Tag Archives: Women’s Financial Learning Centre

Three habits that may be keeping you in debt and one that can change everything

By Kathryn Mandelcorn, FMA

Erasing Debt

Have you ever dreamed about what you do if you won the lottery? It can be fun to imagine sudden wealth and all its possibilities. Many people preface their plans with; first I’d pay off all my debts.

We all like the idea of being debt free, so why don’t more people achieve it? There are as many reasons as there are people, but here are three habits in particular that can keep us stuck.

Confusing talk, or thought with action.

We make new year’s resolutions, we read financial blogs and books, we decide to spend less on groceries, maybe clip some coupons, we talk with our friends about how we never catch a break, that just when we decide to make bigger payments on our debt the car breaks down, or our child’s sport fees go up or our furnace needs repair… Money is so constantly on our minds, that we think we are doing the best we can, when in fact we have often done nothing concrete to change the situation. Continue reading →

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Money, Happiness and Our Vision for 2015

The end of a year is often a time for reflection. What are we thankful for? What challenges did we face last year? What do we want from the coming year for ourselves, our family and our community? Often the short answer is that we want to be happy. We want those we love to be happy. A simple, common word that can be hard to explain, because while Webster’s dictionary may define it as ‘having, displaying, or marked by pleasure or joy,” ultimately we must each define how we achieve happiness for ourselves.

When we founded the Women’s Financial Learning Centre (WFLC) and Money Coaches Canada (MCC), our vision was, and still is, to help Canadians do much more than pay down debt and plan for retirement. We want our clients to achieve a level of financial well-being and contentment they never thought possible. Continue reading →

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Six steps to begin your career change

By Karin Mizgala MBA, CFP

iStock_000037313958SmallThere is a popular expression, that’s actually the title of a book published in the 1980’s, “Do what you love and the money will follow.”  But my experience as a financial planner and money coach tells a different story.  The people who are most successful following their bliss are the ones who don’t just assume the money will follow, they take charge and make a plan. These six steps are a great way to start.

Step 1: Evaluate. Look at this career change decision as an opportunity to evaluate your mindset around money. Examine your limiting thoughts, and be determined to believe in yourself and your ability to take charge.

Step 2: Take stock.  With a positive attitude in place, take stock of your assets, savings and debt level. You can use this Net Worth Statement to get started. If your debt is high, (especially credit card debt) you will want to work on lowering that debt before you make changes. But don’t let debt stop you, let it take you to step 3. Continue reading →

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Changes to Canada’s Credit Card Regulations

The credit card bill that arrived in the mail the other day carried a sobering message.

The balance owing was $559, admittedly not a hefty sum at a time when Canadians collectively owe $1.2 trillion, an amount that has more than doubled over the past 10 years with credit cards and lines of credit accounting for much of that increase.

However, the Visa statement noted that by paying the minimum balance on the card  — $17 — it would take seven years and seven months to pay off the $559.

The bill got paid in full, thereby saving almost eight years of payments but like those warnings on a cigarette package, the notice was a stark illustration of the ills that await those with bad credit habits. The warning is one of the changes to Canada’s credit card regulations that are designed to protect Canadians from unforeseen costs and encourage them to reduce credit card debt. The announcement brings into effect regulations that were introduced almost a year ago.

It would seem we need all the help we can get. Canadians are carrying record debt loads and while we’ve been sheltered by record low interest rates, Canada’s prime lending rate is edging up.

At the same time we long for financial freedom. More than two-thirds of Canadians in a recent survey conducted for Manulife Bank of Canada said becoming debt-free was their top financial priority.

If becoming debt-free is a top free priority for you, it’s not too late to register for Sheila’s Debt-Free Challenge that starts October 5th.

And while you’re tackling debt, take time to catch up on these latest changes to Canada’s credit card regulations.

Here’s what the changes mean to you:

  • All new credit card purchases will have a 21-day interest-free grace period when you pay your outstanding bill in full, so pay up and you’ve just earned an interest-free loan 21-day loan from your credit card company.
  • Payments made by consumers must be allocated to pay off the balance with the highest interest rate first or distributed proportionally among each type of balance including cash advances and purchases. That means any payment that exceeds the minimum required should first go towards paying off the highest interest rate balance.
  • Monthly credit card statement must list the time it would take to fully repay the balance if the minimum payment was made every month. If you want to put a price on your impulse spending before it’s too late and the bill comes in, check out the Financial Consumer Agency of Canada’s credit card payment calculator tool. It will calculate how long it will take you to pay off balances with minimum payments only and the impact of increasing payments, even by a small amount over the minimum.
  • Credit card companies must disclose interest rate increases before they take effect, even if the information is in the credit contract. ~Karin Mizgala
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