCS – Massive increase in Home Equity Lines of Credit
12:20 Outstanding credit card balance by credit score
13:00 Who paid down credit cards the most? Not who you would expect
13:40 How were people with low credit scores able to pay down their credit cards the most during the pandemic?
18:50 What will happen in the future?
24:30 Dubious speculation on when CRA will start aggressively collecting tax debt
28:30 Where the economy is now
28:50 Practical Advice
Regular episodes resume next week, but for today, a quick overview of our plans for the eighth season of Debt Free in 30. You’ve told us - we’ve listened. And this year, we will focus on what you’ve told us you want the most: practical advice on how to manage your money and live debt free. You’ll see a lot of our regular contributors, like Ted Michalos, Scott Terrio and Diane Cunha, and we will be introducing a new feature later this month: the Debt Free in 30 roundtable, where Doug Hoyes and two guests will give their opinions on important issues. All that and more this season on Debt Free in 30.
This episode first aired as episode number 227 in January, 2019, and even two and a half years later it continues to have a lot of downloads each week. We are taught to set a goal, and that’s a good plan in some cases, but a better long-term solution is to create a system, as we discuss this week. Enjoy!
Resources Mentioned in the Show
Systems vs. Goals http://blog.dilbert.com/2013/11/18/goals-vs-systems/
This episode on YouTube: https://youtu.be/ysvkV0uN7mM
Podcast: the 80/20 Rule of Money Management https://www.hoyes.com/blog/the-80-20-rule-of-money-management/
Originally broadcast as episode 254 in July, 2019, today we rebroadcast our show about a wonderful, magical place called Costco. Is it a store? A finance company? Something else? And why does it matter? All that and more on today’s podcast (and we’ve got slides, so if you want to see the numbers, the video is posted on the Debt Free in 30 channel on YouTube https://youtu.be/-8PlGkHjHG8 ).
It's August 2021, and many Canadians filed their 2020 taxes and discovered they owe taxes on the CERB they received last year, or they have to pay it all back because CRA said they weren't eligible. What can they do?
Today we rebroadcast our chat with Jason Rosen, a tax lawer and co-founder of Rosen Kirshen (RK) Tax Law. He provides practical advice for how Canadians can prepare themselves in the event of a tax audit and explains what may happen to those who applied to CERB knowing they were not entitled to receive it. Tune in!
Relevant Links:
Rosen Kirshen Tax Law Website: https://www.rktaxlaw.com/
CRA Collection Letters for CERB Ineligibility & Repayment: https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment
CERB Eligibility: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/eligibility-periods.html
CERB Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html
New T4 Reporting Requirements for Employers: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html
CERB Eligibility Criteria: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html
This episode first aired two years ago and is one of our most-watched videos on YouTube. Today Ted Michalos and Doug Hoyes return with updated information on how the COVID-19 lockdown impacted the Limitations Period, which impacts whether or not a creditor can take you to court.
We explain when they are most likely to take you to court, and what your options are if they do. Enjoy!
Unlicensed and unregulated debt consultants prey on vulnerable, indebted Canadians. They say they can eliminate your debt, but all they really do is charge you a big fee and then refer you to a Licensed Insolvency Trustee to file a consumer proposal. On today’s podcast, Ted Michalos and Doug Hoyes discuss how debt consultants work, how to prevent yourself from getting scammed by them, and provide their recommendations on how this unregulated industry should be eliminated. Tune in for a great discussion!
Additional Links:
Podcast 220: The Cold-Hard Truth About Unlicensed Debt Consultants: https://youtu.be/6ESHYGnwcOU
Ontario Government – search for a collection agency: https://www.ontario.ca/page/search-business-licence-registration-or-appointment
Government of Canada - search for a licensed insolvency trustee: https://www.ic.gc.ca/app/scr/tds/web
How Credit Counselling agencies really work today: https://www.hoyes.com/blog/a-different-view-of-credit-counselling/ and
https://www.hoyes.com/blog/are-not-for-profit-credit-counselling-agencies-now-just-debt-collectors/
Hoyes Michalos Joe Debtor Bankruptcy Study https://www.hoyes.com/press/joe-debtor/
Ontario Ministry of Government and Consumer Services https://www.ontario.ca/page/ministry-government-and-consumer-services
Ontario Collection and Debt Settlement Services Act https://www.ontario.ca/laws/statute/90c14
$23 million in fees paid to debt consultants – OSB data: https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03754.html
Time Stamps:
3:08 What is credit counselling?
4:42 What is a consumer proposal?
5:50 How ‘debt consultants’ work
7:59 The debt consultant business model
11:22 What are debt consultant tricks?
13:50 What questions to ask when meeting with a debt professional
23:10 Advice to the Office of the Superintendent of Bankruptcy to better regulate debt consultant scams
Experts say you should have 10 times your income saved to retire, but for many people that's a difficult target. What can you do if your savings are nowhere near that amount or, more likely, you haven’t even started saving yet? How can you plan a retirement on a limited income? Enter Jason Heath, Certified Financial Planner. On today’s podcast, Jason provides practical advice on retirement income sources like CPP, OAS, GIS, and how and when to claim them. He also helps listeners understand how to be strategic and make the most of their TFSAs and RRSPs for retirement. Tune in!
Links:
Objective Financial Partners Inc. website: https://objectivefinancialpartners.com/
Jason Heath on Twitter: (@JasonHeathCFP) https://twitter.com/JasonHeathCFP
Podcast 198 – How to Find a Credible Financial Planner: https://www.youtube.com/watch?v=ORuEiYR5zpI
CPP Information Canada.ca: https://www.canada.ca/en/services/benefits/publicpensions/cpp.html
Guaranteed Income Supplement (GIS) Information: https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/guaranteed-income-supplement.html
Old-Age Security Overview: https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html
There are a lot of scenarios where borrowing makes sense: buying a home, a car, or paying for school. But if you don’t stop to think before borrowing, you can face some serious unintended consequences. Sure, that 8-year car loan seems affordable today, but what if you face reduced income or something happens to the car and you’re stuck with repayment? Would you still be able to afford it? On today’s podcast, guest Ted Michalos and Doug Hoyes go through eight borrowing scenarios and the potential problems that come with them, along with practical advice for each case. Tune in!
Links:
5 Debt Lessons Every Student Should Know https://www.hoyes.com/blog/5-debt-lessons-every-student-should-know/
How Car Loans and Car Loan Rollovers Lead to Insolvency https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Should You Get a Wedding Loan? https://www.hoyes.com/blog/should-you-get-a-wedding-loan/
Why Does Home Ownership Cause Financial Problems? https://www.hoyes.com/blog/why-does-home-ownership-cause-financial-problems/
What to Know About Credit Cards So You Use Credit Wisely: https://www.hoyes.com/blog/what-to-know-about-credit-cards-so-you-use-credit-wisely/
8 Alternatives to Payday Loans https://www.hoyes.com/blog/8-alternatives-to-payday-loans/
Time Stamps -
Unintended Consequences of:
1:42 Car Loans
5:01 Mortgage Loans
7:15 Credit Cards
8:33 Payday Loans
10:29 Student Loans
14:15 Wedding Loans
18:55 Borrowing to Invest
24:23 Borrowing to Start a Business
Times have changed. Cost of living is higher than ever, and wages have barely kept up. Jobs are no longer as stable as they used to be, and good paying jobs don’t require 4-year degrees necessarily. Knowing this, why do we still give the same financial advice we gave decades ago? On today’s podcast guest Scott Terrio and Doug Hoyes discuss six pieces of common financial advice that we may want to rethink in 2021. Tune in for lots of practical advice!
Additional Links:
Podcast 231: Think Twice Before Getting a Home Equity Line of Credit https://youtu.be/RiKKbg_pyu8
Straight Talk On Your Money book by Doug Hoyes: https://www.hoyes.com/straight-talk/
We are now 16 months into the Coronavirus pandemic, and everything has changed. Canadians have increased their savings rate and put a dent in their unsecured debt obligations. But are these trends going to last? Will savings go back down and credit card balances surge once the economy fully reopens? And will stress levels increase when we are back together in the workplace? Join guest Ted Michalos for a lively discussion on what’s happening and what’s next.
Time Stamps:
3:50 How much are Canadians saving now?
6:54 What’s happening with credit card debt?
11:11 What’s in store for the future?
20:00 When will things return to normal?
24:48 Practical advice
Related Links:
Ep. 290 Dealing with Debt During COVID-19 https://youtu.be/lWmZDLaJ63o
Ep. 291 COVID-19 & Debt Update: Dealing with your Creditors https://youtu.be/NPUSxwQR-pg
Ep. 292 Debt, Frozen Real Estate, Cancelled HELOCs, and a Guaranteed Recession with Ben Rabidoux https://youtu.be/fek4xUoIkrc
Ep. 295 The Vultures are Circling: COVID-19 & High-Interest Loans https://youtu.be/yLK40Eq0vZw
Ep. 296 Dealing with Collection Calls in COVID-19: Debt Negotiations, Deferrals, and Credit Report Impact https://youtu.be/S86gnBEkeUY
Statistics Canada. Table 36-10-0112-01 Current and capital accounts - Households, Canada, quarterly https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Statistics Canada. Table 36-10-0639-01 Credit liabilities of households (x 1,000,000) https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901
If you have a little money, is it better to invest it or just leave it in a savings account? And if you do invest, how can you do so with very small amounts of money? Enter Robert Brown, author of Wealthing Like Rabbits. On today’s podcast, Robert shares best practices for beginner investors. Robert reviews where to store your money depending on your financial goals (RRSPs, TFSAs) and which types of investments are sound, which ones should be avoided, and the importance of looking at the ‘costs’ of investing. Tune in to this podcast for lots of valuable practical advice!
Additional Links:
Wealthing Like Rabbits – An Original Introduction to Personal Finance On Amazon: https://amzn.to/35sEmN0 (Kindle, Paperback and Audiobook)
Robert Brown's previous appearances on Debt Free in 30:
-Episode 14: https://www.hoyes.com/blog/wealthing-like-rabbits-robert-brown/
-Episode 77: Change Your Debt Perspective, https://youtu.be/u8MK9XVI5rA
-Episode 140: Banks Behaving Badly, Who to Trust, and Has Toronto Real Estate Peaked? https://www.hoyes.com/debt-free-30-podcast/page/21/
-Episode 184: Debt: Why is no-one listening https://youtu.be/nCZ6ojT9h5k
-Episode 211: Are you Having a Personal Financial Crisis? https://youtu.be/tuNN3c54kaU (first video podcast in Kitchener, before the studio was built)
-Episode 275: The Huge Business of Marketing, https://youtu.be/jbX6ZzS1Gdc
When a financial product is more affordable (or even free), banks aren’t too keen on promoting it or helping you access it. Why? Because they want to make money. Banks are also very good at manipulating consumers into thinking they’re getting a ‘deal’ when they’re really paying a hefty price. So, how can you know when it’s truly free money and when it’s a ploy? Enter Alan Whitton (aka Big Cajun Man). On today’s podcast, Alan gives real examples of false ‘free’ financial services and products to help us make more informed banking and investing decisions. Alan also explains how RDSPs and RESPs work and how to access income-based benefits in the two plans. Tune in for lots of practical advice!
Resources:
Canadian Personal Finance Blog: https://www.canajunfinances.com
RESP & University Expenses Page: https://www.canajunfinances.com/RESP/
RDSP Information: https://www.canajunfinances.com/RDSP
Alan Whitton on Twitter (@bigcajunman): https://twitter.com/bigcajunman
Alan Whitton (Canajun Finances) on Facebook: https://www.facebook.com/canajunfinances
The economic shutdown has been costly for small businesses. If you’re an owner concerned about the future health of your business, what should you do? Sell your business? What are your options if you have a lot of business debt? On today’s podcast, David Barnett, a business broker, returns to discuss how COVID-19 has impacted small businesses and why some businesses are having a harder time selling than others. He also shares strategies some companies have deployed to stay afloat during the pandemic and advice to avoid bad business funding choices. David also explains the sunk-cost fallacy and recency bias to help you understand whether it’s financially worthwhile to maintain your business. Tune in for lots of practical advice!
Related Links:
Debt Traps of Buying a Business with David Barnett: https://www.youtube.com/watch?v=-HbW9ww2BNg
David Barnett’s Website: davidcbarnett.com and https://www.investlocalbook.com/
David Barnett on Twitter: https://twitter.com/DBarnettMoncton
With the rapid rise in the real estate market, you may find yourself with significant equity in your home, yet you are also carrying high interest unsecured debt. On paper you have equity in your home, but you may still be “insolvent”, meaning you can’t pay your bills as they come due. So, what should you do? On today’s podcast, guest Ted Michalos explains how you can deal with debt as a homeowner through either a home equity line of credit, a second mortgage, or by filing a consumer proposal. Tune in for lots of practical advice!
Helpful Links:
Second Mortgage Home Equity Loan or Interest-Free Consumer Proposal? https://www.hoyes.com/blog/second-mortgage-or-interest-free-consumer-proposal/
Will a Second Mortgage Clean Up All Your Debts? https://www.hoyes.com/blog/will-a-second-mortgage-clean-up-all-your-debts/
Making the minimum payment on your credit card can make you believe your debt is manageable. But the reality is, minimum payments will keep you in debt forever. On today’s podcast, guest and Certified Credit Counsellor Diane Cunha explains the ‘lie’ behind minimum payments and why people fall into the trap. Diane also gives practical advice on how to avoid the minimum payment debt cycle.
Related Links:
Minimum Payments on Credit Cards Are Keeping You in Debt: https://www.hoyes.com/blog/minimum-payments-on-credit-cards-are-keeping-you-in-debt/
Straight Talk on Your Money, available on Amazon, Kindle and as an audiobook: https://www.hoyes.com/straight-talk/
There are a lot of misconceptions about why someone files for bankruptcy in Canada. Did they spend too much? Were they reckless or irresponsible? The truth is debt problems can happen to anyone at any time and when they least expect it. On today’s podcast, Doug Hoyes and guest Ted Michalos share stories and dig deep into how the debt trap often starts for individuals and dispel common myths surrounding why Canadians face insolvency. They also share practical advice for anyone struggling with debt. Tune in!
Links:
Hoyes Michalos Study: Bankruptcy Causes in Canada: https://www.hoyes.com/press/joe-debtor/causes-of-insolvency/
Is there any point in teaching a kid in Grade 10 mortgage amortizations? And if you as a parent aren't a money expert, isn't it counter productive for you to try to explain money to your kid?
Robin Taub is a Chartered Professional Accountant and author of the just released book The Wisest Investment: Teaching Your Kids to be Responsible, Independent and Money-Smart for Life, and she says that teaching kids money management is very important, and on today's podcast she gives practical examples of how to empower your children and help them learn about money management (in a post-pandemic world) in a clear and simple way, no matter how old they are.
Related Links:
Robin's Book: The Wisest Investment: Teaching Your Kids to be Responsible, Independent and Money-Smart for Life on Amazon: https://amzn.to/3hhPnbh
The Wisest Investment website: https://www.thewisestinvestment.com/
Robin Taub’s website: https://robintaub.com/
Robin Taub on Twitter: https://twitter.com/robintaub
Robin's first appearance on Debt Free in 30: Podcast 23 - The Importance of Teaching Kids That Money Matters: https://www.hoyes.com/blog/the-importance-of-teaching-kids-that-money-matters/
Should you put all of your savings at risk in the stock market to earn enough for a down payment on a house? Probably not. Danielle Park, lawyer, and wealth manager explains why some financial advice is "heinous", how to recognize bad financial advice, and why you should think critically about the financial advice we are bombarded with every day.
Related Links:
Links:
Danielle's blog post on Doug Hoyes’ TV appearance: https://jugglingdynamite.com/2021/04/22/financial-stress-rising-for-households/
The Questrade ad: https://youtu.be/Ta2a7LkVVHc
Doug Hoyes on BNN Bloomberg on April 21, 2021: https://www.bnnbloomberg.ca/video/~2185816
Podcast 248 – Danielle's first appearance: Building Wealth in a Challenging World: https://youtu.be/Y9mc-3ht0Uw
Podcast 348 – How Deflation Will Impact the Economy and Your Debt with Jeff Booth: https://youtu.be/7Kt7KBfemh8
Danielle Park’s website: https://jugglingdynamite.com/
Danielle's book: Juggling Dynamite: An Insider's Wisdom on Money Management, Markets, and Wealth That Lasts on Amazon: https://amzn.to/3h349lZ
Danielle on Twitter: https://twitter.com/kdaniellepark
Danielle’s investment management firm – Venable Park: http://www.venablepark.com/
We worry about inflation, but the technology we increasingly use is deflationary. Hard to believe, but that's why most of the apps on your phone are free. Deflation is great if you can buy things for less, but debt doesn't deflate, so you could end up with much higher debt costs in real dollars. On today's podcast first-time guest Jeff Booth, entrepreneur, and author of The Price of Tomorrow: Why Deflation is the Key to an Abundant Future, explains why we should think about deflation, and how it will impact the economy, inequality, your job, and your debt. You may not agree with Jeff's perspective, but it will make you think. Enjoy!
Related Links:
Jeff Booth's book, The Price of Tomorrow: Why Deflation is the Key to an Abundant Future, on Amazon: https://amzn.to/3dVDrKc
Jeff on Twitter: https://twitter.com/JeffBooth @JeffBooth
Jeff Rubin episode #317: https://youtu.be/-4vvcQqFuxU:
Modern Monetary Theory episode https://youtu.be/TMGDaTGx3V4
Statistics Canada Inflation statistics: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501
It can be hard to know that you’ve reached a tipping point with your debt, especially when you’re keeping up with minimum payments. So, when do you know that it’s time to fold? On today’s podcast, Ted Michalos and Doug Hoyes explain key warning signs of a debt problem – from emotional stress to relying on credit to make ends meet. They also give practical advice on how to beat an endless debt cycle. Tune in!
Related Links:
Warning Signs You Have a Debt Problem: https://www.hoyes.com/blog/20-warning-signs-you-have-debt-problems-what-to-do-next/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Are half of Canadians really just $200 away from bankruptcy? No. But that does make a compelling headline, doesn’t it? Media outlets compete for our attention – it makes them money. But clickbait headlines about Canada’s personal debt (or any subject for that matter) shouldn’t be accepted at face value. Doug Hoyes and Ted Michalos explain how and why the media “enrages to engage” and they offer practical advice to help you navigate news stories to be better informed. Tune in!
Related Links:
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Ontario Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
You have a budget, and you try to stay within it, but a lack of planning leads you to overspend. This is one of the most common ways people sabotage their own budgets. On today’s podcast, credit counsellor Diane Cunha and host Doug Hoyes discuss the common mistakes people make when budgeting – from using debt as an extension of income to paying too much for transportation. They also share advice for how to avoid making these mistakes so you can budget more successfully! Tune in for lots of practical advice.
Helpful Links:
Hoyes Michalos Fresh Start Program: https://www.hoyes.com/fresh-start/
Hoyes Michalos Newsletter: https://www.hoyes.com/subscribe-newsletter/
You may think that human trafficking is something that only happens in countries outside of Canada, or only happens to poor people, or recent immigrants. That is not the case. Most police reported cases in Ontario are girls and women who are Canadian citizens or permanent residents. But what does human trafficking have to do with debt and financial fraud? On today’s podcast, we have a first-time special guest who shares her remarkable story of survival and explains how trafficking victims are targeted in Canada, how common this is, and how perpetrators financially abuse their victims. This leaves many trafficking survivors with not only psychological and emotional trauma, but also major debt problems to overcome.
We have resources listed below to help you recognize the signs of human trafficking, what you can do to protect yourself and others you know and to help you understand that human trafficking in Canada is more common than we’d like to believe.
Resources Mentioned in the Show:
Human Trafficking - Know the Signs: https://www.ontario.ca/page/human-trafficking
RAP Sheet – Human Trafficking: https://preventingcrime.ca/wp-content/uploads/2020/02/RAP-Sheet-on-Human-Sex-Trafficking.pdf
Project Recover Organization: https://projectrecover.ca/
Concord Adex Survivor’s Fund: https://www.survivorsfund.ca/donations/the-concord-end-of-crisis-housing-fund/
Waterloo Regional Police Services – How to Stay Safe Against Human Trafficking: https://www.wrps.on.ca/en/staying-safe/human-trafficking.aspx
Ontario’s Anti-Human Trafficking Strategy: https://www.ontario.ca/page/ontarios-anti-human-trafficking-strategy-2020-2025
What is Human Trafficking: https://www.canada.ca/en/public-safety-canada/campaigns/human-trafficking.html
The coronavirus pandemic and job losses have led many people to rethink their careers. What can you do if your job no longer exists? How can you reinvent yourself? And how do you do that without taking on debt? On today’s podcast, Scott Terrio and Doug Hoyes discuss how jobs are expected to change post-pandemic and share several success stories of clients relying on their skills to find new employment. They also provide tips for taking on a career change, without harming your finances. Tune in!
Resources Mentioned:
McKinsey Report: The Future of Work After COVID-19 https://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-after-covid-19#
Having a savings fund helps you avoid a lot of financial headache in the event of an emergency. The trouble is, how do you get started on saving if cash is tight? On today’s podcast, Certified Credit Counsellor Diane Cunha provides realistic tips for saving money, so you stay motivated. She also shares advice for how to save if you have a limited income and which accounts are best for storing a savings fund. Tune in!
Helpful Links:
Emergency Fund or Credit Card Debt? https://www.hoyes.com/blog/emergency-fund-or-credit-card-debt-whats-the-better-choice/
Why You Need an Emergency Fund: https://www.hoyes.com/blog/why-you-need-an-emergency-fund/
The Secret to Budgeting? Don’t Budget: https://www.youtube.com/watch?v=u5q1Qge3k8s
Payday loans aren’t the only predatory loans out there. These days, several fintech companies offer ‘easy’ installment loans at high rates, ranging from 39% to 59%! On today’s podcast, Ted Michalos and Doug Hoyes explain how these loans work and what makes them predatory. Doug and Ted also discuss high-cost loan regulations, the changes the Government of Ontario is proposing, and give their two cents on consumer protections they believe should be implemented to help borrowers make informed financial decisions. Tune in!
Helpful Links:
Government of Ontario High-Cost Credit Consultation Paper: https://www.ontariocanada.com/registry/view.do?postingId=36067&language=en
Why Bad Credit Installment Loans Are Seldom the Answer: https://www.hoyes.com/blog/why-bad-credit-financing-loans-are-seldom-the-answer/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
E-transfer fraud is on the rise. From e-transfers being redirected to a hacker’s bank account to job and puppy scams - how do you stay protected? How can you tell what’s real and what’s fake? Enter Rachel Jolicoeur – Director of Fraud Prevention and Partnerships at Interac. On today’s podcast, Rachel discusses common ways people become victims of e-transfer fraud. She also explains how to spot e-transfer scams and how to keep your accounts safe from fraudsters. Tune in to the show for lots of practical advice and see our resources below to keep your finances safe.
#FraudPreventionMonth
Helpful Resources:
Interac e-Transfer Security & Fraud Prevention: https://www.interac.ca/en/consumers/security/interac-e-transfer/
Canadian Anti-Fraud Centre – Protect Yourself From Scams: https://www.antifraudcentre-centreantifraude.ca/protect-protegez-eng.htm
Time Stamps:
4:10 Fraud #1 - E-mail Account Compromise
8:45 Prevent Fraud with Auto Deposit
13:05 Fraud #2 - Bad Deposit Transfer
14:08 Fraud #3 – Big Cheque Scam
15:39 Fraud #4 - Job Scams
19:02 Fraud #5 - Puppy Scams
22:19 What Can I Do If I Get Scammed?
26:10 Practical Tips to Stay Safe
For many people, a car is a necessary expense to get to work and run errands. But what if you unintentionally bought too much car and your car loan is now creating financial problems? What are your options? Is it possible to get out of a car loan? On today’s podcast, Ted Michalos and Doug Hoyes discuss when you might want to hand your vehicle back, how to do it, and what happens with the loan shortfall. Tune in for lots of practical advice!
Related link:
Voluntary Surrender: Should I Hand My Vehicle Back? https://www.hoyes.com/blog/voluntary-surrender-should-i-hand-my-vehicle-back/
Time Stamps:
2:38 What is negative equity
10:32 Budgeting for car expenses
15:30 When should you give your car back
16:58 How to give your car back
The Hoyes Michalos 2020 Bankruptcy Study revealed that for the first time in four years insolvencies shifted back to an older demographic. The share of insolvencies among those 50 and older increased from 28% in 2019 to over 30% post-lockdown, while the share among younger generations declined. How did this happen? On today’s podcast, Ted Michalos and Doug Hoyes discuss how the pandemic changed insolvency trends, including who is filing bankruptcy, and what the numbers might mean to you. Tune in!
Related Link:
Hoyes Michalos 2020 Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
One of the simplest ways to increase your credit score is to lower your credit utilization. But how do you do that? And what utilization percentage is optimal? On today’s podcast, Certified Credit Counsellor Diane Cunha is back to share practical advice for how to maintain a good utilization rate for healthy credit. Diane also discusses common credit utilization misconceptions and the risks of having too much available credit. Tune in to the show!
Helpful Links:
What is Credit Utilization: https://www.youtube.com/watch?v=hW8lcbGwyq8
Rules to Master Your Credit with Richard Moxley: https://www.youtube.com/watch?v=jP6etPo_CQc
Fix Bad Credit Yourself – Tips & Tricks: https://youtu.be/BtncJCxN4So
Straight Talk on Your Money Book: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
ohn Pasalis, President of Realosophy Realty, makes his first appearance on the podcast, and he tells us that, even though unemployment is high and we are in a lockdown, the real estate market is “on fire”. Why? Is government policy deliberately inflating house prices? When will this boom end? Is now a good time to buy? Or rent? All that and more. Enjoy!
Time Stamps:
2:05 What’s happening in the real estate market?
3:55 How is it possible that the economy is in lockdown, unemployment is high, and real estate prices are “on fire”?
6:15 More people are working from home, so we understand why single family homes are going up in value, but why are downtown condos also holding their value when everyone has abandoned the city?
9:00 Is this boom different that the 2016/2017 boom?
11:30 Do governments care that real estate prices are going up? Will they do anything to cool the market?
16:45 Are we approaching buyer fatigue?
17:45 Should I buy a house now?
20:40 How some purchasers in 2017 lost their entire investment
22:17 When will the boom end?
24:45 Condo sales prices have dropped slightly, but rental rates are down significantly. Why?
27:00 Is now a good time to rent? Advice for renters?29:00 John’s advice for dealing with market hysteria
30:00 What will be the signs of the end of the real estate boom?
Related Links:
Realosophy Website: https://www.realosophy.com/
John Pasalis on Twitter: https://twitter.com/JohnPasalis
John Pasalis’ YouTube channel – Move Smartly: https://www.youtube.com/movesmartly
Managing a business is difficult, and the pandemic has made things much worse for Canadian small business owners. If you’re a small business owner facing debt problems, what are your options? On today’s podcast Ted Michalos is back to explain what you can do if you have both business debts and debts you’ve personally guaranteed for your business; strategies if your business was doing fine before the lockdown but is now struggling, and what to do if your business will be viable again after the lockdown. Ted and Doug also discuss your options if you can’t repay the CEBA (Canada Emergency Business Account) loan. Enjoy!
Time Stamps:
3:27 Why government support hasn’t been enough.
6:00 What's happening with business bankruptcies?
8:50 Sole Proprietorship vs. Corporation: What's the difference?
9:52 When do business debts become personal debts?
11:20 What to do if business is struggling due to COVID-19.
15:07 What to do if your business isn’t viable at all. How do you close it?
20:25 Dealing with secured creditors.
21:44 Dealing with debt as a sole proprietorship.
23:36 What to do if business will be viable after lockdown.
22:20 CEBA loan – what to do if you can’t repay.
31:38 Final practical advice
Related Links:
Should I File Personal Bankruptcy if My Business Closes? https://hoyes.info/small-business-closure
The Canada Emergency Business Account: https://ceba-cuec.ca/
Canada Emergency Wage Subsidy Statistics: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-statistics.html
Housing activity in Ontario has been nothing short of crazy. In the middle of a global pandemic, we’re seeing multiple offers on homes and rising real estate prices. Why? And is it a good time to refinance if you have debt? Enter Ron Butler – noted mortgage expert. On today’s podcast, Ron explains what’s going on with mortgages, the impact of low-interest rates, and whether house prices will keep climbing. Ron and Doug also discuss debt consolidation with home equity risks and what you should consider before refinancing. Tune in to this lively discussion!
Related Links:
Ron Butler’s appearance on show 293: https://youtu.be/VDSd6z5EJzA
Butler Mortgages Website: https://www.butlermortgage.ca/
Ron Butler on Twitter (@ronmortgageguy): https://twitter.com/ronmortgageguy
Time Stamps:
1:54 – Going to the bank vs mortgage broker
5:50 – What’s going on with mortgages in this crazy market?
7:00 – Low interest rates are a fuel to buy sooner
8:14 – Can we expect another mortgage deferral?
10:30 – Should we be thinking about debt consolidation in 2021? What are the risks?
15:48 – Can you use a HELOC for a down-payment again?
18:42 – Will real estate keep going up forever?
22:31 – Impact of bidding wars on mortgage qualification
25:07 – Are parents still helping their kids buy a home?
26:09 – Is housing a religion?
29:37 – It’s an unusual time, but this too shall pass, so think before buying.
As we enter 2021, some interesting trends are emerging: Canadian household savings rate is still high, yet so is our debt-to-income ratio; residential mortgages are also on a sharp rise. How do we explain this? Ben Rabidoux returns to share his insights on what’s really happening with debt, savings, and where he sees the real estate market heading. Ben also talks about the possibility of an inflationary environment in Canada as a result of the pandemic. You won’t want to miss this discussion, so tune in!
Related Links:
Ep. 292 Debt, Frozen Real Estate, Cancelled HELOCs, & Guaranteed Recession: https://www.youtube.com/watch?v=fek4xUoIkrc
Ben Rabidoux on Twitter: https://twitter.com/BenRabidoux
North Cove Advisors’ Website: https://northcove.net/
Statistics Canada Labour Force Survey: https://www150.statcan.gc.ca/n1/daily-quotidien/210108/dq210108a-eng.htm
Household Saving Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Statistics Canada Permanent Residents Data: https://open.canada.ca/data/en/dataset/f7e5498e-0ad8-4417-85c9-9b8aff9b9eda
Budgeting is difficult, but you need to keep track of your money. So how do you budget if you don't like budgeting? On today’s podcast, guest Julie Wildman, LIT, shares practical advice on how to match your expenses to your income, without the need to spend a lot of time tracking every dollar you spend. Julie and Doug Hoyes also discuss how to be ready for unexpected expenses and how to adapt debt payments to your pay cycle too. Tune in for lots of great advice!
