Prudent Financial's Blog

Should I borrow for an RRSP ?

2012-01-26T16:20:00.000-08:00

The deadline for 2012 RRSP deposits is Feb. 29. It’s not uncommon for your bank to suggest an RRSP loan to reduce your taxes and get a leg up on meeting your retirement savings goals, pay back the loan,

If you have no retirement plan at your place of employment or pension, it will be noted that this is an additional incentive for maxing out your RRSP contributions annually.

Something to note though, your bank benefits two ways when handing out an RRSP loan. Your bank profits from the interest on the transaction as well as the fees from the funds you direct the money towards. That’s why you’ll be surrounded by commercials and advertising promoting the RRSP loan in the weeks leading up to the deadline.

A loan for an RRSP may appear like a sound idea. But you need to ask yourself, can you handle the additional debt?

Here are some considerations.

The interest on the RRSP loan isn’t tax-deductible.

Your investment return you put your RRSP money must be higher than the interest on the money you borrowed for it to make sense.

And speaking of interest rates and rates of return, they haven’t been very impressive internationally. The broad stock market returns in 2011 averaged some pretty unimpressive results. And if you were to have invested, let’s say 40,000 dollars into Canadian mutual funds last year, on average your investment would have lost around $5,000 not including fees as many funds underperformed. And you still have to pay back the loan you took out plus the interest.

Your debt load. You may already have a mortgage or certainly rent. On top of that you likely have other debt considerations. If you are putting disposable income towards paying down a lower interest RRSP loan, instead of higher interest lines of credit, or even credit card debt, you’ll find the interest charges will negate the benefits.

Are you paying income taxes? If your financial position in 2011 was such that you won’t actually be paying income tax this year, it makes more sense to carry your contribution allowance through to another year and pay down your current debts.

In some cases an RRSP loan does make sense, but way both sides of the coin first and talk to an independent, unbiased advisor before taking the plunge. The best way is forced savings, but’s another story for another day.

For more tips you can go to PrudentFinancial.net

Using your line of credit to pay down credit card balances? Good or bad?

2012-01-18T07:23:00.000-08:00

Canadians are still chalking up debt, but there is some encouraging news on the credit front. Canadians are starting to pay down their credit cards. This is according to a recent report from Equifax Canada.

The report states that the average Canadian cut back 3.4 percent from their credit card debt this past year (2011).

But here’s the downside. Many Canadians are paying down that credit card debt using their line of credit, which is tied directly to the equity they have in their home.

Equifx spokesperson Nadim Abdo had his concerns. Paying off a higher interest rate credit card bill with a lower rate line of credit makes sense, however there can still be bumps in the road.

“We’re still at record high levels of debt. If there was to be an interest rate adjustment of 50 basis points . . . we’d see an increase in delinquencies and bankruptcies,” said Abdo.

According to The Equifax report, the average Canadian has $6,000 in consumer debt, a 4.5 per cent rise since the end of 2010. In addition, it was noted that the growth rate is slowing — between 2009 and 2010, the average Canadian’s consumer debt grew 7.7 per cent.

The drop in credit card debt is a sign that people are finally starting to think about how they’re spending, said Lewis Johnson, a finance professor at Queen’s University.

“It seems like there’s an outbreak of rationality. The more you can shift balances from a credit card where the rate is 24 per cent interest to a line of credit where it’s 3 or 4 per cent, the more able you are to pay,” said Johnson.

Consumer spending on “durable goods,” including everything from household appliances to automobiles, dropped by .4 per cent in the third quarter of 2011, according to Statistics Canada.

The world economy could also impact Canadian debt levels. The ongoing crisis in Europe and the slowdown in the Chines economy could also have an effect on Canadian debt levels.

If the Canadian job market is effected, the interest rates of your line of credit could be impacted too.

Is it worth it? Outside of finding other low risk sources of paying down your credit card debt, yes. For now at least, using your line of credit, which generally is prime plus 1 or a half, depending on the bank, still makes sense. And with this week’s announcement of a 2.99 3 or 4 year mortgage rate, it appears interest rates are going to be somewhat low for the foreseeable future.

For more valuable information, visit www.prudentcreditrepair.ca

Why it’s important to cut back on using your debit card

2012-01-12T21:25:00.000-08:00

The debit card can be so incredibly handy. You need something, you pop it into the machine and presto. You own that item.

Did you know that if you look in the wallet of 9 out of 10 Canadians you’ll find a debit card? And finding a debit machine has never been easier with more than 55,000 ATM’s across Canada.

Interac, an association founded in 1984 by the major banks for the purposes of generating ATM transactions, did a study recently. It was revealed that half of Canadians say debit is their favourite way to buy things and more than a third visit an ABM more than once a week.

The convenience factor, however can make it difficult to assist with those savings resolutions you may have made at New Years. When you use your card to make a purchase at a retail outlet, it doesn’t show you the balance; and let’s face it, seeing your balance always has a sobering effect when you’re making purchase decisions. It should be noted as well, frequent debits also mean potentially higher fees — and that can add up quickly.

Here are some important points to keep in mind when it comes to your debit card.

Minimize bank fees

Whenever possible, never withdraw money from any bank except your own, unless it’s an emergency. A little bit of organizing your route in the morning will always generate a machine that belongs to your bank. If you use another ABM you will be charged a fee from your own bank and a fee from the one you are using. Also, see if you can open a no fee account. Two leaders in this area are President’s Choice Financial and ING Direct. Both banks offer excellent choices when it comes to online banking services with no fees.

Do your homework

All the major banks have accounts customized to your debit card habits. For most of them, with a minimum $1,000 balance you can get a fee package that offers you unlimited debit transactions and online banking. Make an appointment with your bank, or at the very least pick up the phone. The major banks have knowledgeable customer service representatives who are well aware of the various accounts and services.

Give yourself a smaller daily limit

You can created a forced savings scenario by asking the bank to decrease your daily limit. This will stop you from making that second or third debit in a day to buy something you may not need.

Budget realistically

On Monday, take out a sum of cash your budget dictates and stick to it. But be realistic. Don’t give yourself a drastically low amount, thinking you’ll save that much faster. Honestly calculate how much you believe you’ll need. Then, and only then stick to it. Otherwise you’ll find yourself back at the ATM and your budget will be discarded for yet another week.

For more helpful tips go to PrudentFinancial.net

The Importance of Health Insurance while Vacationing Abroad

2012-01-08T14:04:00.000-08:00

Before you book your vacation, look into your travel insurance coverage. Most people assume their Credit Card companies and life insurance policies, cover them while travelling, or often people believe nothing will happen to them. It is best to research all of your options, so that you are fully informed and can make the correct choice for adequate coverage. If you have already purchased your trip, understand that purchasing insurance is a must.

There are many options to choose from before you book your trip. Shop around and find out what you already have. Only then can you make an informed decision regarding what additional insurance you may need to be fully covered. Vacationing is meant to be a stress-free enjoyable time. For instance, your insurance could reach over $1000.00 if you have a pre-existing medical condition, are over 65 and are vacationing for two weeks. If you find yourself in a pinch, there are always third party lenders that would enable you to go on that special vacation if you required a loan for your insurance protection.

What does OHIP cover if I leave the country on vacation?

Barely anything if you are travelling outside of Canada

OHIP strongly recommends purchasing additional health insurance coverage.

OHIP will only contribute a portion to the cost if an accident meets certain criteria. For example your “pre-existing conditions” won’t be covered.

Credit Card Coverage: Questions to ask?

If I own a credit card with health insurance provisions but do not book a trip using that card, am I still covered through them?

Do I need to tell my Credit card company I am taking the trip and do I have to stipulate all of the details?

Is there a deductible I have to pay should the need arise?

What is the maximum amount covered? Will it cover me to be flown home if required?

Do I have to be reimbursed and pay up front for medical expenses?

Am I still covered if I am over 65?

Is my family covered under the same card?

When choosing a Travel Insurance policy that’s right for you, purchase it with the mindset that you will use it. There are numerous factors to consider in choosing a tailored insurance plan. Most plans are based on age, the number of days you will be out of the country, and your medical history.

Banks can provide you with extremely detailed policies that clearly spell out every possible scenario. They offer a variety of options from all-inclusive plans, to just emergency medical packages, to trip cancellation policies.

Things to keep in mind when shopping for the best fit through different Insurance Providers

The typical provision for Medical/Hospital Insurance is up to $5,000.000. Is that enough?

Are you a resident of Canada? If you are not a resident you may not be eligible for certain plans.

Take a copy of the insurance document with you and make sure you have all supporting information. Make sure you include a file of your own medical history such as a family doctor’s contact info, and all medications you are currently taking.

Make sure someone at home has all of your information as well, so that he or she can help you should the need arise.

Find out if you are responsible for paying the Hospital or if your insurance provider directly takes care of that.

Take care of you and your family so that you can enjoy your time abroad.

For more valuable money information please visit Prudencreditrepair.ca

R.E.S.P. For Your Child’s Future

2011-12-29T15:05:00.000-08:00

A college/university education is expensive and tuitions will only go up with time. An R.E.S.P. (registered education savings plan) is an excellent way to start planning for your child's future. Consult several institutions before choosing the one right for you. Families have 18 years after your child is born to generate as much of an educational nest egg as possible. The Government will contribute 20%tax free to your contribution. By properly researching this option, your family can start to get an action plan together. With the new year approaching, it would be wise to start a plan if you haven't already.

Know all of your facts before starting your R.E.S.P. One place to start is by Googling the Canadian Government’s R.E.S.P. web site.

http://www.hrsdc.gc.ca/eng/learning/education_savings/public/resp.shtml

Read up and learn all you can about what you are starting to enter in to. Consult lending companies and other institutions to make sure you are financially able to contribute is the first step in planning for your child’s future. Here are a few things you may want to take into consideration.

Positive things that support contributing to the future of your child’s education:

The government contributes 20% of what you put in.

There is not any annual contribution limit.

There is a maximum lifetime contribution of $50,000.

Lower income families are eligible to receive a higher contribution from the Government.

Once your child qualifies for a part time or full time education program, family members are allowed to contribute to the fund (Christmas and Birthdays are perfect for this occasion).

The fund does not have to be collapsed until the 26^th year of maturity. This gives your child extra time to get into the program they want. Should your child not be using this R.E.S.P. you may want to consider this nest egg to be used for yourself and transfer the funds to your retirement plan. Keep in mind that the Government contribution of 20% will be withdrawn and you will be paying the taxes on any amount the fund has made in the interim.

In order to make sure you have made the correct decision, here are a few things to consider:

The RESP contributions are not tax deductible.

If your child does not attend any post secondary school you need to be aware of the taxes and rules that apply when withdrawing or closing the account.

If you are not financially stable, it is recommended that you do not start up an R.E.S.P. due to withdraw fees, admin fees and the potential cost of withdrawing earlier than it’s maturity date.

You have already paid taxes on the amounts you have contributed. If the R.E.S.P. grows, the difference between what you put in and the 20% the Government adds will be taxed upon redemption. Note if the student is the one withdrawing from the fund the taxable difference is taxed at the student’s rate. If the fund will not be used, you are responsible for paying the taxes on any growth amount.

Your children are your future and New Year’s resolutions can start small and grow over time. To open an R.E.S.P. all you need is a Social Insurance Number for your child and an R.E.S.P. provider. Choosing a provider will be the most difficult task of all. Take your time, shop around and become as knowledgeable as possible.

For more valuable advice please visit www.prudentcreditrepair.ca

Clean up Your Debt by Consolidating it all For the New Year!

2011-12-24T23:59:00.000-08:00

Consolidating all of your current debt will make a difference to you and your family in saving and planning for the future. Since the Bank of Canada has decided not to increase prime interest rates, now is a great time to take advantage of low lending rates. This means the lending rates will remain the same for the foreseeable future. The average family owes $150.00 dollars for every $100.00 they earn. How badly are you relying on credit to keep you going? Here are a few reasons why debt consolidation may be one solution for you.

Why should I consolidate my debt?

By paying off all of your higher interest credit cards in full you will save the difference in interest. Pay all of your Store Credit cards, for example Sears, The Bay and Canadian Tire not just Visa MC and AMX.

Your banking overdraft fees, interest and monthly surcharges will no longer be added to your current statement. No more penalties in late fee’s and account charges.

