Debt Free in 30

When used correctly, a credit card is a helpful tool to build your credit history, and it's a safer than carrying cash. However, when mismanaged, a credit card can quickly become one of the most expensive borrowing options, leading to serious debt trouble. For many of our clients, credit card debt is the second biggest debt they carry. To help you avoid the common pitfalls that come with owning a credit card, I talk with Diane Cunha, one of our certified credit counsellors. She shares tips for using credit wisely to avoid debt problems. We discuss billing cycles, due dates and grace periods, and we have 8 tips for avoiding credit card debt.

Many people we meet are surprised to find themselves so far behind financially they can no longer pay their bills. The problem with debt is that it creeps up on us slowly. Today we are going to take a lesson from the business world and apply it to personal finance. Businesses use financial ratio analysis all the time to assess their financial risks. Today we are going to look at 4 personal financial ratios that can help you measure your debt risk and determine some financial priorities.

Whether you are a borrower or a beginning saver, the best way to beat the bank at its own game is to learn some basics so you can make a better decision. I talk with Larry Bates, author of Beat the Bank, as he shares tips for outsmarting financial institutions and keeping the most of your hard-earned money in your own pocket rather than the bank's. One of Larry's biggest messages is that if you understand the cost or fee structure of the financial products you are using, you can choose options that lower that cost. By keeping more of your money, each and every year, these seemingly small savings build up over time and can have a significant impact on your long term finances. All that and more on today's show.

A debt collector does just what the name suggests: they collect on unpaid debt. They won't review all your debt relief options with you or give you a plan that makes debt repayment realistic and affordable. Their only goal is to recover as much debt for the creditor as possible. That's how their business makes money. You might be shocked to learn that some big not-for-profit credit counselling agencies are now operating the same way. In fact, they are registered with the Ontario government as debt collection agencies. Credit counselling agencies have changed. Many are no longer registered charities. Credit counselling agencies don't do a lot of budgeting or actual in person counselling anymore either. Credit counselling organizations in Canada today are often big, national call centers. Now when you call a credit counselling call centre, you may be sold a debt management plan (DMP), where you repay 100% of the debts you owe, but with a lowered interest rate. Credit counselling companies sell this regardless of whether that's the right course of action for you because they are sponsored by financial institutions to do so. We take a deep look at why not-for-profit credit counselling agencies have become nothing more than debt collectors. We also examine the implications for you as a debtor in need of help. But it's not all bad news: We believe that there is a very important role that not-for-profit credit counsellors can play in helping Canadians with money problems, so we end the show by laying out our solutions and recommendations.

A home equity line of credit (HELOC) is a loan secured by the equity in your house. A HELOC is often presented as a great borrowing tool because unlike with credit cards or unsecured loans, you have access to a large amount of revolving cash at a lower interest rate. But what you probably don't know is that your bank can change the borrowing terms on your HELOC whenever they want. I talk with Scott Terrio and he shares why you need to think twice before signing up for a home equity line of credit.

If you can sell your assets, pay the taxes (there's a tax hit when you cash in an RRSP), and have enough to pay off your debts, it may make sense to sell your assets to pay off your debt. But, if your assets won't cover your debts in full, there may be a better option. On today's podcast we discuss how to determine if selling assets is a good debt reduction strategy.

Whether your inheritance is included in a bankruptcy depends entirely on when you become entitled to receive the proceeds. As this is a complex issue, I talk with Ted Michalos and we take a detailed look at bankruptcy implications for inheritances. While we discuss inheritances and bankruptcy specifically in this podcast, the advice applies to virtually any cash windfall including a cash gift, work bonus or lottery winnings.