More information:
The Secret to Budgeting: Pay Your Bills as You Get Paid https://www.hoyes.com/blog/the-secret-to-budgeting/
Car loans are one of the most common entry points into debt problems. That’s because if you’re not careful, you will easily spend more than you can really afford on a vehicle. While it’s hard to avoid borrowing for a car altogether, there are steps you can take to protect your financial health. On today’s show, guest Scott Terrio explains when a car loan becomes bad debt by sharing auto loan pitfalls, the dangers of loan rollovers, and budgeting considerations before buying a car. He also explains why you should think twice before borrowing against your car to consolidate debt. Tune in for lots of practical advice!
Related Links:
How Car Loans and Car Loan Rollovers Lead to Insolvency: https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Buying and Maintaining an Affordable Car: https://www.hoyes.com/blog/buying-and-maintaining-an-affordable-car/
Should You Consolidate or Pay Bills with a Car Title Loan: https://www.hoyes.com/blog/should-you-consolidate-or-pay-bills-with-a-car-title-loan/
Scott Terrio on Twitter: https://twitter.com/ScottTerrioHMA
The unemployment rate dramatically increased, debt levels continue to grow, and yet the personal insolvency rate in Canada dropped to 20-year lows when the COVID-19 lockdowns started in the spring. How long will insolvency rates remain low? Doug Hoyes and Ted Michalos review the unprecedented events of 2020, and offer their predictions on what will happen with debt and bankruptcy and consumer proposal filings in 2021, in one of our most anticipated podcasts of the year. Enjoy!
Full details of everything discussed:
https://www.hoyes.com/blog/how-covid-19-affected-household-debt-in-2020/
Time Stamps
0:20 A review of Doug and Ted's predictions for 2020
2:12 With high debt and high unemployment, why insolvencies didn't skyrocket
2:50 The personal savings rate hit an all-time high; why?
3:48 The impact of CERB on household income
4:49 The problem with statistics
5:32 COVID-19 impact on high, middle and low income earners
9:00 An example of a middle income earner most impacted by the lock down
10:40 The impact of deferrals
13:40 What will happen with debt in 2021?
16:06 The psychology of spending; why some of us will not increase out spending early in 2021
16:41 Comments on the real estate market
18:53 Prediction time!
19:17 Ted's prediction
19:51 Doug's predictions
24:55 The impact of an economic recovery on insolvency filings
The first step in rebuilding credit is figuring out what’s causing your bad credit in the first place? Too much debt? A recent bankruptcy filing? Depending on the reason, there will be different ways to approach the rebuilding process. On today’s podcast, our guest is credit expert Richard Moxley, who walks us through the importance of having good credit, causes of bad credit, common misconceptions, and steps to rebuilding credit on your own. Tune in to the show for lots of practical advice!
More information:
Richard Moxley’s Website: https://creditgame.net/
Rules to Master Your Credit Podcast 284: https://www.youtube.com/watch?v=jP6etPo_CQc
The First Step to Rebuilding Credit is No More Debt: https://www.hoyes.com/blog/the-first-step-to-credit-rebuilding-is-no-more-debt/
Time Stamps:
1:46: Why Does Good Credit Matter?
4:28: What Causes Bad Credit?
6:53: How Do You Know If You Have Bad Credit?
11:02: What are the Barriers to Rebuilding Credit?
12:13: What Are The Steps to Rebuilding Credit?
Nearly 9 million Canadians applied for CERB in 2020 to deal with the financial effects of COVID-19. To distribute the benefit quickly, the Canadian government conducted very little eligibility verification up-front. Many people believed they were eligible to get CERB but are now discovering that that was not the case. So, what happens if you received CERB but were not eligible? Will you be audited by the Canada Revenue Agency? And if you are audited, how do you prove you were eligible? Enter Jason Rosen. Jason is an experienced tax lawyer and co-founder of Rosen Kirshen (RK) Tax Law. On today’s podcast Jason shares his thoughts on how the CRA might treat ineligible receipt of CERB and CEWS for employers. He provides practical advice for how Canadians can prepare themselves in the event of a tax audit and explains what may happen to those who applied to CERB knowing they were not entitled to receive it. Tune in to the show for lots of guidance on this pressing issue.
Relevant Links:
Rosen Kirshen Tax Law Website: https://www.rktaxlaw.com/
CRA Collection Letters for CERB Ineligibility & Repayment: https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment
CERB Eligibility: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/eligibility-periods.html
CERB Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html
New T4 Reporting Requirements for Employers: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html
CERB Eligibility Criteria: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html
Fintech has come up with a new way for making purchases online with Buy Now Pay Later apps. But is ‘buy now, pay later’ just another form of debt? Do these new apps actually help your budget or fast track financial problems? On today’s podcast, we have first-time guest and Hoyes Michalos LIT Jennifer Kwon who walks us through how these apps work, how they benefit from people using them, and she simplifies the terms and conditions so you know what you’re signing up for. And Doug Hoyes does the math to show much you’d really pay in interest if you fall behind on payments. Jennifer and Doug also share practical advice for how to use these apps safely to avoid financial trouble. Tune in to this episode for lots of great insight.
Resources Mentioned in the Show:
Leon’s Financing: https://www.leons.ca/pages/visa-desjardins-financing
Coupon Follow’s Millennial Shopping Report: https://couponfollow.com/research/millennial-shopping-report
Afterpay App: https://www.afterpay.com/en-ca/index
Afterpay’s Annual Report: https://www.afterpay.com/attachment/315/show
Afterpay & Debit Card Usage: https://www.afterpay.com/attachment/67/show
Afterpay Instalment Agreement: https://www.afterpay.com/en-CA/instalment-agreement
Sezzle App: https://sezzle.com/
Sezzle & Credit Score Impact: https://shopper-help.sezzle.com/hc/en-us/articles/360046383071-How-does-Sezzle-impact-my-credit-score-
Sezzle Late Fees: https://shopper-help.sezzle.com/hc/en-us/articles/360046781511-Why-was-I-charged-a-fee-
Sezzle Info on Purchasers Spending More in App: https://sezzle.com/merchants
Paybright: https://paybright.com/en/break-up-the-cost-7
Some loans feel like you’ve been paying them forever without an end in sight. In other cases, you may even be surprised to see your loan balances grow instead of shrink with regular payments. On today’s podcast, Doug Hoyes and Ted Michalos define important terms for understanding how loans work, how to spot an expensive loan, and the risks you face with longer term loans. They also teach you how to avoid borrowing more than you can afford and provide practical advice for what to ask your lender while you’re in the borrowing process.
Helpful resources:
Term vs Amortization Explainer: https://www.youtube.com/watch?v=gaMt1zW7ViA
How Does Compound Interest Work: https://www.youtube.com/watch?v=mO5lhuXhWFk
Debt Servicing Costs: https://www.youtube.com/watch?v=qoV5LD0eMk4
What is a Line of Credit: https://www.youtube.com/watch?v=yFR9Cag40OU
How Car Loans and Loan Rollovers Lead to Insolvency: https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/
Why Payday Loans Won’t Go Away: https://www.hoyes.com/blog/why-payday-loans-wont-go-away/
An unprecedented number of Canadians went from being office employees to working from home during this pandemic. Many also took on home office costs in 2020. So, what does this mean for our 2020 income tax filing? Which expenses will we be able to deduct and which ones will we not? On today’s podcast, Ian Martin, CPA and Licensed Insolvency Trustee, shares his thoughts on how the CRA may approach expenses like office supplies, masks, furniture, internet and rent next year. Ian also gives us his honest opinion on how the CRA should approach tax audits of individuals. Tune in to this meaningful discussion with lots of practical tips!
Additional Resources:
10 Tips for Dealing with CRA and Tax Debts: https://www.youtube.com/watch?v=Pp7rVK02OVI
T2200 Declaration of Conditions of Employment: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2200.html
T777 Statement of Employment Expenses: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t777.html
Every January, we meet with clients who tell us they spent way too much during the holiday season. But given the current pandemic, income problems, and gathering restrictions, will 2020 finally be the year when Canadians spend less? On today's podcast, Diane Cunha and Doug Hoyes discuss what generally drives people to spend so much over the holidays and why this year might be different. They share practical advice for how to cope with COVID fatigue and resist the temptation to over-buy. Diane also answers spending questions from our newsletter readers. Lots of great tips in this show so be sure to tune in!
Related Links:
Deloitte 2020 Holiday Retail Survey: https://www2.deloitte.com/us/en/insights/industry/retail-distribution/holiday-retail-sales-consumer-survey.html
Straight Talk on Your Money by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034
Podcast 322: How to Build an Emergency Fund if You Have Debt: https://www.youtube.com/watch?v=YxyO8in9Swg
Sign up for the Debt Free Digest Newsletter: https://www.hoyes.com/subscribe-newsletter/
It's the 10th annual financial literacy month sponsored by the federal government.
Are we more financially literate than we were 10 years ago? Our debt levels keep increasing, so it doesn’t appear so. Is it possible to learn money management skills, or do you have to be born with it, like athletic ability.
On today’s short podcast Doug Hoyes explains why he believes you can learn to manage your money, and he gives four lessons on how to do it.
#FLM2020
Time Stamps:
7:28 – Lesson 1 – What do you want?
9:47 – Lesson 2 – Do it the easy way
11:11 – Lesson 3 – Understand the Other Guy
14:54 – Lesson 4 – Ask Questions
Related Links:
Government of Canada Financial Literacy Month website:
https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html
Government of Canada, have a plan to pay off your debt:
https://www.canada.ca/en/financial-consumer-agency/campaigns/it-pays-to-know.html
Government of Canada, de-emphasizing the most powerful debt relief options:
https://www.canada.ca/en/financial-consumer-agency/services/debt.html
The “Don’t Budget” Video: https://youtu.be/u5q1Qge3k8s
Can you create your own reality? https://youtu.be/PuiP9I6_cMg
Getting out of debt requires a system, not just a goal https://youtu.be/ysvkV0uN7mM
The Fable of the $20 bill https://youtu.be/5fYfAvSnNps
Doug’s Book, Straight Talk on Your Money, available on Amazon, Kindle and as an audio book:
https://www.hoyes.com/straight-talk/
Every financial guru says you need an emergency fund. But if you also have debt, is it possible to balance saving and paying down high-interest credit cards or lines of credit? What are the steps to get started? On today’s podcast, Diane Cunha, Certified Credit Counsellor at Hoyes Michalos discusses the different types of emergency funds, teaches us how to set aside cash even if we have debt, and gives tips on where to store our savings so they are easily accessible. Tune in to the show for lots of practical advice!
Related Links:
Credit and Debt Decisions That Can Backfire Podcast 288: https://www.youtube.com/watch?v=0mHPf8CLhs0
What To Know About Credit Cards So You Use Credit Wisely Podcast 235: https://www.youtube.com/watch?v=u-bMxcdl55A
Emergency Fund or Credit Card Debt? What's the Better Choice? https://www.hoyes.com/blog/emergency-fund-or-credit-card-debt-whats-the-better-choice/
Why You Need an Emergency Fund: https://www.hoyes.com/blog/why-you-need-an-emergency-fund/
Description:
Amid economic uncertainty, side hustles have become a popular way to earn extra income. But while many side hustles are good, some are risky and can lead to serious debt problems. On today's podcast, guest and Hoyes Michalos LIT Julie Wildman discusses the risks of multi-level marketing ventures (or MLMs). While an MLM can seem like a great opportunity to "be your own boss" and work from home, it often comes with significant upfront costs that are rarely recovered. Julie walks us through how MLMs work, their success rates, and who is often targeted in MLM schemes. She also shares practical advice for how to ensure that if you do go into the business of selling products, you avoid taking on a massive debt burden. Tune in!
Related links:
AARP Study of Multilevel Marketing, 2018: https://www.aarp.org/content/dam/aarp/aarp_foundation/2018/pdf/AARP%20Foundation%20MLM%20Research%20Study%20Report%2010.8.18.pdf
As of August 31st, 778,000 Canadians with a mortgage at Canada’s big banks deferred or skipped a payment on their mortgage. The deferral periods for many mortgages and other credit loans and products have now come to an end. What does this mean for your debt? On today’s podcast, Ted Michalos and Doug Hoyes review different credit products (mortgages, credit cards, lines of credit, auto loans) and discuss what may happen to your balances and debt carrying costs now that the deferral periods are over. They also share practical advice for how to negotiate with your creditors and steps you can take if you don’t have the cash to start making your debt payments again. Tune in to this very timely and helpful episode!
Helpful Links:
Dealing with the Consequences of Loan Deferrals When the Deferral Period Ends: https://www.hoyes.com/blog/dealing-with-the-consequences-of-loan-deferrals-when-the-deferral-period-ends/
What To Do If You Can’t Pay Deferred Mortgage Payments: https://www.hoyes.com/blog/what-to-do-if-you-cant-pay-deferred-mortgage-payments/
CMHC Residential Mortgage Industry Report: https://assets.cmhc-schl.gc.ca/sites/cmhc/data-research/publications-reports/residential-mortgage-industry-report/2020/residential-mortgage-industry-report-2020-en.pdf
CBA Fast Facts on Bank Measures in Response to COVID-19: https://cba.ca/fast-facts-on-bank-measures-in-response-to-the-covid-19-pandemic
Scotiabank Auto Loan Payment Relief Terms: https://www.scotiabank.com/ca/en/personal/scotia-support/terms-and-conditions/auto-loan-spl-payment-relief.html
The Canada Emergency Response Benefit (CERB) has now come to an end and is transitioning to four different financial aid programs: EI, CRB, CRSB, and CRCB. But what do these income supports mean for Canadians’ household budgets and debt repayment? Will they be enough to help Canadians still battling the financial effects of COVID-19? And which individuals no longer qualify to receive federal help? On today’s podcast, our guest is David Macdonald, Senior Economist at the Canadian Centre for Policy Alternatives (CCPA). David explains the financial impact of switching from CERB to these new aid programs. He walks us through how these programs work, eligibility, and whether Canadians who have returned to work at reduced hours can still get help. He also shares his thoughts on the long-term implications of these supports for the Canadian economy. Tune in to this important discussion with Doug Hoyes.
We also encourage you to check the Government of Canada website for up-to-date information as these programs may evolve: https://www.canada.ca/en/department-finance/economic-response-plan.html#individuals
Additional Links:
David Macdonald on Twitter: https://twitter.com/DavidMacCdn
CCPA Report – 1.8 Million Canadians Better Off with a Higher EI and CRB Floor: https://behindthenumbers.ca/2020/09/28/1-8-million-canadians-better-off-with-a-higher-ei-and-crb-floor/
Canadian Centre for Policy Alternatives: https://www.policyalternatives.ca/
David Macdonald’s first appearance on Debt Free in 30 – ep. 114: Basic Income: Is It a Silver Bullet for Poverty? https://www.hoyes.com/blog/basic-income-is-it-a-silver-bullet-for-poverty/ and on YouTube (audio only): https://youtu.be/mi3tWjg1bC4
Our podcast on Modern Monetary Theory https://youtu.be/TMGDaTGx3V4
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Time Stamps:
2:22 CERB – How it worked, qualification requirements
5:44 The new Employment Insurance, how it works, who qualifies
8:32 How taxes work for CERB and EI
9:44 Why a lot of Canadians may have a big tax bill in the spring of 2021
12:15 Is it possible that CRA creates special rules to mitigate the big tax bill many Canadians will face in 2021?
17:00 CRB (Canada Recovery Benefit) – what it is, who qualifies
21:00 CRSB (Canada Recovery Sickness Benefit) – what it is, who qualifies
22:30 CRCB (Canada Recovery Caregiving Benefit) – what it is, who qualifies
24:30 What if I'm only working one day per week? How does that impact my benefits?
27:50 Who qualified for CERB, but now won't receive any income support?
30:25 What are some of the shortcomings in the current programs you would like to see addressed?
33:30 Are we moving towards a Basic Income?
37:00 These programs are very expensive; how will we pay for them?
Filing income taxes can be complicated, especially if you're a self-employed individual. And if you can't afford an accountant, you fall behind on filing your taxes and face trouble with the Canada Revenue Agency. Could we make the Canadian tax system simpler? And what would a simpler system mean for tax deductions? Enter Neal Winokur, author of the The Grumpy Accountant - One Fed-Up Tax Pro's Practical Plan to Fix Canada's Senselessly Complicated Tax System. On today's podcast, Neal shares his radical vision for an easier income tax system and what it would look like for everyday Canadians. He and Doug Hoyes also discuss whether the government could consider other sources of revenue instead of income taxes and the impact on Canadian politics. It's a lively discussion so be sure to tune in!
Related Links:
Neal Winokur’s website: https://grumpyaccountant.ca/
The Grumpy Accountant - One Fed-Up Tax Pro's Practical Plan to Fix Canada's Senselessly Complicated Tax System On Amazon: https://amzn.to/33Wpnd9
Today's first time guest is Jeff Rubin, who was the Chief Economist at CIBC World Markets (where he worked for over 20 years). He has just released a new book: The Expendables: How the Middle Class Got Screwed by Globalization, where he says that the decline in permanent, well paying full time jobs is a direct result of free trade agreements that transferred jobs to lower wage countries, leaving factories in Canada idle. On today's show Jeff Rubin argues that globalization allows the rich to get richer, and that leads to increasing inequality, and that leads to high debt levels for the average Canadian. Is there a solution? We discuss that and a lot more on today's show.
Helpful Links:
Jeff Rubin on Twitter https://twitter.com/jeffrubin
The Expendables How the Middle Class Got Screwed By Globalization link to book on Amazon: https://amzn.to/2FLeORE
Debt Free in 30 Podcast on Modern Monetary Theory: https://youtu.be/TMGDaTGx3V4
Topics Covered:
00:47 What is globalization, and who are the expendables who got screwed by it?
2:48 What's wrong with moving jobs to lower wage countries? Consumers pay less, and corporate profits are higher; what's the problem?
5:55 Does outsourcing lead to lower wages, lower interest rates, and lower inflation?
7:40 How are low wages tied to consumer debt?
9:50 Interest rates are very low, so does it matter that governments have high deficits?
11:18 How does globalization lead to more middle class debt?
13:43 Does globalization lead to speculative bubbles (like the stock market and the housing bubble)?
15:51 Do you agree or disagree with David Ricardo's Theory of Comparative Advantage? Are we not better off if we do what we are best at?
18:48 With globalization we have more exposure to other cultures; does that increase the chances for world peace? Is that not an upside of globalization?
20:14 What are the solutions to the problems caused by globalization?
21:27 Donald Trump and Bernie Sanders both have the same trade policy
23:39 Not being able to get N95 masks was a big problem, because we didn't produce them in Canada. Do you expect in the future to see more manufacturing returning to Canada?
27:15 Contrary to popular belief, why do you not think we have a progressive tax system?
29:10 But if we had a more progressive tax system, would that not lead to money and jobs and wealthy people leaving the country, making our economic situation even worse?
33:00 Closing comments: advice for the average Canadian hurt by globalization.
Like debt problems, food insecurity can happen to anyone. What causes individuals and families to require food assistance? On today's podcast, we have first-time guest Wendi Campbell, CEO at The Food Bank of Waterloo Region to help us get a better understanding of local food issues and what "food insecurity" really means. Wendi also addresses common misconceptions surrounding food bank visitors and discusses the importance of working together as a society to help alleviate the problem of food insecurity.
The Food Bank of Waterloo Region is accepting non-perishable food donations through contactless drop-offs at their location on 50 Alpine Court in Kitchener, ON. Financial donations can be made online at https://www.thefoodbank.ca/donate/. Of course, if you are outside of the K-W region, you can donate to your local food bank if you have the means.
Helpful links:
The Food Bank of Waterloo Region Website: https://www.thefoodbank.ca/
Stats on Hunger in Waterloo Region: https://www.thefoodbank.ca/network/hunger/
The Food Bank 2018-19 Financial Statement: https://www.thefoodbank.ca/wp-content/uploads/2019/09/FBWR-2019-financial-statements-final.pdf
Last week, Doug Hoyes walked us through several key statistics, including insolvency filings, household savings rates, and loan deferrals. On today's show, he digs deeper into the 'whys' behind the numbers with guest Ted Michalos. Tune in as they give an update on why personal insolvencies are down and how much longer they expect filings will decline; They also discuss why savings rates are up and whether they will remain high; and why car sales have increased despite many people working from home. Doug and Ted also offer practical advice for managing your debt if you are still looking for work or if you have benefited financially from the lock-down. Don't miss a great discussion!
Related Links:
Season 7 Premiere & What's Going to Happen with Debt in the Fall: https://www.youtube.com/watch?v=odokdpoPng8
Ontario Bankruptcy and Consumer Proposal Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Welcome to the season 7 premiere of Debt Free in 30. It's only September but it's been an eventful year already, eh? Insolvency filings were high at the start of 2020 but fell to record lows by the month of May. Unemployment is high, but so is the savings rate. How is that possible?
Today we discuss these stats, and look ahead to the Fall. Collection agencies are starting to make more calls, so will insolvencies go back up? The federal government has also announced that the CERB will soon end and transition to EI. Will this be enough for individuals still out of work? That and more on the first show of Season 7; enjoy!
Relevant Links:
Ontario Bankruptcy and Consumer Proposal Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Coping with Consumer Debt as the Economy Reopens: https://www.hoyes.com/blog/coping-with-consumer-debt-as-the-economy-reopens/
Canadian Bankers Association - Facts on Bank Measures in Response to COVID-19: https://cba.ca/fast-facts-on-bank-measures-in-response-to-the-covid-19-pandemic
Retail Trade, June 2020, Statistics Canada: https://www150.statcan.gc.ca/n1/daily-quotidien/200821/dq200821a-eng.htm
Savings, Debt & Modern Monetary Theory with Hilliard MacBeth: https://www.youtube.com/watch?v=Wx_7T6YWT8w
Debt Free in 30 Full Podcast Archives: https://www.hoyes.com/debt-free-30-podcast/
Millions of Canadians have received CERB (and may have a tax debt next year), and many Canadians have incurred and deferred debt to survive the pandemic. How will they repay that debt? First aired in May, today we have a new introduction and update, and then we rebroadcast our episode on an ancient concept that is getting a lot of new interest: a debt jubilee.
Enjoy!
Helpful Reads:
Is A Debt Jubilee the Solution to Our Collective Debt Problem: https://www.hoyes.com/blog/is-a-debt-jubilee-the-solution-to-our-collective-debt-problem/
Insolvency Predictions Post COVID-19: https://www.hoyes.com/blog/insolvency-predictions-post-covid-19/
...and forgive them their debts by Michael Hudson: https://michael-hudson.com/2018/08/and-forgive-them-their-debts/
Can We Avoid Another Financial Crisis by Steve Keen: https://www.dw.com/en/can-we-avoid-another-financial-crisis/a-41111841
10 Key Canadian Debt Statistics That Explain Consumer Insolvency Growth in 2019: https://www.hoyes.com/blog/10-top-debt-statistics/
7-Year Waiting Rule on Student Loans: https://www.hoyes.com/blog/are-your-student-loans-past-the-7-year-rule-a-vaughan-bankruptcy-story/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
Costco became the "go to" store during the 2020 pandemic, as long lines formed so we could all buy toilet paper. Today we revisit our podcast on that wonderful, magical place called Costco, with some updated thoughts on the pandemic. Is it a store? A finance company? Something else? And why does it matter? All that and more on today’s podcast (and I’ve got slides, so if you want to see the numbers, the video is posted on the Debt Free in 30 channel on YouTube).
Is it possible to financially recover from the coronavirus pandemic of 2020? Yes, but it starts with $20. On today's podcast we discuss the pandemic, and then present a special rebroadcast of the fable of the 20 dollar bill, and explain how $20 can set you up for financial success.
A fable, as it were.
Enjoy!
Doug Hoyes explains why even with high debt and high pandemic-related unemployment bankruptcy filings continue to drop, and he gives his predictions for the next few months, and then, given the stress caused by the COVID-19 lock down, we rebroadcast our conversation with Shannon Lee Simmons, author of Living Debt-Free: The No-Shame, No-Blame Guide to Getting Rid of Your Debt about how negative feelings towards debt can create more debt and strategies that can put you in the right direction when dealing with your debt.
Doug Hoyes gives an update on how collection agents are dealing with the COVID shut down (spoiler alert: they've found a way to keep calling), and then we rebroadcast our discussion with Blair Demarco-Wettlaufer, a real-life collection agent, who explains how a collection agent gets paid, and how you can negotiate with a collection agent.
Enjoy!
Are you a success because of your superior brain power, and skill, and hard work?
Or was it all luck?
If you are having a rough time, is it because you screwed up, or was it bad luck?
On today's show Doug Hoyes days that most of what happens to you and me, good or bad, is luck.
We've all just endured the great coronavirus lock down of 2020, many businesses have failed, millions of people lost their jobs, some permanently.
That was all bad luck.
None of us caused the big bad virus, but we are all suffering the effects.
That's one example of bad luck; we've got lots more on today's show.
And no, we are not saying you shouldn't work hard. Of course you should. It's just that sometimes stuff happens, and we need to recognize what we control, and what we don't.
Tune in to the luck episode, this week on Debt Free in 30.
Links:
The Long-Term Labor Market Consequences of Graduating From College in a Bad Economy by Lisa B. Kahn https://www.sciencedirect.com/science/article/abs/pii/S0927537109001018#!
Outliers: The Story of Success by Malcolm Gladwell Book on Amazon: https://www.amazon.ca/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017930
Podcast 300: Can You Create Your Own Reality? https://www.youtube.com/watch?v=PuiP9I6_cMg
As a new parent on maternity leave, you'll have a lot to do. The last thing you want is to worry about how you will make ends meet. On today's podcast, we have first-time guest and Hoyes Michalos Licensed Insolvency Trustee, Julie Wildman. Julie is a mother of two young children and recently returned from her second maternity leave. She outlines how expecting parents can prepare financially for the income drop that happens during mat leave, how to navigate the different benefits available in Canada such as EI and parental benefits, and how to budget for increased spending on childcare. Julie also discusses the importance of paying off debt before going on leave. There's lots of practical advice in this episode so be sure to tune in!
Related Links:
Maternity Benefits Overview Canada: https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental.html
The Secret to Budgeting Part 1: https://www.hoyes.com/blog/the-secret-to-budgeting-part-1-video/
The Secret to Budgeting Part 2: https://www.hoyes.com/blog/the-secret-to-budgeting-part-2-video/
Straight Talk on Your Money on Amazon, Kindle Edition: https://www.amazon.ca/Straight-Talk-Your-Money-Financial-ebook/dp/B074QWL3XG/
When this podcast was recorded on the morning of July 8, 2020 the Canadian government was projected to run a deficit for the year of $250 billion. By the end of the day, after this podcast was recorded, the Finance Minister was projecting a deficit of $343 billion. That's a lot of debt, and it leads many to wonder how we'll ever pay it back. But a prominent economist, Dr. Stephanie Kelton, says the government shouldn't be concerned with massive deficits as long as they control the printing of their currency. In fact, she argues that the government should spend even more money so that more jobs are created until unemployment is no longer an issue, based on Modern Monetary Theory (MMT). On today's podcast, Doug Hoyes challenges this economic theory by explaining its unintended consequences and real life implications. Yes, we need to help those in need, but MMT may cause more problems than it solves. You be the judge. He also outlines what our current deflationary environment means for individuals carrying debt. Tune in to this insightful episode!
Related Links:
Canada Emergency Response Benefit Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html
Federal Finance Minister, Bill Morneau, in his Debt Management Report to Parliament: https://www.canada.ca/en/department-finance/services/publications/debt-management-report/2018-2019.html#s1
President Obama's Remarks on the Deficit and Economy: https://www.nytimes.com/2012/11/09/us/politics/transcript-of-president-obamas-remarks-on-the-deficit-and-economy.html
The Deficit Myth by Stephanie Kelton on Amazon https://amzn.to/2DaT54e
Can You Create Your Own Reality? Podcast #300: https://www.youtube.com/watch?v=PuiP9I6_cMg
Canadian Dollar Chart: https://yhoo.it/2AtXluG
Statistics Canada Consumer Price Index: https://www.statcan.gc.ca/eng/subjects-start/prices_and_price_indexes/consumer_price_indexes
Life's milestones like going to college or university, buying a house, or getting married cost money. And often the pressure to achieve these milestones at a young age leads to hasty decisions that come with a big debt load. But what if you took time off before making a major financial move? Would life turn out so differently if we didn't follow conventional wisdom? On today's podcast, Scott Terrio and Doug Hoyes explore the idea of delayed gratification and discuss why pausing before big decisions can lead to a more fulfilling future. While you may not be able to delay or avoid all of life's major milestones, you can take your time with at least one major financial decision to avoid being overwhelmed. Tune in to the show for lots of thought-provoking discussion!
Links:
Why You Want to Avoid Debt at Every Age: https://www.hoyes.com/blog/why-you-want-to-avoid-debt-at-every-age/
Should You Get a Wedding Loan? https://www.hoyes.com/blog/should-you-get-a-wedding-loan/
Student Debt Crisis - A Generation Buried in Student Debt: https://www.hoyes.com/press/joe-debtor/the-student-debtor/
A lot has changed as a result of COVID-19. There are obvious reasons for pessimism, but there are a lot of reasons to be optimistic. For example, more people have made meaningful changes to their financial habits. Canadians are saving more and some are even able to pay off more of their debt. Many of us have also used the time to learn a new skill. With every major life transition comes positive and negative change and we are forced to adjust to a new reality. On today's podcast, Doug and Ted share social and economics reasons for why we should be optimistic about the future and explain how we can use this new reality to our advantage. Lots of great thought-provoking commentary on this episode, so tune in!
Related Links:
Dealing with the Consequences of Loan Deferrals: https://www.hoyes.com/blog/dealing-with-the-consequences-of-loan-deferrals-when-the-deferral-period-ends/
Savings, Debt & Modern Monetary Theory with Hilliard MacBeth: https://www.youtube.com/watch?v=Wx_7T6YWT8w
Episode 290, our first COVID-19 show https://youtu.be/lWmZDLaJ63o
Canadian unemployment rate https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028703
Canadians applying for CERB https://www.canada.ca/en/services/benefits/ei/claims-report.html
We have record unemployment and millions of Canadians are relying on CERB payments to make ends meet, and yet our savings rate is increasing. How is that possible? On today's podcast, our guest is author and financial analyst, Hilliard MacBeth, who provides insight on how the savings rate is calculated, and whether increased savings mean Canadians are curbing their appetite for debt. We also discuss what to expect with the real estate market and deflation, and we talk about Modern Monetary Theory and whether we should really worry about national deficits. There's lots to learn from this episode, so tune in!
