Debt Free in 30

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.