The best way to control your auto expenses is to buy a car you can afford. This keeps your monthly car loan payments low (since you borrow less) and ensures that you don't over-finance. But how do you buy an affordable car that fits within your budget? Should you buy new or used? If it's used, how can you know it's reliable? Enter Scott Marshall. With 30 years of experience in the driver training industry, he shares his first-hand knowledge of how to make car ownership affordable. He also suggests that there is a correlation between safe driving and saving money. 8 Ways to Make Car Ownership Affordable Scott shares the following tips for successfully keeping your car buying costs low: Buy used. According to Scott, a used car is a great way to achieve affordability. A used vehicle can be reliable if you're strategic in your purchase and maintain your car well. Buy a car that's only 3 or 4 years old. Your car will still be very close to the most modern vehicle, but at only 60% of the cost. Don't worry about newer features because the most important ones (anti-lock brakes, electronic stability control, and airbags) are all standard anyway. Buy from a credible dealer. Browse websites like Auto Trader, where you can find a car that is certified pre-owned, meaning it's backed by the original manufacturer. That also means it's been through rigorous inspection. Save on insurance proactively. Your insurance payments depend partly on the type of car you buy. Minimize these monthly costs by asking your insurance company how much your payments will be based on vehicle models. Test-drive more than one car. Don't give up if you're unhappy with your first test-drive. If you've found a model that fits your budget, test multiple cars. They will each drive differently, even if they're the same make. Save money on tires by alternating them. Scott suggests buying winter tires in the colder months to replace your all-seasons. Even at a temperature of plus 7 degrees Celsius, all-season tires will harden and wear more quickly. By investing in winter tires, you can extend the life of your all-seasons by 3 or 4 more years, saving you a lot of money in the future. Consider getting a CAA membership. CAA memberships cost less than $80 a year. While this still sounds like an added expense, it saves you hundreds of dollars on a towing service in the event of a roadside emergency. Determine the kind of car you'll need 5 years from now. Think carefully before you buy your vehicle. If you think you'll need a bigger car in the future, don't buy a smaller one now. You'll save a lot more money because you'll avoid rolling over auto loans and risking financial trouble.

Every financial guru says that achieving success starts with setting a goal. I disagree. While there is some benefit to setting goals, you are more likely to achieve success if, instead of focusing on goals, you have a system. I discuss goals vs systems on today's podcast. Listen or read the transcript below. This is our first episode of 2019, and I've got a question for you: how did you do with your New Year's resolutions last year? How are you doing with your New Year's resolutions this year? If you're like many people, you've probably already given up. If your goal is to get out of debt or to save more money, you might be a little frustrated knowing another year has come and gone without improving your finances. So what if your goal this year is to get out of debt? Or save more money? What's the best way to achieve any goal? The answer may be to not focus on the goal at all, but instead to create a system to reach that goal. Today on Debt Free in 30, I want to explain why, in most cases, systems are better than goals.

It's been a long time coming, longer than Ted Michalos and I predicted in our past year-in-review podcasts. We predicted that 2014 and 2015 consumer insolvencies would remain flat, and they did. However, last year, we predicted that the seeds of a debt crisis had been planted, and we fully expected consumer insolvencies to begin to rise. And they did, albeit not until the end of the year. As of October 2018, year-to-date Ontario bankruptcies and consumer proposal volumes were up 0.6%. That growth came mostly in the latter part of the year, with 5 of the previous 7 months showing year-over-year. We believe a consumer debt crisis will hit us in 2019; on today's show we analyze the numbers, and give you our predictions for 2019.

If you just earned a bonus from your employer or received an unexpected sum of money, how should you use that bonus if you also have debt? On today's show we talk with Scott Terrio and we outline what to prioritize to get the most bang for your buck. We also take a look at common mistakes people make when they receive a surprise lump sum of money and discuss the impact a bonus can have on a bankruptcy filing.

Financial technology, or fin-tech, has come a long way. Much more than just a budgeting app, now you can do your banking, money management, investing and even borrowing, online. In addition to apps, fin-tech companies are following the chatbot trend. On today's show I talk with Alan Whitton, (known as the Big Cajun Man), who has spent 35 years working in the tech industry, about whether chatbots are good for us financially and security issues around fin-tech in general. Alan interestingly points out that there isn't a lot of fin-tech companies helping people get out of debt. Most fin-tech companies go where the big money is - and that's selling new stuff. There are very few apps that tell you to prioritize savings, create an emergency fund, or pay off debt. Instead, we hear about robo-investors and companies like Borrowell that make a lot of money offering 'free' credit scores to entice you to borrow more. Are chatbots just a sales pitch, or can they really help us? Tune in for more on today's show.