Pay your balance and outstanding amount for your cable, Internet & phone (are you in a contract, If not shop around for better prices).

Eliminate your stress of collection calls.

Essentially get a loan for all debt that you owe, roll it into one monthly payment and make sure the interest charged is less than your previous combined interest charges.

Where to look for a consolidation loan.

There are other options to traditional banks consolidation. Some are credit unions, trust companies and private financial services that provide affordable open loans to people with bad credit.

How will this help you and your family?

By consolidating all of what you owe into one payment you will only be making one payment instead of juggling money from one account to the next.

The consolidation loan will usually be at an interest level less than the interest rate your credit cards were at. Saving you money.

Preserving you credit rating by paying off all outstanding debt will look great on your credit report. One monthly payment will generate positive credit history moving forward into the New Year.

Trying to keep on top of each individual account, card, amount past due is time consuming and stressful.

Making resolutions for the New Year with a clean start will enable you to keep your promises. Consolidating your past financial debt into one affordable payment, lessening your over all interest and expenses is the perfect way to kick off the New Year.

Once you have made a fresh start you are now able to continue in the correct direction. You will start to climb out of debt, create good credit history and most importantly become less stressed by sticking to a budget you can afford. You may now start to, take back control of your debt and are on your way to remaining debt free!

For more valuable information about how to manage money, please visit www.prudentcreditrepair.ca

The Pro’s and Con’s of Taking a Cash Advance on Your Credit Card

2011-12-15T15:47:00.000-08:00

The holiday season is already upon us! We as consumers are left making difficult choices in how we choose to spend our hard earned money. When making decisions always way the pro’s and con’s before deciding to go ahead. Taking a cash advance on your credit card is an easy solution that can later have drastic consequences if not fully thought out. Here are just a few things to keep in mind when making the decision to take that advance.

The Pro’s in Cash advances off your Credit Card

· Cash advances enable you to obtain the cash you desire at your convenience. It’s a very easy solution and you can use it as you see fit.

· Cash is usually untraceable so that there isn’t any paper trail tying you to where and what you spent it on. For example if you are purchasing something for your significant other (a gift for the holidays but don’t want them to know about it?) cash is a great idea.

· Some retailers will give you a better deal if they receive cash since they don’t have to pay for the transaction fee on their end. Saving the retailer up to 3.5% by using cash plays a big part in negotiating a better price. Often we forget retailers are also charged by the credit card companies when we use our cards at their locations.

· If you are in another Country and you need local currency (regardless of the interest that may start immediately,) you will most often receive a fair exchange rate. Know your exchange rate and interest before making that trip.

The Con’s in taking the Cash Advance

· Most often interest starts as soon as you take the advance out on your card.

· There may also be additional fee’s associated from the bank machine you withdraw from on top of the interest that starts immediately.

· If you have not found out your daily limit you could be in for a rude awakening and not be able to take out as much as you need, due to daily limits set up you were not aware of. These limits are usually for your protection incase you loose your card or are robbed.

· Banks are notorious for upping your card limit with out you knowing. Know your balance before you make the choice so that you are not left stranded thinking you have availability left on your card.

· Understand that the Banks will apply any payments you make to the older debt and not to your advance regardless if your old debt is with in the interest free grace period.

Other Options to Consider Instead of a Cash Advance

A short-term personal loan from the Bank or other third party lending institutions may give you a better rate instead of your Credit Card Company. You may also be able to negotiate payment terms that won’t look bad on your credit history if you can’t pay back the full cash advance.

The Bottom Line

Do your homework. Call your credit card company and fully understand all the variables. Don’t be embarrassed to ask about every possible scenario.

Questions you may consider asking: What is my interest rate? Will it start as soon as I take the advance? What is my daily cash advance limit? What additional fees could be applied, if so under what circumstances? What is compound interest? Will my monthly payment change?

Armed with knowledge you will make an informed decision and understand all of the Pro’s and Con’s in taking that advance or in choosing to go to a third party lender. For more valuable information contact Prudent Financial Services www.prudentfinancial.net

Creating a Budget for the Holiday Season and Beyond!

2011-12-07T09:59:00.000-08:00

The holiday season, with its gift-giving spree, can be an expensive time of the year. So, if you don’t already have a budget, it would be timely to start one.

A budget is a financial plan for monitoring how money flows into and out of your life. It shows how much you’re earning and how much—and on what—you’re spending.

It may reveal buying habits you're unaware of; it can certainly help you plan more effective ways to spend and save for what really matters to you. And it will prevent you from going into a dangerous bad-credit zone, which will imperil your credit score.

Use a budget worksheet

Track your income

First, use a budget worksheet (see link below). Here you will record all your income sources, including investment income and self-employment income.

If you receive a regular paycheck (with taxes deducted at source), then enter the take-home pay only as the amount. This is the amount that you will have to work with to cover your expenses.

Track your expenses

Then, add your monthly expenses—everything from groceries and gasoline to mortgage payments, insurance premiums and RRSP contributions.

(If you make only one annual payment for something, divide it by 12 months.)

Then sort these expenses into two groups: fixed and variable. Fixed expenses stay largely constant from month to month: mortgage or rent, car payments, cable and utilities. These expenses are a basic part of your life and seldom change in the budget.

Variable expenses include entertainment, eating out and, of course, gifts. These expenses will vary from month to month, and are where it’s easiest to make adjustments.

Income vs. expenses

Now, add up your monthly income and your monthly expenses. Hopefully, your income is greater than your expenses. If so, you can use the surplus to top up your RRSP contributions or to pay off your credit card balance.

But if your expenses are greater than your income, you’ll have to bring the two into synch—either by earning more or by trimming expenses. Definitely say no to payday loans and only making minimum payments on credit cards. This is a fast track to bankruptcy or a proposal.

If you have to trim, start with the variable expenses. You can eat out less and go to fewer movies and concerts.

Be sure to do a monthly review of your budget, to see if you’re “on the money.”

After the first month, check your true expenses against what you had projected in the budget. This will reveal where you did well--and where you may need to do better.

Budgeting isn’t complicated, but it does require careful attention to details. Even more important, living within a budget demands discipline and commitment. But it’s a good way to stay financially sound and to avoid a bad credit score! For budget worksheet, please go to: http://www.prudentfinancial.net/downloads/Prudent-MonthlyBudgetPlanner.pdf

Say no to Minimum Payments on Credit Cards

2011-11-29T20:07:00.000-08:00

For years, the low monthly minimum payments required on credit card balances allowed consumers to spend far more than they could really afford—causing many to have serious financial difficulties and a bad credit score!

Lately, however, some credit-card issuers have started to raise the level of the minimum monthly payment.

Let’s be clear: an increase in the monthly minimum is actually good for consumers, as they will be paying off their credit card debt sooner. But that can still cause some real hardship in the short-run.

Holders of MBNA MasterCard, for example, have seen their monthly minimums rise as much as seven-fold, causing a severe financial squeeze.

Many of those cardholders relied on MBNA’s introductory low-interest rate of 1.99%, only to see that rate escalate dramatically – to as high as 16.99% -- if they miss a monthly payment.

New rules

Federal rules introduced in September 2010 force credit-card companies to tell cardholders how long, in years and months, it will take them to pay off their outstanding balances if they pay only the minimum each month.

The Financial Consumer Agency of Canada has a credit-card payment calculator on its Website (www.fcac.gc.ca) that shows how much of a difference it makes to pay more than the monthly minimum.

For example, paying only 2% of your balance every 30 days barely covers the interest, and leaves almost nothing to whittle down the principal. On a balance of $2,000 or more, it would take you about 30 years to pay off the existing debt even if you never charged another item to the card.

If the monthly minimums rise to 4% of your balance, you will cover the interest but it will still take 10 to 12 years to pay off the balance even if you do not add any new charges.

Try a personal bad-credit loan

It would be better to take out a personal loan or even a bad-credit personal loan, for example, at Prudent Financial Services. That way, you will pay all the debt within one to four years, depending on the amount you borrow. Most loans of $1,000 or less at Prudent are paid off within the year if payments are made on time.

Other options

● Start paying cash for purchases and stop buying items that you can only finance on your credit card.

● Do some ruthless budgeting: identify areas to cut costs.

For further information please contact Prudent Financial Services http://www.prudentfinancial.net

Prudent's Gift of Giving photo contest.

2011-11-29T20:01:00.000-08:00

Enter Prudent's Gift of Giving photo contest on Facebook.

Each day a $50 gift certificate is given away.

Every dollar will be matched in your name by Prudent to Sick Children's Hospital.

Click on the Photo Contest tab to the left to upload your favorite holiday photo, with a brief description.

Your name will then go into a draw. Daily winners announced Mon-Fri for the next four weeks.

If you want to watch a video on how to load your picture copy and paste this link in your browser http://vimeo.com/32646390

Good luck!

How to Build Credit for New Immigrants or If You Have to For Yourself

2011-11-23T12:50:00.000-08:00

It’s very difficult to know where to start to build credit when you don’t have any. Financial institutions and creditor’s see new immigrants and people born here who have no credit at all as a high risk since they often don’t have any history to support their request for credit. If you search Google for www.canada.creditcards.com you will find more helpful information to help you along. Here are a few simple ways to get your credit started and to improve your credit so that lending Institutions and Creditor’s will start to give you a chance and approve you for credit.

Understand how credit works.

Get a credit report through Equifax or Trans Union to see what you have associated with your name. Sometimes you may not know you already have some positive credit created and sometimes you will find out you have a few things that are looked upon negatively, that you can then take care of.

Use Cheques & Open a Bank Account Savings with Overdraft in Your Name

When you do this you automatically start a paper trail the Banks can track that, will put you in a good light with creditors. Make sure your Ckeques don’t bounce and your overdraft is always paid, showing responsible payment histories.

Have your work Cheques deposited into your account and pay your bills through the Bank.

Once again this is all recorded and will show a good history of bills being paid on time or at least the minimum balance being paid. Your utilities (electric bill, gas bill, phone and internet) will also support a positive payment history.

Apply for a secure Credit Card through a Bank

This is a credit card that will hold (even a minimum balance of $500.00) until you have shown that you can use it, pay off the balance owing or minimum balance creating good responsible history that lending companies can track. Once they have seen you are responsible you can ask them to turn it into an unsecured credit card and continue showing the banks you are worthy of credit as you pay the minimum or complete balance off each month.

Remember the sooner you start your credit history the more positive credit you can generate. Many accountants will tell you that the best credit obtained is the longest credit history that indicates you have a job or income revenue coming in and that you are responsible for making payments to support your request for a loan or more credit.

For more valuable information please visit http://www.prudentfinancial.net/

Rebuilding your Life after Losing a Job or Bankruptcy

2011-11-16T10:27:00.000-08:00

While plenty of reports today have talked about the recent upswings in our economy, there are still some issues and people have undeniably suffered as a result. If you've lost a job or gone through a bankruptcy, there are plenty of effects that it may have on your family and your life. Keep in mind that it certainly isn't the end of the world, but you may need to take a moment to prepare yourself and your family for the changes on the horizon. From seeking a loan after bankruptcy or a loan after a proposal to changing some of your daily routines, there are numerous considerations to make.

If you've lost a job, the first thing you'll be focused on is finding a new one. And if you've recently filed for bankruptcy then eventually you'll want to rebuild your credit through a loan after bankruptcy.

You should focus on more pressing matters. Start by taking a long, hard look at your expenses. There are numerous things that may not be necessary which you'll have to cut back on. Showers instead of baths, washing laundry on the cold setting, and other options will reduce the amount of your power bill, for example.

Once you've reviewed your expenses and dropped unneeded ones, modified your daily routines, and bundled any bills that you can your next step will be figuring out other cost saving measures. Food is a major expense, and your family will probably have to stop eating out as often and begin eating at home. This alone can save you big.

Once you've adjusted your life adequately, you can start focusing on steps to rebuild your credit like bad credit loans. Financial organizations can help you plan your budget and even line you up with a loan after a proposal or bankruptcy to get you started.

Losing a job or a home can be difficult, and will likely require sacrifices from every member of your family. But if you stay focused and positive, it isn't an issue that is insurmountable. Start by figuring out some basic life changes to cut your bills and then meet with a financial company to see what options are available to you for securing your future. These two steps are the first towards regaining your financial footing and moving forward into the future. It may be painful and difficult, but it is certainly possible.

