Debt Free in 30

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.