When you have debt, Christmas is a stressful time. With pressure to spend on family, friends, co-workers, and maybe even your barber, the season turns into more of a financial burden than a time to be merry. And even though you want to give, your budget is limited. Is it possible to say no to holiday spending without feeling guilty? Actually, it is. It's all in your approach. On today's show I talk with Lisa Orr, an etiquette and protocol consultant, and we take a look at how to navigate the holiday season without awkwardness and forced overspending. Lisa also shares etiquette advice on common and sometimes uncomfortable spending scenarios like charitable donations, tipping, and re-gifting.

The death of a spouse and divorce bring an emotional burden, but sadly such catastrophic events also create financial consequences. In fact, the death of a spouse or divorce are both common reasons why people file bankruptcy. Without proper financial planning, people can find themselves unable to cope with existing debt and often take on new debt to pay the bills. Doris Belland, our guest today was left with $400,000 in debt after the death of her spouse. After struggling to repay that debt and rebuild her finances, she embarked on a mission to learn more about how to cope financially with a traumatic event like a death or divorce and now works as a financial literacy educator to help people be prepared when it comes to money. On today's podcast Doris shares her advice that is good for anyone struggling with debt or who want to be prepared financially for any unexpected life event including job loss, illness, divorce or the death of a spouse.

If you are out of work or laid-off and need to upgrade your skills to improve your employment potential, how can you do this without incurring more debt? The Ontario government has a Second Career program that offers financial support to retrain for in-demand jobs for those who qualify. On today's show we talk with David Shumaker, an employment counsellor at The Working Centre in Kitchener, where he coaches program applicants through the process. We look at how Second Career works and provide advice on how to manage debt while you are retraining.

Indebted Canadians pay at least $24 million a year for what is often unnecessary debt advice. How does this happen? Well, when you have overwhelming debt, you're not just thinking about the money. There's also an emotional element: You're stressed, anxious, and worried about your future. Enter unlicensed debt consultants. They know that you fear going bankrupt, or even talking with a bankruptcy trustee. They take advantage of your vulnerability and offer you a comforting sales pitch about how they can get you a better plan to eliminate your debt. In the end, they do nothing except refer you to a Licensed Insolvency Trustee for a consumer proposal. But before they do, they also have you sign a contract to pay them thousands of dollars in fees for that referral. On today's podcast, we get some insight from our special guest who experienced this exact scenario and explain how you can avoid falling into this same trap.

Being injured or in an accident can have broad reaching financial implications. In addition to the costs of care, you can lose income if you are off work and may incur additional legal costs. Finding ways to recover some of those expenses can help you avoid the debt problems that can occur after an injury. Our guest, personal injury lawyer Lisa Morell, explains when you might want to talk to a personal injury lawyer to review your benefit options.

This year marks the 8th Financial Literacy Month in Canada, which begs the question: has our financial literacy improved in eight years? Total household debt is at record highs while personal savings rates are at record lows. I'd say that's evidence that the program is not meeting its core objectives. On today's show we ask the question: "Can the government even teach Canadians to take better control of their finances and if not, what does it really take to become financially literate?" The cost of not developing some understanding of what impacts your finances is high. Credit is much more accessible than ever before. Corporate pension plans and job security are a thing of the past. An explosion of financial advisors and the introduction of technology and new products are making the world of personal finance more complex. Unfortunately, an annual government awareness program and a few tweets here and there is not going to stem this tide. It's up to you to take charge. To be considered truly 'financially literate,' there are three areas in which you should be highly proficient: Technical knowledge Self-knowledge "Other Guy" knowledge What are these three prongs of financial literacy? Ted Michalos and Doug Hoyes explain on today's podcast.

Whether you are about to start your post-secondary education, start a family, or are headed for retirement, debt problems can happen at any age. While the average person who files for bankruptcy in Canada is in their mid-40s, Hoyes Michalos has filed bankruptcy for people as young as 18 and as old as 93. Avoiding bankruptcy means taking charge of your debt choices at each of these milestones and being prepared to handle any challenges that occur along the way. On today's podcast we explain why you want to avoid debt at every age.