Fore more valuable information, visit www.prudentcreditrepair.ca

Should You Get a Payday Loan? - The Dangers of Payday Loans

2011-11-11T12:49:00.000-08:00

You've probably seen them, whether on your morning commute or through an online ad – the ads offering you a fast cash advance in the form of a payday loan. They hype themselves up as bad credit loans that can help you get a quick influx of money when you really need it, often using nothing but a couple of recent pay stubs as the only requirement. But while getting a few hundred dollars may seem tantalizing, the truth is that whether you apply online or visit a brick and mortar location, payday loans are bad news for pretty much anyone who takes one out.

Payday loans are looked at with such a negative light by most financial experts that the government is actually in the process of cracking down on them.

There are plenty of reasons, but the chief ones lie in their predatory nature and the huge interest rates associated with them.

Their advertising likes to gloss over their negative aspects by claiming that they're bad credit loans are easy to get after bankruptcy, but the truth is that there are plenty of better ways to rebuild your credit than to do business with these lenders.

Consider that the normal payday loan is a two or three week loan up to around three hundred dollars.

Now consider that when you calculate the overall interest you'll pay you end up actually being charged between three hundred and ninety, to eight hundred and ninety one percent interest – far more than even the worst bad credit loans.

Current laws place criminal usury rates at sixty percent, but a few exploitable loopholes let payday loan companies circumvent these restrictions

They also charge huge fees, often hidden ones that borrowers aren't even aware that they're paying until it's too late. Certain restrictions are already in place, but the problem is far from contained.

Another issue lies in back to back loans which rollover debt and create a never-ending cycle of interest, debt, and danger. A borrower can't repay the entire loan, and it's rolled over into a new one until the interest is so high it's nearly impossible to get out of. Don't let yourself be fooled by flashy ads or the promise of bad credit loans made easy. These loans normally don't even report to credit organizations and won't help your credit in the least – they'll only put you in more financial trouble. Simply put, there are better options out there for anyone, regardless of credit history.

For more valuable information, visit www.prudentcreditrepair.ca

Conserve on Household Energy and put Money in your Pocket

2011-11-03T22:08:00.000-07:00

Have you tried cutting down on your Tim Horton’s coffee every day to see how much money you save? Often it’s the little things that can save a lot of money year round. When energy prices are rising, you may ask yourself, “How can I reduce my costs and save money on energy?” The federal government is bringing back the popular eco ENERGY Retrofit for Homes Grants Program, which assists eligible homeowners to receive grants up to $5000.00. It is important to have an energy evaluation completed before any work begins. On average, the program saves 20 percent on the energy bill. Apart from applying for the Retrofit Program, here are a few helpful tips below that you could consider implementing to start saving immediately:

Install dimmer switches to use less electricity. Keep your fridge and freezer full since food acts as an insulator to maintain a certain temperature. Install a Programmable Thermostat then set the temperature lower at night and when you are away.

Install ceiling fans to keep the air circulating in your home and your air conditioner won't have to work so hard.

Wash laundry in cold water - 90% of the energy consumed by your washing machine is used to heat water. Turn the dial to cold, and lower the bill. Line dry your laundry and let Mother Nature dry your laundry.

Switch to CFL bulbs. CFL light bulbs use four times less energy than incandescent bulbs. Install Motion Sensors - motion sensors can be installed both inside and outside the home to ensure that lights only come on when needed.

Turn Off Heat/Dry on Your Dishwasher.

Install a Programmable Thermostat.

Install Low Flow Shower Heads. The less water flowing through your shower head means less water to heat.

Eliminate “Phantom” Electrical Use. A surprising 75% of the energy used by home electronics is consumed when they're turned off. These "phantom" users include: televisions, VCRs, stereos, computers, basically anything that holds a time or other settings. Plug all of these items into power strips and then get into the habit of turning off the strips until you use them.

Making your home energy efficient as well as saving money can keep your dollars in your pocket so you don’t have to stress about making high monthly payments. But if you can afford an energy audit, remember the government is willing to give you a rebate of half of the cost or up to $150.00 if you are not able to find a company to give you an estimate for free. For more valuable information, visit www.prudentcreditrepair.ca

Why is it so Important to Have a Better Credit Score?

2011-10-30T09:13:00.000-07:00

As you go through life, you'll quickly learn the various aspects of it that have serious impacts on you. Health is a good example, and another is your credit score. Simply put, bad credit can have detrimental impacts on your life in a number of ways. From trying to purchase a new car to insurance rates, your credit score will affect nearly everything related to your finances. You'll save money with a better credit score and have more opportunities, which is why understanding the basics of credit and how to improve it are vital for your financial future as well as your future as a whole.

A better credit score will help you save money in numerous ways.

You may not be able to get a loan at all with a poor credit score. If you can, there's a good chance that it will feature a much higher interest rate than if your credit score was good.
A bad credit score tells lenders that you're a risk. That risk means that they want more incentive to loan you money, and that incentive comes in the form of higher interest.
You could pay thousands of dollars extra due to your bad credit score. Even auto insurance companies may charge more in premiums due to bad credit.

What factors contribute to my credit score?

Your credit score is the sum of a simple mathematical formula that potential lenders use to assess just how likely it is that you'll repay your loans on time.
Nearly everything that you've done financially will show up on your credit report, which is why it's important that you pay your bills on time and don't overextend yourself financially.
A number of different factors will influence your credit score, and knowing what they are will help you. Your credit report will show your length of credit history, outstanding debt, your loan payment history, the incidence of negative factors like defaulting on payments or outstanding collections against you, and more.

Lending companies will look at these factors to determine whether or not you qualify for their loan as well as just what your interest rate will be. A history of paying your bills on time will help them see that they can trust you with a loan, so it's vital that you take the time to make sure you always repay your loans. Even financial mistakes you make when you're young can remain on your credit report and haunt you for years, so be sure that you treat your finances and debts with the respect that they deserve.

For more valuable information, visit www.prudentcreditrepair.ca

Money Management 101 how to Take Control of Your Finances

2011-10-21T12:55:00.000-07:00

Every penny counts in today's economy, whether you're struggling to make the rent on a lower salary than you're used to or whether you're still marching forward through these rough economic times. Everywhere you look you'll see articles or reports on how to save money, rebuild credit, or just put groceries on the table. There's one basic principal that can help you tremendously, however, and it applies to those dealing with financial difficulties just as much as it does to those who are still doing fine financially. That principal is basic money management, and if you lack it then you'll never be able to keep your head above water.

1) Basic money management.

Design a budget that fits your needs. It can take time to plan out your budget, but it's an investment in time and energy you can't afford not to make.

Make a list of all your expenses and bills.

Compare that list to your income after taxes.

This will give you an idea of how much money you have left over each month to spend or save. Doing so may also give you an idea of bills you can eliminate and luxuries you can afford to do without, two excellent ways to save money.

2) Take a look at your credit report.

Be sure to review your various credit cards as well and note which ones have the highest interest rates. If you can avoid using those high-interest cards, you may be able to save money in huge sums over the course of a year.

Knowing if you have good credit or if you need to repair your credit can help you see just how you've done with money management in the past and learn what you should focus on in the future as far as your credit is concerned.

Essentially, good money management comes down to understanding your budget and exercising a bit of self-control. Online financial sites like Prudent Financial will have budget and mortgage calculators that you can use to figure out where your money is going, and can simplify financial planning. Look at where your money is being spent, cut out all of your unneeded expenses, and force yourself to try to save money whenever you can. Rewarding yourself is great, but buying a new pair of shoes or going out to eat each week are costs that can add up. It may be tough at first, but once you see your bank account starting to gradually improve, the efforts that you make will be well worth it. For more valuable information, visit www.prudentcreditrepair.ca

The Danger of Credit Cards and their Impact on your Homeowner's Insurance

2011-10-11T20:07:00.000-07:00

It seems like every store you set foot in today offers you credit cards. With the opportunity to be able to apply right at the checkout counter and get a new credit card instead of having to buy out of pocket for your purchase, and with promises of easy approval, these cards are certainly tantalizing. But they also carry dangers with them – dangers that can impact areas of your life that you're unlikely to be considering while filling out the simple application for them. In short, retail credit cards can carry some very serious threats behind them.

The Pro’s and Con’s of Credit Cards:

In most cases, credit cards don't have quite the flexibility or the better terms that some of the best credit cards have.
Some may have great interest rates, but many have higher than average ones. And if you find yourself in a financial bind, they're usually among the first cards that you decide to skip a payment on.
Carrying a high balance or missing payments on your credit cards, even retail credit cards, can not only impact your overall credit score and make it more difficult to get a personal loan at a great interest rate, but they can also affect your homeowner's insurance.

How Credit Cards can affect your Homeowner’s Insurance

· Seventy five percent of customers in a recent surveyed had no idea that bad credit could drive up their homeowner's insurance, but it's the truth.

· And since a huge number of people include their homeowner's insurance in their mortgage payments, that means that your monthly mortgage payments may end up being even higher than they should be.

· It's hard to fathom, but the allure of retail credit cards could actually result in you having to pay out a higher mortgage payment and get worse insurance rates on your home and even your vehicle. Because of these, there's been talk of trying to make some changes.

The repercussions you never knew in the Fine Print

There's now talk of filing formal petitions to change this unfair practice. Insurance companies don't have to ask for your permission before checking your credit score due to a simple matter of confusing contract wording. Most never even realize they're paying more for insurance due to their credit score. And since homeowners still paying loans have to have insurance, there is actually very little that they can do once their credit score drops. With inaccuracies in credit reports being fairly common today, and with the shady nature of these insurance rate increases, most agree that the time has come to change this system completely. For more valuable information, visit www.prudentcreditrepair.ca

Credit Repair Scams and How to Avoid Them

2011-10-11T20:05:00.000-07:00

In most cases, credit cards don't have quite the flexibility or the better terms that some of the best credit cards have.

Some may have great interest rates, but many have higher than average ones. And if you find yourself in a financial bind, they're usually among the first cards that you decide to skip a payment on.

Carrying a high balance or missing payments on your credit cards, even retail credit cards, can not only impact your overall credit score and make it more difficult to get a personal loan at a great interest rate, but they can also affect your homeowner's insurance.

How Credit Cards can affect your Homeowner’s Insurance

Seventy five percent of customers in a recent surveyed had no idea that bad credit could drive up their homeowner's insurance, but it's the truth.

And since a huge number of people include their homeowner's insurance in their mortgage payments, that means that your monthly mortgage payments may end up being even higher than they should be.

It's hard to fathom, but the allure of retail credit cards could actually result in you having to pay out a higher mortgage payment and get worse insurance rates on your home and even your vehicle. Because of these, there's been talk of trying to make some changes.

The repercussions you never knew in the Fine Print

There's now talk of filing formal petitions to change this unfair practice. Insurance companies don't have to ask for your permission before checking your credit score due to a simple matter of confusing contract wording. Most never even realize they're paying more for insurance due to their credit score. And since homeowners still paying loans have to have insurance, there is actually very little that they can do once their credit score drops. With inaccuracies in credit reports being fairly common today, and with the shady nature of these insurance rate increases, most agree that the time has come to change this system completely.
For more valuable information, visit www.prudentcreditrepair.ca

Money Management for Kids

2011-09-21T14:58:00.000-07:00

Enabling your child to work with money will build a foundation for managing money through their teens and into adulthood. When your child asks for something, they will choose to put some thought into it if they are using their own money. They will start to understand the value of money, and the fact that it does not grow on trees. It is never too late to start an allowance concept with your child, but it is recommended that the concept is taught during Kinder Garden years. If you want the “I wanna have” to stop; this system will work and it does make shopping less stressful for both you and your children.

Starting an allowance for the start of the School Year is a great idea. Starting an allowance is often a difficult thing to create when you have to figure out what is acceptable for both parent and child, and in putting an amount to what is fair - all the while making sure it fits with into the home budget as well. Clearly detailing what is normally expected in School and at home is a good place to start, then you can go from there in acknowledging what they want and a clear achievable way for them to obtain their goal in working towards it.

Take a poll of your child's friends and other families you know asking what range and scope they're using with their child. This will ensure you are familiar with the comparison’s your child will make once you have started up an allowance. In the early years sticker charts and favourite foods are a great means to reward good work and achieved goals. Moving forward there will always be requests for more. How you both learn from this situation will leave them with great negotiating skills for future raises at work.

