Debt Free In 30

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

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.