If you owe a debt in Canada, but live elsewhere in the world, should you ignore past due Canadian debts you can't afford to pay, or can you file bankruptcy in Canada when living abroad? As the Licensed Insolvency Trustee in charge of our Windsor office, Rebecca Martyn deals with a lot of cross-border consumer insolvency questions and is often contacted by Canadians living across the border who receive multiple creditor calls a day on their Canadian debts. Rebecca explains the requirements for filing a Canadian bankruptcy when living in the United States, the principles of which apply to those living in any country outside of Canada.

The use of computer technology to manage money continues to explode across the financial services industry. Enter the robo-planner. The question is can an online computer platform help answer common financial questions like should you invest in an RRSP or TFSA, or should you pay off your mortgage sooner? Today we talk about the use and potential benefit of robo-planners with Rona Birenbaum of Viviplan, a new Canadian robo-planning website. Robo-planning vs robo-investing A robo-planner provides access to unbiased financial planning advice through an online platform, replacing much of the face-to-face engagement involved in working with an individual to create a personal financial plan. A robo-planner differs from a robo-advisor, which uses online technology to help you choose and manage your investments. While the terms robo-advisor and robo-planner are often used interchangeably, according to Rona, they don't provide the same service. A robo-advisor's primary aim is to gather assets. It focuses on your investments, not on delivering customized advice like whether you should buy instead of rent or how to prepare for retirement, for example. On today's show we discuss using a robo-planner, and how robo-planning can help you deal with your debt.

A joint bank account is an account that allows two or more parties to each deposit, withdraw and manage funds in the account. Whether or not it's a good idea to get a joint account with your spouse, a friend or any family member depends on your personal situation. On today's show, with guest Ted Michalos, we take a look at the different types of joint accounts, their pros and cons, how they are treated in an insolvency filing, and help you decide whether you should or shouldn't get a joint account.

Current regulations allow financial advisors to sell products like mutual funds and give the appearance that they are giving you financial advice that fits your situation. The problem is embedded advisors, like those at your friendly neighbourhood bank, are paid on a commission matrix that rewards sales. That means you don't really know if you are paying for the product or for good advice. So when should you pay a professional for investment advice who isn't going to try and sell you a product? Our guest today, Sandi Martin, an advice only Certified Financial Planner with Spring Financial Planning, calls this being 'solution agnostic'. With Sandi's help, we outline when you can benefit from hiring a financial planner.

If you are over-mortgaged and facing negative equity in your home, can you walk away from your mortgage in Canada? We explain what you can do if there is a shortfall on your mortgage after a sale or bank foreclosure. Canada has full recourse mortgage laws A theoretical shortfall is not a real shortfall. You don't have to sell. If you can keep your mortgage payments current, and expect that the market will return before you intend to sell you can hold tight. If you are in default your lender will begin proceedings to collect. If you do not respond and cannot catch up on missed mortgage payments, your bank or lender will likely begin proceedings to sell your home through a power of sale. If you sell with a shortfall, or your bank forecloses, you still owe your mortgage lender any deficiency between the money realized from the sale and the balance owing on your mortgage. Should you sell your home for less than you borrowed and find yourself unable to repay the shortfall, in Ontario, your lender can pursue you to collect the difference, as they have full recourse:

A recent Twitter headline claimed that actor Charlie Sheen is having a 'dire financial crisis' with less than $10 million to his name. While that might be a bit extreme, no matter how much money you have, if you have high debt obligations, you can face money troubles. On today's podcast we talk with Robert Brown, author of Wealthing Like Rabbits, about what it means to be facing a personal debt crisis and what's in your control to change.

Student loans are only automatically discharged when you file bankruptcy in Canada if you have ceased to be a student for more than seven years at the time you file. However, there are cases in which clients cannot afford to wait for the seven year mark to discharge their student debts automatically. Financial hardship for student loans is an application you can make to bankruptcy court to have your student loans discharged five years after you cease to be a student. If the court agrees, it is possible to go bankrupt and have your student loans discharged after as little as five years instead of seven. It's important to note that the time frame is not based on when you got the loan, but when you stopped being a student. On today's podcast, we dive deeper into what financial hardship for student loans is and how it works with Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto.