Starting a savings account is also a great idea once they get a little older, and helping them choose how to manage it is one of the best qualities you can help them cultivate. Even the act of going to the bank and opening up an account (take a look at the transaction fees and your homework prior) is reward enough in making that first deposit. You may wish to match their contribution depending on what the account is set up for. If the purpose of the account is to be used only for larger purchase items they need to save up for, then at least the details of how it is used is predetermined.

For more valuable information, visit www.prudentcreditrepair.ca

How to Improve Your Credit Rating

2011-09-21T12:28:00.001-07:00

How long will negative effects of bankruptcy affect your credit rating? There is not a one-sized fits all solution for this question. However, it is important to know that your credit rating can be restored through the right channels. When you go through a bankruptcy or other large scale social event, you will be able to recover from it within a certain period of time provided you follow the rules of good credit going forward. The maximum amount of time you can expect to have negative information about your credit history on your account is seven years, but the actual time can vary depending on the event and where you live.

Improving your credit rating will require you to make certain behavioural changes that will help you get ahead. First, you have probably heard this, but you should heed it and always pay all your bills on time. It is better to go without in other areas of your life if you need to in order to pay your bills on time if improving your credit rating is important to you. If you can't pay your entire bill on time, at least pay the minimum due to avoid future negative credit ratings that will hurt your credit rating and your chances for financial success.

There is another way to improve your credit rating which is called a secured credit card. If you can put down a big chunk of money, say $1000 or more, then you will be able to get a secured credit card. This will make it obvious that you are able to be responsible with credit and that you have good income coming in. A secured credit card is a great way to quickly improve your credit rating.

All in all, it takes time to recover from incurring bad credit. This is not a situation that occurred over night and it doesn't get fixed over night. It is important to remember not to make too many applications for credit when you are trying to recover your credit because every time you are denied it is another black mark on your credit rating. The best thing to do when you are trying to recover your credit rating is to keep a careful eye on your spending. Don't spend too much and put as much as you can into your bills and staying out of debt. Start to do that and it will heal your credit rating in the long term. For more valuable information, visit www.prudentcreditrepair.ca

Here's Some Things You Need to Know about Bad Credit Loans

2011-09-21T12:27:00.001-07:00

You’ve already checked with your bank. They’ve indicated your current credit score is a problem. Even though many people believe there would be no way a bank would give them bad credit loan, if they are willing to work closely with the people who already know them, it is often possible to get the lowest cost bad credit personal loans right from the bank they are already doing business with. If nothing else, you can take the information you get from your bank and compare it with other offers you may obtain. It does take time to comparison shop, but it is well worth the investment of time.

If you are looking for bad credit loans to get you out of your current financial bind, be sure to look past the headlines in advertisements. Some lenders may seem to be offering incredible rates to all their customers; you have to remember that these may just be teaser rates to get people in their offices. Once you are there the old bait and switch tactics take over, and you may find the rates for loans after a proposal may be a lot higher than you expected. It is always the best idea to shop around, no matter where you are looking for a loan.

There is something else you must know when getting bad credit loans. When you take out a loan with a long term payback period you will be paying extra in interest and any fees that apply. If you can afford to do so, it would be a good idea to make that payback period as short as possible. Remember you are trying to save money no matter what you are doing. However, if you must keep the monthly payments low, more time to pay the loan may be the best option for you. That way you will be able to make the rent, car payment, and put groceries on the table.

For more valuable information, visit www.prudentcreditrepair.ca

Be Sure to Get all the Information Before Accepting Terms for Bad Credit Loans

2011-09-21T12:26:00.001-07:00

As the economy takes more and more people hostage, there seems to be an increasing need for help from bad credit loans. This type of loan is necessary sometimes to help rebuild your credit, but should never be taken lightly as a means to go deeper into debt. For those who are trying with all their might to get back onto the right side of the debt monster with loans after bankruptcy, the last thing you should want to do is get back in over your head with loans you cannot repay. Here are some tips to help you better manage the money you make.

Do your research so that you can find bad credit loans without having to pay more in interest than you have to. After all, it is probably the huge interest rates that got you into trouble in the first place, that and not being able to control your urge to splurge. Interest rates are lower today than they have been in the recent past, so be sure you know what you are looking for when you do your search. Take your time as you do everything you can to rebuild your credit. Don’t forget, it was impatience that got you here to begin with.

Once you have visited with a number of lending institutions, take the quotes you have received and compare them side by side. These quotes may include different interest rates and may also have a variety of types of fees as well, so be sure you know what you are looking at before you sign on the dotted line as you do what you can to rebuild your credit. Remember too that the amount of any bad credit loans will affect the interest rates as well. Most of the time the interest charged will be decrease with larger loan amounts. Just don’t borrow more than you need.

Don’t forget when you are searching for bad credit loans to check to see if you will be penalized for paying your loan off early. Not every financial institution will try to prevent early pay off of loans after bankruptcy, but some still do. It is not that they are trying to make it harder on their customers, but some want to make as much on the interest as they can and this is one measure they take to squeeze every penny out of the transaction as they can. Just be sure to take the time to get all the information you can about what you are agreeing to before accepting the terms.

For more valuable information, visit www.prudentcreditrepair.ca

You Should Always Do Your Research When Taking Out Bad Credit Loans

2011-09-21T12:24:00.000-07:00

With so many people losing their homes and other valuable possessions because they cannot afford to make the payments anymore, many are finding they now have bad credit and that makes it hard to take care of business. Bad credit loans may be the answer when you’re trying to rebuild your credit, but you have to know what you’re doing if you are going to keep from getting back into the same mess you were in before. There are ways for you to get loans after bankruptcy, but you do want to be careful not to make some bad mistakes.

For one thing, you should always research before putting your signature to the bottom of that piece of paper agreeing to pay so much a month for so many months. Once you have made the pledge to do so and have the cash in hand it is too late to turn back. That is why you have to do everything you can to make sure you get the best deal possible. Most of the time a person decides to take out bad credit loans is because they just cannot seem to make ends meet as it is, and the last thing you want to do is get in any deeper.

Some bad credit loans will allow you to extend the time period for repayment so that you can better manage the amount of the monthly payments. Just remember that when you do extend the payoff for a few extra months you will also be paying more in interest. It may even affect the interest rates too. Of course if you really do need the money, extending the payoff period may be your only option. One thing that you can do is to make extra payments then you can to pay it off quicker and reduce some of the interest paid. Many people do that even when they have good credit.

Most of us have seen ads for lenders telling the public about the incredible interest rates they offer. This is a great trick to get customers in the door, but many times that, is just a bait and switch tactic to bring people in so they can talk them into borrowing money. Sure they have to offer those low interest rates if they advertise them, but they usually have some kind of gimmick that allows them to actually charge a larger rate on smaller bad credit loans. Be sure to educate yourself so that you will be informed on just how far these companies can go.

For more valuable vehicle tips and information, please visit our facebook fan page and become a fan at facebook.com/prudentfinancial.

Make Sure You are Comfortable with the Repayment Process for Bad Credit Loans

2011-08-16T13:17:00.000-07:00

No one said you could not get a loan after you have defaulted on others, but you have to know that sometimes bad credit loans come at a very high cost. The reason for that is because lenders consider someone that has already failed to pay their bills is a high risk client. Sure, in the current economic climate where homes have been repossessed because of bad lending practices, even people with good intentions for paying their house off have found themselves stuck with a credit rating that stinks. While many say it is not their fault, the fact still remains that few lenders want to take a risk without making sure their backs are covered.

If it is time to step back into the market for loans after bankruptcy, you really should get enough information to do it right this time. What that means is that you should never take out any kind of bad credit loans or any other loan for that matter where the interest rate is just going to get bigger in the next few years. That is just setting yourself up for failure and ruining your chances of paying off the money you owe. Of course, there are not many of those types of loans around today, but you should never take that for granted.

When you do talk with lenders as you check to see which ones have the best options for you, be sure to read all the paper work that explains what you are doing before you place your name on the dotted line. Bad credit loans are usually an attempt on the part of the borrower, to place themselves back into a better financial position, but that will not work if you cannot afford to make these payments either. Just be patient and take all the time you need to become a well informed consumer and you are sure to be all right.

It doesn’t matter what the reason is that brings you out looking for bad credit loans, you have to do your home work so that you will get it right. You may be looking to rebuild your credit with loans after bankruptcy, or after you have had a foreclosure filed on your property, when you do find yourself searching for a way to get back into the black with a some kind of loan be sure you check to see that you are getting the lowest cost bad credit personal loans possible so that you will be more comfortable with the repayment process.

For more valuable information, visit www.prudentcreditrepair.ca

Here's Some Things You Need to Know about Bad Credit Loans

2011-08-03T12:21:00.000-07:00

Sometimes, no matter what you do, you still find yourself in a bind with financial difficulties. Often the only to recover is to apply for bad credit loans. There are many offers on the market today that claim to be there to help you out of your troubles, but you have to always be cautious when you are trying to rebuild your credit. One of the first steps to take is to research all of your options to get the very best interest rate with and the longest repayment period. This will allow you to be able to better manage your current income.

You’ve already checked with your bank. They’ve indicated your current credit score is a problem. Even though many people believe there would be no way a bank would give them bad credit loan, if they are willing to work closely with the people who already know them, it is often possible to get the lowest cost bad credit personal loans right from the bank they are already doing business with. If nothing else, you can take the information you get from your bank and compare it with other offers you may obtain. It does take time to comparison shop, but it is well worth the investment of time.

If you are looking for bad credit loans to get you out of your current financial bind, be sure to look past the headlines in advertisements. Some lenders may seem to be offering incredible rates to all their customers; you have to remember that these may just be teaser rates to get people in their offices. Once you are there the old bait and switch tactics take over, and you may find the rates for loans after a proposal may be a lot higher than you expected. It is always the best idea to shop around, no matter where you are looking for a loan.

There is something else you must know when getting bad credit loans. When you take out a loan with a long term payback period you will be paying extra in interest and any fees that apply. If you can afford to do so, it would be a good idea to make that payback period as short as possible. Remember you are trying to save money no matter what you are doing. However, if you must keep the monthly payments low, more time to pay the loan may be the best option for you. That way you will be able to make the rent, car payment, and put groceries on the table.

For more valuable information, visit www.prudentcreditrepair.ca

Be Sure to Get all the Information Before Accepting Terms for Bad Credit Loans

2011-07-27T10:24:00.000-07:00

Be Sure to Get all the Information Before Accepting Terms for Bad Credit Loans

As the economy takes more and more people hostage, there seems to be an increasing need for help from bad credit loans. This type of loan is necessary sometimes to help rebuild your credit, but should never be taken lightly as a means to go deeper into debt. For those who are trying with all their might to get back onto the right side of the debt monster with loans after bankruptcy, the last thing you should want to do is get back in over your head with loans you cannot repay. Here are some tips to help you better manage the money you make.

Do your research so that you can find bad credit loans without having to pay more in interest than you have to. After all, it is probably the huge interest rates that got you into trouble in the first place, that and not being able to control your urge to splurge. Interest rates are lower today than they have been in the recent past, so be sure you know what you are looking for when you do your search. Take your time as you do everything you can to rebuild your credit. Don’t forget, it was impatience that got you here to begin with.

Once you have visited with a number of lending institutions, take the quotes you have received and compare them side by side. These quotes may include different interest rates and may also have a variety of types of fees as well, so be sure you know what you are looking at before you sign on the dotted line as you do what you can to rebuild your credit. Remember too that the amount of any bad credit loans will affect the interest rates as well. Most of the time the interest charged will be decrease with larger loan amounts. Just don’t borrow more than you need.

Don’t forget when you are searching for bad credit loans to check to see if you will be penalized for paying your loan off early. Not every financial institution will try to prevent early pay off of loans after bankruptcy, but some still do. It is not that they are trying to make it harder on their customers, but some want to make as much on the interest as they can and this is one measure they take to squeeze every penny out of the transaction as they can. Just be sure to take the time to get all the information you can about what you are agreeing to before accepting the terms. For more valuable information, visit www.prudentcreditrepair.ca

You Should Always Do Your Research When Taking Out Bad Credit Loans

2011-07-20T12:07:00.000-07:00

You Should Always Do Your Research When Taking Out Bad Credit Loans

With so many people losing their homes and other valuable possessions because they cannot afford to make the payments anymore, many are finding they now have bad credit and that makes it hard to take care of business. Bad credit loans may be the answer when you’re trying to rebuild your credit, but you have to know what you’re doing if you are going to keep from getting back into the same mess you were in before. There are ways for you to get loans after bankruptcy, but you do want to be careful not to make some bad mistakes.