Related Links:
How Banks and Faulty Economics Contribute to the Consumer Debt Binge: https://www.youtube.com/watch?v=0d7CLXsk7N0
Hilliard MacBeth's book, When The Bubble Bursts: https://amzn.to/2YMigRT
Hilliard's Client Notes - The Return of the Saver: https://web.richardsongmp.com/MacBeth.MacLeod/blog/1724032-The-return-of-the-saver
Hilliard MacBeth on Twitter: https://twitter.com/hmacbe
Statistics Canada Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201
Stephanie Kelton's book, The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy: https://amzn.to/2UX6BOY
CERB Claims Report: https://www.canada.ca/en/services/benefits/ei/claims-report.html
If you're thinking of buying a small business, this podcast is for you. Over the years, we've had a lot of clients who decided to buy a business either because they were frustrated with working for someone else and they wanted to go out on their own, or maybe the owner of their company wanted to retire. While there are benefits to small business ownership, how do you avoid the debt traps? How can you make the most of your purchase and avoid undervaluing your own contributions? And what does owning or selling a small business look like now in COVID-19? On today's show David Barnett, a business broker and adviser, shares practical advice to help you think through the costs of purchasing a business and provides insight into how transactions are doing amid the pandemic.
Related Links:
David Barnett's Website: www.davidcbarnett.com
David Barnett on Twitter: https://twitter.com/DBarnettMoncton
After a three year absence (she was a guest on episodes 131 and 133), Victoria Ryce is back on the show, and today we discuss transitions, like having a child, getting married (or separated), and starting or completing a consumer proposal or bankruptcy.
In a crises we tend to freeze up; Victoria has lots of practical advice on how to make a plan to manage transitions, and what to do if you have an unplanned transition.
We recorded this episode just before the COVID-19 lock-down took place, but the lessons and advice that Victoria provides are more relevant now than ever. Tune in.
Related Reads:
How to Master Being Suddenly Single: https://www.hoyes.com/blog/how-to-master-being-suddenly-single/
The Financial Impact of Becoming the CEO of Everything: https://www.hoyes.com/blog/the-financial-impact-of-becoming-the-ceo-of-everything/
This is episode #300, so for something completely different, today we discuss whether or not you can create your own reality.
That would appear to be a silly thought; if I hit my thumb with a hammer, I can't create a reality where my thumb doesn't hurt. I can't just imagine that I'm the King of England. That makes logical sense, but it is also true that how we see the world determines how we respond to it, so in that sense we can create our own reality.
There is of course a lot more to it than that, so on today's show we start with Plato, and discuss the work of Professor Donald Hoffman, and relate it all to the world of debt, and men's beards during the COVID-19 lock down. Enjoy!
With many Canadians facing a cash crunch during the COVID-19 lockdown, a quick-fix solution has been to defer debt payments. Deferring a debt payment can provide you with funds in the short-term to pay for needed expenses. But what you may not realize is that a deferment will raise the carrying cost of your debt overall. On today's podcast, Ted Michalos and Doug Hoyes explain how much more expensive a mortgage, car loan, and credit card can get if you defer payments and offer practical advice to avoid getting overwhelmed by debt. They also remind listeners of the tax implications of the Canada Emergency Response Benefit (CERB). Tune in to this episode, filled with lots of practical tips.
Related Posts:
Voluntary Surrender: Should I Hand My Vehicle Back? https://www.hoyes.com/blog/voluntary-surrender-should-i-hand-my-vehicle-back/
You Can Now File a Consumer Proposal and Bankruptcy Online in Canada: https://www.hoyes.com/blog/you-can-now-file-bankruptcy-online-in-canada/
We've heard from the economists, statisticians, and politicians but what's really going on with everyday individuals and the state of their finances after several weeks of lock-down? On today's podcast Scott Terrio returns to talk about what he's seeing “on the ground”. How are people's stress levels? Are credit limits being reduced as a result of CERB? Who is calling in for debt help? Is there a rise in homeowner bankruptcies? Tune in for a lively discussion, including the answers to our Twitter followers' questions.
Related Links:
Ontario Bankruptcy and Consumer Proposal Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/
Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/
You Can Now File a Bankruptcy or Consumer Proposal Online in Canada: https://www.hoyes.com/blog/you-can-now-file-bankruptcy-online-in-canada/
Why You Should Bank at More Than One Bank: https://www.hoyes.com/blog/why-you-should-bank-at-more-than-one-bank/
Canadians are carrying a record level of debt, and while we are off work during the pandemic of 2020, many of us will pile on more debt. Small businesses and contractors will take on debt to pay rent while they generate little or no revenue. Consumers will take on additional debt to make their mortgage payment or pay rent, buy groceries, and pay for necessities. Unfortunately, much of this debt will be of the high-interest sub-prime variety. Payment deferrals may help in the short term, but will only add to the debt load post-COVID19. For some, the result will be an insurmountable amount of debt — more than they will ever be able to repay. It's no surprise then that people are calling for a Debt Jubilee. A debt jubilee is exactly what it sounds like: debt gets wiped out. But is this a good idea? How would it affect the economy? Would it be fair? On today's podcast, Doug Hoyes gives us an in-depth analysis of how a debt jubilee would look in 2020 and whether that's the answer to our collective debt problem. Enjoy!
Helpful Reads:
Is A Debt Jubilee the Solution to Our Collective Debt Problem: https://www.hoyes.com/blog/is-a-debt-jubilee-the-solution-to-our-collective-debt-problem/
Insolvency Predictions Post COVID 19: https://www.hoyes.com/blog/insolvency-predictions-post-covid-19/
...and forgive them their debts by Michael Hudson: https://michael-hudson.com/2018/08/and-forgive-them-their-debts/
Can We Avoid Another Financial Crisis by Steve Keen: https://www.dw.com/en/can-we-avoid-another-financial-crisis/a-41111841
10 Key Canadian Debt Statistics That Explain Consumer Insolvency Growth in 2019: https://www.hoyes.com/blog/10-top-debt-statistics/
7-Year Waiting Rule on Student Loans: https://www.hoyes.com/blog/are-your-student-loans-past-the-7-year-rule-a-vaughan-bankruptcy-story/
Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/
On episode 295 last week, Ted Michalos and Doug Hoyes said that collection agents are not making as many phone calls as they used to due to COVID-19. While that's true, there are still calls being placed. So what can you do in this crisis if you get a collection call on overdue debt? Are collectors open to a deal in these times? Enter Blair Demarco-Wettlaufer, COO at Kingston Data and Credit. On today's podcast, Blair explains how collection agencies are operating during the lock-down and shares advice for how you can negotiate realistic debt repayment. He also discusses how debt deferrals will potentially impact our credit reports and gives insights on how the collections industry will change going forward. Lots of practical tips & advice in this show so tune in!
Helpful Links:
Stop The Collection Calls: https://www.hoyes.com/blog/stop-the-collection-calls-advice-from-blair-demarco-wettlaufer/
Collection Agents: How Did They Find Me? https://www.hoyes.com/blog/collection-agents-how-did-they-find-me/
How to Negotiate with a Collection Agent, Episode 264: https://youtu.be/ZgNWpKfBUwU
Blair Demarco-Wettlaufer's Blog: https://receivableaccounts.blogspot.com/2020/04/covid-19-what-will-this-do-to-credit.html
How to get your free credit report from Equifax https://www.consumer.equifax.ca/personal/products/credit-report/
And TransUnion https://secure-ocs.transunion.ca/secureocs/credit-agree.html
COVID-19 is making Canadian’s financial situations increasingly precarious, and high interest lenders are seizing this chance to market their services to those in need of fast cash. Not knowing their options, desperate borrowers take the bait and get sucked into a never-ending cycle of debt servitude. On today's podcast, Doug Hoyes and Ted Michalos explain what alternative lenders are doing to present themselves as being helpful to borrowers; and what borrowers can do to make ends meet without resorting to high interest loans. Doug and Ted also talk about what happens to unsecured debt levels and personal insolvency rates in a recession, with lots of charts and data presented throughout the show, so tune in!
Related Links:
Why Bad Credit Financing Loans are Seldom the Answer: https://www.hoyes.com/blog/why-bad-credit-financing-loans-are-seldom-the-answer/
You Can Now File a Bankruptcy or Consumer Proposal Online in Canada: https://www.hoyes.com/blog/you-can-now-file-bankruptcy-online-in-canada/
If you're facing an income shortage, what can you do if you need to defer your rent payment? And what's going to happen to the rental market now that more AirBnB units are being listed as long-term rentals? On today's podcast, our guest is Rachelle Berube, owner of Landlord Rescue, a property management company helping landlords find and manage tenants. Rachelle shares the dos and don'ts of requesting a rent deferral from your landlord. She also talks about how COVID-19 has impacted the rental market, the death of the AirBnB industry, and why landlords will have to set more manageable rent prices going forward. Tune in; you won't want to miss her insights!
Related Links:
Tenant Guide - No Rent! Negotiating https://landlordrescue.ca/tenant-guide-no-rent-negotiating/
Rachelle on Twitter: https://twitter.com/LandlordRescue
Advice for Tenants Renting a Property with Bad Credit: https://www.hoyes.com/blog/advice-for-tenants-renting-a-property/
How has COVID-19, job loss, declining income, and physical distancing impacted the mortgage industry? And how are home values going to be affected by all this? Enter Ron Butler.
Ron is a seasoned mortgage broker and a first-time guest on the Debt Free in 30 podcast. On today's show, we discuss the current real estate market and what will happen when the lockdown is over; why banks are tightening HELOC availability for borrowers; and why now may not be the best time to refinance your mortgage if you are carrying unsecured debt. Ron also provides insight into the 'death' of the private mortgage industry and describes the new world of mortgage lending.
There's lots to learn from this mortgage insider. Enjoy!
Ben Rabidoux was the guest on podcast episode 266 in October 2019 where he correctly predicted lower interest rates, deflation and a weakening economy, and that was even without t foreseeing COVID-19. On today’s show he has many new predictions, including: Lenders will, very soon, lower HELOC borrowing availability, and likely convert HELOCs to regular loans requiring payments of interest and principal each month. He also predicts that residential rents will fall by 10%, and perhaps more in many markets. Many investors in second mortgages will be wiped out. Population growth will slow dramatically, and that, combined with a 95% reduction in Airbnb bookings will reduce house prices (but not immediately, because the real estate market is essentially frozen, with less buying and selling). It's a jam-packed episode with lots of insight and probably our longest show yet. Enjoy!
Time Stamps (if you want to skip ahead)
4:37 – The numbers are staggering; employment insurance claims could be as much as 20 times normal
5:20 – Q2 GDP could have a minus 20% to 30% annualized GDP growth (it was a third of that in the depths of the 2008-2009 recession)
6:58 – We aren’t epidemiologists; we have no clue when this will end; so far, if you believe the numbers, Canada is tracking under the worst countries, but it’s still early; hopefully social distancing will flatten the curve; Ben is optimistic and hopes
9:13 – big question is what is the hit to the economy, and how will it change consumer behaviour; the headlines will be scary for months; not likely a V shaped recovery
12:33 – our economy was built on consumer consumption, fueled by debt
14:00 – economic growth in the last five years has been levered around 80% of household consumption and residential investment (building, buying and selling houses). Almost 2% of our economy is real estate transaction costs (realtor fees, legal fees) which is stunning.
17:00 – We are missing that population growth is largely from immigration, and a lot of that is from non-permanent residents
18:42 – 3.6% of the entire Canadian population is the non-permanent resident cohort, which has grown by over 200,000 in the last year, which has accounted for over a third of our total population growth. It will shrink, and no-body is expecting that.
20:45 - Airbnb rentals will be entering the long term rental pool; Airbnb has been decimated; big under-apr… GDP growth per capita was negative before the recession started.
22:35 – Isn’t this going to crash the real estate market? The real estate market is frozen. No-one wants to buy or sell.
25:09 – Could rents go down 10%? 20%?
26:58 – will renovictions stop?
29:37 – if you are a renter now, is it likely there will be better deals in the future than there are today?
31:07 – Will we see structural change? Will people get used to working from home, and will that impact the real estate market? Will the suburbs be a big winner?
32:37 – Amazon will come out of this a big winner. Canadian Tire, not so much.
34:55 – Listener questions; Ben’s thoughts on secondary mortgage lenders (not the big banks).
36:17 - The average guy who invested in mortgages is at risk of getting wiped out
40:08 – Impact on mortgage insurers (CMHC, Genworth) is huge; in a foreclosure, the second mortgage holder may lose everything
41:45 – HELOCs – how big is our exposure?
44:48 – If the bank wanted to, they can call a HELOC at any time. More likely, they will force amortization, and cancel HELOCs
47:50 – What the banks are going to do: 1. Cut limits on lines of credit; 2. Force amortization to turn lines of credit (both unsecured and HELOCs) into regular loans, with payments of principal and interest
53:40 – some words of encouragement and reasons for optimism
The Hoyes Michalos Team is working from home, so today’s podcast was recorded yesterday morning in my guest boardroom, so the sound quality isn’t studio quality, but we wanted to get the information out to you; here’s the rundown of today’s show, with time stamps:
Dealing with Creditors during Coronavirus: https://www.hoyes.com/blog/dealing-with-creditors-during-a-financial-crisis-like-the-coronavirus/
1:15 All HMA offices closed to in person meetings, but we are working from home by phone or video
2:25 Limitations Act of Ontario suspended – creditors have more time to sue you
3:40 Right of offset – don’t bank where you owe money
5:30 How to deal with your landlord if you can’t pay your rent
6:22 Mortgage deferral – what it really means
7:24 Should I worry about my credit score? – Equifax and TransUnion offering free credit reports
Links: https://www.consumer.equifax.ca/personal/products/credit-report/ and https://secure-ocs.transunion.ca/secureocs/credit-agree.html
10:58 Canada Emergency Response Benefit – CERB - $2,000 per month four months https://www.canada.ca/en/department-finance/economic-response-plan/covid19-individuals.html
15:00 CERB can’t be given as security – will Payday loans – using
Tom Cooper’s Twitter: @tomcoopster
20:39 Six month suspension on student loans and four month deferral on taxes
22:30 What are lenders doing? My discussions with senior lenders – will they give you a break?
25:13 Proposal Amendments – help if you are in a consumer proposal and can’t make the payments
28:10 Stories from clients – many people have gone from a good income to zero
Final Comments
43:00 Don’t Panic with respect to your debt – the courts are closed, no-one will sue you this week
We normally record Debt Free in 30 weeks in advance, but today, given the rapidly changing situation, we decided to record a special COVID-19 episode. We discuss what is happening right now (all 22 Hoyes Michalos offices are closed for in person meetings, but our full team is available by phone and video conference), how COVID-19 will impact the finances of Canadians (“public facing” workers for small businesses will be hardest hit), we predict how this will impact the number of bankruptcy filings, we give our practical advice for dealing with collection calls, and we end the show with why, after we get through the next few months, we are optimistic for the future.
Beau Humphreys appeared on episode 147 back in June, 2017; he shared his struggle with a gambling addiction, and that episode is one of our most downloaded episodes ever.
Beau filed a consumer proposal with us in 2009, paid it off in three years, became a financial coach, and is now a fully accredited credit counsellor here at Hoyes Michalos.
On today’s show Beau explains his approach to credit counselling, and he gives lots of practical advice on how he uses insolvency counselling to give our clients a fresh financial start.
Have you ever made a decision that seemed like a good idea at the time, but ended up backfiring?
Today credit counsellor Diane Cunha returns, and she’s got lots of examples of bad credit decisions that can backfire, including debt consolidation loans (that don’t actually reduce your debt), high car payments, “do not pay for 24 months” deals, making multiple loan applications in a short period of time, and many more.
Should you pay someone to do your taxes, or should you just do them yourself?
Simple question; what’s the answer? Scott Schaefer is here, and we’ll discuss four factors to consider: Complexity, expertise, time, and who you hire. There is a lot of practical advice on this episode, and we end with a warning NOT to use cash back (it’s too expensive in most cases).
How do you strike a balance between your finances and your personal happiness? Enter Melissa Leong – financial expert and author of Happy Go Money. In her latest book, Melissa combines psychology and personal finance to provide an easily digestible guide to spending, budgeting, and investing. On today’s podcast, she joins Doug Hoyes to discuss why more money in the bank doesn’t correlate with happiness, how you can revamp your relationship with money, and other practical financial advice for listeners.
This is a “must listen” podcast. Enjoy!
Once a year we crunch the numbers and release our annual Hoyes Michalos Joe Debtor Bankruptcy Study. It’s the only study that exists that looks at real numbers from actual people (it’s a study, not a survey) so every year it generates a lot of media attention. Today’s podcast is the only interview Ted and I do together on Joe Debtor, and we explain the four key trends we identified this year:
Income are up (but not because our clients are getting big pay increases).
Expenses are also up, so there is less cash available to pay debt.
As a result the credit profile of our clients is deteriorating, leading to more payday loans and high interest instalment loans.
The student loan crises is leading to more younger people going bankrupt or filing a consumer proposal.
Full explanations and more on today’s show.
Full details with all of the charts can be found here: https://www.hoyes.com/press/joe-debtor/
On today’s show we have a first time guest, Richard Moxley, who explains how to win at the credit game. He explains why the credit score you buy is not the same one your lender uses, why age matters, and what practical steps you can take to rebuild or improve your credit.
I have no idea whether or not we will have a recession soon, but whether we do or not, there are some steps you can take to prepare. On today’s show Scott Terrio returns to discuss what causes a “personal recession”, and what steps you can take to prepare for whatever happens.
Ted Michalos returns to discuss loan scams, including advance fee loans, savings loans, and “pay off your consumer proposal” loans. Listeners may quibble with our characterization of these loans as “scams”, but we explain why we believe they should be avoided, and we give our suggestions on better alternatives for people who want to improve their credit and are tempted to get these types of loans.
Kelley Keehn returns after a three year absence, and on today’s show we discuss some of the many interesting ideas she has in her new book, Talk Money to Me.
We discuss the impact of low interest rates, whether or not she thinks budgets are a good idea, why she thinks the fourth asset class is your career, and what we need to know about the reciprocity rule.
That and lots more on today’s show!
On today’s show first time guest Alexandra Macqueen, CFP explains what a reverse mortgage is, how they work, and who qualifies. More importantly, Ms. Macqueen does not sell reverse mortgages; she’s a financial planner and university educator, so she has no vested interest in whether or not you get a reverse mortgage, so she is able to offer unbiased advice on this increasingly popular borrowing option for home-owning seniors. Are they a good idea? That answer and more on today’s show.
On today’s show Scott Terrio explains that, for most of our clients, debt “sneaks up on you”. You borrow the money and expect to have no trouble paying it off, but then life happens, and the debt problems begin. We discuss how debt causes problems, and Scott creates a new term: Financially Catatonic. All that and more on today’s show.
For the last show of the year Doug Hoyes and Ted Michalos look back on 2019 and ask the obvious question: the economy is doing well, unemployment is low, and yet bankruptcy and consumer proposal filings in Ontario have had the largest spike upward in over a decade, up about 16% so far this year. Why? We debunk the conventional wisdom from the talking heads on TV (it has nothing to do with unemployment or interest rates, and it’s not a temporary blip) and explain what’s really happening. We play a clip from our predictions show from last year so you can see how accurate we were, and then Ted and Doug close the show with their predictions for personal insolvencies in 2020.
If you listen to the news, or read the comments on YouTube, you may think the world is getting worse. All we hear about are political scandals, crime, and economic problems. That’s not surprising; bad news sells; negative clickbait works! But as we discuss on today’s podcast, world health continues to improve, and extreme poverty is at its lowest level in history. So why do we think things are getting worse? It’s partly due to the “negativity instinct”, a concept discussed in the book Factfulness: Ten Reasons We’re Wrong About the World, and Why Things are Better Than you Think by Hans Rosling. On today’s show we discuss how to spot negativity, and how you can see the positive side of life.
Everyone likes gift cards. Free money! An easy gift for anyone on your Christmas list, but there is a downside.
On today’s podcast, first time guest and Hoyes Michalos credit counsellor Patty Sweeney explains the advantages and disadvantages of gift cards, and she gives lots of practical advice if you give or receive gift cards.
Robert Brown, author of Wealthing Like Rabbits, returns for his sixth appearance on the podcast, where we discuss marketing in its many forms.
Cross selling, upselling and reselling are happening all the time, and we often don’t realize it.
We provide many examples, and strategies to keep more of your money in your pocket.
Over 600 big name store locations have closed in Canada in the last three years, resulting in over 17,000 lost jobs, and that doesn’t include hundreds more small stores that have shut down. Is this just the impact of Amazon, or is there something deeper happening? And what does this mean for the Canadian economy going forward?
On today’s show first-time guest Stephanie Hughes explains why the stores are closing, and what this means for the typical retail worker specifically, and the Canadian economy and real estate.
The Sunk Cost Fallacy is easy to understand: you’ve spent the money, it’s gone, but you keep on doing what you’re doing, whether or not it makes sense, because you’ve spent the money.
You go to a restaurant and eat every morsel of food on your plate, whether you are full or not, because you’ve spent the money!
On today’s show Ted Michalos explains how the Sunk Cost Fallacy is a disaster with how you treat debt, and we give some practical advice on how to overcome it.
On today’s podcast we’ve got two hockey parents: Kristen Kral, a credit counsellor in our Brantford office, and Rebecca Martyn, our Windsor trustee, who give their thoughts on how to save money on kid’s sports (particularly hockey).
Enjoy!
It’s amazing how many of my client are confused about the difference between a TFSA and an RRSP, so today Ian Martin and I go through the basics.
But isn’t this a podcast about debt?
Yes it is, so we also discuss what happens to a TFSA or RRSP if you go bankrupt, and we discuss which savings vehicle is best once you are out of debt and are getting back on track.
It’s the start of Financial Literacy Month in Canada, so instead of following the crowd and telling you to make a budget (which is the most common suggestion you will hear this month), I will go a different route and tell you a story about a 20 dollar bill.
A fable, as it were.
Enjoy!
We advise our clients to open a new bank account at a new bank where they don’t owe any money, before filing a consumer proposal or bankruptcy, to ensure that their money is not “accidentally” seized by a creditor. It’s wise to have a bank account at a bank where you don’t owe money even if you aren’t in financial trouble, for exactly that reason. But which bank should you pick? Are they all the same? On today’s podcast credit counsellor Diane Cunha walks you through how to pick a bank and save money on bank fees.
Ted Michalos often says “no good deed goes unpunished”. What does he mean by that? Does he have a negative view of humanity? On today’s show he gives examples to illustrate his point, and we give practical advice on how to make sure that if you are helping friends of family with money problems, you don’t put yourself in financial jeopardy.
On today’s show: no statistics, no numbers, just stories about the clients we help. Scott Terrio talks about the growing trend of renovictions, how the decline of retail stores is impacting our clients, and how stagnant incomes but rising living costs are putting the squeeze on everyone.
After a three year absence Ben Rabidoux is back on the show. We start with the story of how he got sued for libel due to some tweets he sent out, and then we discuss how borrowers can deal with the more restrictive mortgage rules, and we discuss whether or not we are headed for a recession.
It’s our longest show of the year, so far, so sit back and enjoy.
My guest today is Cameron Huddleston, who wrote a new book called Mom and Dad, We Need to Talk: How to have essential conversations with your parents about their finances.
How do you have the “money talk” with your parents as they get older?
How do you even know if they need help?
Those topics and more on today’s episode.
Today on the show my guest is Blair Demarco-Wettlaufer, a real-life collection agent, who explains how a collection agent gets paid, and how you can negotiate with a collection agent.
If you start a business, and get into trouble, no problem, you can go bankrupt or file a consumer proposal to get debt relief. Even tax debt goes away in a bankruptcy. But, if you have a government guaranteed student loan, the law says you must wait 7 years after you leave school to be able to automatically discharge student loan debt in a bankruptcy or consumer proposal.
That’s both unfair and punitive, so on today’s podcast we explain how the rule works, and give our suggestions for fixing this injustice.
In season #5 I started doing “rants”, single topic shows with just me talking. The most downloaded show of the past 12 months was a “rant”, Show #227 where I talked about why systems are better than goals, and that was the show that I replayed just last week.
What’s in store for this year?
Lots more guests, and rants, and who knows what else.
Thanks for listening, and please enjoy Season #6!
Every financial guru says that achieving success starts with setting a goal.
I disagree. While there is some benefit to setting goals, you are more likely to achieve success if, instead of focusing on goals, you have a system. I discuss goals vs systems on this special rebroadcast episode, originally aired in January, 2019.
If your goal is to get out of debt or to save more money, you might be a little frustrated knowing another year has come and gone without improving your finances.
So what if your goal this year is to get out of debt? Or save more money? What’s the best way to achieve any goal?
The answer may be to not focus on the goal at all, but instead to create a system to reach that goal.
Today on Debt Free in 30, I want to explain why, in most cases, systems are better than goals.
In over 20 years of helping Canadians eliminate their debt, I've yet to hear a single client say they chose to have debt problems. Debt accumulates over time and then it becomes an even bigger problem when you lose your job, become ill or get divorced. But for many of my clients, despite knowing that the cause of their money troubles was beyond their control, they still blamed themselves for their financial woes.
So, how does one overcome self-blame to achieve debt relief? On today’s special rebroadcast episode we talk with Shannon Lee Simmons, author of Living Debt-Free: The No-Shame, No-Blame Guide to Getting Rid of Your Debt about how negative feelings towards debt can create more debt and strategies that can put you in the right direction when dealing with your debt.
When used correctly, a credit card is a helpful tool to build your credit history, and it's a safer than carrying cash. However, when mismanaged, a credit card can quickly become one of the most expensive borrowing options, leading to serious debt trouble. For many of our clients, credit card debt is the second biggest debt they carry.
To help you avoid the common pitfalls that come with owning a credit card, on this special rebroadcast episode I talk with Diane Cunha, one of our certified credit counsellors. She shares tips for using credit wisely to avoid debt problems.
We discuss billing cycles, due dates and grace periods, and we have 8 tips for avoiding credit card debt.
It’s August, and we are rebroadcasting our most downloaded episodes of the last year, with a new introduction, and this one has opera!
How do you stay on top of your finances when your income differs from one month to the next? Chris Enns is an opera-singer and a fee-only financial planner specializing in helping people who work in creative careers organize their sporadic salaries. He understands first-hand the struggles of applying traditional financial advice to a non-traditional cash-flow. Today Chris outlines his approach for managing cash-flow when you have variable or intermittent income.
Chris explains that many people in the creative world avoid thinking about money because they believe they are just bad at it; they just don't get it so they think managing their finances is something they can't do. As 'money misfits' they don't feel they are part of the financial conversation. The terminology around money is foreign so they don't connect with the language.
On today’s show Chris explains how creative people, or anyone with variable income, can manage their money.
A home equity line of credit (HELOC) is a loan secured by the equity in your house. A HELOC is often presented as a great borrowing tool because unlike with credit cards or unsecured loans, you have access to a large amount of revolving cash at a lower interest rate.
But what you probably don't know is that your bank can change the borrowing terms on your HELOC whenever they want. On today's special rebroadcast, we talk with Scott Terrio and he shares why you need to think twice before signing up for a home equity line of credit.
What is a debt buyer? What should you do if you find out that a debt buyer has bought your debt?
On today’s show a former collection agency lawyer explains the law, and discusses options for negotiating with a debt buyer.
Could you survive without debt? Sounds like an easy question to answer, but many of our clients are so dependent on credit cards that they don’t realize they are borrowing to live.
On today’s show Ted Michalos discusses how you can tell if you are dependent on debt, and how to get off the debt treadmill.
Today we discuss a wonderful, magical place called Costco. Is it a store? A finance company? Something else? And why does it matter? All that and more on today’s podcast (and I’ve got slides, so if you want to see the numbers, the video is posted on the Debt Free in 30 channel on YouTube).
Many people have no choice: if they want to work, they have to be a “sub-contractor”, or “self-employed”. This is very common in the construction industry (Dry wallers, framers, plumbers, electricians, roofers) and in high tech (programmers, web developers).
On today’s podcast Ted Michalos helps us explore how you can finance your self-employment, and we give a warning about personal guarantees and other traps to be wary of, including the tax man.
My guest today is Dr. Thomas Richardson. He has a doctorate in Clinical Psychology, with a special interest in financial difficulties and mental problems. He’s done a lot of research on the subject, including co-authoring a research paper that examined the relationship between personal unsecured debt and mental and physical health.
Does debt cause mental health problems, or do mental health problems lead to debt?
We explore the answer, and some solutions, on today’s podcast.
My guest today is Hilliard Macbeth, an investment portfolio manager and author of When the Bubble Bursts: Surviving the Canadian Real Estate Crash. When Mr. Macbeth first appeared on this podcast just over 3 years ago we discussed his prediction that the real estate bubble would burst.
My first question to him today: did it? Was your prediction wrong?
We also discuss how money is actually created (it’s not how you think) and how banks and faulty economic thinking have contributed to our massive levels of debt.
He’s got advice if you are thinking of buying a home, so this is a “must listen” episode.
Even though the economy appears to still be in good shape, our stress levels are very high. Why?
On today’s show I explain that everyone isn’t benefitting from the good economy; the cost of living is high; we have longer commutes to work; we are carrying more debt and we use debt to survive.
I provide my advice on how to deal with high stress in today's stressful world.
You’ve heard of the five stages of grief; today Scott Terrio returns to discuss the 5 stages of debt, with examples from the people we meet with every day.
Stage 3 (Bargaining) is where we can make the most mistakes; stage 4 (depression) is where most people are when they reach out for help, and stage 5 (acceptance) is the most important stage to get a fresh start.
Lots of client anecdotes on today’s show!
Today on the podcast we have a first time guest, Danielle Park, a Chartered Financial Analyst and the President and co-founder of Venable Park Investment Counsel Inc., a money management firm.
In her book, Juggling Dynamite, she accurately describes the risk of excessive debt, and she says that she has come to “see credit and prescription drugs as some of the great ironies of our time.”
On today’s show Danielle explains why saving money is more important than making money, the importance of liquidity, and how to build wealth in a challenging world.
For the average Canadian family, their largest monthly expense is their rent or mortgage payment, and unless they have a very expensive car, their second biggest expense is often food.