September is a time for a fresh start. The kids are back in school, everyone's back to work after their summer vacations, and it's a whole new season here on Debt Free in 30. On today's show we announce our plans for the fifth season of Debt Free in 30, and also announce our YouTube channel where you can find all 200+ episodes of Debt Free in 30.

On today's final rebroadcast of the summer, I give my thoughts on how to manage your spending without a budget, and I explain how the 80/20 rule, known as the Pareto principle, can be used in all areas of money management, and in life. I call this episode "how to cheat your way to financial success", but really it's about the 80 20 rule, which works in finances, and in life. Please enjoy, and I'll be back next week with an all new episode, and an all new season of Debt Free in 30.

For the month of August we are replaying the most downloaded podcasts of the past year; not surprisingly, the first two rebroadcasts were about debt, and so is this one. Originally broadcast back in January, on this podcast Ted Michalos and Doug Hoyes answer the question: which debts should you pay first? Should you knock off the small ones first, or go for the high interest rate ones first? Does it matter if the debts are secured, like a car loan or mortgage, or unsecured, like a credit card? This is a short podcast, less than 18 minutes, but that's all we needed; I have strong opinions on this topic, which I why I addressed this in both chapter 18 and chapter 19 of my book, and Ted also has no shortage of opinions, so here's a rebroadcast where we answer the question what debts should you pay first?

It's the month of August, and we are replaying the most downloaded episodes from the past season of Debt Free in 30. This episode was inspired by all of those personal finance bloggers who love to write stories about how they paid off a massive amount of debt in a short period of time. That's great if you have a massive income and can do it, but what if you can't? That's the topic on today's rebroadcast, so please enjoy our take on a Realistic Approach to Paying Down Massive Debt.

As is our tradition here at Debt Free in 30, during the month of August we rebroadcast the most popular episodes of the past year. Today's episode is short, only 15 minutes, but I think it resonated with listeners because I discussed the concept of minimum payments. Since September, 2010, banks are required to show you, on your monthly credit card statement, how long it will take you to pay off your balance if you only make the minimum payment. That's a scary number, and it's a big reason why people call the Hoyes Michalos 310-PLAN debt helpline; they see how long they will be in debt, and they reach out for help. So what can you do if you can only afford to make the minimum payment, or less? That's the topic on today's rebroadcast of our episode titled Minimum Payments are Keeping you in Debt.

On today's show, recorded in July, 2018, I give my thoughts on what the bankruptcy of Tesla Inc., the electric car company, can teach us about how we manage our own personal finances. And yes, I realize that Tesla is not (yet) bankrupt, and in fact they have a market value of approximately $50 billion (in US Dollars), which is comparable to the market value of General Motors, so on the surface it appears that everything is going great at Tesla. Perhaps, but looks can be deceiving. Is someone who drives a new car successful? Perhaps, or perhaps they are leasing it, and can't afford the lease payments. Outward appearances do not tell the entire story. When I use my skills as a chartered accountant and Licensed Insolvency Trustee to analyze Tesla's financial results, I see the same warning signs that I see with my clients just before they file bankruptcy. What are the warning signs? First, negative cash flow. At the moment, Tesla has a negative cash flow from operations of over $100 million per month. My clients have a similar problem, although obviously with much smaller dollars. My average client has around $300 available each month to pay their debts, but their average interest costs alone are over $900 per month. They, like Tesla, have a negative cash flow, and can only stay afloat by further borrowing. Second, Tesla has bad Liquidity Ratios. They have more debt than assets, so, as we accountants say, they are not "liquid". If you have $800 in the bank but your rent of $1,000 is due today, you are not liquid, and that's the exact same issue Tesla is facing. There is another attribute that my clients and Tesla have in common: they won't give up without a fight. Elon Musk, the CEO of Tesla, is working hard; he's even building cars in tents to meet production targets. My clients often take on second or third part time jobs to make ends meet. I admire a fighting spirit, but there comes a time when you have such an overwhelming level of debt that a bankruptcy is the only logical option. My advice, in that case, is to reach out for help. (Sorry Elon, I only help people, not companies, so you are on your own).