For one thing, you should always research before putting your signature to the bottom of that piece of paper agreeing to pay so much a month for so many months. Once you have made the pledge to do so and have the cash in hand it is too late to turn back. That is why you have to do everything you can to make sure you get the best deal possible. Most of the time a person decides to take out bad credit loans is because they just cannot seem to make ends meet as it is, and the last thing you want to do is get in any deeper.

Some bad credit loans will allow you to extend the time period for repayment so that you can better manage the amount of the monthly payments. Just remember that when you do extend the payoff for a few extra months you will also be paying more in interest. It may even affect the interest rates too. Of course if you really do need the money, extending the payoff period may be your only option. One thing that you can do is to make extra payments then you can to pay it off quicker and reduce some of the interest paid. Many people do that even when they have good credit.

Most of us have seen ads for lenders telling the public about the incredible interest rates they offer. This is a great trick to get customers in the door, but many times that, is just a bait and switch tactic to bring people in so they can talk them into borrowing money. Sure they have to offer those low interest rates if they advertise them, but they usually have some kind of gimmick that allows them to actually charge a larger rate on smaller bad credit loans. Be sure to educate yourself so that you will be informed on just how far these companies can go.

For more valuable vehicle tips and information, please visit our facebook fan page and become a fan at facebook.com/prudentfinancial

Money Saving Summer Activities

2011-07-13T20:33:00.000-07:00

There are many families who just can’t afford a summer family vacation so what do you do to entertain the kids all summer long? With resources and some simple planning, you can ensure that your kids beat that summer boredom while saving you money!

With search engines like Google there are many activities that are happening in your neighbourhood that cost very little or no money at all. Here are just some activities that you can do with your children that will create great memories.

Free Splash Pads – Pack some sunscreen and a picnic and head to the nearest splash pad in your neighbourhood. For extra fun, visit the dollar store and get some spray bottles that your children and their friends can use to play with at the waterpark.

Beach Day – Plan to get the kids up early and hit the beach. Pack some sand toys and a Frisbee and have a fun day out in the sun. This is a sure fire way to have kids smiling, laughing AND snoozing before dark.

Have your own drive in movie – Pick a night that calls for a clear night sky and invite some of the neighbours for a night out under the stars. Bring your television set outside, decide on a blockbuster movie, set up some blankets and get ready for the movie to start. Don’t forget the popcorn!

Go for a hike – There are many trails that are perfect for a hike. Pack some sesame seeds for the chipmunks and off you go. This is a great opportunity to get some photos of the kids enjoying nature.

Festivals – Summer is great for lots of festivals that offer free entertainment. Search online for any events that are lined up for your area.

Library – Most libraries have dedicated story hours before bed at no cost to you. Wash up the kids, put them in their PJs and settle them down with story hour getting them settled and ready for bed.

On every trip make it a point to take pictures and have children collect items specific to each trip so that on those rainy days the kids can start creating their very own summer scrapbook. Visit the nearest dollar store to get some stickers, sparkles, glue and other materials that can be used to create an artistic scrapbook that can be enjoyed for years to come.

The best part of this summer will not only be how much you actually saved this summer but the memories you have created for you and your family.

Happy Summer Time! For more valuable tips and information, please visit www.facebook.com/prudentfinancial

Loan Options – Your Choices for Loans with Bad Credit

2011-07-06T12:03:00.000-07:00

Credit is a driving force of our economy, but sometimes we all get into a bind. It could be a broken down car, a sudden plumbing repair, or medical bills. Whatever the cause, the result is always the same – you need money quickly but don't know just where to come up with it. If you're trying to take out a bad credit loan such as loans after bankruptcy, then you may think that you have no options. But the truth is that there are loans out there for you, they just may not be what you really want.

Whether you're looking for a loan after a proposal or another type of bad credit loan, you do have options. First of all, in all but the most extreme circumstances, you should say no to payday loans. These can seem like great opportunities but in truth they carry greater risks such as high payments and interest rates can carry greater risks can further damage your credit. There are much better ways to get loans after bankruptcy than through these types of loans, you simply need to know where to look and what to expect.

After you say no to payday loans, take a look at a financial institution and the types of loans after bankruptcy that they offer. And while interest rates are lower than ever, don't expect a great interest rate when you take out a loan after a proposal or with poor credit. Since the bank is taking a real risk by loaning you the money, they'll certainly want to cover their bases by applying a higher interest rate and stricter terms to your loan agreement. That said, a bad credit loan from a lending company is almost always better for you than a payday loan.

The best way to get a bad credit loan is simply to make an appointment to meet with a loan officer. You can fill out a good deal of information online, but getting a loan after a proposal can be difficult to do online due to the varying terms and conditions you might face. Speaking directly with a professional is usually a better option, and they can help you find loans after bankruptcy that you may not have even been aware of. In short, if you need cash in a pinch you should say no to payday loans and try to secure a more conventional loan. It may be easier than you think.

Start Up Loans for People with Bad Credit

2011-06-22T13:00:00.000-07:00

Constantly being declined as a result of your bad credit can be extremely frustrating. A personal loan is one of the most effective means for re-building credit. So what steps should you take to restart your path to financial success?

Getting a loan with bad credit may seem hard to accomplish but it’s extremely common nowadays. There are many lenders who specialize in bad credit loans. The catch is that the interest is fairly higher than if you had a great credit score. With that said, this is a great way to get your start up to a healthy credit history.

If you’re approved to get a bad credit loan, you will get the chance to build your credit history. Building a good credit history is important because it not only makes you fit for all sorts of loans but it also helps you get the best rates available. For every loan you take out and make consistent on time payments, you will increase your credit score by proving payment responsibility.

There are two types of bad credit loans, secured and unsecured. A secured bad credit loan is a loan which is given to someone with bad credit and is secured by an asset owned by the borrower such as a car. This type of loan generally has a lower interest rate the risk to the lender is lower as they can collect on the collateral should you default on your payments. An unsecured bad credit loan is tougher to get because there is no collateral. The lender basically relies on your promise to pay the loan back and because of this, you present a greater risk to the lender and therefore interest rates are higher.

Rebuilding your credit is a process. Financial institutions like banks want to see how well you can manage repayment on a loan over a period of time. Some of the major reasons for bad credit issues is paying only the minimum on your credit cards or taking out a short term loan when you require a longer term to pay it back.

Prudent Financial Services doesn’t just provide loans to people with bad credit histories but go several steps further than the competition to help you repair your credit by regularly reporting to Equifax. Prudent encourages customers to talk about anything that will affect your loan payments and Prudent will work with you when bad things happen.

For more information, visit www.prudentcreditrepair.ca

The Cost of Bad Credit

2011-06-15T08:00:00.000-07:00

A good credit score is an important thing to have but it’s difficult to maintain. Living without credit or bad credit is becoming more common and most wonder what the big deal is if I have a low credit score?

Credit card payments and the level of debt have the most impact on your credit score. The information contained in your credit report is also used by many financial calculations. This means that a lender will not only view your credit score but will combine your monthly minimum payments reported by your creditors and compare it to your monthly gross income. This is known as a debt to income ratio and is as important as your credit score.

If you’re deep in debt, living paycheque to paycheque or are constantly charging things on your credit card, this will make your life extremely difficult from getting a job, your children following in the same footsteps to getting a place to live.

Here are some of the costs of living with bad credit:

1. A big consequence with having bad credit is the denial for a loan. Being denied for a credit card or being denied for a home mortgage when you need it will not only cause you to get denied but it will also be embarrassing for you and affect you emotionally.

2. Creditors and lenders will view you as a higher risk and because of this you will be paying for that through higher interest rates. Over time you’re paying a lot more than if you would have should you have had better credit.

3. When you want to rent a home or apartment, you may be refused as most landlords will check your credit prior to offering you the lease. If you have poor credit, the landlords will think you’re less likely to pay them and will refuse you.

4. If you have a history of living without credit that is good, you will require to pay a large security deposit for things such as utilities and cell phones.

5. The decisions you make will affect your children. They watch what parents do and financially and there is a great chance that they will follow suit.

6. Another big consequence that will directly impact you and your family is worry and anxiety. This kind of stress can lead to all sorts of health issues for you and even cause problems in your family life.

Poor financial decisions can ruin your credit fast so if you want to maintain an impressive credit score or you want to improve it, make your payments on time and include a little extra each month to help pay down your debt. Keep all your accounts open as an open account without a balance is more beneficial than a closed one and also don’t open any new accounts.

For more valuable tips and information, visit www.prudentcreditrepair.ca

Not Letting Your Money Control You

2011-06-08T10:21:00.000-07:00

We are living in a difficult economic situation and we are all affected by it but we can all create a better situation for ourselves. There are a lot of people out there that let their salary dictate their spending habits and not their financial position.

Many people who don’t earn so much have a solid financial position and then there are those who have huge salaries and are on the road to bankruptcy. This is because they spend even more and allow money to control them. They are in a world of financial status and usually don’t feel good about themselves so they allow the money to control them rather than improving their financial situation.

If you are happy then you don’t need to impress others with a false display of wealth or status. We need to be happy within ourselves and not care about what others think. When we take control of our money, we become more secure, financially and emotionally.

We all from time to time need to splurge. You don’t want to stop yourself from getting things that you need or love because this is allowing money to control you. It’s about being frugal. Frugal means avoiding waste. It’s not about being cheap and stopping yourself from buying what you want until you absolutely have to and then you buy the cheapest item with no regard to quality. It’s better to buy a better quality item one time at $1000 than to buy a cheaper item at half the cost but need to replace it more often.

Take a minute to review your bank statements. Is it showing good spending habits? You need to know how much money is coming in and how much is going out. Set aside some time to work out a budget, you’ll be thankful in the long run.

You want to create a life of happiness and worth. Everyone deserves to have what they want. Everyone deserves to have what they are worth. You worth is decided by you and you only. Only you can guide yourself in creating the life you deserve and not be dictated by money.

Have you ever heard the saying “You need money to make money” and you think how can I make money if I don’t have any? Well the wealthy achieve success by having money work for them rather than working for money.

For more valuable information, visit http://www.prudentcreditrepair.ca/

Personal Finance Strategies for Newlyweds

2011-06-01T10:48:00.000-07:00

You had your dream wedding and you have become a couple with dual incomes and mutual responsibilities. Financial strategy is not the most romantic top that you can discuss as a newlywed but it’s definitely a top priority. You both want to enjoy your lives together and plan for that comfortable retirement.

Unfortunately many newlyweds set themselves up for failure. Financial hardship is a leading cause of divorce so to increase the harmony in your lives by talking about financial choices. Plan to merge your financial lives and stop any bad money habits before you bring them in the marriage.

Figure out where you both stand financially. Review all your debt obligations together. Sit down and plan out a way that you together can pay off the debt. It would be ideal to eliminate all debt prior to getting married not to burden your spouse with your debt. If this is not possible then you both must work hard at making your marriage and your family life debt free.

Have a budget. You are now merging two spending and saving habits into one. If you had a budget while you were single, it’s time to draw up a new one as a couple. You should first write down your fixed expenses like mortgage/rent, car payments, insurance premiums etc. Then write down your flexible expenses such as groceries, phone bills and utility. If your budget permits, try to contribute to a savings account as if it was a fixed expense. Track your spending for a while and then work together to identify and fix any common bad spending habits.

Optimizing Insurance. Now that you’re a couple, you need to change your insurance coverage. You should examine the different insurance plans and premiums and decide where the combination should occur. Get an umbrella package which will enable you to save while having all insurance under one package.

Some of the most common sources of arguments in marriage is money, so failing to discuss your financial backgrounds could be disastrous. Communication is key to survival in any relationship. With your budget in place and your plan for your future, you’re both ready for a successful and financially responsible marriage. Your stress levels will be reduced and your foundation will be strong. All this planning will ensure that money does not come between you and your spouse.