If you have a limited income, how can you manage your food budget effectively?
Is it possible eat healthy without breaking the bank?
On today’s show we welcome Heidi Pola, a Registered Dietitian who gives practical advice on how to eat healthy and save money.
You’ve got debt, you think you might need to file a consumer proposal or go bankrupt, but you’re worried, because you travel for your job, or you have a family vacation booked, and you are worried that if you are bankrupt you may get stopped at the border.
Is that a thing?
Can you travel while you are bankrupt?
That’s today’s question here on Debt Free in 30, so to discuss it I’m joined by Ian Martin, a Licensed Insolvency Trustee with Hoyes Michalos here in Kitchener.
When I ask my clients “what happened; how did you get into so much debt?”, they tell me that the credit card company offered them a credit limit increase on their credit card, so they took it. Or, they offered me a line of credit, so I took it.
Makes sense; if someone offers you something, you take it.
But is it always a good idea?
What should you watch out for?
So today on Debt Free in 30 I’ve invited back Diane Cunha, who was with us back on show 235 when we talked about credit cards; today we’ll have a discussion about the pros and cons of pre-approved credit limit increases and lines of credit.
I’m going to explain why conventional wisdom says they are a good idea, and Diane will explain why the conventional wisdom is often wrong.
When Sears went bankrupt and the employees discovered they wouldn’t get their full pensions, there was an understandable outcry, and many people has said that the solution is to make pensions the first creditor to be paid in a bankruptcy, ahead of the banks.
That sounds good, but that policy may cause some unintended consequences that hurt workers, as we explain on today’s podcast, and we offer some other solutions to this very serious problem.
Debts arising from the failure of a business is a common reason that someone may have to file a personal bankruptcy.
That’s not surprising; you borrow money personally to invest in a business, it doesn’t work out, you’re left with the debt, so you file bankruptcy. I’ve personally done hundreds of bankruptcies that were the result of a business failure.
So what can you do to reduce the chance of business failure?
Or stated with a more positive perspective, what can you do to make your business a success?
That’s the question I’ll answer on today’s edition of Debt Free in 30, where we’ll tell you the 6 Skills You need to be successful in business.
There is a lot of bad credit and debt advice out there. We see it on YouTube, and Twitter, and Reddit, and in personal finance blogs. And it seems that one of the most popular areas to give bad advice is on how to improve your credit score.
So, today, Scott Terrio and I are going to share and debunk the bad advice you can get on the internet for improving your credit score. Some of the bad advice we discuss:
- Raise your credit limit
- Have many credit cards
- Have a 30% utilization on all of your credit cards
- Don’t pay off your credit cards early
- Show credit growth – get a new card every few months
- Take out longer loans
- Start getting credit cards as a student
Getting a copy of your credit report and credit score for free, from one of those "credit monitoring" services, can be very expensive.
On today's show I rant about why I don't like those services, and I give practical advice on how and when to monitor your credit score.
Today’s episode is a quick “Technical Tidbits” edition where we answer one question from our listeners.
The short answer is yes, it is possible for a collection agency to take you to court, but it’s not a common occurrence. We explain when they are most likely to take you to court, and what your option are if they do.
On today's show we discuss the proposed changes in the federal budget, including help for new home buyers, and explore whether or not these changes will actually help millennials and others.
Every year, we analyze information we collect about our clients to develop an updated profile of the average person filing insolvency. We call this person Joe Debtor. As the economy changes, so too does Joe Debtor. In 2014/2015 we warned that we were seeing an increase in the number of seniors filing bankruptcy. In 2017 we highlighted that, despite a robust economy, we were leaving people behind who were struggling on a lower than average household income and becoming insolvent because they were relying on debt to make ends meet. In 2018 we continued to raise concerns about the payday loan crisis facing heavily indebted borrowers.
While some of those trends continued our recent Joe Debtor study, completed in 2019 based on 2018 insolvencies with our firm, highlighted the plight felt by Millennials. They are the fastest growing cohort filing insolvency. And it's not just that they are aging in - they are dealing with more debt at a younger age than any previous generation. They are filing bankruptcy at a rate that far outstrips their entry into the working world.
I talk with Hoyes Michalos co-founder Ted Michalos as we explore reasons why Millennials are struggling with debt repayment and why they are filing a bankruptcy or consumer proposal so soon.
Budgeting for bill payments and saving can be a straightforward process when you have a regular, consistent paycheque. But how do you stay on top of your finances when your income differs from one month to the next? What if you're just not someone who can follow traditional financial planning? Enter Chris Enns. Chris is an opera-singer and a fee-only financial planner specializing in helping people who work in creative careers organize their sporadic salaries. He understands first-hand the struggles of applying traditional financial advice to a non-traditional cash-flow. Today Chris outlines his approach for managing cash-flow when you have variable or intermittent income.
Chris explains that many people in the creative world avoid thinking about money because they believe they are just bad at it; they just don't get it so they think managing their finances is something they can't do. As 'money misfits' they don't feel they are part of the financial conversation. The terminology around money is foreign so they don't connect with the language.
On today's show he gives practical advice on how to manage money, even if you think of yourself as a money misfit.
In over 20 years helping Canadians eliminate their debt, I've yet to hear a single client say they chose to have debt problems. Debt accumulates over time and then it becomes an even bigger problem when you lose your job, become ill or get divorced. But for many of my clients, despite knowing that the cause of their money troubles was beyond their control, they still blamed themselves for their financial woes.
So, how does one overcome self-blame to achieve debt relief? Today we talk with Shannon Lee Simmons, author of Living Debt-Free: The No-Shame, No-Blame Guide to Getting Rid of Your Debt about how negative feelings towards debt can create more debt and strategies that can put you in the right direction when dealing with your debt.
When used correctly, a credit card is a helpful tool to build your credit history, and it's a safer than carrying cash. However, when mismanaged, a credit card can quickly become one of the most expensive borrowing options, leading to serious debt trouble. For many of our clients, credit card debt is the second biggest debt they carry.
To help you avoid the common pitfalls that come with owning a credit card, I talk with Diane Cunha, one of our certified credit counsellors. She shares tips for using credit wisely to avoid debt problems.
We discuss billing cycles, due dates and grace periods, and we have 8 tips for avoiding credit card debt.
Many people we meet are surprised to find themselves so far behind financially they can no longer pay their bills. The problem with debt is that it creeps up on us slowly. Today we are going to take a lesson from the business world and apply it to personal finance. Businesses use financial ratio analysis all the time to assess their financial risks. Today we are going to look at 4 personal financial ratios that can help you measure your debt risk and determine some financial priorities.
Whether you are a borrower or a beginning saver, the best way to beat the bank at its own game is to learn some basics so you can make a better decision. I talk with Larry Bates, author of Beat the Bank, as he shares tips for outsmarting financial institutions and keeping the most of your hard-earned money in your own pocket rather than the bank's.
One of Larry's biggest messages is that if you understand the cost or fee structure of the financial products you are using, you can choose options that lower that cost. By keeping more of your money, each and every year, these seemingly small savings build up over time and can have a significant impact on your long term finances.
All that and more on today’s show.
A debt collector does just what the name suggests: they collect on unpaid debt. They won't review all your debt relief options with you or give you a plan that makes debt repayment realistic and affordable. Their only goal is to recover as much debt for the creditor as possible. That's how their business makes money.
You might be shocked to learn that some big not-for-profit credit counselling agencies are now operating the same way. In fact, they are registered with the Ontario government as debt collection agencies. Credit counselling agencies have changed. Many are no longer registered charities. Credit counselling agencies don't do a lot of budgeting or actual in person counselling anymore either. Credit counselling organizations in Canada today are often big, national call centers. Now when you call a credit counselling call centre, you may be sold a debt management plan (DMP), where you repay 100% of the debts you owe, but with a lowered interest rate. Credit counselling companies sell this regardless of whether that's the right course of action for you because they are sponsored by financial institutions to do so.
We take a deep look at why not-for-profit credit counselling agencies have become nothing more than debt collectors. We also examine the implications for you as a debtor in need of help.
But it's not all bad news: We believe that there is a very important role that not-for-profit credit counsellors can play in helping Canadians with money problems, so we end the show by laying out our solutions and recommendations.
A home equity line of credit (HELOC) is a loan secured by the equity in your house. A HELOC is often presented as a great borrowing tool because unlike with credit cards or unsecured loans, you have access to a large amount of revolving cash at a lower interest rate.
But what you probably don't know is that your bank can change the borrowing terms on your HELOC whenever they want. I talk with Scott Terrio and he shares why you need to think twice before signing up for a home equity line of credit.
If you can sell your assets, pay the taxes (there’s a tax hit when you cash in an RRSP), and have enough to pay off your debts, it may make sense to sell your assets to pay off your debt. But, if your assets won’t cover your debts in full, there may be a better option.
On today’s podcast we discuss how to determine if selling assets is a good debt reduction strategy.
Whether your inheritance is included in a bankruptcy depends entirely on when you become entitled to receive the proceeds. As this is a complex issue, I talk with Ted Michalos and we take a detailed look at bankruptcy implications for inheritances.
While we discuss inheritances and bankruptcy specifically in this podcast, the advice applies to virtually any cash windfall including a cash gift, work bonus or lottery winnings.
The best way to control your auto expenses is to buy a car you can afford. This keeps your monthly car loan payments low (since you borrow less) and ensures that you don't over-finance. But how do you buy an affordable car that fits within your budget? Should you buy new or used? If it's used, how can you know it's reliable?
Enter Scott Marshall. With 30 years of experience in the driver training industry, he shares his first-hand knowledge of how to make car ownership affordable. He also suggests that there is a correlation between safe driving and saving money.
8 Ways to Make Car Ownership Affordable Scott shares the following tips for successfully keeping your car buying costs low:
- Buy used. According to Scott, a used car is a great way to achieve affordability. A used vehicle can be reliable if you're strategic in your purchase and maintain your car well.
- Buy a car that's only 3 or 4 years old. Your car will still be very close to the most modern vehicle, but at only 60% of the cost. Don't worry about newer features because the most important ones (anti-lock brakes, electronic stability control, and airbags) are all standard anyway.
- Buy from a credible dealer. Browse websites like Auto Trader, where you can find a car that is certified pre-owned, meaning it's backed by the original manufacturer. That also means it's been through rigorous inspection.
- Save on insurance proactively. Your insurance payments depend partly on the type of car you buy. Minimize these monthly costs by asking your insurance company how much your payments will be based on vehicle models.
- Test-drive more than one car. Don't give up if you're unhappy with your first test-drive. If you've found a model that fits your budget, test multiple cars. They will each drive differently, even if they're the same make.
- Save money on tires by alternating them. Scott suggests buying winter tires in the colder months to replace your all-seasons. Even at a temperature of plus 7 degrees Celsius, all-season tires will harden and wear more quickly. By investing in winter tires, you can extend the life of your all-seasons by 3 or 4 more years, saving you a lot of money in the future.
- Consider getting a CAA membership. CAA memberships cost less than $80 a year. While this still sounds like an added expense, it saves you hundreds of dollars on a towing service in the event of a roadside emergency.
- Determine the kind of car you'll need 5 years from now. Think carefully before you buy your vehicle. If you think you'll need a bigger car in the future, don't buy a smaller one now. You'll save a lot more money because you'll avoid rolling over auto loans and risking financial trouble.
Every financial guru says that achieving success starts with setting a goal.
I disagree. While there is some benefit to setting goals, you are more likely to achieve success if, instead of focusing on goals, you have a system. I discuss goals vs systems on today’s podcast. Listen or read the transcript below.
This is our first episode of 2019, and I’ve got a question for you: how did you do with your New Year’s resolutions last year? How are you doing with your New Year’s resolutions this year? If you’re like many people, you’ve probably already given up.
If your goal is to get out of debt or to save more money, you might be a little frustrated knowing another year has come and gone without improving your finances.
So what if your goal this year is to get out of debt? Or save more money? What’s the best way to achieve any goal?
The answer may be to not focus on the goal at all, but instead to create a system to reach that goal.
Today on Debt Free in 30, I want to explain why, in most cases, systems are better than goals.
It’s been a long time coming, longer than Ted Michalos and I predicted in our past year-in-review podcasts. We predicted that 2014 and 2015 consumer insolvencies would remain flat, and they did. However, last year, we predicted that the seeds of a debt crisis had been planted, and we fully expected consumer insolvencies to begin to rise. And they did, albeit not until the end of the year. As of October 2018, year-to-date Ontario bankruptcies and consumer proposal volumes were up 0.6%. That growth came mostly in the latter part of the year, with 5 of the previous 7 months showing year-over-year.
We believe a consumer debt crisis will hit us in 2019; on today’s show we analyze the numbers, and give you our predictions for 2019.
If you just earned a bonus from your employer or received an unexpected sum of money, how should you use that bonus if you also have debt? On today’s show we talk with Scott Terrio and we outline what to prioritize to get the most bang for your buck. We also take a look at common mistakes people make when they receive a surprise lump sum of money and discuss the impact a bonus can have on a bankruptcy filing.
Financial technology, or fin-tech, has come a long way. Much more than just a budgeting app, now you can do your banking, money management, investing and even borrowing, online. In addition to apps, fin-tech companies are following the chatbot trend. On today’s show I talk with Alan Whitton, (known as the Big Cajun Man), who has spent 35 years working in the tech industry, about whether chatbots are good for us financially and security issues around fin-tech in general.
Alan interestingly points out that there isn't a lot of fin-tech companies helping people get out of debt. Most fin-tech companies go where the big money is - and that's selling new stuff. There are very few apps that tell you to prioritize savings, create an emergency fund, or pay off debt. Instead, we hear about robo-investors and companies like Borrowell that make a lot of money offering 'free' credit scores to entice you to borrow more.
Are chatbots just a sales pitch, or can they really help us? Tune in for more on today’s show.
When you have debt, Christmas is a stressful time. With pressure to spend on family, friends, co-workers, and maybe even your barber, the season turns into more of a financial burden than a time to be merry. And even though you want to give, your budget is limited. Is it possible to say no to holiday spending without feeling guilty?
Actually, it is. It's all in your approach.
On today’s show I talk with Lisa Orr, an etiquette and protocol consultant, and we take a look at how to navigate the holiday season without awkwardness and forced overspending. Lisa also shares etiquette advice on common and sometimes uncomfortable spending scenarios like charitable donations, tipping, and re-gifting.
The death of a spouse and divorce bring an emotional burden, but sadly such catastrophic events also create financial consequences. In fact, the death of a spouse or divorce are both common reasons why people file bankruptcy. Without proper financial planning, people can find themselves unable to cope with existing debt and often take on new debt to pay the bills.
Doris Belland, our guest today was left with $400,000 in debt after the death of her spouse. After struggling to repay that debt and rebuild her finances, she embarked on a mission to learn more about how to cope financially with a traumatic event like a death or divorce and now works as a financial literacy educator to help people be prepared when it comes to money.
On today's podcast Doris shares her advice that is good for anyone struggling with debt or who want to be prepared financially for any unexpected life event including job loss, illness, divorce or the death of a spouse.
If you are out of work or laid-off and need to upgrade your skills to improve your employment potential, how can you do this without incurring more debt? The Ontario government has a Second Career program that offers financial support to retrain for in-demand jobs for those who qualify. On today’s show we talk with David Shumaker, an employment counsellor at The Working Centre in Kitchener, where he coaches program applicants through the process. We look at how Second Career works and provide advice on how to manage debt while you are retraining.
Indebted Canadians pay at least $24 million a year for what is often unnecessary debt advice. How does this happen? Well, when you have overwhelming debt, you're not just thinking about the money. There's also an emotional element: You're stressed, anxious, and worried about your future. Enter unlicensed debt consultants. They know that you fear going bankrupt, or even talking with a bankruptcy trustee. They take advantage of your vulnerability and offer you a comforting sales pitch about how they can get you a better plan to eliminate your debt.
In the end, they do nothing except refer you to a Licensed Insolvency Trustee for a consumer proposal. But before they do, they also have you sign a contract to pay them thousands of dollars in fees for that referral. On today's podcast, we get some insight from our special guest who experienced this exact scenario and explain how you can avoid falling into this same trap.
Being injured or in an accident can have broad reaching financial implications. In addition to the costs of care, you can lose income if you are off work and may incur additional legal costs. Finding ways to recover some of those expenses can help you avoid the debt problems that can occur after an injury. Our guest, personal injury lawyer Lisa Morell, explains when you might want to talk to a personal injury lawyer to review your benefit options.
This year marks the 8th Financial Literacy Month in Canada, which begs the question: has our financial literacy improved in eight years? Total household debt is at record highs while personal savings rates are at record lows. I'd say that's evidence that the program is not meeting its core objectives. On today's show we ask the question: "Can the government even teach Canadians to take better control of their finances and if not, what does it really take to become financially literate?"
The cost of not developing some understanding of what impacts your finances is high. Credit is much more accessible than ever before. Corporate pension plans and job security are a thing of the past. An explosion of financial advisors and the introduction of technology and new products are making the world of personal finance more complex. Unfortunately, an annual government awareness program and a few tweets here and there is not going to stem this tide.
It's up to you to take charge.
To be considered truly 'financially literate,' there are three areas in which you should be highly proficient:
- Technical knowledge
- Self-knowledge
- "Other Guy" knowledge
What are these three prongs of financial literacy? Ted Michalos and Doug Hoyes explain on today’s podcast.
Whether you are about to start your post-secondary education, start a family, or are headed for retirement, debt problems can happen at any age. While the average person who files for bankruptcy in Canada is in their mid-40s, Hoyes Michalos has filed bankruptcy for people as young as 18 and as old as 93. Avoiding bankruptcy means taking charge of your debt choices at each of these milestones and being prepared to handle any challenges that occur along the way. On today's podcast we explain why you want to avoid debt at every age.
If you owe a debt in Canada, but live elsewhere in the world, should you ignore past due Canadian debts you can't afford to pay, or can you file bankruptcy in Canada when living abroad? As the Licensed Insolvency Trustee in charge of our Windsor office, Rebecca Martyn deals with a lot of cross-border consumer insolvency questions and is often contacted by Canadians living across the border who receive multiple creditor calls a day on their Canadian debts. Rebecca explains the requirements for filing a Canadian bankruptcy when living in the United States, the principles of which apply to those living in any country outside of Canada.
The use of computer technology to manage money continues to explode across the financial services industry. Enter the robo-planner. The question is can an online computer platform help answer common financial questions like should you invest in an RRSP or TFSA, or should you pay off your mortgage sooner? Today we talk about the use and potential benefit of robo-planners with Rona Birenbaum of Viviplan, a new Canadian robo-planning website.
Robo-planning vs robo-investing A robo-planner provides access to unbiased financial planning advice through an online platform, replacing much of the face-to-face engagement involved in working with an individual to create a personal financial plan.
A robo-planner differs from a robo-advisor, which uses online technology to help you choose and manage your investments.
While the terms robo-advisor and robo-planner are often used interchangeably, according to Rona, they don't provide the same service. A robo-advisor's primary aim is to gather assets. It focuses on your investments, not on delivering customized advice like whether you should buy instead of rent or how to prepare for retirement, for example.
On today’s show we discuss using a robo-planner, and how robo-planning can help you deal with your debt.
A joint bank account is an account that allows two or more parties to each deposit, withdraw and manage funds in the account. Whether or not it's a good idea to get a joint account with your spouse, a friend or any family member depends on your personal situation. On today's show, with guest Ted Michalos, we take a look at the different types of joint accounts, their pros and cons, how they are treated in an insolvency filing, and help you decide whether you should or shouldn't get a joint account.
Current regulations allow financial advisors to sell products like mutual funds and give the appearance that they are giving you financial advice that fits your situation. The problem is embedded advisors, like those at your friendly neighbourhood bank, are paid on a commission matrix that rewards sales. That means you don't really know if you are paying for the product or for good advice.
So when should you pay a professional for investment advice who isn't going to try and sell you a product? Our guest today, Sandi Martin, an advice only Certified Financial Planner with Spring Financial Planning, calls this being 'solution agnostic'. With Sandi's help, we outline when you can benefit from hiring a financial planner.
If you are over-mortgaged and facing negative equity in your home, can you walk away from your mortgage in Canada? We explain what you can do if there is a shortfall on your mortgage after a sale or bank foreclosure.
Canada has full recourse mortgage laws A theoretical shortfall is not a real shortfall. You don't have to sell. If you can keep your mortgage payments current, and expect that the market will return before you intend to sell you can hold tight.
If you are in default your lender will begin proceedings to collect. If you do not respond and cannot catch up on missed mortgage payments, your bank or lender will likely begin proceedings to sell your home through a power of sale.
If you sell with a shortfall, or your bank forecloses, you still owe your mortgage lender any deficiency between the money realized from the sale and the balance owing on your mortgage.
Should you sell your home for less than you borrowed and find yourself unable to repay the shortfall, in Ontario, your lender can pursue you to collect the difference, as they have full recourse:
A recent Twitter headline claimed that actor Charlie Sheen is having a 'dire financial crisis' with less than $10 million to his name. While that might be a bit extreme, no matter how much money you have, if you have high debt obligations, you can face money troubles.
On today's podcast we talk with Robert Brown, author of Wealthing Like Rabbits, about what it means to be facing a personal debt crisis and what's in your control to change.
Student loans are only automatically discharged when you file bankruptcy in Canada if you have ceased to be a student for more than seven years at the time you file. However, there are cases in which clients cannot afford to wait for the seven year mark to discharge their student debts automatically. Financial hardship for student loans is an application you can make to bankruptcy court to have your student loans discharged five years after you cease to be a student. If the court agrees, it is possible to go bankrupt and have your student loans discharged after as little as five years instead of seven. It's important to note that the time frame is not based on when you got the loan, but when you stopped being a student.
On today’s podcast, we dive deeper into what financial hardship for student loans is and how it works with Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto.
September is a time for a fresh start. The kids are back in school, everyone’s back to work after their summer vacations, and it’s a whole new season here on Debt Free in 30.
On today’s show we announce our plans for the fifth season of Debt Free in 30, and also announce our YouTube channel where you can find all 200+ episodes of Debt Free in 30.
On today’s final rebroadcast of the summer, I give my thoughts on how to manage your spending without a budget, and I explain how the 80/20 rule, known as the Pareto principle, can be used in all areas of money management, and in life.
I call this episode “how to cheat your way to financial success”, but really it’s about the 80 20 rule, which works in finances, and in life.
Please enjoy, and I’ll be back next week with an all new episode, and an all new season of Debt Free in 30.
For the month of August we are replaying the most downloaded podcasts of the past year; not surprisingly, the first two rebroadcasts were about debt, and so is this one.
Originally broadcast back in January, on this podcast Ted Michalos and Doug Hoyes answer the question: which debts should you pay first?
Should you knock off the small ones first, or go for the high interest rate ones first? Does it matter if the debts are secured, like a car loan or mortgage, or unsecured, like a credit card?
This is a short podcast, less than 18 minutes, but that’s all we needed; I have strong opinions on this topic, which I why I addressed this in both chapter 18 and chapter 19 of my book, and Ted also has no shortage of opinions, so here’s a rebroadcast where we answer the question what debts should you pay first?
It’s the month of August, and we are replaying the most downloaded episodes from the past season of Debt Free in 30.
This episode was inspired by all of those personal finance bloggers who love to write stories about how they paid off a massive amount of debt in a short period of time. That’s great if you have a massive income and can do it, but what if you can’t?
That’s the topic on today’s rebroadcast, so please enjoy our take on a Realistic Approach to Paying Down Massive Debt.
As is our tradition here at Debt Free in 30, during the month of August we rebroadcast the most popular episodes of the past year.
Today’s episode is short, only 15 minutes, but I think it resonated with listeners because I discussed the concept of minimum payments. Since September, 2010, banks are required to show you, on your monthly credit card statement, how long it will take you to pay off your balance if you only make the minimum payment. That’s a scary number, and it’s a big reason why people call the Hoyes Michalos 310-PLAN debt helpline; they see how long they will be in debt, and they reach out for help.
So what can you do if you can only afford to make the minimum payment, or less?
That’s the topic on today’s rebroadcast of our episode titled Minimum Payments are Keeping you in Debt.
On today’s show, recorded in July, 2018, I give my thoughts on what the bankruptcy of Tesla Inc., the electric car company, can teach us about how we manage our own personal finances.
And yes, I realize that Tesla is not (yet) bankrupt, and in fact they have a market value of approximately $50 billion (in US Dollars), which is comparable to the market value of General Motors, so on the surface it appears that everything is going great at Tesla.
Perhaps, but looks can be deceiving.
Is someone who drives a new car successful? Perhaps, or perhaps they are leasing it, and can’t afford the lease payments. Outward appearances do not tell the entire story.
When I use my skills as a chartered accountant and Licensed Insolvency Trustee to analyze Tesla’s financial results, I see the same warning signs that I see with my clients just before they file bankruptcy. What are the warning signs?
First, negative cash flow. At the moment, Tesla has a negative cash flow from operations of over $100 million per month. My clients have a similar problem, although obviously with much smaller dollars. My average client has around $300 available each month to pay their debts, but their average interest costs alone are over $900 per month. They, like Tesla, have a negative cash flow, and can only stay afloat by further borrowing.
Second, Tesla has bad Liquidity Ratios. They have more debt than assets, so, as we accountants say, they are not “liquid”. If you have $800 in the bank but your rent of $1,000 is due today, you are not liquid, and that’s the exact same issue Tesla is facing.
There is another attribute that my clients and Tesla have in common: they won’t give up without a fight. Elon Musk, the CEO of Tesla, is working hard; he’s even building cars in tents to meet production targets. My clients often take on second or third part time jobs to make ends meet. I admire a fighting spirit, but there comes a time when you have such an overwhelming level of debt that a bankruptcy is the only logical option.
My advice, in that case, is to reach out for help.
(Sorry Elon, I only help people, not companies, so you are on your own).
There's a saying that you shouldn't put all your eggs in one basket, and this rings true for bank accounts. While it is convenient to have all your finances located at one bank, what happens in the event that the bank's systems are down and you can't access your money for a little while? Or, a more common scenario my clients have faced is having their bank account frozen due to missed debt payments. This makes their financial situation more frustrating because they can't access their chequing account to take care of their other bills and rent.
Even though having one bank account can be convenient and may seem cheaper, on today's show, I share 3 reasons why you should bank at more than one bank for your own protection.
There's no need to worry. Bankruptcy court is not something that every bankrupt has to go to when they file for bankruptcy. If you complete all your duties and no one objects, you are automatically discharged from bankruptcy after the required period of time has passed, so there is no requirement to appear in bankruptcy court. In fact, this is the case for the vast majority of my clients.
The only reason why you would have to appear in bankruptcy court is if your bankruptcy could not be automatically discharged, which happen if you did not pay surplus income, did not provide tax information from your Trustee, or did not complete your required counselling sessions. On today's show, we outline exactly what you can expect from bankruptcy court should you ever have to appear. And remember, if you file with a Trustee from Hoyes Michalos, you will never have to go to court alone.
To tell us more about the bankruptcy court process, I am joined once again by Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto and Scott Schaefer, our Trustee at the Hoyes Michalos Kitchener office.
You know you need to improve your financial health. You might even know what you need to do - save more, spend less, pay down debt. So why does that not necessarily translate into healthy financial habits that move the needle? What's stopping you from achieving overall financial wellness? That's the question asked in a recent study by Mercer Canada. The study found that while Canadians have a reasonably high level of financial literacy they aren't necessarily achieving financial wellness. For example, only 1 in 3 Canadian employees over the age of 50 have a strategy for their retirement. They know they need to save for retirement, they even know what the products are, but they don't have a strategy to reach their financial freedom goals.
What is the solution then? How do you improve your financial wellness?
My guest today is Jillian Kennedy, the Employee Financial Wellness Leader at Mercer Canada, a consulting firm that helps employers and organizations package and offer benefits to their employees. On today's show, Jillian highlights the key findings from the Mercer study and talks about how financial wellness impacts our ability to reach important milestones like buying a new home or saving for retirement.
For as long as debt has existed, society has judged people for failing to pay it back. Over the years, I've heard hundreds of honest, but unfortunate debtors tell me they are stressed out because they believe they have morally failed for being unable to repay their debts. But why is it that we attach a moral dimension to bankruptcy at all? Is bankruptcy morally and ethically wrong or is it more accurate to just consider filing bankruptcy to be a math decision?
When you face financial hardship like an illness or job loss, and can no longer afford to make your debt payments, it's a math problem, not a moral dilemma. On today's show, I give you 5 reasons why bankruptcy is not morally wrong, despite what mainstream society would have you believe.
- Your lender collects interest
- Your lender prepares for risk
- Life happens
- You are the boss
- Bankruptcy is a necessary social safety net
My full argument is on today’s podcast.
What causes us to spend beyond our means? While in some cases it's the result of a job loss or illness, in other situations, it's the Diderot Effect at play. The Diderot Effect is a social phenomenon where the introduction of a new possession that deviates from what you currently own leads to a spiral of even more consumption. For example, when you buy a new house, you don't just settle for the home. You now have to have new furniture, maybe a new deck, and so on. This creates a cycle of spending and leads to debt.
How do we, then, prevent ourselves from becoming a victim of this effect? How do we control a spending spiral? My guest today suggests thinking critically about what we see on social media and on television is a great place to start.
Robert Gignac works on behalf of advisors and financial professionals to help their clients better understand money management. He's also the author of Rich is a State of Mind: Building Wealth and Happiness: A Blueprint. In his experience, ordinary people become victim of the Diderot Effect because of the deceptive nature of social and digital media:
The real world does not exist on Facebook or on Instagram. What that is, is everybody's pictures of their best day all the time. And none of those social networks really show us what's happening in those people's lives when it's not on their best day, when they're lying awake at 3 in the morning because the Visa bill's due and the Visa bill's $1,700 more than they've got allowable to pay it on that given day.
He believes that in our attempt to keep up in large part due to our fear of missing out, we go beyond our financial means. In addition, once we've set a new and higher standard of living for ourselves, it's very hard to go back down.
Did you know that in Ontario, anyone can call themselves a financial planner? With this in mind, how can you make sure that you are getting expert and unbiased advice on money management? Should you trust the financial planners who work at banks? Are they credible or do they just want to sell you mutual funds?
My guest today says that if you want an honest assessment of your finances, you should speak to an advisor who doesn't sell products, but rather, advice.
My guest today is Jason Heath, a Certified Financial Planner (CFP) and a fee-only financial planner, who explains how to select an unbiased financial planner.
We also discuss if, as soon as your bankruptcy is finished and you can start saving money, you can afford to hire a financial planner.