There's a saying that you shouldn't put all your eggs in one basket, and this rings true for bank accounts. While it is convenient to have all your finances located at one bank, what happens in the event that the bank's systems are down and you can't access your money for a little while? Or, a more common scenario my clients have faced is having their bank account frozen due to missed debt payments. This makes their financial situation more frustrating because they can't access their chequing account to take care of their other bills and rent. Even though having one bank account can be convenient and may seem cheaper, on today's show, I share 3 reasons why you should bank at more than one bank for your own protection.

There's no need to worry. Bankruptcy court is not something that every bankrupt has to go to when they file for bankruptcy. If you complete all your duties and no one objects, you are automatically discharged from bankruptcy after the required period of time has passed, so there is no requirement to appear in bankruptcy court. In fact, this is the case for the vast majority of my clients. The only reason why you would have to appear in bankruptcy court is if your bankruptcy could not be automatically discharged, which happen if you did not pay surplus income, did not provide tax information from your Trustee, or did not complete your required counselling sessions. On today's show, we outline exactly what you can expect from bankruptcy court should you ever have to appear. And remember, if you file with a Trustee from Hoyes Michalos, you will never have to go to court alone. To tell us more about the bankruptcy court process, I am joined once again by Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto and Scott Schaefer, our Trustee at the Hoyes Michalos Kitchener office.

You know you need to improve your financial health. You might even know what you need to do - save more, spend less, pay down debt. So why does that not necessarily translate into healthy financial habits that move the needle? What's stopping you from achieving overall financial wellness? That's the question asked in a recent study by Mercer Canada. The study found that while Canadians have a reasonably high level of financial literacy they aren't necessarily achieving financial wellness. For example, only 1 in 3 Canadian employees over the age of 50 have a strategy for their retirement. They know they need to save for retirement, they even know what the products are, but they don't have a strategy to reach their financial freedom goals. What is the solution then? How do you improve your financial wellness? My guest today is Jillian Kennedy, the Employee Financial Wellness Leader at Mercer Canada, a consulting firm that helps employers and organizations package and offer benefits to their employees. On today's show, Jillian highlights the key findings from the Mercer study and talks about how financial wellness impacts our ability to reach important milestones like buying a new home or saving for retirement.

For as long as debt has existed, society has judged people for failing to pay it back. Over the years, I've heard hundreds of honest, but unfortunate debtors tell me they are stressed out because they believe they have morally failed for being unable to repay their debts. But why is it that we attach a moral dimension to bankruptcy at all? Is bankruptcy morally and ethically wrong or is it more accurate to just consider filing bankruptcy to be a math decision? When you face financial hardship like an illness or job loss, and can no longer afford to make your debt payments, it's a math problem, not a moral dilemma. On today's show, I give you 5 reasons why bankruptcy is not morally wrong, despite what mainstream society would have you believe. Your lender collects interest Your lender prepares for risk Life happens You are the boss Bankruptcy is a necessary social safety net My full argument is on today's podcast.

What causes us to spend beyond our means? While in some cases it's the result of a job loss or illness, in other situations, it's the Diderot Effect at play. The Diderot Effect is a social phenomenon where the introduction of a new possession that deviates from what you currently own leads to a spiral of even more consumption. For example, when you buy a new house, you don't just settle for the home. You now have to have new furniture, maybe a new deck, and so on. This creates a cycle of spending and leads to debt. How do we, then, prevent ourselves from becoming a victim of this effect? How do we control a spending spiral? My guest today suggests thinking critically about what we see on social media and on television is a great place to start. Robert Gignac works on behalf of advisors and financial professionals to help their clients better understand money management. He's also the author of Rich is a State of Mind: Building Wealth and Happiness: A Blueprint. In his experience, ordinary people become victim of the Diderot Effect because of the deceptive nature of social and digital media: The real world does not exist on Facebook or on Instagram. What that is, is everybody's pictures of their best day all the time. And none of those social networks really show us what's happening in those people's lives when it's not on their best day, when they're lying awake at 3 in the morning because the Visa bill's due and the Visa bill's $1,700 more than they've got allowable to pay it on that given day. He believes that in our attempt to keep up in large part due to our fear of missing out, we go beyond our financial means. In addition, once we've set a new and higher standard of living for ourselves, it's very hard to go back down.