Be responsible and enjoy your life as one. For more valuable information visit www.prudentcreditrepair.ca

How to Get Financial Assistance If You Are A Single Parent

2011-05-25T15:30:00.000-07:00

Being a parent is difficult. Being a single parent where you’re the only provider can be extremely challenging financially. Knowing how and where to get the help you need as a parent can make a difference in the quality of your life.

There are so many financial challenges that a single parent faces such as: Employment, daycare and housing.

There is plenty of financial help available for single parents. You just need to know where to look. Single parents need to educate themselves about what is available to them and how they can utilize the assistance to start a fulfilling life for them and their children.

One big area where a single parent can benefit is when they file their tax return. If they were employed throughout the year and have earned under a certain level, they can receive back a hefty tax return.

Financial assistance is also possible through government initiatives. Ontario Works is a program that allows residents of Ontario who are in financial need to get assistance. In order to apply for assistance you must provide:

• A social insurance number
• Health card number
• Proof of identity
• Information about assets, income and living expenses
• Signature allowing the government to verify all above information

Not all single parents have the support of family and friends to help guide and keep them on the right track so if you’re looking for local assistance for help in other areas of need, single parents can also turn to local services and churches. These services will help with clothing, shelter and providing resources.

We need to be honest about how expensive raising children really is. With a bad economy and the struggle with paying for gas, car payments, room and board, child related expenses such as diapers, medical and food will affect your financial situation dramatically.

Knowing how to deal with all this ahead of time will protect you. Managing finances can be overwhelming for anyone and although Government assistance can greatly help your circumstances, careful planning and budgeting and support from local services will empower you and make your life that much easier.

For more valuable tips and information, please visit www.prudentcreditrepair.ca

Defaulting On a Loan – The Dumps

2011-05-18T08:11:00.000-07:00

Default, in the finance industry, happens when a debtor has not met their obligation according to a debt contract. This will occur when the debtor is either unwilling to pay their loan or they are not able to pay their loan.

When you default on a loan, it means you’re neglecting your financial responsibility. We are all aware of the reasons why someone would not be able to pay their loan. People lose their jobs or a sudden medical emergency may happen but whatever the reason may be, you should always communicate with your lender. Most lenders will work with you especially if your financial hardship is temporary.

Most of us have occasional late payments but when it evolves from a late payment to a missed payment to no payments, the debtor will suffer the consequences. The first thing that happens when you default on a loan is the organization will begin to contact you to get their money. It will start with friendly reminder calls or correspondence but as the default continues, they become more aggressive and the contact is more frequent.

Eventually your account will be turned over to a collection agency. This kind of action will begin to affect your credit. When this happens, it will be harder for the debtor to get other loans, it will increase your interest rates and sometimes may even affect your ability to get a job. It can even result in a repossession or foreclosure depending on the type of loan.

If you simply don’t have the money to pay, it still is best to be proactive. When you approach the situation in this manner, the lenders will peg you as a delinquent with no intention to pay and take their actions accordingly. If you are genuine and want to make the effort, then contacting your lender to create an easier payment schedule is more likely to happen or even having the interest rates reduced.

If you have already ignored the situation, it is never too late. Your credit will most likely already be damaged but the negotiation process is never off the table and there may still be a chance for damage repair.

Putting yourself in this situation can and will only lead you into a world of madness. You will be consumed by the stress of your finances, frustrated by the constant aggressive contact and the feeling of depression will arise and will only deepen. Take care of you and your financial health!

For more valuable information, please visit www.prudentcreditrepair.ca

What Should Your Credit Score Be?

2011-05-11T09:30:00.000-07:00

Most of us depend on credit for many things such as buying a car, house or getting a loan. Your credit report is your credit history wrapped up in three digits. It measures your ability to make payments on time and is designed to help lenders determine your credit worthiness.

Credit scores in Canada can range from 300-900. The higher your score, the healthier your financial record is and lenders will view you as less of a risk to them. The interest rates you receive will be determined by your score. Maintaining a good credit score is essential to your financial well being.

What is a good credit score?

You are considered to have good credit if you have a number of 700 and up on your credit scale. This score will allow you to have fewer problems applying for loans and getting better interest rates.

You are in the okay range if your credit score is between 450 and 650. You may be viewed as a risk but one that is acceptable to most organizations depending where you fall between these 2 numbers. The closer you are to 650, the better.

Anything under 450 is considered bad credit. You will be looked at as a high risk to the lenders. You will have significant trouble acquiring loans. Nowadays, there are plenty of places that will approve you for a loan but the downfall is that your interest rates will be sky high.

There are other factors that contribute to your credit score. The major factors contributing to your score is made up of the amounts that you owe and your payment history. The lesser factors are the type of credit you are using, the percentage that is new debt and the length of your credit history. These are all factors that are considered when determining your credit score.

You have a right to see your credit report. No one can have access to your report unless you allow it. Remember that every time you apply for a loan or credit card, you are allowing the company to check your credit report.

Knowing your actual credit score is a great start. You should understand the key factors that affect your score and learning how to increase and/or maintain your score over time is also important.

For more valuable tips and information please visit www.prudentcreditrepair.ca

Smart Things to Spend Your Tax Return On

2011-05-04T08:41:00.000-07:00

With many people anxiously awaiting their refund from the Canada Revenue Agency, now is a great time to think about how you can spend that tax return. The biggest mistake one can make is to look at the refund as free money. A tax refund is NOT free money, it’s YOUR money! When you view your refund as something other than a paycheque, you’re more likely to spend it on treating yourself. Of course, there’s nothing wrong with treating yourself but here are just a few smart ways of spending your tax refund.

Credit Card Debt – If you’re getting collector calls then you know that ignoring them won’t make them go away. Use your refund to take care of those late payments. If you’re current on your bills, why not bring down or pay off your credit card debt balance. This way you have the chance to increase your credit score and be free of interest accumulating.

Mortgage – If you have a mortgage loan every extra payment you make reduces the length of your loan and the amount you pay in interest. Every extra payment will allow you to pay more in principal and less in interest in the long run.

Auto – If you have a car loan, this is a great opportunity to make an extra payment. If you are planning on selling your car, then use your refund or part of your refund to get your car detailed. Getting your car detailed can make a huge difference when you’re putting your car up for sale. You can also use the money to service your car properly. Many just put off servicing their car so this is a good time to get that oil change you’ve been putting off, check your tires and get that long awaiting tune-up. A well maintained vehicle with properly inflated tires burns less gas and saves you money in the long run.

You – Hopefully your tax refund is enough to cover one of the above and give yourself a little treatment but remember there’s always a balance. They key is to take care of your responsibilities first and then enjoy your money. If you and your family have been stressed because of daily life chores and haven’t had the time or money to enjoy a nice family meal at a restaurant then now is a good time for that. Buy tickets to a show or enjoy a day at the spa with your child. Buy yourself that one good suit you’ve always needed.

There are so many things you can do with your tax refund, you just gotta take care of your obligations first. For more valuable information and tips, please visit www.prudentcreditrepair.ca

Credit Cards – When You Should Reduce Your Credit Limit

2011-04-27T08:42:00.000-07:00

When you apply for a credit card, a credit limit is determined by your creditor. This is evaluated on how risky they think it is to lend to you. Your income and your credit score are two major factors in determining your limit. You can increase your limit by calling into your institution and asking for the increase and the same goes for reducing your limit but at what point do you reduce your credit limit?

If you’re a compulsive shopper, it’s extremely beneficial for you to reduce your credit limit. If you are likely to continue to spend excessively then reducing your limit on your credit card will limit the damage you can cause to your finances. Reducing your credit limit is a great way to manage your spending but it also leaves you with no available credit should you need it in case of emergency so you should remember to be diligent. The focus should be on your outstanding debt and not on your available credit so it’s necessary to have a low credit limit and make all your monthly payments on time.

Credit card companies are very aware of how human psychology plays into our spending behaviour. Credit card companies make money when you are in debt so if you find that they are increasing your credit limit even after you have decreased the limit, don’t be fooled as this is a ploy to keep you in debt and having you pay as much interest as possible.

Does reducing my credit card limit hurt my credit score?

When you reduce your credit limit, this changes your credit utilization ratio which is the percentage of your credit limit that you’ve actually used so if your balance on your credit card is $300 and your credit limit is $1000 then your credit utilization ratio is 30%. This means that if your balance is $300 and you reduce your limit to $500 then your utilization ratio will jump and this will likely hurt your credit score. If you are responsible with your debt then it is wise to keep a high credit limit. If you spend money on a credit card because you have a high credit limit then you can help your credit score by reducing your credit limit. When your credit limit is low then your debt is more manageable. Missed payments and accounts in collection status can actually do more damage than a high utilization ratio.

Personal impulse is dangerous so if you don’t have the discipline then cut up those cards and close those accounts. For more valuable information and tips, visit http://www.prudentcreditrepair.ca

I Can’t Afford To Pay My Tax Debt

2011-04-20T07:09:00.000-07:00

After you file your tax return, you will be sent an assessment notice from the Canada Revenue Agency (CRA) which shows the balance of the tax owing. If it is in a refund balance, this is money that the CRA owes to you but if it shows a balance owing then you must pay the CRA those monies by the payment deadline. After the payment deadline if the balance is not paid, interest will accrue and will be compounded daily.

What if I can’t afford to pay the balance owing to the CRA?
If you are already neck deep in debt and can’t afford to pay off the balance owing with the CRA, you have options:

Negotiate a payment plan with the CRA – You can contact your nearest CRA office and explain your circumstance and offer them a payment schedule that you can manage. So for example, if you have a balance owing of $1200, offer them $100 for the next 12 months. The CRA is aggressive and will always try to get you to pay the balance of in full but if they do accept the repayment plan, they will continue to charge you interest and penalty until the debt is paid off. If the CRA doesn’t accept the offer, they will take further action against you to try and collect the money owing.

Get a personal loan – These loans have become the premiere loan choice during a temporary financial problem. It is one of the quickest ways to pay off your debt. The interest rates will likely be less than what the CRA rates are and if you choose the proper financial institution to borrow from, they will even help you rebuild your credit rating through regularly reporting all payments.

In order to avoid this problem in the future, you must determine why you owe the money, whether it’s due to cashing out RRSPs, if you’re self employed or just not contributing enough from each paycheque. In either situation, you must acknowledge where the problem is and find a solution so that you don’t find yourself in this situation again where you have to pay a lump sum at the end of tax season when you really can’t afford to. There is nothing more frustrating than working hard to maintain your daily finances only to get slapped with another debt.

For more information about personal loans to pay off your tax debt, visit www.prudentcreditrepair.ca

Can Reward Credit Cards Affect Your Credit?

2011-04-13T11:14:00.000-07:00

Reward credit cards allow you to collect points or miles towards purchasing flights, hotels, rental cars, merchandise and other free stuff. Usually you’ll have to collect enough points in order to buy your desired freebie. Not all reward programs are created equal and every points system is different in the way it works.

It’s hard to turn down free rewards. This is how credit card companies entice people to sign up to use their credit cards. It’s important to remember that these companies are in the business to make money and they’re not offering these rewards with the possibility that they’ll lose money. These reward cards are beneficial to you if you pay back the balance in full each and every month otherwise you’ll be paying for the reward yourself in interest and annual fees.

How can a reward credit card affect my credit rating?

For many people, it’s easy to get sucked in through the tempting sign up bonus offers or immediate discount on your purchase. What starts happening here is that you can get caught up in the hopes of getting further discounts and you focus on accumulating those points that you fail to see that your debts are piling up. The more cards you have, the harder it is to keep track and all the while your credit rating is being tarnished.

Every time you sign up for a card, the lender requests a credit score and an inquiry is placed on your credit report. If you have too many requests for credit, your behaviour will be associated with those who have a higher chance for default. Even if you don’t use your credit cards, the available amount of credit you have can harm your credit score.

Reward credit cards can save you money but you have to be extremely knowledgeable on how these cards should be used so keep things in perspective.

When people spend with credit, they tend to overspend so if you find yourself in that position, stop putting things on your credit card immediately until you have your card paid off. Once this, limit your cards to 1 or 2 and then you can reconsider using them for rewards as long as you are able to pay off the balance IN FULL every month.