Repaying debt requires a stable income. Even when you're in a debt relief plan like a consumer proposal, you need money coming in each month to make your payments. But what if you are faced with a sudden job loss and can no longer keep up with payments on your consumer proposal? Could you revive it after you find another job? What if you don't find work until after several months, could you restart your proposal then?
My guest today says it is possible to revive a consumer proposal. Richard Howell is a bankruptcy lawyer, certified by the Law Society of Upper Canada. He has over 20 years of experience helping people resolve this exact issue, and has yet to face a situation where a proposal could not be restarted.
What if you could approach personal finance like most of us try cooking? Instead of learning a bunch of rules and principles, all you'd have to do is follow some tested recipes. Would this make it easier to save money, budget and build wealth? Today's guest thought so and the result was a new approach to money management he called Cashflow Cookbook.
Instead of asking you to make sacrifices to save money, he compiled 120 ideas for you to be more efficient with your spending, while not having to worry about making drastic lifestyle changes.
Unlike most money experts, Gordon Stein didn't have a career in personal finance. He worked in the tech industry and led large sales teams. But, his colleagues often asked him for advice on how to make ends meet. This prompted him to start thinking of creative ways to save money.
Hear his story on today’s podcast.
Credit scores are a way for a lender to assess how well you handle debt. To be able to set a credit score, the credit bureaus need information about credit use. This leads to a strange principle behind credit scores: the more access to available credit you have, the better your credit score will be. While that's good for your credit score, is that actually good for you financially? Are we too addicted to credit scores? The techniques needed to build a higher credit score can be surprisingly harmful to you. Sometimes having a bad credit score can actually be better.
On today's show, my guest Ted Michalos helps us understand just how much credit we should really be using and why having a less than stellar credit score may actually be good for you.
Your credit report is a report card on your credit activity. While you can get a free copy of your credit report from many sources, not all credit reports are the same and not all sources provide full information.
With so many free report providers, how do you know which one is accurate? My guest today stresses it's important to first understand what's actually on your credit report. Then you can take action to deal with any errors and omissions.
Meg Penstone is a certified credit counsellor at Hoyes Michalos and has over 20 years of experience helping people with financial difficulty. She's also an expert on credit reports.
On today’s show we also discuss the problem with “free” credit reports.
Divorce can be expensive. In my experience, it's also one of the many causes for insolvency. The reason for this is when you are living together, you only have one bill for rent, cable, and utilities, but two incomes. You are in a better position to save money. When you separate, suddenly all these expenses become yours. What's more, if it's not an easy separation and lawyers are involved, it can cost tens of thousands of dollars. It's no small expense and it's often funded through debt.
But, is it possible to have an affordable divorce? Do you need a lawyer for the entire process? What if you're on amicable terms? My guest today suggests there is an alternative to costly divorce: mediation.
Colette Fortin is a mediator with Fairway Divorce Solutions in Kitchener. She helps people who are facing a separation develop a plan for their finances and children, with a focus on reducing cost and saving time. According to Colette, the reason why a traditional divorce can be so expensive is because of how much longer it takes to reach an agreement, so on today’s show she explains the alternatives to a costly legal process.
Once upon a time, if you had a lot of credit card debt and owned a home, you could get a second mortgage to consolidate and pay off your debt. Interest rates were low and home values were rising. You could borrow against your home equity and pay down your unsecured debt affordably. But interest rates are rising. What's more, in some areas now, home values are declining. Mortgage rules are becoming stricter which means more people are being turned down for a second mortgage and the cost of borrowing is getting higher.
On today’s podcast Ted Michalos explains this alternative to refinancing with a very expensive second mortgage.
As a Licensed Insolvency Trustee, I'll always advise that you prioritize debt repayment. Why is it important to pay off debt first? So that you are no longer burdened by it. While that is the most prudent course of action, not everyone wants to wait until they are debt free before pursuing their dreams. For example, if you are a recent graduate, you might not want to delay starting a business until you've paid off all your debt.
This is exactly the decision that my guest, Alex Grodnik, made. Still owing $75,000 in student loan debt, he left a stable job to follow his passion. But, should you follow in his footsteps? Alex says it depends on the kind of person you are and if you're willing to take risks.
More on Alex’s story, and some practical advice, on today’s podcast.
Money management is hard. That’s why so many people don’t do it. Over the years at many credit counselling sessions with clients I’ve explained budgeting, and spreadsheets, and budgeting apps, and lots of other techniques to manage money. Some of my clients love the process of recording every transaction. Others, not so much.
So, what can you do if you want to keep track of your money, but don’t have the time or the inclination to keep a spreadsheet or spending journal?
You cheat.
By cheat, I don’t mean “act dishonestly”, I mean “avoid something undesirable by luck or skill”, like eating healthy to “cheat” getting sick.
On today’s podcast I give my thoughts on how to manage your spending without a budget, and I explain how the 80/20 rule, known as the Pareto principle, can be used in all areas of money management, and in life.
I've said it before: when it comes to credit rating agencies like Equifax or TransUnion: You are not their customer. You are their product. Your data and loan history are for sale to any lender who is willing to pay for the data. But what if this could be flipped upside down? What if you could own your own credit history and control who gets to see it? Well, our guest today says that can be made possible with the power of blockchain technology.
Derek Silva is the head of community relations at Bloom Protocol. Bloom is an end-to-end protocol for identity verification, risk assessment, and credit scoring and it runs entirely on the blockchain.
Is it possible that Equifax will be replaced by Blockchain technology?
That’s our discussion today on Debt Free in 30.
In our latest bankruptcy study, we discovered that over the last 5 years women have been filing for bankruptcy in higher numbers. In 2012, 42% of women filed insolvency and by 2017 that number reached 48%. But, it's not that women are suddenly using more debt. What we've noted from our client data is that female debtors face a unique set of challenges that drive women to turn to debt to makes end meet and then prevent them from being able to keep up with their debt repayment. For example, two thirds of women are either single or divorced and struggle to manage expenses on a single income. Moreover, women earn 9% less than male debtors and are also 3 times more likely to be a single parent than a male debtor.
This is what our average female client looks like. But, why is it that women are increasingly finding themselves in trouble with debt? What can they do to better tackle debt problems in addition to other life challenges? Sharing their expertise today are guests Gail Vaz-Oxlade, Kerry K. Taylor, and our Trustee in the Oshawa office, Alison Petrie, with co-host Sharon Hoyes.
Gail Vaz-Oxlade agrees with our findings that women's life circumstances are completely different from that of men's. That's why she suggests women need a different approach to money:
We need to be far more vigilant about what we're doing because we're going to have to live on whatever we save for a lot longer time.
So, how can women protect themselves in life emergencies? According to our experts, preparation for sudden life changes is key. Gail believes women need to change their mindset of being caretakers of everyone else and not themselves. She suggests that although there may be love and trust in a marriage, there's no downside to having "his and her" accounts:
If you end up getting divorced, if your husband ends up getting smashed to pieces on the highway, you will be so glad you have money in your own name. I don’t understand why that is a problem.
And if you're a stay-at-home mom, Gail says you should pay all the bills and whatever money is leftover should be split 50/50 between husband and wife.
Kerry Taylor seconds this and believes women should try and "disaster-proof" their lives:
Just because I know bad stuff happens to good people all the time and you need to account for the future as well as the present.
All that and more on today's podcast
How can you find a good place to rent, even if you have damaged credit? Today’s guest runs her own property management company, and she gives us the inside scoop on how to find a good place, and how to convince the landlord to rent to you.
Credit card fraud affects many stakeholders. It's damaging not only to consumers, but also to merchants and financial institutions. In addition to losing money, credit card fraud can ruin a customer's relationship with a retailer as well. But with advancements in card security like having a chip and PIN, how does fraud continue to be such a big problem? How can Canadians protect themselves? What can retailers do to limit their losses? Those topics and practical advice on today’s show.
At the end of last year, Ted Michalos and I predicted three types of bankruptcies we expected to see more of in 2018:
- People will be denied for debt consolidation and refinancing.
- Ontarians will be dealing with lower home equity and as a result, end up filing for more proposals
- We will see crypto-currency related bankruptcies in the New Year.
To review those predictions now that the year has started and to share his insight, I'm joined today by our Manager of Consumer Insolvency, Scott Terrio. We'll look at issues like whether the new mortgage rules impede Canadians' ability to consolidate their debt and what impact home prices will have on insolvencies.
Household debt to income levels in Canada continue to rise. We now owe $1.71 for every dollar earned. But, with no shortage of experts discussing the risks of high debt and how to repay it, why is it that we continue to spend? Why do we find it so hard to say 'no'? Are we just comfortable with debt now, as a society?
To discuss these questions, I'm joined today by a panel of experts: Gail Vaz-Oxlade, Kerry K. Taylor, and Robert Brown. Using their years of experience and insight, we dig into why it seems no one is listening to debt warning signs.
First off, should we even worry about debt? Let's say I'm someone who owns a home in Toronto. It's worth a million dollars today. My mortgage on the house is $500,000 and I make $250,000 because I'm a lawyer. My personal debt ratio is 2:1. But, that's not a big deal because the debt to income ratio includes mortgage debt.
So, does it even matter if I owe so much? According to Gail Vaz-Oxlade, yes, it still does:
When you are in debt, what you have done is eliminated your options.
Gail says that in everyone's life, rain falls. So, if you have no savings, and are over-extended on your mortgage, you won't have choices to make other than to service your debt.
For Kerry Taylor, debt not only reduces your options, but it reduces your ability to stay healthy because of the added mental stress. So, yes, having debt matters.
If having debt matters, why do we keep owing so much? Robert Brown argues the reason for high debt could be that people tend to make money decisions based on their "now situation," but don't consider what could happen in their future, like a job loss, or a rise in interest rates:
What if they tighten up mortgage regulation rules? Well they have...and all of a sudden, a situation that was barely, barely manageable not by a reasonable standard but at least somewhat manageable becomes unmanageable because they had absolutely no room to move.
What Robert is referring to is called "present bias." Kerry explains:
We look at our present self and we live in the present. We don't really have the ability to look into the future and see how those present decisions such as spending money, eating poorly, not exercising will play out in the future.
Lots more discussion on today's show.
Talking real estate isn't a first for the Debt Free in 30 podcast. We've had many experts like Hilliard Macbeth, Ben Rabidoux, and Alex Avery provide their insight on whether renting is better than buying and vice versa.
But we've never had the most obvious guest to talk real estate: an actual realtor. On today's show, we're chatting with Scott Ingram. Scott's not just a realtor, though. He's also a Chartered Professional Accountant. But what really sets him apart is that he likes to empower his buyers by educating them.
On today’s show Scott Ingram tells us how many realtors there are in Toronto (it’s a huge number), and he tells us what real estate statistics we should watch, and which ones we should ignore.
In early February, we released updated research that shows 3 in 10 Ontario insolvencies involve payday loans. Payday loans have been a fairly popular discussion in 2018, as the Government of Ontario changed laws lowering the cost of borrowing for these types of loans and the City of Hamilton stepped in to be the first municipality in Ontario to limit the number of payday loan locations.
Yet despite all the warnings and changes, payday loan use among our clients is on the rise. Why aren't these changes working? Why are indebted Ontarians in fact taking out bigger and bigger loans from payday loan companies? To answer these questions and discuss the unintended consequences of recent changes to the payday loan industry, I talk with my co-founder and fellow payday loan antagonist Ted Michalos.
On more than one occasion, we've said that compound interest is great for savings, but terrible for debt. On today's show, Ted Michalos shares a simple math trick to help you easily calculate the impact interest has on the debt you carry.
The trick is called the Rule of 72.
You take the number 72 and you divide it by the interest rate that you're considering.
Why does this matter? We explain on today’s podcast.
With the launch of the new PC Optimum program, we're taking the opportunity to examine just how Canadians can make the most of loyalty cards and points programs. While there are advantages to in-store reward programs, if you're not careful, they can actually cause you to overspend.
Our special guest host on today's podcast, Sharon Hoyes, talks with our guest, Kimberly Hill, about how to use loyalty programs wisely to balance your budget.
Trying to make debt an everyday topic is difficult. What’s more, most people who are in my line of work have an accounting background. As such, there’s a tendency to be more numbers-focused than say, story-telling, for example.
But a year ago, I came across an individual on my Twitter feed, who was commenting on personal finance issues and the sorts of situations that my clients face. He’s even got an impressive social media follower base because of it.
His name is Scott Terrio. He’s a regular contributor to Macleans, BNN, and many more media outlets. I’m happy to share that he’s also the newest member of the Hoyes Michalos team. Scott is our new Manager of Consumer Insolvency and he’s our guest on today’s podcast, as we talk debt.
You hear the stories about the person who paid off $100,000 in debt in just 3 years; sounds great, but how did they do it, and is that realistic for the average person?
The short answer is no, if you earn $25,000 per year it is mathematically impossible to pay off $100,000 in three years, but you do have options, which we discuss on today’s show.
If you think your finances are under control because you're keeping up with minimum monthly payments on credit card debt, think again. To become debt free, you need to pay down more of your balances. How do minimum payments work and why do they keep you in debt? And what do you do if all you can afford are the minimum payments or less? We discuss that on today's podcast.
We hear the same thing repeatedly. If you rent, you’re throwing away your money. Why? Because you have nothing to show for it at the end of the month. On the other hand, if you own your home, you’re paying down your mortgage and building equity. But is this true? Why can't you build wealth by renting? Today's guest thinks you can.
Some points to consider, according to Alex Avery:
- It’s not one-size-fits-all. Buying isn’t for everyone. Neither is renting. Consider how long you expect to be in a particular location. If you have precarious employment, or know that a job will be moving you to another location, renting is a more suitable choice. On the other hand, if you know exactly where your life will be in the next 10 years and you’ll have children, who will go to school, then it’s probably better to invest in a home.
- When making the decision to rent or buy, don't forget all the negative carrying costs of owning and selling a home. Count that against your 'investment' decision. Be aware of you biases that might make you want to scale up, buy more, renovate more. Alex uses the term investment creep to explain this bias.
- Understand how the pro ownership lobby can influence your decision - from the government, to real estate agents, even your friends talking around the dinner table. Don’t be persuaded by someone else giving you advice that reflects their objectives, not yours.
Because it's not the level of debt that causes the problem necessarily. It's whether or not you can service it. On show #174, we gave the example of someone with a $500,000 mortgage and 25-year amortization. If the interest on it went from 3.29% to 4.29%, the monthly payment would go from $2,400 to just over $2,700. That's about an 11% increase.
On today’s show we discuss which debts should you pay first, and how to make that decision.
What will happen in 2018 that could water the seeds of a financial crisis? Ted Michalos and Doug Hoyes believe there are three big stories to watch in 2018:
- Minimum wage going up in Ontario from $11.60 to $14.00, effective January 1st. This means any employer that is already marginal or has very tight margins is probably going to employ fewer people.
- Debt. According to the Canadian Payroll Association's September 2017 survey, 49% of Ontarians are living paycheque to paycheque and 43% of them save less than 5% of their earnings. Canadians are also the most indebted in the world by at least one measure, as household debt is more than our GDP.
- Real estate value and mortgage interest rates. The Bank of Canada predicts that 47% of Canadian real estate mortgages will renew in 2018 and a lot of people are going to be facing an increase because rates are higher than they were a year ago.
For more insight and detailed breakdown of our predictions for 2018, tune into the podcast.
On today’s podcast we explain how, even though your house may have increased in value, if you don’t have enough cash to meet your monthly expenses, you are house rich but cash poor.
We give four tips to avoid being house poor. The most important tip: decide what kind of life you want, and use that decision to decide on the house you really need.
Every year, the focus of the holiday season is on consumerism and the need to spend money on the perfect gifts, the perfect decorations and creating the perfect dinner. And every year, Canadians end up spending too much money, putting them at risk for financial difficulties once the holiday season is over.
On today's show we rebroadcast a podcast from 2015 where my guest is Heather Cudmore, who at the time was the manager of Credit Counselling at Carizon Family Services in Kitchener, and is now a credit counsellor in the Hoyes Michalos London office.
Heather has lots of great advice on how to make a memorable Christmas, without spending a lot of money.
Should you ever loan money to family and friends? It’s a tough question. Some of you might say, “sure, why not?” And others might think, “Maybe just to family.”
Well, if you do decide to loan money, I’d recommend asking yourself this question: Do I have to borrow money to do it?
If you do have to borrow to help, you shouldn’t loan money… even if it’s to family and even if they say they’ll pay you back. Now I realize that sounds harsh, but it’s in your best interest to not get yourself into financial trouble.
On today’s show I discuss why you should never loan money to family and friends, and I explain how you should help them if they are in need.
On today's show, I review 10 personal finance books that would make great gifts and/or would be a great start to your own personal finance library. All 10 books are listed below, with the time stamp from the podcast, if you wish to jump ahead and listen to my comments on a particular book:
General Money Management
- The Wealthy Barber Returns by David Chilton (2:35)
- Wealthing Like Rabbits by Robert Brown (3:20)
- 397 Ways to Save Money by Kerry K. Taylor (9:40)
- Stop Over-Thinking Your Money by Preet Banerjee (11:06)
- Debt-Free Forever by Gail Vaz-Oxlade (11:54)
- Protecting Your Money – A Guide to Identity Theft and Fraud by Kelley Keehn (14:24)
Real Estate
- When the Bubble Bursts by Hilliard Macbeth (19:32)
- Burn Your Mortgage by Sean Cooper (23:26)
Retirement
- Victory Lap Retirement by Jonathan Chevreau and Mike Drak (27:19)
Thinking
- Thinking, Fast and Slow by Daniel Kahneman (28:48)
Of course, I am also quite proud of my own book, Straight Talk on Your Money, which I discuss briefly at the end of the show.The first five books on the list are great for all age groups. Books #6 and #9 are particularly good for either seniors or adult children of seniors, and book #10 is great for anyone who wants to take a "deep dive" into how our brains work.
I hope you enjoy the list!
Have you ever wondered why a credit card isn’t called a debt card like it should be? Think about it. That’s what a credit card really does – it gives you debt. Well, I’ll tell you why. Because it’s not good marketing. And credit card companies know this.
In Myth 4 of my book, Straight Talk on your Money, I point out that financial institutions know we are guided by our emotions. Banks and credit card companies have manipulated you into thinking that credit is good, and they do it constantly.
Credit can also be used to describe a source of pride or honour like, 'you are a credit to your family.'
Here's another example: "I'm a good person because I have a high credit score."
How many times has been idea been shared? That maintaining a good credit score means you're responsible with your money and you're not a reckless spender.
I disagree.
Although my focus today isn't on credit scores - I already discussed that on my podcast a couple weeks back, episode 167 - I will say that a credit score, which should (once again) really be called a debt score, is another example of using positive language (aka good marketing) to make us think differently about financial concepts than we're supposed to.
Calling it a credit card does not change the fact that it is really a debt card.
Personally, I'd rather be blunt with these terms. All I'd really like to accomplish is to have you consider being more honest about the terminology too. See how it affects your decision-making.
I share more details on why words matter in this podcast and why financial institutions benefit from their manipulation.
On today’s show we discuss the different forms of income that can be garnisheed (or not). Here are the types of income, with the time stamp if you want to fast forward to that section:
- Wages – 3:21
- Ontario Works – 8:31
- Disability Pension – 9:58
- ODSP – 10:00
- Retirement Pensions – CPP – 12:36
- OAS – 13:35
- Basic Income – 19:19
Full links to all legislation mentioned in the show are on our website at https://www.hoyes.com/blog/wage-garnishments-what-income-can-be-garnisheed/
How important is your credit score? In my book, Straight Talk on Your Money, on page 48 I discuss the “Credit Score Scam”, and on page 52 I say that you should not focus on your credit score. (Apparently I’m not a fan of credit scores). It was those passages from the book that prompted Ross Taylor, a mortgage broker, to email me and say:
I noticed when reading your book we do not completely agree on the importance of one’s personal credit history.
I emailed Ross back and said “great, come on the podcast and let’s discuss it!”, and that’s exactly what we do on today’s show.
My view is that credit scores are for the benefit of the bank, not you. I explained this in a past post Why our credit reporting system is broken. Credit scores are a tool to help a lender decide how much money to lend you. A person who has never borrowed money but has $1 million in the bank may not even have a credit score. A person who has five credit cards and owes money on each of them may have a high credit score, because they are servicing their debt. So to get a high credit score, you need to borrow money. In many cases that’s a bad idea, and that’s why I don’t believe in making a high credit score your top financial priority.
While Ross Taylor doesn’t necessarily disagree with any of those comments, as a mortgage broker he also knows that to get the best rate on a mortgage, you need a clean credit report, and a high credit score. That’s why he believes you should pay attention to your credit history, and take steps to improve your credit score. In his words you need to look at:
Your score, your history, the content and what comprises it.re
Which approach is correct? Are we both right? You be the judge.
November is financial literacy month in Canada, and for the seventh straight year the government will encourage Canadians to:
take concrete actions to better manage their money and debt, including making a budget, having a savings plan and understanding their financial rights and responsibilities.
So, the solution to all of our financial problems is to make a budget.
I disagree.
In my experience, budget’s don’t work for most people, because they don’t stick to them. They get discouraged, and they end up worse off than before.
I've talked a lot about what I believe is a better alternative to budgeting, and on today’s show I’ll give a better alternative to how we are currently promoting financial literacy.
Registered Disabilities Savings Plans are geared towards helping families and individuals who are living with a disability. RDSPs can only be setup for someone who is eligible to receive the Disability Tax Credit.
If this is for your child, you can only begin making contributions after your child is diagnosed with an eligible disability. This is one of the main reasons RDSPs aren't as commonly used, or as frequently discussed.
On this week's podcast we're welcoming back Alan Whitton, the voice behind the Canadian Personal Finance blog. This is a subject close to Alan as he and his wife found themselves having to set up an RDSP for their son. After familiarizing themselves with the ins and outs of the Disability Tax Credit, they sought help from their doctor to obtain it.
On today’s show we discuss how they work, who is eligible, and what happens if you have an RDSP and file bankruptcy.
Everyone thinks that a house provides both stability and financial security, but on today's show, we'll explain why that is not always the case.
It is true that if you live in the same home for many years, you have stability. But there are significant costs to owning a house.
You pay real estate commissions when you move, but you also pay a penalty to break a fixed mortgage. As we explain on today's show, the penalty for breaking your mortgage can be a lot higher than you expect.
The big banks have found a loophole that allows them to charge a bit Interest Rate Differential penalty, even when rates are rising, and if house prices are not increasing, the penalty to break your mortgage and closing costs can eliminate the profit on your house.
Before you buy a house and sign up for a five year mortgage, be sure that you are not likely to need to move for five years, and confirm that you can afford to pay all of the costs of living in your house (since costs are more than just a mortgage payment).
In some cases it is your fault, if your debt was a result of reckless spending but, in my experience, most people get into trouble because "life happens". Many of my clients have debt problems caused by a job loss, or reduced income, or a life event like a relationship break-down or a medical condition that forces them to take time off work.
On today's show we hear the story of Mary, how has debt problems. I'll leave it to you, the listener, to decide if her problems are her fault, or if there was anything she could have done to prevent her money problems.
There are recent interest rate increases from the Bank of Canada that will affect many Canadians. But the question of the day is: Do you know how a 1% interest increase will affect your budget?
Today's guest is here to discuss just that. Brent Hughes and his team discovered that there are two times throughout the life cycle of a mortgage that people receive professional advice: the beginning, and the end. His company Monitor my Mortgage helps give people the information they need to make the right choices between years 1 and 30.
On today's show, I discuss the news that data from Equifax was "hacked". It appears that "only" 100,000 Canadians were impacted, but even if your data was not impacted by this event, it's a good wake-up call for all of us:
So how can you protect yourself? My full comments are in my post on Equifax Data Hack: Insolvency Trustee Gives Advice on How to Protect Yourself but here's an important point: your data is already out there; you can't pull it back.
If you have ever applied for credit, you have a credit file, even if you have paid off all of your debts. That means your data is vulnerable, so it's up to you to keep an eye on your data. At a minimum, review all of your credit card, bank and loan statements regularly; don't wait until the end of the month. I check my statements online every few days. If you see a problem, report it immediately.
More advice on today's show.
For more than a decade the "go to" source for Canadian personal finance information has been the Canadian Personal Finance Blog operated by Alan Whitton, more commonly known as the Big Cajun Man (listen to the show to find out where that name came from; having met him to record this podcast, I can confirm that he is a big guy).
The Big Cajun man has accumulated the best resources on the internet on RDSPs, so next month he'll be back to do a full show just on that topic. On today's show we addressed a very common issue:
What can you do when you lose your job?
Alan worked for the biggest company in Canada, Nortel, for 20 years, and he survived many rounds of layoffs until, at age 47, he was laid off. Even though everyone knew the company was in trouble, layoffs are almost always a shock. The Big Cajun Man tells us what it was like to live through that time, with a wife and four kids, and he explains how he survived 11 months of unemployment before starting a new career.
On today’s podcast he gives practical advice for surviving, and then thriving, after a layoff.
Over the years I have had hundreds of clients who financed a house, or a car that ended up being more expensive than they could afford, and that one purchase caused other debt problems. When I ask them why they made that purchase, even though in hindsight it was obviously more than they could afford, they give me many rational reasons. They tell me the mortgage payments were cheaper than rent, or they financed a new car covered by a warranty to avoid car repair costs.
Humans Can Be Irrational Those are rational reasons, but when I ask more questions it becomes apparent that they bought the house for emotional, not rational reasons. They were afraid house prices would keep going up, so they bought now, or all of their friends were buying, so they did too.
On today's show I discuss how our emotions can cause us to make bad financial decisions, even when we don't realize we are being influenced by our emotions.
Student loan debt is a massive problem in Canada. The average student loan debt resulting from a four year degree program is over $26,000, and a student could end up paying more than $10,000 in interest before the loan is repaid.
A government guaranteed student loan is only discharged in a bankruptcy if you have ceased to be a student for over seven years at the time you file bankruptcy. So it is very sad that 15% of our clients still have student loans at the time they file with us, meaning they've been trying to pay that back for seven years already.
Even worse, the burden of student loans are disproportionately felt by women.
On today’s show we discuss the problem, and propose some solutions for both society and individual students.
Welcome to the first show of Debt Free in 30 Season #4. I know this isn't a TV show, and you're not supposed to have "seasons" on a podcast, but I think seasons are a good way to organize what we do here on Debt Free in 30.
As I discuss on today's shorter-than-usual show, we will continue to have great guests discussing personal finance and debt issues. But this season I also plan to delve deeper into the debt issues that impact society.
Next week we'll discuss whether or not student loan debt is sustainable, and I'll give my thoughts on possible solutions.
We have many great shows planned, so welcome to Season #4.
The book is called Straight Talk on Your Money – The Biggest Financial Myths and Mistakes…and How to Avoid Them.
I wrote the book because based on my 30 years as a professional accountant, and after personally meeting with over 10,000 people, I believe there is not enough straight talk about money. There are lots of sales pitches, but that’s not what we need.
On today’s show I explain why I wrote the book, how you can get a copy, and why I think all experts are biased, and how you can make better financial decisions.
Full details at www.StraightTalkMoney.ca
For our final rebroadcast of the summer, we are rebroadcasting our most downloaded show from the past year. Sean Cooper returns to the podcast today to talk about his new book, Burn Your Mortgage, to be published on March 1, 2017. Sean worked up to 80 hours a week for many years to save for a down payment, and then he managed to pay off his mortgage in less than four years. He held a mortgage burning party that was covered by the CBC, and that's where the fun began.
Some people applauded his frugal lifestyle, but others said that it's not realistic to work that hard just to pay off a mortgage quicker, earning him a lot of online haters, which is where I got involved in the story when I was interviewed by the CBC in a follow up article. I believe that some of Sean's strategies will work for some people; the key is to listen to his ideas and apply what you are able to do, given your financial situation. As Sean Cooper says, the starting point is:
“Setting a goal, because for so many people what keeps them from being homeowners is they're not able to come up with that down payment”.
On today's show Sean Cooper talks about his new book, talks about the on-line haters, and provides advice on how to "burn your mortgage".
This is a special rebroadcast of one of our most downloaded shows: it’s my father-in-law, telling me how he retired at age 48, and has now been retired for longer than he worked at his job! If you are like most Canadians, you dream of a long and enjoyable retirement. Is it possible to retire early and achieve that by the age of 48? While it is an anomaly, my guest today did just that.
Bob Lassaline worked for 30 years and retired when he was 48 years old. He is 80 years old today, so he has been officially retired for longer than he was employed.
How did he do it? Full details are in the podcast.
As we continue to rebroadcast our top downloaded shows this summer, today we replay our first ever Debt Free in 30 broadcast LIVE on video, over YouTube. The response was fantastic. We asked our listeners to leave us questions through sound clips, email, twitter and Facebook in advance of the show and took questions during the show. Doug Hoyes and Ted Michalos answered as many of those questions as we could during the webcast.
We talked about debt, consumer proposals, car loans and mortgages. We even had a “celebrity” question.
The full video is also available on the Hoyes Michalos YouTube Channel.
When this show first aired back at the end of November, 2016, the real estate markets were booming, and mortgages were easy to get, but my guest, Ben Rabidoux, had some very specific predictions.
First, he predicted that Ontario would implement a foreign buyers tax, just like happened in Vancouver. Bingo. In April of this year, five months after we aired this interview, the Ontario government announced a 15% tax on foreign real estate buyers.
Second, he also predicted that mortgages would be more difficult to get in 2017. Right again, as the problems at Home Capital, one of the biggest alternative mortgage lenders in Canada made it a lot more difficult for some buyers to get a mortgage.
So Ben was correct on these predictions, and a few others, so I’m not surprised with that track record that this was one of our most downloaded episodes.
Today’s show is a rebroadcast of a show that first aired in October, 2016.
My guest is David Bond, who has a PhD in Economics from Yale University, and he makes a number of interesting points. We discuss the high level of Canadian household debt, and we talk about the most popular topic here on the podcast in the last year, and that’s the Canadian real estate market. Mr. Bond has some very definitive views on income inequality and taxation, and he has some thoughts on Basic Income.
Mr. Bond points out that we must face the fact that we live in an economy that has cycles. A high household debt to income ratio (167.8% at the time of our podcast) puts both the individual, and our economy as a whole, at risk. If you lose your job, you may not be able to pay your debts. If too many people default on their debts, our financial institutions might go bankrupt.
Tune in for Mr. Bond’s David's advice if you have debt and risk a job loss or income reduction.