Did you know that in Ontario, anyone can call themselves a financial planner? With this in mind, how can you make sure that you are getting expert and unbiased advice on money management? Should you trust the financial planners who work at banks? Are they credible or do they just want to sell you mutual funds? My guest today says that if you want an honest assessment of your finances, you should speak to an advisor who doesn't sell products, but rather, advice. My guest today is Jason Heath, a Certified Financial Planner (CFP) and a fee-only financial planner, who explains how to select an unbiased financial planner. We also discuss if, as soon as your bankruptcy is finished and you can start saving money, you can afford to hire a financial planner.

Repaying debt requires a stable income. Even when you're in a debt relief plan like a consumer proposal, you need money coming in each month to make your payments. But what if you are faced with a sudden job loss and can no longer keep up with payments on your consumer proposal? Could you revive it after you find another job? What if you don't find work until after several months, could you restart your proposal then? My guest today says it is possible to revive a consumer proposal. Richard Howell is a bankruptcy lawyer, certified by the Law Society of Upper Canada. He has over 20 years of experience helping people resolve this exact issue, and has yet to face a situation where a proposal could not be restarted.

What if you could approach personal finance like most of us try cooking? Instead of learning a bunch of rules and principles, all you'd have to do is follow some tested recipes. Would this make it easier to save money, budget and build wealth? Today's guest thought so and the result was a new approach to money management he called Cashflow Cookbook. Instead of asking you to make sacrifices to save money, he compiled 120 ideas for you to be more efficient with your spending, while not having to worry about making drastic lifestyle changes. Unlike most money experts, Gordon Stein didn't have a career in personal finance. He worked in the tech industry and led large sales teams. But, his colleagues often asked him for advice on how to make ends meet. This prompted him to start thinking of creative ways to save money. Hear his story on today's podcast.

Credit scores are a way for a lender to assess how well you handle debt. To be able to set a credit score, the credit bureaus need information about credit use. This leads to a strange principle behind credit scores: the more access to available credit you have, the better your credit score will be. While that's good for your credit score, is that actually good for you financially? Are we too addicted to credit scores? The techniques needed to build a higher credit score can be surprisingly harmful to you. Sometimes having a bad credit score can actually be better. On today's show, my guest Ted Michalos helps us understand just how much credit we should really be using and why having a less than stellar credit score may actually be good for you.

Your credit report is a report card on your credit activity. While you can get a free copy of your credit report from many sources, not all credit reports are the same and not all sources provide full information. With so many free report providers, how do you know which one is accurate? My guest today stresses it's important to first understand what's actually on your credit report. Then you can take action to deal with any errors and omissions. Meg Penstone is a certified credit counsellor at Hoyes Michalos and has over 20 years of experience helping people with financial difficulty. She's also an expert on credit reports. On today's show we also discuss the problem with "free" credit reports.

Divorce can be expensive. In my experience, it's also one of the many causes for insolvency. The reason for this is when you are living together, you only have one bill for rent, cable, and utilities, but two incomes. You are in a better position to save money. When you separate, suddenly all these expenses become yours. What's more, if it's not an easy separation and lawyers are involved, it can cost tens of thousands of dollars. It's no small expense and it's often funded through debt. But, is it possible to have an affordable divorce? Do you need a lawyer for the entire process? What if you're on amicable terms? My guest today suggests there is an alternative to costly divorce: mediation. Colette Fortin is a mediator with Fairway Divorce Solutions in Kitchener. She helps people who are facing a separation develop a plan for their finances and children, with a focus on reducing cost and saving time. According to Colette, the reason why a traditional divorce can be so expensive is because of how much longer it takes to reach an agreement, so on today's show she explains the alternatives to a costly legal process.

Once upon a time, if you had a lot of credit card debt and owned a home, you could get a second mortgage to consolidate and pay off your debt. Interest rates were low and home values were rising. You could borrow against your home equity and pay down your unsecured debt affordably. But interest rates are rising. What's more, in some areas now, home values are declining. Mortgage rules are becoming stricter which means more people are being turned down for a second mortgage and the cost of borrowing is getting higher. On today's podcast Ted Michalos explains this alternative to refinancing with a very expensive second mortgage.

