Recently, I posted a blog called Easy Steps to Teaching our Children About Money Management.

Basically, you teach your children to track every penny spent and to find ten percent to put into an emergency fund. I remember telling my son Bradley, a story that was told to me by my financial planner. She told me about this young kid about 18 years of age in her office that saved ten percent of his earnings and brought it to her to invest. How much money did that kid have at age 40? The kid had over $800,000. Bradley has never forgotten that story and stated he was going to do the same thing. One of his goals is to graduate from the University of Windsor debt free. He is on his way and was even profiled in the Windsor Star recently!!

I am very proud of Bradley and his plans, but not everyone can graduate debt free. Currently, you may be a student or a recent graduate and finding it hard to secure employment to pay your student loans. Student loans are only automatically discharged if you have “ceased to be a student” for more than seven years prior to when you file a consumer proposal or bankruptcy. You may read more regarding student loans here.

There are generally 3 options to deal with the debt. The first option would be a debt management plan, which is to pay 100% of the debt over a 5 year period. The second option would be a consumer proposal, which is to pay a portion of the debt over a 5 year period and the last option would be a bankruptcy.. This short video explains options you have for dealing with your debt.

If debt stands between you and your future goals, please give me a call at 310-PLAN or 519 250-8060 to help you make a plan for a fresh start!!

Many clients I meet with in Windsor, Chatham and Leamington are concerned about their credit rating and how to repair their credit.

A credit bureau is an information service for credit lenders to exchange information with credit borrowers. The credit reporting agencies receives this information directly from the financial and retail institutions and retains it to help other lenders make decisions about granting you credit. Because your credit report contains all the information received from your lenders and provides a picture of your financial health, other lenders will request your report when they are determining whether or not to grant you a loan. Your credit report is a history that will help them determine what kind of lending risk you are – if you are likely to repay your obligation on time or not.

You may or may not already know that there are two major credit reporting agencies; Equifax and Transunion .

Everyone is entitled to get a copy of their credit report once a year to ensure all information reflected on it is accurate. If inaccurate information exists on the credit report then it is up to the individual to contact either Equifax or Transunion to find out how to change the information. The consumer reporting agency works for both you and the business to which it is reporting. It must inform the business of your current credit situation – and be fair and honest about what it reports. It is to the agency’s advantage to provide the best and most accurate information possible to ensure trust in its services. You could be denied a loan if your credit contains an error.

Generally a consumer proposal is on your credit report for three years after your last payment, and a bankruptcy is reflected for six years from the date of your discharge, unless it is a second bankruptcy which is noted for 14 years.

A practical way to re-establish your credit rating is to maintain current house payments or vehicle payments on time or to obtain a secured credit card from a Canadian Financial institution. This type of revolving credit requires you to pledge money as security to use the credit card.

If you are having difficulty handling your bills, then please come in to see me. I can help you get started on a fresh start plan for your future. You can call me at 310-PLAN or email me.

Answer:
You cannot be vague about your gambling, you must disclose it as a cause for your financial difficulty. You are correct. Gambling is a reason that your bankruptcy discharge will be opposed. You will be required to appear in court to explain demonstrate that you have stopped gambling and successfully completed gambling counselling.

SHOP AROUND and compare as you should be able to compare, price, guarantees, warranties and the duration of the contract.

WHO you are dealing with? Contact the Better Business Bureau or investigate a company online.

NEGOTIATE what you want through investigating the competition. If the sales person wants your business they will listen to your concerns.

READ THE CONTRACT and do not listen to the verbal promises of the sales person. Initial any changes and blank out any spaces not filled out so nothing can be added after you sign.

UNDERSTAND EVERYTHING IN THE CONTRACT and do not feel pressured into signing right away. It is a good idea to bring it to a lawyer to review before you sign.

KNOW WHO TO CALL TO GET HELP OR LODGE A COMPLAINT if you are not given customer service information then request it when signing documents. You should know how to resolve issues in advance.

KNOW HOW TO GET OUT OF IT. Sometimes there is a period of time to get out of your contract without penalty. Most of the time it will cost you to get out of your contract early.

SLEEP ON IT especially if you are prone to being impulsive. That will give you time to think it over and ask yourself if it is a need or a want.

GET A COPY OF IT as you may need to refer to it down the road for customer service inquires.