We just celebrated Canada's 150th birthday and this is Debt Free in 30 episode number 150 so to celebrate both of these milestones I'm bringing back a guest from one of our most popular shows ever. Back in season number one, show number 33, originally broadcast in April of 2015, my guest was Leigh Taylor and the topic of that show was smart ways to pay off debt.
Even though that show aired more than two years ago it is still downloaded many times each month and as of today it is one of the top three downloaded shows in the history of this podcast. That tells me that Leigh was a great guest because that show has been shared many times by our listeners. So today, two years later, I'm bringing Leigh back for round number two.
Today I want to ask Leigh about debt and bankruptcy myths. We get a lot of information from the internet and that information is not always accurate so today we're going to dispel the top debt myths that Leigh and I encounter as we help people with their debts.
On today’s show Leigh Taylor dispels five common bankruptcy myths:
- People who go bankrupt are spendthrifts
- Everyone will know I filed bankruptcy
- Bankruptcy will ruin your credit forever
- If you go bankrupt, you lose everything
- Government debts are not included in bankruptcy
This is a special rebroadcast of show #111, originally aired on October 15, 2016.
We all want to help when someone is in trouble. But helping someone out of financial trouble can come with unexpected costs and consequences. It is for that reason that I strongly advise against ever loaning money to family and friends.
On today's show we hear three stories:
- Mabel is a widow who chose to help her adult son who was struggling financially after a divorce. In the end, Mabel ended up maxing out her own line of credit and was having trouble keeping up with her own rent and debt payments.
- Larry loaned his son money for a down payment on a new home. Unfortunately, Larry's son separated from his wife who received the house as part of the separation agreement. Larry's down payment went to his son's ex-spouse.
- Amanda's parents gave her the 5% down payment she needed to enter the housing market. Unfortunately Amanda quickly found out she couldn't keep up with the bills associated with her new house. Maintenance, a job loss and a flooded basement resulted in her selling the home for less than she owed including some additional credit she incurred trying to keep up.
What's common about all these stories we heard on today's podcast is that in each case, loaning money to someone to 'help out' ended up with very bad consequences for everyone involved.
There's a growing number of people owing money on their tax debts. This is in part because more people are self-employed, or have more than one job, and partly due to a growing seniors population. Getting into tax debt can be relatively easy, and dangerous to your financial health if you don't deal with it quickly. Today's podcast discusses ten tips on dealing with the Canada Revenue Agency and tax debts from our in-house tax expert and Licensed Insolvency Trustee Ian Martin.
Your income tax is based on your total income for the year. If you're working for a company, that process is automated for you and the appropriate amount is taken off. But what if you have more than one job and one doesn't know about the other? What if you have pensions coming from different locations? These tips deal with how to avoid complications with the CRA, as well as what you can do to deal with those tax debts.
Debt doesn't start out as an obvious problem. For many people, lack of personal finance knowledge leads them to make poor decisions with their money. Once you figure out how easy it is to get credit, you start spending more and more because, hey, it's there. Today's guest is a former Hoyes Michalos client, and like many of our clients, he struggled with severe debt.
Beau started gambling at a young age through seemingly harmless games like scratch tickets. From there, it evolved to online card games throughout university and he eventually dabbled in "pretty much everything else you can think of". Beau had a full-time job so for him, gambling wasn't a means to earn income, it was his source for exhilaration. The main problem that Beau had was that credit was the only way he knew how to have that instant access to cash to gamble.
I'm just kind of at my wit's end and I'm thinking, you know, I'm never going to be able to afford these credit card payments that I have if I keep going.
After working with a counsellor at the Canadian Association for Mental Health (CAMH), Beau found the source of his addiction: he had gone undiagnosed with ADD his entire life. After starting on his medication, and looking through nearly $40,000 in unsecured debt, Beau knew he needed a change.
On today’s show, Beau discusses his consumer proposal, and how he recovered from both gambling and debt.
As Licensed Insolvency Trustees, our clients tell us how difficult it is to live on minimum wage. That’s why they often have no choice but to use debt to survive. The average person we help file a consumer proposal or bankruptcy has an income that is almost 40% less than the median income in Ontario; in many cases our clients are working minimum wage jobs.
Our clients don’t have a debt problem; they have an income problem.
If minimum wage isn’t enough to survive, the solution would appear to be quite simple: raise the minimum wage. That’s exactly what the Ontario government is proposing to do, raising the general minimum wage from $11.40 per hour to $15 per hour on January 1, 2019.
So won’t that big increase in the minimum wage solve all of our problems?
No, because, unfortunately, a minimum wage is not a living wage.
On today’s show we explore the reasons why a government-mandated minimum wage is likely to do more harm than good, and we propose a more effective solution to our income problem.
We know from our Joe Debtor study that the average person in Ontario who files a consumer proposal or bankruptcy has an income that is almost 40% lower than the median income in Ontario. Low or sporadic incomes make it difficult to keep up with the cost of living. The Ontario government has recognized this fact and has started a pilot project for basic income in three cities across the province. Hamilton is one of those cities, and with me today is Tom Cooper, Director of the Hamilton Roundtable for Poverty Reduction, to discuss how this pilot project may help alleviate poverty in Hamilton.
This basic income pilot project is an initiative to reduce poverty in our province and provide people with a basic standard of living. Many existing benefits are not enough for people to pay rent, food, and transportation costs. As a result, more people turn to debt to make ends meet as noted in our 2017 Joe Debtor study.
On today’s show we discuss basic income and a living wage as a way to increase incomes in Ontario.
The number of seniors filing insolvency is growing. Many seniors have the honest intention of paying back whatever debt they accumulate. That would be great, except they're using new debt to pay for it.
We've recently written about seniors increasingly turning to payday loans, which is one of the most expensive forms of lending. High interest rates paired with a fixed income aren't a good combination for anyone. The challenge that seniors are seeing is not that they are incapable of living off of their savings and pension payments.
Why are insolvency rates for seniors increasing?
What can seniors do to avoid insolvency?
Those questions and more answered on today’s edition of Debt Free in 30.
For the first time ever, the federal government just issued a BOMBSHELL report, saying that it appears that two very large debt consulting firms in Canada are taking advantage of vulnerable consumers. They charge large upfront fees, and often they only service they provide is to refer you to a Licensed Insolvency Trustee.
On today’s show we discuss what the government reports says about unlicensed debt consultants, and we provide practical advice for consumers on how to avoid paying for a service that you don’t need.
As you may remember, we published our Joe Debtor study at the end of March 2017. This study takes place every two years and analyzes data from insolvent debtors from across Ontario. When it comes to homeowners, we're seeing a steady decline in the rate they're filing insolvency. That doesn't mean they're without debt, it just means they're getting creative with how they hold off insolvency.
Although only 17% of all insolvent debtors in our 2017 study were homeowners, roughly 30% of people who call into our offices are homeowners looking for help dealing with their debt. Because home values are so high right now, it may make more sense for the caller to pull from their home equity to help pay off their existing debt, or even sell their home to pay off their debts in full.
Full details on how to avoid excessive mortgage debt on today’s show.
There are two major purchases we make in our life that we typically use debt to purchase. The first (no surprise here) is our home, and the second is our car. But can car loans lead to insolvency? Believe it or not, yes car loans can lead to insolvency.
As cars are getting more sophisticated and fitted with new gadgets and features, which means they're also getting more expensive. You're no longer buying just a car, you're buying a driving computer. Instead of the days where we could just pay cash up front for our vehicle, we're presented with loans and leases as a way to stretch the total amount over a number of years. In some cases, car loans extend up to eight years.
This makes cars more affordable for the every day consumer, which is great for car companies as they're able to continue with the technological evolution of their cars.
But, they can get expensive, so on today’s show Doug Hoyes explains why we get into debt with cars, and he gives practical advice for dealing with car loan debt.
Welcome to the third round table edition of Debt Free in 30,recorded in person at the Hoyes Michalos offices in downtown Toronto, so you can listen to the audio, or watch the video on YouTube.
My guests today are all personal finance experts based in Ontario.
- Kerry K. Taylor writes the very popular Squawkfox blog;
- Robert Brown wrote the best selling personal finance book Wealthing Like Rabbits; and
- Barry Choi writes on the Money We Have blog about personal finance and travel.
Today we cover three stories in the news:
- Banks behaving badly – starts at 4:01
- Social Media Influencers – who can you trust? – starts at 15:52
- The Toronto Real Estate Market – starts at 30:43 (where I predict that prices peaked on Wednesday April 26, 2017)
Many seniors are finding it increasingly difficult to make ends meet. Our 2017 Joe Debtor study showed that the total number of debtors who are seniors is now 12%, up from 2015's 10% and up again from 2013's 8%. With fixed incomes, potential long-term care options and adult children to think about, there are a lot of ways seniors can end up in debt.
My guest today is Vanessa Benedict, a Wealth Advisor with one of the largest banks in Canada. Vanessa's job covers everything from estate planning, financial planning and investment portfolios. Vanessa has many seniors as clients and is always surprised when someone in their 60's still has significant mortgage debt. These are people who saw their parents live so frugally and wanted more for themselves, and for their children. But how much is too much, and who do you turn to for advice?
All that and more on today’s show.
Struggling financially is difficult for anyone. It can be exceptionally stressful if you're a single parent trying to juggle your finances, work, and parenting all on your own. Without a partner you're solely responsible for the fate of your family. My guest today is here to talk about how going through insolvency as a single parent feels, and how she overcame her debt.
Her name and personal information are kept anonymous for confidentiality reasons so we'll call her Joan. Joan was a working professional with a job on Bay Street. Like many Bay Street positions, Joan was making a very good salary. Shortly after Joan celebrated her 50th birthday, work at her office was slow and she was downsized.
On today’s show we hear her story, and how a consumer proposal helped her deal with her debts.
Welcome to the second edition of our Debt Free in 30 News You Can Use round table. Our first one aired in January 2017 and covered Walmart vs. VISA, 2017 Debt Repayment Predictions, Bank of Canada Warnings and Paid Promotions vs. Personal Finance Advice. This month we have a whole new panel of experts and a whole new stock of stories to cover.
Today's guests are Blair Mantin from Sands & Associates in British Columbia, Daniel Budd from M. Diamond & Associates in Montreal, and Ian Penny from Janes & Noseworthy in Newfoundland & Labrador. As you might have guessed from the firm names, we are all Licensed Insolvency Trustees. Specific bankruptcy details vary from province to province and we're all facing different economic factors depending on where you are in the country. Our panel of experts today provides insight from coast to coast.
My guest today is Shamez Kassam, a financial advisor based in Calgary who has just published his first book, Your Money’s Worth: The Essential Guide to Financial Advice for Canadians.
Shamez wanted to write a book that acted as a road map for how the Canadian financial advice industry worked. There's only so much you can learn within the traditional educational institutions. Shamez himself tried learning on his own before losing it all in the tech bubble. That's when he decided to go back and do his MBA in New York.
The Millennial Conundrum Younger generations or anyone who is just starting out have a lot of challenges to overcome to succeed financially. Debt loads are high, job security is low, and student debt is higher than ever. Our Joe Debtor study found that millennials are the most likely of all age groups to use payday loans. So they're not only operating within unsecured territory, but they're adding volatile, high-interest debts to their list of challenges. We discuss this and more on today’s show.
My guest today is Shamez Kassam, a financial advisor based in Calgary who has just published his first book, Your Money’s Worth: The Essential Guide to Financial Advice for Canadians.
Shamez wanted to write a book that acted as a road map for how the Canadian financial advice industry worked. There's only so much you can learn within the traditional educational institutions. Shamez himself tried learning on his own before losing it all in the tech bubble. That's when he decided to go back and do his MBA in New York.
The Millennial Conundrum Younger generations or anyone who is just starting out have a lot of challenges to overcome to succeed financially. Debt loads are high, job security is low, and student debt is higher than ever. Our Joe Debtor study found that millennials are the most likely of all age groups to use payday loans. So they're not only operating within unsecured territory, but they're adding volatile, high-interest debts to their list of challenges. We discuss this and more on today’s show.
Earlier this week, our firm Hoyes, Michalos & Associates launched our 2017 study of Joe Debtor. Joe Debtor is a report on the average insolvent Ontarian that we publish every two years. This year marks our sixth published study, which means we have a lot of comparative data and can identify trends.
We're increasingly seeing a certain type of Ontarian filing insolvency. Although we have Ontarians from all income levels filing either a consumer proposal or bankruptcy, there are certain vulnerable debtors who are more likely to declare themselves insolvent.
Key findings from our study: * Joe Debtor's take-home income is 41% below the median Ontario household income * He is using most of his income to pay for necessities, not luxuries * Joe Debtor has just $302 a month available for unsecured debt repayment - but that debt carries an estimated interest cost of $960 a month
Who Are the Vulnerable Debtors? We're seeing an increase in certain demographics based on our findings year-over-year. We'll post demographic-specific podcasts in the upcoming weeks so we can discuss each one in detail.
There is a steady rise in insolvent millennials, who are just starting out their adult lives. We've also seen an increase in senior debtors who are carrying debt into retirement. Today's podcast talks about the certain types of debt that these vulnerable debtors are carrying and why it's so dangerous.
On Debt Free in 30 I interview many debt experts, but I don't often have the opportunity to speak with someone who has actually dealt directly with their own debt issues. We have conversations with clients every day, but it's very rare that one wants to open up about their story and help others from one debtor to another.
My guest today is Dana Pharant. Dana operated a successful business that was doing more than a million dollars in sales. The business unfortunately experienced three major catastrophes, including a large customer stiffing her on the bill, and Dana turned to her personal credit to support her business. With more personal debt than she could handle, Dana reached out to the professionals at Hoyes Michalos in January 2012. We discussed her options with her and she decided to file a consumer proposal. Dana is pleased to report that in just a few months her consumer proposal will be paid in full.
Like most clients, Dana weighed her options before making the decision to file. On today’s show she discusses that decision, and talks about her own business, and how she developed a money, and life, mindset.
My guest on show #131 was Victoria Ryce, co-author, with Gail Vaz-Oxlade, of a new book, CEO of Everything: Flying Solo and Soaring, that deals with how to cope with becoming suddenly single.
On that show we talked in detail about the emotional aspects of becoming separated, divorced, or widowed, and Victoria had a lot of practical advice for either the person who is now single, or for people who have loved ones who are suddenly single. Click here to listen to show #131.
In many relationships, one person manages the money while the other is happy simply being kept in the loop or ignoring the money completely.
This is very common, so one of the challenges when you become unexpectedly single is that you are now in charge of everything. Your first priority will be to "take stock" and make sure you have access to funds for day-to-day living.
But what's the next step? What if you get a life insurance payout, or a divorce settlement? What should you do with the money? Victoria has some surprising advice: the correct answer, initially, may be to do nothing. On today’s show Victoria explains doing nothing, and the steps necessary to be financial secure when you become suddenly single.
In 2016 the Canadian Anti-Fraud Centre (CAFC) received 77,348 mass marketing fraud complaints with a total reported dollar loss of $99,198,188. That's a big number, but CAFC believes that fewer than 5% of victims file a report. It's likely that because of the unreported instances, victims lost approximately $2 billion in Canada due to mass market fraud in 2016.
Fraudsters keep coming up with new scams, so it's important to be aware of the new scams, and understand how to protect yourself and your loved ones.
To find out how to recognize the new scams and protect yourself, I'm pleased to welcome Kelley Keehn back to our show. Kelley was my guest back on show #75 where we discussed a book she wrote for the CPA Institute Protecting You and Your Money: A Guide To Avoiding Identity Theft and Fraud. Kelley has published eight books, co-hosted a TV show, regularly contributes to publications like The Globe & Mail, and has had numerous TV appearances including as the personal finance expert on The Marilyn Denis Show.
On today’s show we discuss the most dangerous frauds of 2017, including the romance scam, phishing frauds, and the CRA scam.
How could you cope if, due to divorce or the death of your partner, you became suddenly single?
That question is the theme of a new book, CEO of Everything, Flying Solo and Soaring, co-authored by Gail Vaz-Oxlade and my guest today, Victoria Ryce. As they say in their book, the biggest adjustment when you become suddenly single is that:
Everything in the house is now your job: when the smoke alarm starts beeping, when the water stops flowing, when the microwave blows ups, you must act. Grass will grow and you will cut it. Snow will fall and you will shovel it. The cat will puke on the carpet and you will clean it up.
As a suddenly single person you worry about what people will think, whether or not you will lose your friends, and whether or not you will always be alone. Sudden changes are emotionally draining.
What's Victoria’s advice to stay sane and regain control? All that and more on today’s show.
We have a crisis and it's called payday loans. At Hoyes Michalos we believe payday loans are a real problem because all too often they create a vicious cycle of debt. We also don't believe that recent efforts by the Ontario Government have been enough to deal with the hidden truth behind payday loans: already indebted Ontarians are borrowing multiple payday loans, from multiple payday lenders at the same time, and this is contributing to a record rate of payday loan induced insolvencies.
How we know this is because every two years we analyze data from actual insolvencies to find out why someone files insolvency. We call this our Joe Debtor study. Part of our study includes a detailed dig into payday loan use by Joe Debtor so that we can isolate the behaviour and profile of the average insolvent payday loan user.
Our data points to four startling findings:
- 1 in 4 insolvent debtors had at least one payday loan at the time they filed a bankruptcy or consumer proposal.
- The average insolvent payday loan borrower has 3.4 payday loans with total outstanding balances of $2,997.
- Payday loans make up 9% of borrower's total unsecured debt of $34,255
- An insolvent debtor with payday loans owes 121% of their MONTHLY take home pay in payday loans.
Full details on the show with Doug Hoyes and Ted Michalos.
Sean Cooper returns to the podcast today to talk about his new book, Burn Your Mortgage, to be published on March 1, 2017. Sean worked up to 80 hours a week for many years to save for a down payment, and then he managed to pay off his mortgage in less than four years. He held a mortgage burning party that was covered by the CBC, and that's where the fun began.
Some people applauded his frugal lifestyle, but others said that it's not realistic to work that hard just to pay off a mortgage quicker, earning him a lot of online haters, which is where I got involved in the story when I was interviewed by the CBC in a follow up article. I believe that some of Sean's strategies will work for some people; the key is to listen to his ideas and apply what you are able to do, given your financial situation. As Sean Cooper says, the starting point is "setting a goal, because for so many people what keeps them from being homeowners is they're not able to come up with that down payment."
On today's show Sean Cooper talks about his new book, talks about the on-line haters, and provides advice on how to "burn your mortgage".
Is it true that if you just ignore an old debt it will go away? Not exactly. There are a few misconceptions about the Ontario Limitations Act. This week's Technical Tidbits edition of Debt Free in 30 will help separate the fact from fiction.
Let's start with what we know We all know that if you don't pay a debt, you will get collection calls and, perhaps, have your wages garnisheed. So yes you can ignore a debt, but it may lead to collection actions. Doing nothing isn't generally a good option.
If you don't have a job, you don't need to worry about wage garnishments. But that doesn't mean that you can simply ignore a debt and have it go away.
Full details on today's Technical Tidbits edition of Debt Free in 30.
Losing a job is very difficult. Whether you're a single adult or have a family that relies on your pay cheque, job loss can be devastating. The most important thing you can do for yourself, and for your finances, is to move past it. Today's guest provides practical steps to move ahead financially and put yourself in the best possible position.
David Trahair is a Chartered Professional Accountant and author of several books. You may remember David from shows #25 and #90 where he discussed some of his previous books. His newest book Survive and Thrive, Move Ahead Financially After Losing Your Job,discusses job loss from all levels. Emotional, psychological, financial, and educational challenges that recently unemployed people face.
CPA Canada sees a need for this book and has decided to finance it and give it away free. No cost to it, you just download a free PDF version of the book. Share it with whoever you think may need it.
Welcome to a special edition of Debt Free in 30. This week, instead of featuring one industry expert we're giving you four (including myself, of course). In today's show our panel of experts will answer questions on four recent issues within the personal finance realm. Each expert brings something different to the table, which gives us a well rounded view at these issues from all angles.
Today's guests are Barton Goth, a Licensed Insolvency Trustee. Barton is joining us today from Edmonton, Alberta where he owns and operates his firm Goth & Company. We have personal finance expert Robert Brown, author of Wealthing Like Rabbits joining us from Ajax, Ontario. Lastly, we have my Hoyes Michalos co-founder Ted Michalos joining me here at our head office in Kitchener, Ontario.
Today we discuss four stories in the news:
- Walmart vs. Visa
- CIBC Survey: Will Canadians Pay Down Their Debt in 2017?
- Bank of Canada Issues Warning to Consumers
- Paid Promotion and Financial Advice
If you are like most Canadians, you dream of a long and enjoyable retirement. Is it possible to retire early and achieve that by the age of 48? While it is an anomaly, my guest today did just that.
Bob Lassaline worked for 30 years and retired when he was 48 years old. He is 80 years old today, so he has been officially retired for longer than he was employed.
How did he do it? Full details are in the podcast.
This is our last show before Donald Trump officially becomes the President of the United States of America. That’s a scary thought for many people. I have no opinion on whether he will be a great President or a great disaster – I’m a Canadian, so that’s not my worry.
I am interested in how President Trump’s policies will impact Canada. Even the experts don’t know what will happen; how could they? None of them predicted that Trump would win the election, so the future is uncertain. We made some predictions on last week's podcast. My guess is that interest rates will increase, trade with the U.S. may become more difficult, and that may impact Canada. The prudent course of action is to reduce your debt now, so that you are protected from higher interest rates.
Of greater interest to me, as an observer from Canada, is how Donald Trump used various tricks to convince Americans to vote for him. These tricks are the same tricks that advertisers use to get us to buy their products, so learning these tricks can help protect us against advertising.
We humans are driven by emotions in a lot of what we do. We have seen cases where people turn to debt as a way of coping with loss. It could be grief for the loss of a loved one, or maybe loss of income that launches you towards a new opportunity.
Trump’s biggest trick is that he appeals to people on an emotional level. He ignores facts and some would say that he just makes stuff up.
Canadians have always had a strong relationship with our southern neighbours. We escape the winter, they explore new places, and we support each other's economy. We also partake in cross-border shopping. Americans hop the border with their strong dollar and purchase goods from Canada. Canadians cross over and grab great sales at major U.S. retailers, but depending on how we pay, we're racking up U.S. debts.
Some of these purchases are made on our own Canadian credit cards, but some are made using U.S. store credit cards. Those who live closer to the border have an even stronger relationship with the U.S. Depending on their industry, some Canadians work in the U.S., but live in Canada. When the U.S. has a strong dollar, it makes sense for Canadians as their take home pay is higher than what they would make in Canada. This is great if the U.S. economy stays strong, but when it waivers, it's not so good.
Today we discuss what happens with U.S. debts when you have financial problems in Canada, with my guest, Licensed Insolvency Trustee Rebecca Martyn.
2016 was a year we won't soon forget, and early indications are that 2017 will also be very eventful, so it's time to review the events of 2016 and make our predictions for 2017.
Consumer debt reached record levels in 2016, and so did the Toronto real estate market. As Ted Michalos says on today's show:
There is no capacity to save, there's no capacity for anything to go wrong. It's just a dangerous scenario waiting to unfold.
We discussed the trends that we see with our own clients. A lot of the people we meet are working multiple jobs, just trying to make ends meet. Jobs in Canada have increased in 2016, but the growth was in part-time positions. From November 2015 to November 2016 Canada added 214,000 part-time positions, but full-time jobs declined by 30,500.
They're incurring more debt to make up the difference in the fact that their expenses have gone up but their income hasn’t kept pace.
So, what can the average Canadian do to help keep themselves in the black? That’s what we discuss on today’s podcast.
It’s the holiday season, so today we have no industry experts, and we won’t talk about numbers. Instead, our focus is on real people with real financial problems.
Money problems are nothing new. In fact, back during the Great Depression, financial problems were rampant, and that’s when a song written in 1930 became very popular.
Brother, Can You Spare a Dime tells the story of man who was building a dream, but the dream ended. What happened? That’s our story today on Debt Free in 30.
Our guest today is Georgia Graham, Programs Manager of WEST (Women's Enterprise Skills Training). Their mission is to improve the employability of women in Windsor-Essex County.
WEST completed their own study which focused on identifying their community's financial needs, and whose results paralleled our own. The study Women's Financial Preparedness: Bridging the Divide in Windsor-Essex found that women were less knowledgeable than men when it came to financial products and financial indicators.
WEST's Needs Assessment Study concluded that there were three main vulnerable groups within Windsor-Essex. These vulnerable groups of women struggle to not only become, but to maintain a moderate level of financial preparedness.
My guest today is Michael Chong, the Member of Parliament for the federal riding of Wellington-Halton Hills, and an advocate for the privatization of the Canada Mortgage and Housing Corporation. First, some background:
As we have discussed on we've previous shows, the big banks are required to have mortgage insurance on all mortgages where the borrower has less than a 20% down payment, and the biggest mortgage insurer in Canada is CMHC.
According to Michael Chong, while there are two private mortgage insurers in Canada (Genworth and Canada Guaranty), CMHC insures 80% of all insured mortgages in Canada, and they currently insure over $500 billion in mortgages. That’s huge.
Mr. Chong’s position is easy to understand: with mortgage insurance, it is almost impossible for a bank to lose money on a mortgage, so they have a strong incentive to lend as much money as possible to maximize their profits.
It is understandable that when you are experiencing financial problems you don't want that information broadcast to your friends, family and co-workers. This is a concern raised by many potential clients which brings us to this week's technical podcast question:
Who will find out if you filed a bankruptcy or consumer proposal in Canada? We answer that question on today’s show.
The real question however is will bankruptcy help you deal with your financial problems and should you feel embarrassed because you filed insolvency? As many as 15% of Canadians will file insolvency at some point in their life. Tune in for more on this week’s edition of Debt Free in 30.
There is a lot of chatter surrounding Canadian real estate, housing prices and mortgage rates. Vancouver sales have started to drop but not in Ontario. Is there a housing bubble in Ontario? When will it burst? Part of the answer might be in the next round of changes to Canada's mortgage rules. In today's podcast we talk about how this will affect your ability to obtain a new mortgage or refinance your existing mortgage.
This week's guest is Ben Rabidoux, the founder of North Cove Advisors. They're a private research firm that advises big investors like pensions and mutual funds. Ben is predicting big changes in the mortgage and real estate markets in Ontario in 2017.
What's changing? As you remember, show #110 focused on the new mortgage rules that came into play on October 17, 2016. These new rules put in place a stress test that would reduce the amount of mortgage a homeowner could qualify for if they were applying for an insured mortgage. This applied mainly to borrowers with a high-ratio mortgage (less than 20% down) but also to those with a regular mortgage as long as they had mortgage insurance.
More rules come into play at the end of November 2016. The next set of changes will set limits on what types of mortgages can qualify for mortgage portfolio insurance, and these rules will apply even if the borrower has more than a 20% down payment.
Does financial literacy belong in high schools? This question is surfacing more and more as Canadians dig themselves further into debt. Today's guest is Prakash Amarasooriya, a member of the Toronto Youth Cabinet who recently launched a petition urging the Ontario Ministry of Education to beef up their Grade 10 career studies course to include basic financial skills like budgeting. Within less than a month the petition was signed by nearly 900 supporters.
What should be taught? Will it have an impact?
That’s today’s topic on Debt Free in 30.
Air Miles has been in the news a lot lately about their new points expiry policy. Maybe it's because of the media attention, but we have had a lot of potential clients ask what would happen to their Air Miles and other loyalty points if they file bankruptcy?
Here is a short summary of what would happen under bankruptcy law:
Section 67 of the Bankruptcy & Insolvency Act says that a bankrupt’s assets include “all property wherever situated at the date of the bankruptcy”.
What that means is if you own it, it's property. While there are bankruptcy exemptions for things like an inexpensive car, household goods and a portion of your RRSP, there is no exemption for Air Miles or any loyalty programs.
Confused? We explain more in today’s podcast.
Everyone wants to end poverty. The controversy begins when you start talking about how to solve the problem. One solution which has received a lot of media attention lately is the concept of basic income or guaranteed annual income. In Ontario, former senator Hugh Segal is due to release a report which will guide the Ontario government in developing a pilot project around basic income.
To help us better understand the costs and consequences of a guaranteed income program, I talked with David McDonald, senior economist with the Canadian Centre for Policy Alternatives. The CCPA has released a detailed study on basic income called A Policymaker's Guide to Basic Income.
We asked David to describe the concept of basic income:
The idea is that cash transfers are a way that we can alleviate poverty and have other beneficial effects. And the idea of basic income is that you get a cash transfer that you didn’t have to apply for or the application for it is fairly minimal.
On today’s show we explore the pros and cons of a basic income for all Canadians, and explore other solutions to poverty.
My guest today is Kerry Taylor. Her website, Squawkfox, was voted Canada’s best money blog by the Globe & Mail in 2010, and in 2014 Chatelaine said she was the "gold standard for personal finance blogging”.
I’ve followed Kerry’s work for many years, so I was very interested to read her Globe & Mail article where she described her visit to Mogo Lounge, operated by Mogo, a new “sexy, fintech” lender.
What Kelly discovered was today's new form of payday and alternative lender. No more ugly yellow stores, these new loan shops have a much more attractive approach. Nice looking locations that look more like lounges than payday loan outlets, they offer free water, an online app - and best of all a 3 minute signup process. In addition, they give you a free credit report, with your credit score.
As we discuss on the show, Mogo markets themselves to people who feel like they are “getting screwed by the banks” (and those are the words on the packages of free condoms they hand out). Their marketing pitch is simple: go to the app, get your credit score for free, and in three minutes you may get pre-approved for a loan of up to $35,000 with rates starting at 5.9%.
But are the rates really that good? What’s the catch? And what do condoms have to do with it. That’s what we discuss on today’s show.
We're living in very different times in terms of our economy. To help us explore this topic further I talked with economist David Bond about how the Canadian economy as a whole is impacted by household debt and the root causes of debt, including income inequality and our tax system.
David is a PHD in economics from Yale University, but more than that he brings a broad perspective of someone who has worked as an academic, civil servant and in industry.
Mr. Bond points out that we must face the fact that we live in an economy that has cycles. A high household debt to income ratio (167.8% at the time of our podcast) puts both the individual, and our economy as a whole, at risk. If you lose your job, you may not be able to pay your debts. If too many people default on their debts, our financial institutions might go bankrupt.
Tune in for Mr. Bond’s David's advice if you have debt and risk a job loss or income reduction.
We all want to help when someone is in trouble. But helping someone out of financial trouble can come with unexpected costs and consequences. It is for that reason that I strongly advise against ever loaning money to family and friends.
