Debt Free In 30

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 lite

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 inves

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 t

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 cl

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

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

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.