Category: Something to Think About

Longer loans worse than shorter ones

March 13, 2018

Are longer loans worse than shorter ones? They certainly are. People don’t think about the compounding of interest or the erosion of the asset they are funding over a term exceeding its lifetime. Let’s think about a house – you buy it for $300,000 but over a 25-year amortization you actually pay $450,000 – an […]

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What are my options?

February 8, 2018

If you are in debt over your head, you may very well be asking “what are my options?”. There are four possibilities that we will consider in this article. 1. Pay my creditors as they become due; 2. Consolidate into a mortgage; 3. File a proposal; and 4. File a bankruptcy For each scenario we […]

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Staying in debt is not a solution

February 6, 2018

Although bankers seem bent on creating perpetual consumer debt, staying in debt is not a solution that works for consumers. Have you ever looked a credit card statement with a balance of $5,600 and an interest rate of 17% and wondered why your minimum required monthly payment is only $10? I shake my head every […]

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Get out of debt free card

February 5, 2018

Sadly, perhaps, there is no get out of debt free card. Getting out of debt can be relatively cheap with a bankruptcy costing little more than a thousand dollars but allowing a debtor to divest him/herself of potentially millions of dollars of debts. But there is always a monitoring throughout the process and certain duties […]

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Debt Solution – Your Resolution

January 2, 2018

Make your resolution a debt solution for 2018. This is the season we all make new year’s resolutions, usually for health and fitness. Gym memberships are up and everyone starts out with the very best of intentions. By summertime, that new trim bikini-bod will shaping up nicely – or so we hope. Sadly, for most […]

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Money ran out a long time ago

December 21, 2017

Yes, that is true, there is no longer enough money in circulation, in the entire world, to account for the money that banks have loaned. If you added up the value of the actual currency in every single country in the world it would come up thousands of trillions of dollars short of the money […]

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Bankruptcy trumps proposals

December 18, 2017

There are many situations where a bankruptcy can trump a proposal as an option for solving debt problems. This is especially true for first time bankruptcy filers. Rebuilding credit following a bankruptcy used to be challenging, in some cases taking several years, but that is no longer the case. Banks, notably TD and Scotia have […]

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Debt makes banks vulnerable

December 7, 2017

According to the IMF and the World Bank debt makes banks vulnerable to collapse. That kind of diatribe is extremely hypocritical since those organizations lend money to central banks thereby increasing their vulnerability. Similarly, chartered banks lend money to consumers and make similar warnings about over borrowing, as if magically the consumer is some salivating […]

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Your income is too low

November 14, 2017

If you are reading this blog then the opening statement probably applies to you – “your income is too low” and that has far more to do with you being in debt than any other factor. In London, Ontario, a slightly misleading report released by the city council, as councillors were seeking a pay increase, […]

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Do you have ZOMBIE debts?

October 26, 2017

The term “zombie debts” usually applies to debts that “haunt you” for a long time after you thought they were dead. These may include debts that are no longer owed because they were paid out or even statute barred debts. But in fairness the term should equally apply to credit card debts from Canadian chartered […]

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You should plan for your bankruptcy

October 18, 2017

That’s right, you should plan for a bankruptcy in the same manner as you would plan for a critical illness or any other unfortunate occurrence that may come your way. You are probably worried that in the event you became critically ill you could lose everything you own. By the same token you ought to […]

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Surplus Income

October 16, 2017

In a bankruptcy proceeding surplus income is to be calculated by your trustee who is required to consider the guidelines provided by Directive from the Office of Superintendent of Bankruptcy.  The guidelines are based on the LICO (or Low Income Cut Off).  You might think of the LICO as being a poverty line. The LICO […]

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Taxes – The Scourge of Small Business

October 16, 2017

We have solutions for your tax dilemma. Small business owners face tremendous challenges in dealing with taxes and taxation. The challenges are multifarious beginning with excessive taxation, as well as rules and regulations around the calculation, reporting and payment of taxes. Nothing is simple about Canadian tax laws. Small business owners are often talented craftsmen […]

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TAX SEASON

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September 5, 2017

Tax season comes but once a year for accountants, but for LITs, any season can be tax seaons.

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