Signing paperwork you don’t understand can lead to financial problems down the road. If you find yourself in this situation and you need advice about your debt call me at 310-PLAN.

Every day I meet with clients whom have asked “How do I teach my children to manage
Their money?” It all begins with the GOLDEN RULE. The GOLDEN RULE is to pay ourselves first.

How we teach our kids about the GOLDEN RULE is of course to lead by example. I am a firm believer in tracking every penny that goes out of the pocket. Write down every penny you spend for a solid three months. That includes money going to child A, B or C. That way we are aware of where exactly our money is going. You will be shocked to see how much money you are handing over to your children for hot dog or pizza days at school. This can all be very costly on our budgets. This is why children have the magical thinking that money grows on trees.

Our job as parents is to teach our children the realities of life. Children usually have a sense of what money can do for them at about 5 or 6 years of age. A 5 year old would get $5 per week and $1 would go directly into the piggy bank. A child would get a $1 per year of their age for a weekly allowance. Therefore a 6 year old would get $6 per week and $2 would go into the piggy bank.

The GOLDEN RULE is to always pay yourself first. This money is a great investment in their future for college or university. Their wants and needs cost more as they grow older. Teenagers want to go to the movies, go bowling or go shopping which all adds up. The question to ask is do you have enough money in your budget to do all of those things? Or should you wait and save? Teenagers soon find they want more money and the only way to get more is to get a job.

These are very tough economic times and if you are having a difficult time maintaining your budget , please call 519-250-8060 or 310-PLAN for a no cost, no obligation meeting.

Every day I meet with people in Windsor who are worried about preparing a budget, and I give them all the same advice: You must go into the budgeting process with a POSITIVE ATTITUDE. Don’t think about the negative aspects of making a budget; concentrate on the rewards.

You may be able to pay down your debt or save for retirement. Your budget is the tool for you to reach your goals.

STAYING MOTIVATED happens over time and becomes routine. Staying motivated is hard no matter if your goals are to keep physically fit or financially fit. You may consider rewarding yourself or raising the bar a little higher and save more.

Finally you need to have REALISTIC GOALS. It is always best to choose short term goals such as paying off a bill or saving for a vacation. Attaining short term goals helps to build and maintain your motivation. Try these budgeting basics that work:

1. Write down every time a penny goes out of your pocket. Yes, every single penny. It really does add up. Do this for three solid months. Tracking your spending behavior actually works. You can’t change it if you don’t see it.

2. Add these numbers up and put them into your monthly budget along with your fixed monthly bills.

3. Ask yourself if you are happy with where your money is going or is there a yes with a condition? ie: Spending $60 a month at the coffee shop is making them rich. Try spending $30/month and putting the other $30/month in a separate savings account with no attached debit card access.

You may find your debts unmanageable and feel that you are getting nowhere fast. A consumer proposal will give you the fresh start you need. Please call me at 310-PLAN or 519 250-8060 or email me to book a no cost, no obligation meeting.

So here is the plan. Set a limit on how much you are going to spend and then set aside money each month in advance. For example, if you are planning on spending $500 on gifts, set aside $42 each money. If you start doing this in January, you will already have the $500 set aside. It is a lot easier to save a little bit each month than to try to come up with a large amount all at once.

I realize that many people have debt they can’t manage and that is where we can help. Sometimes bankruptcy or a consumer proposal is the best way to get a fresh start.

If you have having difficulty managing your debt, call us at 310-PLAN or 519-250-8060.

The first reason is obvious to anyone living in Windsor. Companies are reducing their work forces or shutting down. This in turn leads to lower incomes for those who worked at the company, and will also have an effect on the people who serviced those companies. It can cause hardship on everyone from the suppliers to the coffee shop across the street from the company.

The other reason for the record filings was the changes the government made to the Bankruptcy and Insolvency Act. If someone was thinking about filing for bankruptcy a month or so ago and realized that filing after September 18, 2009 might cost them more money, many of them decided to file before the rule change.

If you think you may need to file for bankruptcy, call me at 519-250-8060 or email me.

Yes a consumer proposal can be filed be someone in bankruptcy. In fact it is quite common for someone who after filing bankruptcy has an increase in income or a windfall.

Thanks!

Answer: When you file a consumer proposal you give up all of your credit cards; they are cut up and sent back to the credit card companies. In order for the proposal to be successful it is important that you do not incur any additional debt, which is why you lose your credit cards.