As a Licensed Insolvency Trustee, I'll always advise that you prioritize debt repayment. Why is it important to pay off debt first? So that you are no longer burdened by it. While that is the most prudent course of action, not everyone wants to wait until they are debt free before pursuing their dreams. For example, if you are a recent graduate, you might not want to delay starting a business until you've paid off all your debt. This is exactly the decision that my guest, Alex Grodnik, made. Still owing $75,000 in student loan debt, he left a stable job to follow his passion. But, should you follow in his footsteps? Alex says it depends on the kind of person you are and if you're willing to take risks. More on Alex's story, and some practical advice, on today's podcast.

Money management is hard. That's why so many people don't do it. Over the years at many credit counselling sessions with clients I've explained budgeting, and spreadsheets, and budgeting apps, and lots of other techniques to manage money. Some of my clients love the process of recording every transaction. Others, not so much. So, what can you do if you want to keep track of your money, but don't have the time or the inclination to keep a spreadsheet or spending journal? You cheat. By cheat, I don't mean "act dishonestly", I mean "avoid something undesirable by luck or skill", like eating healthy to "cheat" getting sick. On today's podcast I give my thoughts on how to manage your spending without a budget, and I explain how the 80/20 rule, known as the Pareto principle, can be used in all areas of money management, and in life.

I've said it before: when it comes to credit rating agencies like Equifax or TransUnion: You are not their customer. You are their product. Your data and loan history are for sale to any lender who is willing to pay for the data. But what if this could be flipped upside down? What if you could own your own credit history and control who gets to see it? Well, our guest today says that can be made possible with the power of blockchain technology. Derek Silva is the head of community relations at Bloom Protocol. Bloom is an end-to-end protocol for identity verification, risk assessment, and credit scoring and it runs entirely on the blockchain. Is it possible that Equifax will be replaced by Blockchain technology? That's our discussion today on Debt Free in 30.

In our latest bankruptcy study, we discovered that over the last 5 years women have been filing for bankruptcy in higher numbers. In 2012, 42% of women filed insolvency and by 2017 that number reached 48%. But, it's not that women are suddenly using more debt. What we've noted from our client data is that female debtors face a unique set of challenges that drive women to turn to debt to makes end meet and then prevent them from being able to keep up with their debt repayment. For example, two thirds of women are either single or divorced and struggle to manage expenses on a single income. Moreover, women earn 9% less than male debtors and are also 3 times more likely to be a single parent than a male debtor. This is what our average female client looks like. But, why is it that women are increasingly finding themselves in trouble with debt? What can they do to better tackle debt problems in addition to other life challenges? Sharing their expertise today are guests Gail Vaz-Oxlade, Kerry K. Taylor, and our Trustee in the Oshawa office, Alison Petrie, with co-host Sharon Hoyes. Gail Vaz-Oxlade agrees with our findings that women's life circumstances are completely different from that of men's. That's why she suggests women need a different approach to money: We need to be far more vigilant about what we're doing because we're going to have to live on whatever we save for a lot longer time. So, how can women protect themselves in life emergencies? According to our experts, preparation for sudden life changes is key. Gail believes women need to change their mindset of being caretakers of everyone else and not themselves. She suggests that although there may be love and trust in a marriage, there's no downside to having "his and her" accounts: If you end up getting divorced, if your husband ends up getting smashed to pieces on the highway, you will be so glad you have money in your own name. I don't understand why that is a problem. And if you're a stay-at-home mom, Gail says you should pay all the bills and whatever money is leftover should be split 50/50 between husband and wife. Kerry Taylor seconds this and believes women should try and "disaster-proof" their lives: Just because I know bad stuff happens to good people all the time and you need to account for the future as well as the present. All that and more on today's podcast

How can you find a good place to rent, even if you have damaged credit? Today's guest runs her own property management company, and she gives us the inside scoop on how to find a good place, and how to convince the landlord to rent to you.

Credit card fraud affects many stakeholders. It's damaging not only to consumers, but also to merchants and financial institutions. In addition to losing money, credit card fraud can ruin a customer's relationship with a retailer as well. But with advancements in card security like having a chip and PIN, how does fraud continue to be such a big problem? How can Canadians protect themselves? What can retailers do to limit their losses? Those topics and practical advice on today's show.