For more valuable information and tips on how to manage money, visit www.prudentcreditrepair.ca

How To Have A Successful Yard Sale for Extra Money

2011-04-06T12:03:00.000-07:00

Times are tough and we can all use a little extra cash in our wallets. How do we do this? Well Spring has sprung and a great way to put extra money in your wallet is through a yard sale. There is a lot of thought and work that goes into a yard sale to make it successful so follow these tips and you’re sure to have a heavier pocket at the end of the day.

What is my first step?

The best initial step is always to choose a date. A great target date is in 2 to 3weeks time. This will give you the opportunity to get things organized and ready. When you have a yard sale the first thing you need to have is stuff to sell. So a good plan of attack is to start with a spring cleaning. Every item you come across for the sale should go to a designated area. Once your items are chosen, it’s time to organize and clean them. Remember that a clean item will net more money than a dusty one.

How do I price my items?

A successful yard sale should have items that are already price tagged, so people don’t have to pick you out of a crowd or wait around to get a price quoted over and over again. Always price your items at yard sale prices. People shop at yard sales to get a bargain, so a $20 item selling for half the price may still be sitting on the table at the end of the day. Sell that item for $5 and watch it fly off the table. If you have a ton of small items, consider having a bin or table with a sign that says something to the effect of ``Every item in this bin is $1``. Also keep in mind when pricing that people will want to negotiate some of the bigger priced items so leave room for this. These are things you no longer want and if you feel you can`t price the item at yard sale prices then you may want to save that item to sell through a different avenue.

How do I attract people to my yard sale?

The best way to attract customers to your yard sale is of course if through advertising. Place online ads on sites like Kijiji and Craigslist. Call your local newspaper and buy an ad that will appear in the paper a week before your sale. All ads should contain the date of the sale, the location of the sale, the hours and you can even include a short summary of items for sale. On the day of your sale, place signs around your area advertising your sale info. When you`re making your signs, use bright coloured paper and put your information in large legible writing. It`s also a good idea to put arrows on your sign directing them in the right direction of the sale. Don`t forget to take down the signs when your sale is over.

Anything else I need?

Yes, you will need to have newspaper or bubble wrap to wrap delicate items, have grocery bags on hand so people can carry their stuff. Don`t forget to have a lot of small change. People will buy a $2 item with a $20 bill. You can start collecting your $5s, $1s and change weeks prior or take a trip to the bank and change a $50 bill to smaller increments. Keep your money safe. Wear a fanny pack so you`re not leaving your earnings unattended. Also remember to display all your items and dedicate the day to working your yard sale.

Have a successful day and for more valuable tips and information, visit www.facebook.com/prudentfinancial

How You Can Save Money by Avoiding Common Fees

2011-03-30T11:57:00.000-07:00

Many of us don’t realize how quickly common fees could add up and the significant damage it can make to your finances in the long run. There are many different fees and penalties that can be avoided and it’s up to you to understand how. Here are some of the most common fees that should be avoided:

Late fees – If you’re paying late fees because you don’t have the money to pay your bills on time then you should start to understand your finances and budget wisely. Cut down on unnecessary expenses that will allow you to have that extra cushion you need to pay your bills on time. If you’re simply a forgetful person, write down your due dates in an organizer, pay your bills as soon as you get them or schedule your online payments automatically for a specific date.

ATM charges – These charges occur when you withdraw money from a bank machine that is not owned by your bank. These fees can range from $1 to $3. These charges can also be charged twice. Once as a convenience fee for the bank machine owner and once from your bank. Once transaction can cost you upwards of $5 and if you’re doing this too often during the course of a month, it can cost you big at the end of each month.

Reward cards – Unless you’re a business owner, you may not get the benefit of the rewards gold and platinum cards give. These cards have high annual fees that can cost you up to $150 so unless you’re a big spender, these cards should be avoided. If it’s taking you over 3 years to earn almost enough to fly then you may have already paid a big amount of your reward in annual fees.

Credit report – Ontario Law states that you have a right to get a free credit report once every year so make sure that you’re not charged by a credit reporting agency when you need it for a mortgage or a home equity loan.

Don’t knowingly allow your hard earned money to be taken from you, visit http://www.prudentcreditrepair.ca/ for more valuable information and tips on managing money.

Applying For a Low Rate Home Loan with Bad Credit

2011-03-23T08:51:00.000-07:00

We all make mistakes and some of these mistakes could be financial mistakes that have caused your credit rating to plummet or even forced you into bankruptcy. Now you’re in the position where you need a mortgage so what do you do? Don’t be discouraged, there are lenders who specialize in lending money to people with bad credit histories. Here are some steps to take when you apply for a home loan with bad credit:

Your credit rating – Your credit score can have a serious impact on your mortgage so request your credit report and work through it with a fine tooth comb. Correcting even a single simple mistake on your credit history could potentially save you money when applying for a low rate home loan and make you a better prospect.

Income - It’s important that when you meet with your lender that you demonstrate your efforts in turning over your new leaf. Share what your willingness to make right what you’ve done wrong in the past. You can do this by showing them that all your credit cards and outstanding bills are paid off or carry very low balances. Don’t have applications for new credit as this will make lenders very suspicious about your risk factor. You will need a steady income source so quitting or changing your job is a definite no-no.

Price – It’s very unlikely that a lender will issue a mortgage for a home that you can’t afford. Figure out your debt to income ratio to get an idea of how much you can afford monthly. Remember that interest rates are a factor in your monthly payments and they may rise so consider your options such as locking in your mortgage.

Down payment – The more of a down payment you make, the less of a risk you’ll look in the lenders eye and the greater your chances are of getting approved. Because you have so much invested in the property, you’ll most likely not default on the loan. Factor in the all other fees such as closing costs.

Once you fill out the loan application, be sure to review the terms so there are no surprises later. Always stay on top of your payments and create a great rapport with your lender!

For more valuable information and tips, visit http://www.prudentcreditrepair.ca/

Keeping Your Money Safe

2011-03-16T10:34:00.000-07:00

No matter where you bank, scammers are trying to take advantage of every opportunity to take our money. A recent wave of fraud is hitting small bank customers and credit union customers. Stealing from a bank vault was an early stage of this crime but criminals nowadays are making a big business out of stealing digital money. Stealing from bank accounts or credit card records, which is more trouble for you, the consumer. This doesn’t mean that your banking institutions are not safe, they are, this just means that we should be diligent in keeping our money safe. Here are just a few tips to keep your money safe:

Check your banks policy for covering losses – Your bank should have a policy to cover losses due to fraud. They may also have security policies in place to protect you should you try to access your bank info from other sources such as online or through banks other than your own. Also, check to see if your branch has had problems in the past such as a dishonest employee which could mean that the bank is not diligent in their screening process.

Keep separate accounts with different passwords – If you have a business account with a big line of credit, it makes sense to have a separate account, with a separate debit card/credit card and a different password than your personal account. If your account is all tied in one and it gets cleared out by this crime, you will have problems maintaining your financial life until it gets straightened out.

Protect your passwords – When using your debit card at any store or ATM, protect your password. Change your password regularly. Use different passwords for all accounts. The last thing you want to do is use the same password for everything you do whether online or not. Remember to get in the habit of logging off. If you’re banking online, log out of the session rather than just closing it. The same should go for telephone banking, end the session rather than just hanging up. Not doing this will leave you vulnerable to scams.

Maintain your statements – Always review your bank statements. If you notice something wrong, contact your financial institution and record it. Reviewing your own statements and not relying on the bank to do it for you may save you a bigger hassle in the end.

Never give out your personal information to anyone you don’t know, especially online or over the phone. Banks will be more than helpful getting things back to normal but remembering the tips above will save you from finding out the hard way. For more valuable information and tips, visit www.prudentcreditrepair.ca

I Lost My Job, What Do I Do Now?

2011-03-09T07:32:00.000-08:00

When you lose your job, you’re not only losing income. You lose structure, routine, friendships and a sense of well being. Immediately get support from your family and friends, letting out your feelings and allowing yourself to release the anger or hurt from your job loss. This will also allow them to keep you in mind should they see an opportunity for you in employment. Now that you’ve dealt with the emotions, it’s time to make a plan. Here is a list of things to do when you lose your job:

Reflect – Why did you lose your job? Did the company restructure or downsize? Were you directly responsible? You should start to think about your current skill level and abilities, how you can excel in an industry and what you need to accomplish that. Think about whether you enjoyed what you were doing or is this your chance for change.

Apply for Unemployment Insurance Benefits – Find out if you qualify for EI. It may take a while to apply and to receive your first payment, your payments may barely be enough to cover your expenses and they run out really fast but it’s definitely a step that you should take until you get employment again.

Cut Your Expenses – You will want to make your funds last as long as possible so cut back on unnecessary expenses. Talk to your creditors and explain your situation. See if you can negotiate smaller monthly payments or interest rates. Never ignore your bills. Change your cable service to basic, make a decision between landline or cell phone, cut back on entertainment. At this point, you’re not sure if you’ll find a job that is less money, more money or whether you’ll find a job in 3 months or 2 years so it’s always best to be wise.

Create a new daily routine – Embrace the change. Dust off your resume, develop coping strategies and network to increase your probability of finding a job soon. A job takes a large portion of your time and although looking for a job may not take up all your time but it will take up a big part of your schedule. Set up a time for job searching activities and also set aside time for recreation and leisure such as walking, going to the library or taking a workshop.

Remember to take care of yourself. Don’t hide on the sofa. Keep yourself well groomed and keep your sense your humour. You can accomplish so much when you’re smiling so keep smiling!

For more valuable tips and information visit www.prudentcreditrepair.ca

How To Deal With Identity Theft

2011-03-02T11:07:00.000-08:00

Identity theft is when a person’s personal information is stolen for the purpose of criminal use. Unfortunately it has become a growing epidemic. Most people don’t even know that they are a victim of this type of fraud until they are contacted by creditors and so we need to take precautions to ensure that we are not a victim of this crime. Here are some ways in which you can deal with identity theft:

Protect Yourself – There are ways you can protect yourself from identity theft. Always protect your personal information. Shred your confidential documents and only use secure sites when purchasing online.

Notify Credit Bureaus – If you suspect fraud you must first be sure that it is in fact fraud. If there’s a charge on your credit card statement that you do not recognize, call the credit card company and find out more about the charge. Some vendors hold their credit accounts under a different name so you may not recognize the charge. Once you eliminate the scenario that it was an error and you’re sure that it’s fraudulent activity then you should contact the credit bureau to establish fraud alerts. Your account will be flagged so that all creditors will contact you before extending any credit.

Request A Copy Of Your Credit Report – Once you receive your credit report, examine it carefully. Make sure the information is accurate and report all fraudulent activity, in writing, to the credit bureau and also to the creditor. Don’t forget to continually monitor your credit reports!

Debt Collectors – If you’re being contacted by a collector to pay the balance on a fraudulent account, get the name of the person calling, the collection company name, phone number, address, the creditor info, the amount of the debt, the date of charges and account number. Explain to them that you are a victim of fraud and that you are not responsible for the balance. You may need to complete a fraud affidavit form. Follow up the call with a letter and ask for a letter back stating that the account has been closed and that you do not in fact owe the debt.

Lost or Stolen Wallet/Purse – If you have lost your wallet or purse or had it stole, report it immediately. Call all credit card companies and get new cards with new account number sand change your password to a new one. Closely continue to monitor your bank accounts.

Identity theft is a big problem and it’s really difficult to catch people who have stolen other’s identities. If your identity has been stolen then it can take a lot of work to clean up the mess. Educating yourself will help you deal with Identity theft. For more valuable information and tips visit www.prudentcreditrepair.ca.

What happens When You Default on a Loan

2011-02-23T07:22:00.000-08:00

A default happens when a debtor is unwilling or unable to pay back a loan in which they are required to pay back. This can include anything from a mortgage, auto loan, credit card and even promissory notes.

There are some debts that you may turn your back on and not see any consequence such as a small subscription to a magazine that you got locked into when you signed up for some service. On the other hand there are debts that if you turn your back on can lead you into a difficult financial situation. You may hear stories of people who have gotten away with debt for a couple of years but make no mistake, it will catch up to you.

Loan debts can occur easily. Monthly payments on loans usually start off affordable but this can turn very quickly. There are so many reasons that can contribute to the cause of personal debt problems such as deteriorating health or loss of employment.

What can happen if I default on my loan?