On today's show we hear three stories:
- Mabel is a widow who chose to help her adult son who was struggling financially after a divorce. In the end, Mabel ended up maxing out her own line of credit and was having trouble keeping up with her own rent and debt payments.
- Larry loaned his son money for a down payment on a new home. Unfortunately, Larry's son separated from his wife who received the house as part of the separation agreement. Larry's down payment went to his son's ex-spouse.
- Amanda's parents gave her the 5% down payment she needed to enter the housing market. Unfortunately Amanda quickly found out she couldn't keep up with the bills associated with her new house. Maintenance, a job loss and a flooded basement resulted in her selling the home for less than she owed including some additional credit she incurred trying to keep up.
What's common about all these stories we heard on today's podcast is that in each case, loaning money to someone to 'help out' ended up with very bad consequences for everyone involved.
There are plenty of reasons not to loan money to a friend or family member:
- If they don't pay you back, you could jeopardize your relationship.
- Other family members may expect the same treatment or become resentful if you are seen to be favouring one child with money over another.
- If you have to borrow money yourself, this can lead to your own financial struggles, even your own bankruptcy if you are not repaid.
- You may be enabling bad spending behaviour by bailing your friend or child out, rather than forcing them to deal with their money problems on their own.
Sometimes the best help you can give is no help at all. However if you do want to do something, ask yourself these questions first:
- Can you afford it? I recommend gifting money over loaning them money. That way you only gift money you can afford. Also, if there is no obligation to pay it back, there is less of a chance that the gift will create friction between you. If they pay it back, you will appreciate the gesture and the friendship will last.
- Are you really helping? Again, this goes back to enabling bad financial choices. If your child can't afford to maintain their new home, you are doing more harm than good. If they know they can turn to you for a loan, they will never learn to save or live within their means.
On October 3, 2016 Finance Minister Bill Morneau announced big changes to Canada’s mortgage lending rules, designed to make it more difficult for high ratio borrowers to qualify for mortgages.
It appears that both the government and industry professionals believe that the sky is falling. On today’s show Ted Michalos and Doug Hoyes discuss how the new rules will impact borrowers, lenders and more. We also ask the important questions:
Is it really necessary for the government to protect the big banks who earn huge profits from loan losses? Doesn’t this guarantee simply cause the big banks to lend more money on high ratio mortgages to heavily indebted consumers?
Finally, we give our predictions on how these new rules will impact the real estate market (and it’s not pretty).
This is a common question, and changes to the law have changed the answer from what we would have advised a few years ago.
The answer depends on:
- How much debt you have; and
- What type of debt you have.
We explore the answer on today’s podcast.
Today’s podcast is the first ever podcast interview with Jonathan Chevreau and Mike Drak together, talking about their new book Victory Lap Retirement. This is so exclusive an interview that the book won’t even be officially released until October 10, 2016 but it is available for pre-order at amazon.ca, and the Kindle version is available now.
Jonathan was a guest back on Show #5 where we discussed his previous book, Findependence Day.
Mike Drak created the concept of a Victory Lap as an alternative to retirement, and teamed up with Jonathan to write their new book.
So what is a Victory Lap?
You will have to read the book for a full description, but as Jonathan and Mike and I discussed the concept of retirement has changed significantly. Our grandparents and parents had a good chance of working at the same company until aged 65, and then retiring with a full pension before dying at age 70.
Today almost no-one works at the same company for their entire working life, and most employers no longer offer full pensions, so the old fashioned view of retirement at age 65 with a full pension is no longer reality for most workers.
Full details on the podcast.
For the first time ever Debt Free in 30 broadcast LIVE on video, over YouTube. The response was fantastic. We asked our listeners to leave us questions through sound clips, email, twitter and Facebook in advance of the show and took questions during the show. Doug Hoyes and Ted Michalos answered as many of those questions as we could during the webcast.
We talked about debt, consumer proposals, car loans and mortgages. We even had a “celebrity” question.
The full video is also available on the Hoyes Michalos YouTube Channel.
In June 2016 Walmart Canada announced that they believe interchange fees charged by Visa are too high, so, starting with their three stores in Thunder Bay Ontario, they would no longer accept Visa cards at their stores in Canada. As of September, 2016 Walmart has not implemented this policy outside of Thunder Bay, presumably so they can continue to negotiate with Visa for lower fees.
On this edition of Debt Free in 30 we answer the question: what's the real reason that Walmart doesn't want to accept Visa credit cards at their stores?
The answer is not as simple as "Visa's fees are too high". Walmart is the largest retailer in the world, so with their bargaining power they are probably paying the lowest Visa fees of any retailer. They already have a cost advantage over every other retailer, so are high fees the true explanation for Walmart's "anti-Visa" stance? Tune in for the answer.
SPECIAL ANNOUNCEMENT: It's the start of Season #3 of Debt Free in 30, and I am excited to share that with our new season we have a new and improved format.
For two seasons Debt Free in 30 was both a radio show and a podcast. To meet the time constraints of radio it had be an exact number of minutes. Not anymore! Much to the disappoint of our radio station affiliates I’ve taken the show off the radio, and now it will be a podcast-only broadcast.
That means that this season I can do shorter shows to answer one specific question, or longer shows where I’ve got a great guest and we can’t cover everything in 30 minutes. Please subscribe, and stay tuned for a great season!
This is our final "best of" show of the summer, and it's a doozy: my interview with Hilliard Macbeth (you can find the original show notes on our is the Canadian real estate bubble about to burst page) is the most downloaded show of 2016.
Why is a show on debt and real estate our most downloaded show? I think it's because there are two opposite opinions: one group believes that real estate is the greatest investment ever, and another group believes it is over-valued. Obviously Mr. Macbeth is of the view that it's over-valued, and the bubble will eventually burst.
As I said on this show, Robert Brown's book Wealthing Like Rabbits contains the best first chapter in any personal finance book I have ever read. (If you haven't read the book, you should). This show is a rebroadcast from earlier this year. You can read the full show notes on our Change Your Debt Perspective page.
Robert advises us to "visualize" our debt. See it. Make it real. By visualizing our debt we can make a plan to start paying it off.
David Trahair is a CPA and prolific writer. Today's show is a rebroadcast of his first appearance on Debt Free in 30, back in early 2015, where we talked about his book Crushing Debt: Why Canadians Should Drop Everything and Pay Off Debt. You can read the full show notes on our show notes page for Crushing Debt. (David appeared again in 2016 on Show #90 where we discussed his latest book, A Procrastinator's Guide to Retirement).
David's advice is very practical. One of his most important bits of advice is to identify the big cash drains in your current budget, and work to eliminate those expenses.
That should free up cash to help you pay off debt.
Today's show is a rebroadcast from Season #1. It's one of our most down-loaded shows, because it answers a common question: Should I pay down my debt, or contribute to my RRSP? The answer is not always obvious.
We all know that investing in an RRSP generates a tax refund. If you are in the 40% tax bracket, a $1,000 contribution to your RRSP generates a $400 tax refund. (Of course I'm over-simplifying this example; your actual tax refund will depend on your marginal tax rate, and many other factors). $400 sounds great, so why would I ever use that $1,000 to pay down debt? Isn't the RRSP contribution always the best answer?
No.
As we discuss on the show, this is largely a math question.
Debt Free in 30 has broadcast 100 episodes over 2 seasons to thousands of listeners. In addition, I have interviewed many personal finance experts for their opinions on the debt issues that matter most to Canadians.
To celebrate this milestone, I broke away from my usual format. No guests, no specific topics. Instead, I shared my top 30 tips to help you avoid unwanted debt. Many of these tips are based on the topics I've covered over the last 99 episodes, and tips that have helped my clients.
This past season, I have talked extensively with industry experts about payday loan solutions and alternatives. When I asked my guests from show 83, Brian Dijkema and Rhys McKendry, and my guest from show 85, Jonathon Bishop about what they think would improve the payday loan industry, they had so much to say that I wasn't able to air everything in the original podcasts. Today, I am sharing their previously un-aired thoughts.
Brian Dijkema and Rhy McKendry, experts from the Cardus think-tank, authored a study titled: "Banking on the Margins: Finding Ways to Build an Enabling Small Dollar Credit Market." They suggest that the solution to payday loans is for communities to pool their resources to provide financial products with the assistance of someone with financial expertise that can help them evaluate risk.
Jonathon Bishop, a Research and Parliamentary Affairs Analyst with the Public Interest Advocacy Centre, suggests that the federal government repeal the usury law back to what it was before 2007. This would remove the exemption from the criminal code that allows payday loan companies to operate as they do and make payday loans as they are today illegal. Alternatively, Jonathon suggests that provinces could lower the maximum interest rate payday loans can charge incrementally over a period of a few years to allow the payday loan industry to adjust to these new rules.
Today's show is a repeat broadcast of one of our most downloaded shows, with our guest Nicole Olsen, the Financial Literacy Program Director for Financial Fitness in Windsor and Sarnia, Ontario.
Nicole shares 4 steps to save money at the grocery store (but it's her bonus tip on "unit pricing" that is a must listen). Enjoy!
Over the summer we will be airing rebroadcasts of our most downloaded shows. Today's show features our most popular guest, and a mis-understood topic: Budgeting. It's a word that people either love or hate.
We may get mixed reviews about the advice that I share on today's episode, but for many, budgeting is a waste of time. Budgeting takes discipline, it takes time and it takes some skill to use a budgeting spreadsheet or app. Because it's difficult, for some people it can actually have a negative impact on their finances. They lose motivation or interest, and eventually discouraged, stop paying attention to their finances all together.
We are not advocating that people shouldn't manage their money, but we are suggesting that you need to find a solution that will work for you and your finances.
It's very important to know where you're spending your money because if you don't know where it goes, you can't make adjustments to pay down debt and build your savings.
Doug Hoyes is joined once again by money expert, Gail Vaz-Oxlade who is an advocate for having a system in place that will help you to pay off debt, save money and spend wisely. Gail is well known for her magic jar concept; the idea that you should allocate a specific amount of money to a number of goals (i.e. bill payments, savings, entertainment, groceries etc.) to keep yourself on track each month. Today we discuss her approach to budgeting, and the alternatives to budgeting.
Given today’s real estate market, it’s not surprising that the most popular podcast episodes of this year featured Hilliard MacBeth discussing his book, When The Bubble Bursts, Surviving the Canadian Real Estate Crash, and Ben Rabidoux sharing his thoughts on the Canadian real estate market. Clearly, listeners want to know if they should rent or if they should buy? While I am not a real estate expert, I want to help those who are trying to decide by comparing the different possible outcomes of renting vs buying.
From our own Joe Debtor study, we know that home owners in high ratio mortgages are at an increased risk of becoming insolvent. The average insolvent home owner had a mortgage ratio of 90% and owed over $68,000 in unsecured debt. Why? Because most people focus on the mortgage payments and forget to pay attention to all the other costs associated with owning a home.
Generally, money problems and financial problems go hand in hand. In fact, 28% of our clients were separated or divorce when they filed for insolvency. And 19% cited marital or relationship breakdown as the main cause of their financial difficulties. To delve deeper into the relationship between divorce and bankruptcy law, Ted Michalos joins us today on Debt Free in 30.
When a relationship starts to fail, the last thing anyone focuses on is taking care of money. In fact, spending often increases as a way to make things 'better' and both partners forget to pay attention to their debt. When the relationship falls apart, the debt that was incurred during the marriage will have to be dealt with.
Our guest on today’s podcast, Ben Rabidoux is the President of North Cove Advisors, a macro research firm that works with institutional investors like mutual fund companies, hedge funds, and pensions, providing a broad view of the economy at any time.Today he visits Debt Free in 30 to share his insights on the current status and future of the Canadian housing market (and it’s not pretty).
As our economy in Canada has evolved so has the nature of most people’s employment. Downsizing and outsourcing has become more prevalent, stable jobs have become more scarce, and more people are becoming self employed. While the freedom and potential for success are great, being self-employed brings it's own challenges when it comes to managing business debts.
On this week's podcast I talk with Ian Martin, Scott Schaefer and Ted Michalos about the potential debt problems that entrepreneurs and self-employed persons might face and provide tips that can help you avoid these common small business mistakes when it comes to managing your finances.
I also talk with our experts about how to deal with one of the most common business debts: tax debts owing to Canada Revenue Agency.
Payday loans are expensive. Lenders charge a ridiculously high interest rate and demand repayment in one balloon payment. Inevitably, this traps some payday loan borrowers into a debt cycle. As a result, the Ontario government is reviewing current payday loan legislation and it's considering changes. In today's show, Ted Michalos, my partner and co-founder, joins me to discuss some of the suggested changes, our own recommendations for the government, and which payday loan alternatives to consider before taking out one of these high interest loans.
Conventional wisdom says the following about payday loans:
- the interest rate is too high, well above the maximum rate of 60% set out in the criminal code of Canada, and this causes a financial problem for payday loan users;
- people turn to payday loans because they have a low income, can't access traditional credit and need a payday loan to cover necessities like rent, utilities and groceries.
I beg to differ with this wisdom.
While the interest rate is certainly an issue, it is not the real problem with payday loans. The real issue is total existing consumer debt. More specifically, it is the other debt that payday loan users are carrying before they take out a payday loan.
If you are struggling with debt, how do you know which debt relief option is right for you? Both consumer proposals and bankruptcies have similar benefits, but the length and cost are different. On today’s podcast Ted Michalos, compares various aspects of filing a consumer proposal vs bankruptcy.
Are you planning for retirement? Have you started to save? Do you know how much you need? If not, then today’s podcast is for you. My guest, David Trahair, stops by to discuss his new book, The Procrastinator's Guide to Retirement: How You Can Retire in 10 Years or Less, and provides tips for Canadians who’ve delayed saving for retirement.
Is Canadian real estate due for a crash? On today's show, I speak with Hilliard MacBeth, a portfolio manager and author of When the Bubble Bursts: Surviving the Canadian Real Estate Crash, who thinks the Canadian housing bubble is about to burst.
Hilliard notes that there are four symptoms of a bubble:
- A period of rapidly rising prices
- People telling each other stories about why the price increase makes sense
- People experiencing regret that they didn’t get into the market earlier, or the fear of missing out – i.e. if they don’t get into the market now, they never will
- The media starts to talk about the bubble
He mentions that there is a prevailing myth that only Vancouver and Toronto are in a real estate bubble, when in fact the bubble exists across Canada. While incomes have only risen by 15% in the last 15 years and inflation has been under 2% for a long time, house prices have tripled. Considering that houses are paid for with income, the ratio of house-price-to-income has become so stretched that the bubble is no longer sustainable.
On today’s show we discuss a common question: if I have some extra money, should I pay off my debt, or use it to invest? In some cases the answer is easy. If you owe money on a credit card with a 29% interest rate, and your investment will earn 1%, you should obviously pay off your credit card.
But what if your debt is a low interest mortgage, and you think you can earn a greater rate of return on an investment. Than what?
That’s the question we asked Sean Cooper (famous for paying off his mortgage in just over 3 years), and Ted Michalos, all on today’s Debt Free in 30.
Today I ask a question that generates a lot of debate on our Facebook page: what happens if you stop paying your debts? More specifically, what happens if you stop paying your debts and you are not in a consumer proposal or bankruptcy?
To help me delve deeper into this topic, Ted Michalos, my partner and co-founder of Hoyes, Michalos & Associates, joins me to discuss the various outcomes of not paying your debts.
Often, I share advice about how to get out of debt and live debt free. But, what if you've already eliminated your debt and you're ready to get back on track? What's next? Today, I am going to share tips on how to rebuild credit after a consumer proposal or bankruptcy.
First, I don’t advise that anyone, after completing a consumer proposal or bankruptcy, jump right in and start borrowing again. If you can live without debt, that’s great!
However, in today’s modern economy, you might need or want access to credit. And if you want to borrow and keep your interest costs low you need a good credit score. On today’s show we discuss tangible steps you can take to improve your credit score after a consumer proposal or bankruptcy.
On today’s show we discuss five simple steps to rebuild credit.
It’s no secret that payday loans charge an outrageously high interest rate. In Ontario, they can charge $21 for $100. If you take out a new $100 loan every two weeks, you would pay $546 a year, that's an interest rate is 546% on an annual basis. And therein lies the problem with these types of loans. But what is the solution?
On today’s podcast, Doug Hoyes speak with Jonathan Bishop, a Research and Parliamentary Analyst at the Public Interest Advocacy Centre (PIAC) about Bill 156 and pay day loan regulation. The PIAC is a non-profit organization that conducts research into public service issues that affect consumers. The payday loan industry is something they have been investigating for well over a decade.
It can be hard to know who to turn to when you are dealing with Canada Revenue Agency and you need tax debt help. Some situations are relatively simple and can be resolved on your own, while other situations may require more expertise. Choosing the wrong professional for your situation, may end up costing more than it should.
On today’s show, Doug Hoyes speaks with Janette Martin, a Certified Credit Counsellor, and Ian Martin (no relation), a Licensed Insolvency Trustee with extensive experience with the CRA, about how to get the right tax debt help.
The payday loan industry in Canada loans an estimated $2.5 billion each year to over 2 million borrowers. Like it or not, payday loans often meet the need for urgent cash for individuals who can't, or won't, borrow from more traditional sources. If your hydro is about to be disconnected, the cost of a payday loan may be less than the hydro re-connection fee, so it may be a prudent financial decision in some cases.
As a “one time” source of cash a payday loan may not be an issue. The real problem is payday loans are structured to keep customers dependent on their services. Like opening a box of chocolates, you can’t get just one. Since a payday loan is due in full on payday, unless your situation has improved, you may have no choice but to get another loan from another payday lender to pay off the first loan, and a vicious debt cycle begins.
So what’s the solution? That’s the question I asked my two guests, Brian Dijkema and Rhys McKendry, authors of a new study, Banking on the Margins – Finding Ways to Build an Enabling Small-Dollar Credit Market.
On today's podcast we talk with Ted Michalos about the Office of the Superintendent of Bankruptcy and how they regulate the bankruptcy process, and trustees, in Canada and why they changed the name from bankruptcy trustee to Licensed Insolvency Trustee (LIT).
A conventional mortgage today has a 25 year amortization, because the typical borrower wants, or needs, 25 years to pay off their mortgage. So is it possible to pay off your mortgage faster?
Sean Cooper became a media sensation after paying off his $255,000 mortgage in just three years. We talked with Sean about how he paid off his mortgage so quickly, what sacrifices he made, what he might have done differently in hindsight and what tips he has for anyone wanting to pay down their mortgage sooner.
There are a number of personal finance personalities, especially on American radio and TV, who say that if you have too much debt it’s because you spent too much and you're the cause. After all, if you're actions aren't to blame, then they can't sell you their solutions and books.
But is that opinion valid? Are all of our financial problems entirely our fault, or are there other factors that lead to debt problems? On today's show we talk about how circumstances can overtake anyone.
Kelley Keehn and Robert Brown discuss why sometimes “stuff happens”, and we discuss five reasons why debt problems may not be your fault.
There are many reasons people find themselves in debt. For our guest today, the underlying cause of his financial difficulties was drug addiction. James inspires us with his story - both how he battled his addition and why bankruptcy was a part of his recovery.
James actually contacted us with a moving letter about his recovery which is what inspired us to ask him to be on our podcast. On today’s show James tells the story of how he started using drugs at age 14, and was an addict until age 27. He got into debt, but he turned his life around, as he explains on today’s show.
At the end of 2015, updates and clarifications were made to existing Ontario bankruptcy laws that directly affect indebted consumers. On November 13, 2015 the Supreme Court of Canada put forth a ruling about the 407 ETR (a toll route in the Toronto area) concerning the treatment of 407 debts in a bankruptcy or consumer proposal. Another big change came on December 1, 2015, as the Execution Act in Ontario was updated.
On today’s show Doug Hoyes and Ted Michalos, co-founders of Hoyes, Michalos & Associates, Licensed Insolvency Trustees, discuss how the changes, as well as the Supreme Court's ruling, will affect Ontarians looking to deal with their debts.
Disclaimer: Our discussion about updates to the Execution Act are the interpretation of ourselves and the lawyers we've spoken with about the new rules. This is new legislation that has not yet been tested in court, and as such, a judge could rule differently than we've interpreted the information on today's show.
Is it enough to calculate the amount of debt you have and focus exclusively on making that number smaller? I'm an accountant and a licensed insolvency trustee, so to me, the numbers matters. That being said, getting into debt and struggling to get out of debt again has a lot to do with behaviour and mindset.
My guest today first appeared on episode 14 of Debt Free in 30 to talk about his newly released book, Wealthing Like Rabbits and followed up that interview with one about good debt vs. bad debt. Robert Brown is back to shed some light on the importance of changing our perspective about debt.
Getting sick or injured is common and it can often mean missing work for a few weeks or for a prolonged period of time. To cover any missing income, people tend to turn to credit to survive, leading to more debt than they can handle.
On today’s how our guest is Promod Sharma, an actuary at Taxevity in Etobicoke, Ontario. Promod is here to talk about life and health insurance, why everyone needs to have it and how to decide which coverage is best for you and your family.
Fifty years ago if you wanted to steal money from someone you had to steal cash. Today money is electronic, so if your identity is stolen you can lose a lot of money very quickly, and that can lead to a mountain of debt.
How big a problem is identity theft and fraud? That's the question we asked today's guest, Kelley Keehn, the author of Protecting You and Your Money: A Guide to Identity Theft and Fraud. She told us that:
A third of Canadians have been victims of some type of fraud. What was more curious is that two thirds of Canadians surveyed said that they knew of someone that was a victim of fraud, so even if it hasn't happened to us yet, a lot of us know someone who was a victim of fraud.
Credit card fraud is a problem, but in most cases your credit card issuer will cover you, so if you fill out a form or prove that you didn't authorize the charges the problem can be solved quickly.
Identity theft is another matter altogether, and it can take many weeks and a lot of effort to restore your name.
So what can you do to protect yourself? On today’s show Kelley gives a lot of practical advice on preventing identity theft and fraud.
Do we fully understand the cost of debt? We see the ads for loans where you "only pay $20 on a hundred". $20 sounds like a good deal, but is it?
On today's show, Meg Penstone, the Manager of Financial Health and Literacy for Family Counselling and Support Services in Guelph Wellington, shares some sobering numbers and gives listeners advice for dealing with their debt.
When you think of debt, numbers and interest rates probably come to mind. But debt isn't always about the numbers. Our guest today is Melanie Lockert, a blogger at Dear Debt and someone who recently paid off $81,000 in student loan debt. Melanie explains that the reason we go into debt and have a hard time getting out of it, is emotional. She points out that:
“If it really was just about spend less, earn more, all of us would be rich and never face debt. And we'd all be successful, but a lot of us aren't and that's because we're dealing with these money issues, these emotional issues that come out through debt and finances and a scarcity mindset and there's so much to deal with.”
During our conversation, she uses words like panicked, anxious, ;stressed, overwhelmed and depressed to describe how she felt about her debt. As trustees, we hear these kind of emotional descriptions from clients daily, so Melanie offers listeners a few strategies for facing debt head-on.
Budgeting. It's a word that people either love or hate (mostly hate).
We may get mixed reviews about the advice that I share on today's episode, but for many, budgeting is a waste of time. Budgeting takes discipline, it takes time and it takes some skill to use a budgeting spreadsheet or app. Because it's difficult, for some people it can actually have a negative impact on their finances. They lose motivation or interest, and eventually discouraged, stop paying attention to their finances all together.
We are not advocating that people shouldn't manage their money, but we are suggesting that you need to find a solution that will work for you and your finances.
It's very important to know where you're spending your money because if you don't know where it goes, you can't make adjustments to pay down debt and build your savings.
Doug Hoyes is joined once again by money expert, Gail Vaz-Oxlade who is an advocate for having a system in place that will help you to pay off debt, save money and spend wisely. Gail is well known for her magic jar concept; the idea that you should allocate a specific amount of money to a number of goals (i.e. bill payments, savings, entertainment, groceries etc.) to keep yourself on track each month. Today we discuss her approach to budgeting, and the alternatives to budgeting.
The weekly trip to the grocery store is a big expense for a family, so saving money on food can go a long way. But how do you save money? Is the only way to save by clipping coupons and buying no-name brands?
There are other strategies, and on today's show, Nicole Olsen, the Financial Literacy Program Director for Financial Fitness in Windsor and Sarnia, Ontario, joins us back on the show to share her smart shopping tips.
Today we present our top ten tips for dealing with collection agents. We are joined by two industry insiders, Blair Demarco-Wettlaufer who on a previous show told us how to stop collection calls, and Mark Silverthorn who previously revealed several "dirty tricks" that some collection agencies use to collect on a debt.
We've taken their comments and compiled our top ten tips for dealing with collection agents.
In today's technology filled world there are more resources and tools available to us than ever before. Although the traditional pen, paper and calculator method for budgeting still works, mobile apps offer new ways to organize your money and save money.
As we end 2015 and move into a brand new year, it's a great time to make financial changes and start tracking your money to make a plan for every single dollar that comes in to your bank account. Today's episode strays from our usual guest interviews to bring you a round-up of some of the best budgeting apps out there. I interview five past guests to find out which apps they recommend and actually use when it comes to their own finances.
Every year, the focus of the holiday season is on consumerism and the need to spend money on the perfect gifts, the perfect decorations and creating the perfect dinner. And every year, Canadians end up spending too much money, putting them at risk for financial difficulties once the holiday season is over.
For advice about how to limit Christmas spending, we have invited Heather Cudmore, manager of credit counselling at Carizon Family and Community Services in Kitchener, Ontario, back to the show to discuss budgeting, the importance of having a plan and why it's time for Canadians to set new holiday traditions that don't break the bank.
The holidays are known for being a time of happiness and joy. But for those struggling with depression, anxiety or loss, the holidays can be a difficult. Our guest today is Theresa Karn, Manager of Clinical Services at Carizon Family & Community Services in Kitchener, Ontario.
Attempting to create the perfect holiday experience and living up to expectations set by yourself and others can lead to stress, sadness and even depression.
On today’s show we provide practical advice for identifying and dealing with depression and anxiety.
Gail Vaz-Oxlade is back on the show to discuss her new book, Money Talks: When To Say Yes And How To Say No. I'm excited to feature Gail as a guest this week because not only is her book due out this Tuesday, December 8th, but this is also the FIRST podcast interview introducing her latest work. Gail starts out the episode by exclaiming,
I'm so excited for this new book, I cannot begin to tell you! My toes are curling!"
So you know it'll be a good one!
On today’s show Gail gives away a few secrets about the book (to be released on December 8), and she also gives us actionable advice and tips for starting the conversation about money. The topic of the book is one that hasn't been written about before. As Gail says: "nobody has actually done this before. Nobody has actually talked about how to have these conversations with the people in your life."
This is Gail at her best, and is a “must listen” podcast.
When shopping for financial products like mortgages, credit cards or GICs it's important to shop around. We spend time reading through reviews and prices for things like coffee makers, but as today's guest points out: “before buying a TV we look on Best Buy, we look on Amazon, we look online to find the lowest prices and comparison shop. And I think more people need to realize that they can also do that for financial products.”
Our guest today is Alyssa Furtado, founder and CEO of Ratehub.ca, a financial products comparison website. They help consumers compare products like credit cards, mortgages, banking and insurance services to help consumers make informed decisions regarding their financial situation.
When it comes to privacy, organizations are required to follow federal and provincial legislation which prohibits the use of personal information in an inappropriate or unreasonable manner. As part of the federal private sector, The Personal Information Protection and Electronic Documents Act (PIPEDA) determines proper conduct by organizations throughout Canada. Differently, The Privacy Act covers the personal information handling practices of the federal government itself.
Our guest today is Vance Lockton, Senior Analyst for Stakeholder Relations at the Office of the Privacy Commissioner of Canada. Vance explains that the Privacy Commissioner, Daniel Therrien is an officer of Parliament and reports directly to the House of Commons and the Senate, and is independent of the government in place. Vance details the laws in place for debt collectors, how investigations under the Office of the Privacy Commissioner of Canada are conducted and provides advice for listeners for protecting your personal information.
In a past episode we talked to four industry experts about good debt vs. bad debt. Having listened to that episode, my guest today argues that there is no such thing as good debt, there is only bad debt and not so bad debt. Today’s guest is Steve Stewart, a Financial Wellness Coach and podcast host from St. Louis, Missouri. Steve's opinion of debt is that
...we've made it almost a necessary evil. My opinion of debt is that we made it too easy for someone to get into it; and I don't mean just a little bit. I mean non-mortgage debt levels on cars, credit cards, our children's education. These debt levels can grow to be two, three, even four times our annual salary.
It's Financial Literacy Month here in Canada and to kick it off our guest today is retired math teacher of 30 years, educational speaker and publisher, Dave Mitchell to the show to talk about whether we should be teaching financial literacy in the high school classroom. We have a back and forth discussion about whether teaching financial skills to students who won't use it for many years is productive, or whether we need to focus on teaching skepticism instead.
As a trustee in bankruptcy, I meet with people every day who are struggling to pay off their debt. In the finance world, it's not uncommon to hear shocking stories from clients about threatening calls from collection agents or how they got into debt in the first place. On today's show, I'm joined by Hoyes Michalos bankruptcy trustee, Howard Hayes, collection agent Blair Demarco-Wettlaufer, credit counsellor, Nicole Olsen from Fitness Financial in Windsor and bankruptcy trustee at Hoyes Michalos, Rebecca Martyn from our Windsor and Leamington offices to hear some of the scary stories that they've heard over the years.
Interest rates are low and credit is readily accessible, making it easy to take on more debt. What's more is that debt becomes manageable in this kind of climate, until of course, it's not. This summer the Bank of Canada lowered interest rates, and since that time, media sources have been reporting that Canadians are managing their debt levels and that delinquency rates have fallen.
On today’s show our guests are bankruptcy trustees Blair Mantin from Sands & Associates in British Columbia and Barton Goth from Goth and Company in Alberta, to talk about the kinds of trends they're seeing in their own provinces and whether they think those reports accurately represent consumer debt across the nation.
On today’s show Nora Spinks, CEO of the Vanier Institute of the Family, explains why debt is very complicated in the family context.
When it comes to family debt, Nora explains that the majority of Canadians carry some sort of debt; the highest debt being mortgages, followed by car loans and education. The pattern has been, and continues to be, that people incur debt when they're starting out in life; buying a house and a car, having children and going to school. However, Nora explains that, “what we are now seeing, that's relatively new in sort of historic economics in this country, is older people with debt, more people retiring with debt and more people accumulating debt while in retirement.”