· Loan default will result in a bad credit rating. When this happens, other borrowing sources will become more expensive and more inaccessible.
· Missing monthly payments will incur further interest and penalties.
· Following a loan default, collection calls will consist of the odd call but will then turn into calls from a debt collection agency and they will aggressively pursue you in order to recover the debt.
· For bigger debt problems, you may have your wages garnished. Your employer will be legally obligated to take a portion (if not all) of your paycheque and send this amount to your creditor.
· You can face emotional distress. Feelings of anger and depression will start to surface and can affect your home life and mental stability.

Loan defaults are bad for you and bad for the economy. It’s always best to make your payments on time. If that is difficult, then ignoring the problem will not make it go away. It’s always best to deal with the problem face on to ensure that you have a brighter future.

For more valuable tips and information about managing money, visit www.prudentcreditrepair.ca

Being In Debt and the Effect It Can Have On You

2011-02-16T09:54:00.000-08:00

Debt when used constructively allows us to build a future. We are able to buy a home and cars, helping us to invest in our future. When you use debt irresponsibly by funding a lifestyle outside your means, there are long lasting consequences for you and your family.

If you have ever been in debt, you are familiar with how it can destroy you financially, physically and mentally. Debt eats away at all your positive energy because all you can do is worry and stress about money. As the debt continues on, so does the interest only furthering your debt. It becomes impossible for you to make any payments and now you’re afraid to answer your phone, open your mail or even answer your door. Here are a couple ways debt can affect you:

Setting an example – You may be sending a poor message to your family. You may be hiding your debt from your family by continuing to spend money that you don’t have. This will paint an unrealistic picture of financial responsibility. If your debt is exposed then your bad habits also make a lasting impression on your family and can encourage irresponsible financial behaviour especially in your children.

Lifestyle – Dealing with high levels of debt can and will contribute to emotional distress. You will start to suffer from anger and depression causing household fighting making your home life unsafe and joyless for you and your loved ones even though it was never your intent. Debt can cause divorce and even long term health issues. Even when debt is beyond your control due to unforeseen circumstances, it looks bad. It can mean repossession of vehicles or even force you out of your home.

So what can you do?

Don’t ignore your debts. It’s better to spend the rest of your life trying to pay off debt as opposed to putting your family at risk. Work together with your family and come up with a budget. Look at what you can cut down on and what you can live without until things take a turn for the better.

Make a list of all your debts. You may want to consolidate all your loans into one to save yourself on the higher interest cards or loans. Consider bankruptcy if it’s your only option. Consider taking out a personal loan with low interest that will also help you rebuild your credit. With the loan pay off your debt and with the extra money you’ll be freeing up by cutting out unnecessary expenses use towards paying off your loan. Consider the services of Prudent Financial who is the leader in the financial industry offering loans to people with bankruptcies, proposals and bad credit histories across Toronto and the GTA since 1984.

It’s a long tough road but if you’re tired of being paralyzed, you need to take control of your debt and take back control of your life! Visit http://www.prudentcreditrepair.ca/ for more information.

Will A Payday Loan Affect My Credit Score?

2011-02-07T16:33:00.000-08:00

When a payday loan seems like your only option, you need to take a step back, consider your situation and determine how you got there. Do you need a payday loan because you have bad credit, is it because you have no credit or are you drowning in debt? Every individual’s situation is different.

Why would I need a payday loan?

Payday loans are used for a number of reasons. They are popular for people who need quick cash. When you’re in the position of needing money immediately, the advantages of a payday loan outweigh the disadvantages. Here are just a few reasons one would want to use a payday loan company:

· You can get a payday loan regardless of your credit score as there is no credit check involved
· You can apply in person, online or on the phone
· The application process is quick and the loan can be obtained in less than 24hrs
· No one else is involved with the loan so it’s discreet
· People in a desperate state of finance may not be aware of their options
· Payday loan companies are everywhere
· It’s a quick fix

Those may all seem like great reasons to turn to these types of loan but payday loans come with a high price so beware!

Will a payday loan affect my credit score?

Yes, if you don’t make your payments on time, you will be reported to the credit bureau, further damaging your credit score. Since payday loans are easy to obtain and you don’t need a credit check, it’s very popular to people who are already experiencing financial hardship and borrowing money with such high interest rates are only putting them in a worse situation. This is really bad for the borrower. When this happens, it’s extremely easy to get caught up in the payday loan trap with a “rollover” loan which essentially is getting another loan to repay the last loan and so on...

There are many alternatives to getting a payday loan. If you need a loan, research your options. There are many financial institutions that will provide you with a loan and also help you rebuild your credit in the process. Prudent Financial Services has been repairing credit with open and affordable loans to people with bad credit histories since 1984.

For further information visit www.prudentcreditrepair.ca

Taking a Loan to Consolidate your Debt

2011-02-02T11:04:00.000-08:00

If you’re struggling to keep up with your credit card debt, car loan debt or other consumer debt, then it’s time to consider your options. Debt consolidation has made the process easier and can help you secure simpler monthly payment plans along with lower interest rates.

What is Debt Consolidation?

Debt consolidation is used to manage your money. It’s a strategy in which a borrower takes out a loan to pay off all other loans. It’s done to secure a lower interest rate and for the convenience of one monthly payment over a longer period of time.

Here are a couple great options for debt consolidation:

Home Equity Loan – A home equity loan can be referred to as a second mortgage or borrowing against your home. This type of loan allows homeowners to obtain funds that are secured by your home’s current value on which you do not owe money. This type of loan has the advantage of carrying a fairly low interest rate. Another option for those with equity in their home is to refinance your property by increasing the amount you owe and then using the extra cash to pay off your debt.

Personal Loan – A personal loan is an unsecured loan that is not backed by collateral and is based on the borrower’s integrity and ability to pay. It is commonly used for the purpose of debt consolidation, vacation or purchase of goods. The upside to taking a personal loan is that the interest rates may be significantly lower than the interest on credit cards.

So if you’re tired of catering to a bunch of smaller debts then taking a loan to consolidate your debt is right for you. Managing money is difficult especially when you’re trying to juggle a large number of debts all of which have high interest rates. Don’t get swallowed up by interest. Prudent Financial Services offers the most affordable open loans to people with bad credit across Toronto and the GTA.

Visit www.prudentcreditrepair.ca for more information!

Ideas For A Great Valentine’s Day On A Budget

2011-01-26T11:02:00.000-08:00

Some people may think that Valentine’s Day is just a marketing strategy, however legend has it that Valentine was a priest who served during third century Rome. At that time, there was an Emperor by the name of Claudius II who had decided that single men made better soldiers than those who were married so he banned marriage in hopes of building a stronger military base. Valentine thought this was unjust and started secretly marrying young couples. When the Emperor found out, he sentenced Valentine to death. During his imprisonment, Valentine had fallen in love with his jailor’s daughter and before his death had written her his first letter signed “Your Valentine” which is the phrase still used today.

Valentine’s Day has become one of the most commercial holidays and it’s very easy to get caught up in the hype that you should spend money to show your love. Don’t fall into this trap. You should give gifts from the heart and not from the wallet and here are some great ideas to express your love to your loved one without breaking the bank:

Love Letters – Who can resist a love letter? Plan to send your loved one a letter a day starting February 1st. You can mail it to the office or home, hide the letters in a coat pocket, place the letter in his car prior to him/her leaving for work or just use imagination to find places to hide them. Make sure you place them in a spot that can be found otherwise it defeats the purpose and make sure that you describe how much you adore him/her and how much you appreciate them and their wonderful aspects.

Favourite things – You can put together a box of their favourite things. It can be anything from an old movie, popcorn, their favourite candy or a magazine. You know them best so you can choose whatever inexpensive item you know they’ll appreciate. Another great idea for this Valentine’s gift is to choose a theme and leave one gift each day leading up to Valentine’s so that they can use these gifts on that day. For example: You can do a spa theme so each day you leave a gift that can be used towards pampering themselves like bubble bath, champagne, chocolates, bath oil, rose petals, candles, moisturizing creams and on the 14th draw them up a bubble bath complete with all the gifts. This works great if you have children so that your loved one can have an hour of kid free solitary time that they may never get due to a busy lifestyle.

Fireplace picnic – If you have a fireplace, you can set up a picnic fireside. Move all furniture out of the way, have some soothing music that you may want to dance to a little later in the evening, bring out some chilled champagne with fruit or a platter of cheese, crackers and olives. You can also gather your favourite photos since they day you met and reminisce about the great times you’ve shared together. If possible, burn pictures onto a disc and turn them into a video complete with music and present it as a special gift to them during the picnic so you can watch the video together while sipping on some bubbly.

Always remember that it’s the thought that counts. The most important thing is that you are spending quality time together!

For more valuable tips on how to manage money visit www.prudentcreditrepair.ca

Is a Prepaid Credit Card Really Beneficial?

2011-01-19T08:11:00.000-08:00

What is a Prepaid Credit Card?
When you think about a prepaid credit card it may sound as if you’re being extended credit. This is misleading as the card is similar to a debit card or gift card. If you want to make a purchase using the card, then you must deposit funds in the account. As you use your card for purchases, it’s reducing your balance so if you deposit a balance of $300 and make of purchase of $150 then you’re left with a balance of $150. It’s a lot more like managing a savings or chequing account than it is a credit card.

Why would one use a Prepaid Credit Card?
You can get this type of card regardless of your credit history so an individual who has a poor credit history and does not have a credit card may get the card to make online purchases where a credit card is needed. As the card is not used through credit, there are no interest fees associated with it. A company may want to use this type of card for their employees who travel or entertain clients as it’s a great way for them to control costs when away from the office. Some parents may purchase the card as a tool to educate their children about the use of credit cards.

Fact about Prepaid Credit Cards
If you have a bad credit history, a prepaid credit card will not help rebuild your credit so you should weigh out your options before making the purchase. A better solution for you may be to apply for a secured credit card.

Are these cards really teaching our children how to manage money?
Some cards have no minimum age requirement and the terms for the cards are unfavourable. If the card purchased has an expiration date and a balance still remains, then you will lose that balance. There are also many high fees associated with these cards. There are activation and set up charges, charges for reloading the cards, monthly transaction fees, charges for customer service, charges to check your balance and these fees are taken from your balance, leaving you with less money to spend. In actuality your child is losing money rather than gaining financial awareness. A better alternative to teach your child about finances is to open a chequing or savings account with no monthly fees, where you can deposit and withdraw money easily and watch your savings grow!

Prepaid credit cards have become so alluring with their favourite characters or stars who can raise awareness for all sorts of issues but when it comes to our finances, especially ones that come with such high fees, maybe it’s just best that this level of education lies in our hands.

For more valuable information and tips about managing money and rebuilding credit, please visit http://www.prudentcreditrepair.ca/

How to Rebuild Your Credit After Bankruptcy

2011-01-12T07:00:00.000-08:00

After bankruptcy, you will notice that there are literally hundreds of offers from various companies wanting to help you fix your credit. You may feel somewhat ashamed or humiliated. The road to re-establishing credit is not easy but with hard work and determination, you will be on your way to good credit.

When a person files for bankruptcy, the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit report for 6 years after the discharge date and for a second time bankrupt, the information stays for 14 years after the discharge date. Once you’re discharged you can start to take these following steps to start rebuilding your credit:

Open a bank account – Open a new savings account with a bank that was not included in the bankruptcy. Regardless of your credit, you cannot be refused an account based on your credit history. Make an appointment with the banker and advise them that you’re trying to rebuild your credit and they will give you some solid advice.

Be a great saver – Take any extra money you may receive through a raise for instance and put it aside. Try and save at least 5% of your paycheque.

Obtain a secured credit card – A secured credit card is the same as a credit card except it’s backed up by money you already have in a savings account. The bank will hold this money as security and your credit limit will be the amount of the money you have in your savings account. Each payment you make each month will be reported to the credit bureau and will help improve your credit, however, only use what you can afford to repay in full each month. Never have a balance on any credit card that exceeds 50% of your credit limit.

Take out a small loan – Obtain a personal loan so that you have new credit reporting. Ensure that all your payments are made on time every month as any late payment will further damage your credit score. There are companies like Prudent Financial Services that specialize in repairing credit with open, affordable, same day loans to discharged and undischarged bankrupts with low interest fees.

Repairing your credit is Prudent Financials most serious commitment to save your money, your credit rating and your financial health. For more information, please visit http://www.prudentcreditrepair.ca/