We explore the implications of debt on the family, and discuss some possible strategies to deal with and eliminate debt.
As the cost of higher education increases, so to does the amount of student loan debt for those graduating from university or college and entering the workforce.
On today's show we talk about the average student loan debtor, explain why females carrying student loan debt have more difficulty paying it off and Ted Michalos points out that student loan debt doesn't only delay big life events for graduates, but ultimately, it affects the overall economy as well.
Today's guest is Blair Demarco-Wettlaufer, Managing Partner of Kingston Data & Credit, a collection agency servicing Canada and parts of the United States. Blair is a past guest from show #20 where we discussed the collections process and how to stop collection calls. He's back to give us an insider's perspective about ways that collection agents find debtors, including the use of social media to do it, and what you should do once they've successfully contacted you.
Gone are the days when collection agents sat smoking at their desks, flipping through index cards and telephone books to find ways to contact debtors. Blair explains that today, there is no shortage of information available to the general public and debt collectors because there are ridiculous amounts of data available now through the internet, through databases, through information technology, and a lot of people aren't aware of what can and can't be used.
It's been over seven years since the Canadian government made changes to the Bankruptcy & Insolvency Act (BIA) in Canada to make bankruptcy more expensive and to promote an alternative: a consumer proposal. Today they are more popular than ever because they have significant advantages over any other form of debt relief option in Canada. But since many still don't know a lot about what a consumer proposal is, we talk with Ted Michalos and Joel Sandwith, trustees at Hoyes Michalos, to answer some of the top questions about consumer proposals in Canada.
Today’s guest is financial blogger and podcast host, Jessica Moorhouse from Mo' Money Mo' Houses We discuss how to make big life changes including relocation, going back to school, buying a home and planning a wedding. These are all common life events that can take a toll on your finances and can be difficult to manage for those already facing debt. As a millennial, Jessica has recent experience with all of these changes and shares her experience and advice with listeners
Jessica relocated from Vancouver to Toronto two years ago, and has lots of great advice on planning for a relocation.
We also discuss buying a house, which may not be a great idea in an over-heated real estate market.
We have lots of great content, so we have a special bonus podcast only segment with more great practical advice from Jessica.
Today’s guest is Susan Eng, Vice President of Advocacy at CARP, an organization focused on helping seniors and future generations with issues like financial security. Susan explains that studies like our Joe Debtor whitepaper catalogue the fears that seniors have today; fears about outliving their savings and their children's and grandchildren's lack of economic opportunities. During our talk, she describes the need for government reform and options for reducing senior debt levels.
With the election campaign in full swing Ms. Eng talks about CARP’s past successes, and explains what she’s looking for from the politicians in this campaign.
Poverty, debt, and payday loans, we cover it all. In fact, the show ran long, so we’ve got an extra bonus podcast only segment with lot’s of great additional information.
It’s the start of season number two of Debt Free in 30, and we start this season like we started the first season: we let Ted Michalos rant about payday loans.
A lot has happened in the last year, and today talks about a presentation he attended this summer with the Ministry of Government and Consumer Services, where Ted gave his thoughts on how to deal with the rise of many new types of high interest lenders.
These loans are easy to get, but charge a high interest rate. Ted explains who gets these loans (it’s not who you think), and what borrowers should do if they find themselves caught in a cycle of high interest loans.
For the month of August we are rebroadcasting our most popular shows.
We're going to wrap up our "Best Of" summer series with a discussion we had with Jonathan Chevreau about obtaining your own version of Financial Independence or "Findependence" as Jonathan calls it.
Jonathan's approach to getting out of debt is to adopt a form of guerrilla frugality in order to get out of debt, stay out of debt and reach your goal of financial freedom. Last week with talked about how people get so deep in debt without evening knowing how they got there. One of the underlying problems is a lack of a balanced budget. To get out of debt Jonathan suggested taking the concept of balancing your budget one step further to something he calls 'Guerrilla Frugality'. He suggests we should live below our means, not just for a year or two, but as a life-long habit. Only by doing so can you pay off your debts and build a strong financial foundation that will support you throughout your life.
In many regards that is the lesson learned by most people who file bankruptcy or a consumer proposal. Without access to credit while they are bankrupt, they must learn to live within their means. No credit cards means paying for groceries, the rent and everything else by cash or cheque. This is the ultimate way to ensure you live within your means.
For the month of August we are rebroadcasting our most popular shows.
On today's rebroadcast we talk with Gail Vaz-Oxlade about how to build a repayment plan to deal with your debt before it reaches the tipping point. If however you find that you are looking at years and years to pay back your debt then you may need to consider other options.
We also talk with Ted Michalos, bankruptcy trustee and co-founder of Hoyes, Michalos about how a consumer proposal can help you get out of debt while avoiding the need to file for bankruptcy.
Gail Vaz-Oxlade is one of the most popular financial experts for a reason. Her no holds barred approach is based on one consistent message: You need to be the one to take action to take care of your debt problems.
You may criticize the bank, the credit reporting agency or payday loan companies but at the end of the day you have to be able to identify that you are too deep in debt and need to do something about it.
types of debts that most often trigger deep financial problems include credit card debt, high interest financing loans, payday loans and misused lines of credit. In our rebroadcast of one of our post popular podcasts, Gail calls these types of debt 'callable debt'. She recommends you focus any debt repayment plan on this type of debt first, and for good reason.
This is the type of credit that can be taken away at a moment’s notice. The bank can cancel your credit cards, your line of credit and demand immediate payment. If you don't have a good credit score this could leave you struggling and at risk of bankruptcy.
In the bonus segment Doug Hoyes discusses his experience on reality TV.
Heather Cudmore is a credit counsellor with Carizon Family and Community Services in Kitchener, Ontario, and on today's show we discuss credit counselling.
Who does a credit counsellor work for? Is it true that they are just a collection agency for the big banks? What does it cost? What are the fees?
Isn't a debt settlement better and cheaper? What about other options?
Answers to those questions and a lot more on today's show.
For the month of August we are rebroadcasting (with updated information) our most popular shows.
Dr. Lee Anne Davies, co-author of When Life Bites You in the Wallet, discusses the financial challenges faced by seniors and gives practical advice for over-coming "Bag Lady Fears".
In an updated introduction to the podcast, we discuss some of the findings from our 2015 Joe Debtor study that revealed that seniors have the highest debt, and are also turning to payday loans. We discuss the implications, and options for dealing with debt.
From now until Labour Day we are rebroadcasting (with updated information) our most popular shows.
Today’s guest is Christi Posner, a credit counsellor and new mother. Christ starts the show by telling us how, after graduating from university she had a lot of debt. She got married, and she and her husband wanted to start a family, so they knew they needed to tackle their debt. They did. They paid off their debt, and were in good shape financially to start a family.
Even though Christi is an experienced credit counsellor, there were many expenses that surprised her when she went on maternity leave. She shares her practical tips for preparing for the birth of your first child, and gives advice on how to save money while on maternity leave.
On today's show I talk with Adam Rauf, a trustee in bankruptcy and consumer proposal administrator at the Hoyes Michalos St. Catharines and Niagara Falls offices. Adam receives many questions from his clients and came in with a list of 20 concerns that people have when they come in to see him to get out of debt. We narrowed down his list to some questions about what type of debts can be eliminated in a bankruptcy:
- Can I give back my financed vehicle and get out of my car lease if I file bankruptcy?
- Will my 407 debts be eliminated in a bankruptcy?
- If I pay off my consumer proposal early, will there be a penalty?
- Can a bankruptcy or consumer proposal stop a law suit or wage garnishment due to unpaid debts?
Trustee in Bankruptcy, Benny Mendlowitz answers the most pressing questions about paying down debt by filing bankruptcy. Benny is a trustee at Hoyes Michalos in charge of our Scarborough and North York offices and during the show he answers these frequently asked questions:
- What does it mean to go bankrupt?
- What does it cost to go bankrupt?
- What if I don't want to go bankrupt?
- Can I keep a credit card during bankruptcy and how will filing affect my credit score?
- How can I get rid of the stress caused by my overwhelming debt?
Benny points out that not everyone has to go bankrupt. However if you can't pay your bills, have credit card debt, struggle with your car payments you need to do something. Meeting with a bankruptcy trustee is a start.
Today’s guest is Joel Sandwith, trustee in bankruptcy and consumer proposal administrator at Hoyes Michalos working out of our London and Sarnia offices. Normally we broadcast an FAQ show on the last Saturday of the month, but we receive so many questions that are worth taking the time to answer that we decided to run an FAQ series during July; starting with this one. To prepare for this show Joel made a list of the most frequently asked questions that he receives from clients. The burning questions on everyone's mind focuses on credit rebuilding, what happens to a house when you file bankruptcy and why clients should choose Hoyes Michalos.
Tune in for the answers to these questions.
Today’s guest is Daniel Veinot, a lawyer and partner at Duncan Linton in Waterloo, and we discuss student loan debts and how they are handled by bankruptcy law. Daniel discusses whether student loans are automatically discharged in a bankruptcy or consumer proposal, when it's possible to go to court and how many years an individual needs to be out of school before they can discharge any outstanding student loan debts.
Student loan debt is on the increase. In May, 2015 we released our biennial Joe Debtor study assessing debt levels based on over 6000 client files from 2013-2014 and revealed that student loan debt is a growing problem in Canada. From that study we found that 13.4% of people who filed bankruptcy or a consumer proposal with us had student loan debt (up from 12.7 two years earlier). What's more, average student loan debt increased 4.3% over the past two years to just under $14,000.
On today’s show we discuss the law, and your options for dealing with student loan debt.
Right now, interest rates are at record lows, benefiting those who have good credit. But what if you don't have good credit or can't get credit at all?
Today’s guest is Jim Dunbar, the Managing Partner and Chief Commercial Officer for Affirm Financial Services, a company that provides consumer loans, term loans and unsecured credit cards to individuals who have been turned down by the banks. Jim explains the type of credit card that they offer, who the card is intended for and how it could help to rebuild credit.
Disclaimer:The guests that on this show offer a different perspective and many times a different one than my ours. We have people on this show not as a commercial for their product, but rather, to provide information and multiple points of view for my listeners. The guests on this show are not paying to be here and alternatively, they are not being paid to talk to us. Nor are we endorsing their views or their product. What we are here for is to discuss options. All financial decisions should be researched and assessed as a specific solution to your unique situation.
Richard Dunwoody has 30 years experiences providing consulting services to the financial services industry through AFO Venture Group. On today's show Richard offers his opinion on how credit counselling agencies in Canada operate and what this means to consumers.
At our firm we work a lot with local, not-for-profit credit counselling agencies that meet face-to-face with clients using a "whole person" approach. I am a supporter of these kinds of organizations because they meet with people face-to-face, help people deal with the underlying causes of their financial difficulties and teach useful money management skills like creating a budget and finding ways to save money. In fact, I've had two local credit counsellors on this show: Heather Cudmore from Carizon in Kitchener and Sue Davey from Brant Family Counselling.
Richard's disapproval does not lie with these local not-for-profit agencies, but rather, the systems in place in Canada for credit counsellors regarding aspects like qualification and accreditation. He also expresses concerns that consumers are not asking the right questions when it comes to entering into a program like a debt management plan to deal with their debts.
Before now, there really were no rules governing debt settlement companies in Ontario, which meant that they could charge large up-front fees, only to refer the client to a bankruptcy trustee once legal action was taken by a creditor. The process has already started and on January 1st, 2015 the Collection Agency Act was renamed the Collection and Debt Settlement Services Act.
On today’s show Ted Michalos talks about the new legislation and what it means for consumers.
We often hear that clients are afraid to seek help from a trustee in bankruptcy because of the stereotypes and misconceptions about the process. Debt settlement companies feed off this fear by placing ads claiming to be able to settle their debts for pennies on the dollar, while avoiding bankruptcy. Unfortunately, more often than not, these informal debt settlement companies fail, hurting the consumer both emotionally and financially. The new debt settlement legislation attempts to protect consumers from these abuses.
It's time for another FAQ podcast and today we talk about if and when you might be responsible for your spouse's debt and how one spouse filing bankruptcy might affect the other.
To answer these questions we talk with Hoyes Michalos Trustee in Bankruptcy Jason Quinney about joint debts and co-signed loans. Jason explains what a joint debt is, what happens to a co-signer if a debt goes unpaid and clears up the misconception that joint debts settled in a bankruptcy or consumer proposal need to be filed individually.
Today’s guest is Ian Penney, President of Janes & Noseworthy in Newfoundland and Labrador. Recently, oil prices have declined, affecting the finances of those who work and/or live in a boom-bust economy. Alberta is a prime example of this type of economy, but the sting is also being felt in Newfoundland and Labrador. As lay-offs continue and people are forced to find alternatives, Ian has noticed that personal finances are taking a hard hit, and that as a result, people are turning to bankruptcies and consumer proposals to eliminate debt.
When oil prices were lucrative and the industry was booming, many Canadians joined the ranks to cash in; including a high volume of workers from the east coast. Oil companies would often fly workers home on their off days and set them up in a hotel or a camp while in Alberta - life was good.
But now that oil prices have fallen, how are workers coping? That’s the topic of discussion on today’s podcast, and Ian gives some practical advice for managing debt in a boom and bust economy.
So you’ve got a bunch of debts. You owe money on three different credit cards, and a payday loan, and you still owe some money on an old cellphone bill. You’ve got a job, and you’ve got money coming in every month, but it’s hard to juggle five different debt payments every month, all on different days, in addition to all of your regular bills.
Wouldn’t it be great to consolidate all of your debts into one monthly payment?
No more juggling your paycheque to make a bunch of payments every month; you would just have one easy monthly payment.
Sounds great, right?
Debt consolidation does sound great, and in some cases it is a good idea. Other times, not so much. On today’s show Mark Moreau explains how you can use the equity in your home to consolidate your debts, and he explains why it may or may not be a good idea.
On today’s show Ted Michalos and Doug Hoyes discuss the just released Hoyes Michalos study: Joe Debtor: Marginalized by Debt.
Canadians do not appear to be worried about high debt levels. Interest rates are at record lows, and bankruptcy rates have declined for the last five years.
Unfortunately that obscures the fact that at risk groups, including seniors, single parents and people with student loans, don’t qualify for traditional low cost borrowing options, so they turn to payday loans, quick cash installment loans, and other high interest crippling forms of debt.
Doug and Ted discuss the results, and explain how to recognize the warning signs of excessive debt.
Today’s guest is Mark Silverthorn, who was once the most prominent collection agency lawyer in Canada, sending out 10,000 collection letters every month. Today he’s a consultant for debtors, and is the author of The Wolf at the Door, a book about “What to do when collection agents come calling”.
Mark Silverthorn says on the show that collection agents have every right to collect money that is legitimately owed, but he believes they should follow the rules and behave in a professional manner. He surveyed his contacts in the collection industry and gives us the five dirtiest tricks used by collection agents, and gives advice on how to avoid or stop collection calls.
On today’s show Ted Michalos explains that bankruptcy isn’t free. Even though you may have limited resources, it does cost money to go bankrupt.
Ted explains why it costs money, and how the concept of surplus income impacts on the cost of your bankruptcy. Ted also explains how a consumer proposal is an effective solution for avoiding the excessive monthly cost of bankruptcy.
On today’s show Leigh Taylor, a bankruptcy trustee with LC Taylor and Associates in Winnipeg, gives his opinion on how to deal with debt.
He explains why cashing in your RRSP to pay off debt may not be a good decision. He also explains why you should avoid co-signing a loan, how debt consolidation works, and whether or not you are a good person if you have debt.
On today’s show Vikram Barhat, a finance writer whose work has appeared in The Globe & Mail, BBC, and Morningstar Canada, answers a common question: If I save up $1,000, should I use it to pay off debt, or should I contribute it to my RRSP?
It’s a difficult question. Paying down debt saves future interest, but contributing to an RRSP generates a significant tax saving for many people. Vikram provides his thought process for helping make that decision.
In the Let’s Get Started segment gives his thoughts (and not surprisingly he is not a big fan of debt).
On today’s show we talk with mortgage agents Michael Smele and Bev Gay about whether it's possible to get a mortgage to buy a house after, or even during, a personal bankruptcy or consumer proposal. They each give their opinion about who can qualify for a mortgage and what options are available to individuals with poor credit. The biggest take-away from our conversation is that when considering buying a house, saving up the biggest down payment possible will not only reduce your monthly payments, but it could also mean that CMHC insurnace fees will not be included in those monthly payments.
Today’s guest is Ian Martin. Ian is both a licensed Bankruptcy Trustee and Chartered Professional Account, and he also has seven years of experience working at Canada Revenue Agency. As someone who understands both tax law and insolvency law, Ian brings a wealth of knowledge to the conversation and provides in-depth answers to many common tax debt questions.
On today’s show we answer many frequently asked questions about tax debt, including whether or not tax debt can be included in a bankruptcy, and whether or not it’s possible to make a deal with Revenue Canada.
Today's guest is Rob Carrick, the personal finance columnist for the Globe & Mail. When the Globe announced they were going to start a financial boot-camp, Rob discovered that the most urgent concern for Canadians is debt, and they told Rob that they are in debt because they can't control their spending.
On today’s show Rob talks about debt for both seniors and Gen Y, and he gives is thoughts on why it’s better to save for retirement as compared to paying down your mortgage.
Today’s guests are Rebecca Martin, Trustee in Bankruptcy and Consumer Proposal Administrator at Hoyes, Michalos & Associates Inc. and our co-founder, Ted Michalos. We talk about one of the biggest reasons people contact a Bankruptcy Trustee in a panic - they've received notice from a creditor or their employer that their wages are being garnished. Today's podcast explains everything you need to know about wage garnishments and what you can do about it.
Rebecca explains what a wage garnishment is, how it works, and who it effects. To round out the discussion, Ted offers solutions for dealing with a wage garnishment if it happens to you. His biggest piece of advice: be proactive and take control of your financial situation. Don't let a wage garnishment be the straw that breaks the camel's back; make a plan to deal with debt before it gets that far.
Today’s guest is Christi Posner, a credit counsellor and new mother. Christ starts the show by telling us how, after graduating from university she had a lot of debt. She got married, and she and her husband wanted to start a family, so they knew they needed to tackle their debt. They did. They paid off their debt, and were in good shape financially to start a family.
Even though Christi is an experienced credit counsellor, there were many expenses that surprised her when she went on maternity leave. She shares her practical tips for preparing for the birth of your first child, and gives advice on how to save money while on maternity leave.
Today our guest is Scott Schaefer, Chartered Accountant, Consumer Proposal Administrator, and Trustee in Bankruptcy at Hoyes, Michalos and Associates to discuss the roles of specific parties during a bankruptcy and consumer proposal. Scott explains the meaning of a debtor, creditor, and trustee, and breaks down the filing process, step by step.
Scott also explains the role of the trustee. Who does the trustee really work for? We cover that question in the second and third segments.
In the final Let’s Get Started segment Scott tells a success story.
Today's guest is David Trahair, Chartered Professional Accountant and author of several books about personal finance including the book we talked about today: Crushing Debt: Why Canadians Should Drop Everything and Pay Off Debt. David makes an excellent case for why consumers should pay off their debts rather than save money.
David explains that most of us have bought into the dream that we can have anything we want because debt allows us to do that. This is particularly true in today's tempting low interest rate environment. But as David points out, things can change, and not for the better. A prime example of this is what happened in the US housing market melt-down of 2008 - 2009. And it looks like it's happening again in Fort McMurray. So many Canadians earning a good income, taking on huge debt only to find that, suddenly, their economic circumstances took a sudden u-turn.
Find out more on today's show.
Today we answer the question: is all debt bad, or is there such a thing as good debt?
Our first guest is Par Foran from the CTV Television Network who gives his opinions (and not surprisingly he doesn’t believe that borrowing for a vacation is good debt).
Our second guest is Robert Brown, author of Wealthing Like Rabbits, who has a very interesting take on good-bad debt and bad-good debt. Listen carefully; it’s a brilliant concept.
Robin Taub, CPA, returns to give her thoughts, and in the Let’s Get Started segment Dr. Lee Anne Davies rounds out the discussion with her thoughts.
Did we answer the question? You be the judge.
Our guest today is Robin Taub, a Chartered Professional Accountant, financial literacy consultant, public speaker, blogger, and author of The Parent's Guide to Raising Money-Smart Kids. Robin discusses why it's so important to teach children about money, the challenges that parents face, and solutions for getting started.
Money management isn't always easy and teaching it to someone else can be just as difficult. There are many reasons that discussions about money might not take place, but it's important to overcome those challenges and make it a priority. In Robin's book she explains that challenges include a lack of knowledge by parents, not knowing how to approach the topic, limited opportunities to talk about money, or parents might not be good at money management themselves.
Today’s first guest is Ian Martin, a bankruptcy trustee who explains that in many cases there is a “better” time of year to file a bankruptcy or consumer proposal.
Howard Hayes is our second guest, and he explains how a bankruptcy filing impacts you acting as an immigration sponsor.
Ian returns in our Let’s Get Started segment to answer our final question of the day: is bankruptcy morally wrong.
Our guest on today is Eric Putnam, Managing Director of Debt Coach Canada, and a former lending professional with 27 years in the consumer credit industry.
Eric explains how credit bureaus work, and who they work for (hint: they don’t work for you). He explains how to check yoOur guest on today is Eric Putnam, Managing Director of Debt Coach Canada, and a former lending professional with 27 years in the consumer credit industry.
Eric explains how credit bureaus work, and who they work for (hint: they don’t work for you). He explains how to check your credit report, and how to improve your credit score.ur credit report, and how to improve your credit score.
Our guest on today is Blair Demarco-Wettlaufer, a Managing Partner for Kingston Data & Credit, a Canadian debt collection agency. Blair gave us the ins-and-outs of the collection world, including the typical life of a debt once it has gone to a collection agency and what your options are for dealing with collection calls.
He gives lots of practical advice, including what to do when legal action is threatened, and how to negotiate a payment arrangement.
Our first guest is Gail Vaz-Oxlade who says it’s time to “stop whining about being in debt, you had your fun, you made a mess, now it’s time to clean it up, get busy.” She provides a four step plan for cleaning up your debt mess.
In our second segment Ted Michalos returns, and we consider the case of Mary and Joe, who have a good income, but have more debt than they can ever hope to pay off on their own. We discuss how a consumer proposal can help them clean up their debt mess.
Their options for dealing with debt, but it takes a plan, and the sooner you start, the sooner you will be debt free.
On today’s show Doug Hoyes interviews Ted Michalos, and they offer their opinions on the current state of the economy, and outlined several predictions for the coming year, touching on important financial topics such as the economy, unemployment, and interest rates.
We start with a look back to the credit crisis of 2008, and the resulting peak in bankruptcy filings in 2009.
As interest rates have declined many debtors now act as though money is virtually free, and have financed large mortgages and car loans, which will cause serious financial issues when interest rates inevitably increase. We offer some advice on strategies to protect yourself in 2015.
This is our final show for 2014, and as the holiday season ends and we move into 2015 we take a look back at some of the topics we’ve discussed here on Debt Free in 30.
Ted Michalos explains that 11% of Canadians will file a bankruptcy or a consumer proposal in their lifetimes; he explains why.
Dr. Lee Anne Davies discussed her research on the topic of aging, and how debt will impact older Canadians.
Our most popular guest from 2014, Gail Vaz-Oxlade, discussed debt and financial literacy.
In our 2014 Holiday Season Tip Show, we invite back three of our most popular guests with some all new holiday season tips.
Dr. Lee Anne Davies gives a tip for keeping credit card debt under control, an important consideration at this time of year.
Gail Vaz-Oxlade returns with a tip about managing your banking relationship, a very important tip any time of the year.
Credit Counsellor Heather Cudmore gets into the holiday spirit with a tip for a more meaningful, and cost-effective holiday season.
Today’s guest is Sarah Milton, author, blogger, and personal finance expert.
Sarah gave a great explanation of the four money personalities, and explained how we each have a money thermostat. To improve your money management skills, understand which money personality you are, and then adjust your money thermostat to an appropriate level for your unique circumstances.
In the bonus podcast segment Sarah discusses why women have different money issues than men, and gives more practical advice on money management. She also lists some books that she recommends for everyone wanting to improve their knowledge of personal finance.
Today’s guest is Robert Brown, author of a new book called “Wealthing Like Rabbits – An Original Introduction to Personal Finance”. Robert gives us lots of practical advice, including his thoughts on house buying and mortgages, and debt in general.
In the second and third segments we discuss Robert’s more controversial opinions, including Starbucks, where Robert believes that having an expensive coffee is not always a bad financial decision.
We also discuss savings and debt. If you have debt, is it always better to pay off your debt and then start saving? Not according to Robert, who gives his opinions on why he believes you should start saving immediately.
On today's show Barry Choi, a personal finance expert, gives his tips for going broke.
Tip #1 - Having too many credit cards. Barry gives his views on how many are enough.
Tip #2 - Ignoring the interest you are paying on your debts.
Tip #3 - Keeping up with the Joneses
Tip #4 - Spending money you don't have (particularly on presents)
Tip #5 - Buying too much house
Those tips and much more on today's podcast.
Today’s guest is Barton Goth, a bankruptcy trustee from Alberta who tells us that even in an economy booming due to the oil industry, personal debt is still a big problem.
Barton explains how even highly paid oil patch workers can get into debt problems, and he offers some practical solutions for becoming debt free.
Barton discusses consumer proposals, a legislated debt settlement option that is now more popular than bankruptcy in both Alberta and Ontario.
In the bonus podcast only segment Barton discusses other differences between Alberta and the rest of the country, and offers additional practical advice.
Today’s guest is Chris deVries, a former banker who provides personal financial counselling to people of all ages. He advocates a straight forward approach to resolving money problems, and on today’s show he gives many practical examples of strategies to deal with debt issues.
He discusses the importance of knowing where your money goes, and then taking steps to save money. He gives practical examples, including a strategy to reduce cell phone costs.
Through his many years of counselling Chris has worked with many people in what appear to be hopeless situations, but he believes that despite how serious a situation may appear, there is always hope.
On today's show, Ellen Roseman, a Toronto Star columnist and consumer advocate, explains that we tend to get financial advice from people with a vested interest, like car salesmen and bankers. They all have "skin in the game", so consumers need to find someone who can give them unbiased advice.
Ms. Roseman suggests reading financial blogs (and particularly the comments) and using Google to research everything before you buy.
To improve your financial literacy: be suspicious. Ask questions, and never say "yes" right away. Always consider the downside before you commit.
All that and more on today's show.
Today’s guest is Jane Rooney, Canada’s Financial Literacy Leader, who explains why she believes the federal government should take an active role in promoting financial literacy.
While there are numerous groups promoting financial literacy, Ms. Rooney explains that her role is to bring together the various groups so that Canadians have easy access to all resources. Ms. Rooney is working towards a national strategy on financial literacy, to be released in 2015, that will identify any gaps in resources currently available, and create a plan to bridge those gaps. Ms. Rooney believes that the federal government is best positioned to provide those resources.
In the bonus segment Doug Hoyes reviews the definitions of financial literacy, gives his own, and gives his opinion on how each individual Canadian can best best promote financial literacy.
On today’s show Blair Mantin, a bankruptcy trustee with Sands & Associates, British Columbia’s largest personal insolvency firm, discusses his objections to U.S. based debt settlement companies that take advantage of Canadians. We discuss legislation in both Ontario and B.C. to curb this practice.
Blair believes that consumer proposals are often a better option, and he discusses why more than half of the people he helps are now choosing a consumer proposal instead of bankruptcy.
In the bonus podcast only segment we discuss Limitation Periods, a little known strategy to deal with debts.
Today’s guest is Sue Davey, a credit counsellor with the Family Counselling Centre of Brant, who explains what credit counselling is, and what it costs.
Sue explains the differences between those debt reduction companies you see advertising all the time, and a not for profit credit counselling agency.
She tells us about the problems caused by excessive payday loans, and gives real life stories of people she has helped during her 19 year career as a credit counsellor.
On today’s show we have three guests. Mike Davies is a financial planners with IPC Investment Corporation in Brantford, and he explains the RESP rules, including how much you can contribute.
In the second segment Barton Goth, a bankruptcy trustee based in Edmonton, Alberta, explains what happens to an RESP if you go bankrupt. Alberta has different rules than Ontario, and we discuss the differences.
In the bonus segment Ted Michalos, co-founder of Hoyes Michalos, gives his opinion on how the federal government should change the rules to make the RESP rules consistent across Canada.
Jonathan Chevreau’s byline has appeared on the National Post for over 20 years writing about personal finance topics. As he says in today’s interview:
“To me, debt is something to be dispensed with as soon as possible.”
It's impossible to be financially independent if you are carrying debt. Eliminating debt is the first step. How do you do that? Mr. Chevreau explains his concept of guerrilla frugality to live as frugally as possible, so that you can pay down debt, and then start saving money.
Heather Cudmore is a credit counsellor with Mosaic Counselling and Family Services, a program of Carizon Family and Community Services in Kitchener, Ontario, and on today's show we discuss credit counselling.
Who does a credit counsellor work for? Is it true that they are just a collection agency for the big banks? What does it cost? What are the fees?
Isn't a debt settlement better and cheaper? What about other options?
Answers to those questions and a lot more on today's show, and in the bonus segment Heather shares lots of practical advice for getting the best deal on a loan, and much more.
Today's guest is one of the most well-known personal finance experts in Canada, Gail Vaz-Oxlade.
Gail was the host of three popular television shows:
- Till Debt Do Us Part
- Princess
- Money Moron
She is also a very prolific writer, having written for many publications, and she is also the author of 12 books. Her latest book is Money Rules, and it does a great job of debunking some of the rules about money we follow that we should never have followed in the first place.
Gail explains why she no longer has any desire to appear on reality TV, and what she thinks we need to do to improve our money management skills.
The fastest growing age group of people who declare bankruptcy are seniors. How is that possible? Isn't it true that seniors are the richest generation, benefiting from high real estate values and company pensions?
While some seniors are financially secure, a large group of seniors face serious financial challenges.
In today's podcast, Dr. Lee Anne Davies, co-author of When Life Bites You in the Wallet, discusses the financial challenges faced by seniors, and gives practical advice for over-coming Bag Lady Fears.
Host Doug Hoyes talks to Ted Michalos about the new Debt Free in 30 radio show and podcast. In this first episode they discuss their plan for the show in the first segment.
In the second segment Ted explains his biggest "pet peeve": payday loans.
In the bonus podcast-only segment Doug and Ted give practical advice on what to do when you have a short term cash flow crunch and you are tempted to use payday loans.