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Pros and Cons of Budgeting: What Works, What Doesn't, and What to Do Instead | Debt Free in 30 | Episode 522

Is budgeting the best way to manage your finances, or is there a more practical approach?  Debt Free in 30’s Doug Hoyes discusses the pros and cons of budgeting, breaking down popular budgeting methods like the 50/30/20 rule and the practicality of saving 20% of your income. Explore why traditional budgets can often be overly simplistic, why it’s hard to start budgeting, and how to find a method that truly works for you. Doug shares his perspective on effectively managing money without being a "budget guy" and offers practical tips for those who struggle with budgeting. From understanding different budgeting styles to finding the right balance between debt repayment and saving, this season finale has everything you need to know to make budgeting work for you.


Episode Timestamps:

(0:00) Doug Hoyes Isn’t a “Budget Guy” 

(0:50) Maureen Explains the 50/30/20 Budget Concept 

(4:20) Is Traditional Budgeting Overly Simplistic? 

(5:50) Doug Reconsiders His Stance on the Value of Budgeting 

(6:45) Budgeting Based on Pay Cycle

(9:50) Is Saving 20% of Your Income Realistic? A Breakdown of Saving vs. Debt Repayment

(14:40) Annual Budgeting: Why It Can Be Helpful and Practical Tips

(19:20) Consumer Proposal Budgeting Sessions: What to Expect

(21:20) Overcoming Difficulties of Starting a Budget  

(22:10) Exploring Budgeting Styles

(23:45) The Importance of Being Realistic in Budgeting and Making Tools Work for You


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Resources:
“Joe Debtor” Hoyes Michalos Annual Bankruptcy Study
Zero Based Budgeting – Giving Every Dollar a Purpose
7 Reasons Budgets Fail and How to Succeed
Budget Mistakes to Avoid (Youtube)
Is the 50-30-20 Budget Rule Do-Able Today?


Disclaimer:

The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.

In this eye-opening episode of Debt Free in 30, host Doug Hoyes dives into the world of debt collection with Blair DeMarco of Kingston Data and Credit. Together, they unravel the complexities of debt collection and help you understand your rights from initial contact to facing settlement offers or legal threats. Whether you're grappling with old debts or dealing with aggressive collectors, this episode equips you with the knowledge and strategies you need to protect your credit and manage your debt effectively.   

Timestamps and Titles: 
 

00:00 - Introduction with Guest Blair DeMarco – How Collection Agencies Work  

03:05 The Collection Process: Best Questions Answered  

06:05 Understanding Your Rights: Statute of Limitations and Credit Reporting 

12:10 Can You Be Sued by A Collection Agency?  
15:00 Old Debt – How It’s Affecting Your Credit and What to Do About It 
17:45 Insights on Handling Aggressive Debt Collectors  
20:10 Consumer Proposals and Stay of Proceedings – Navigating Your Options  

21:45 Debt Re-Aging – Creditors Can Reset the Clock 

24:45 What to Say When Debt Collectors Call  
 
 
Stay ahead of financial challenges with expert advice delivered straight to your device. Subscribe and turn on notifications here:   
 
Watch:  
YouTube 
 
Listen: 
Apple 
Spotify  
Podbay 
Deezer 
Amazon Music 
 

Resources: 
 
Kingston Data and Credit 
 
Wage Garnishing: Know Your Rights  
 
Frozen Bank Accounts: What You Can Do Next  

Stop Debt Collection Calls for GOOD  
 
 

Special Thanks: 
 
Blair DeMarco  
Scott Terrio  
 
 
Disclaimer  
 
The information provided in the Debt Free in 30 podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed. 

In this episode, Doug and Maureen tackle a common financial question: should you build an emergency fund first or pay off debt? They explain why prioritizing an emergency fund can be important, even if you have debt. Learn how developing a savings habit can shield you from unexpected expenses and stop lenders from reducing your credit limit. They also discuss the risks of relying solely on debt for emergencies and how savings can keep you financially secure. Plus, they cover the benefits of paying off debt first, like saving on interest, boosting your credit score, and having the option to use credit for emergencies.

Time Stamps:

00:00 Introduction

01:50 What do you use your emergency fund for?

02:59 Reasons why an emergency fund is more important than paying down debt

06:40 The habit of savings

11:11 How much does your emergency fund need to be?

15:20 Where should you put your emergency savings?

23:11 Why should you pay off debt first before saving for an emergency fund

29:12 Final thoughts

Related Links:

Emergency Fund Critical For Single Parents - https://www.hoyes.com/blog/emergency-fund- - critical-for-single-parents/

Why You Need an Emergency Fund - https://www.hoyes.com/blog/why-you-need-an-emergency-fund/

Emergency Fund or Credit Card Debt? What’s the Better Choice? - https://www.hoyes.com/blog/emergency-fund-or-credit-card-debt-whats-the-better-choice/

Which Debts Should You Pay First? - https://www.hoyes.com/blog/which-debts-should-you-pay-first/

Dr. Brad Klontz Financial Psychologist - https://www.bradklontz.com/

Did you know that bankers often refer to debt consolidation loans as a ‘never, never plan,’ meaning the borrower will never become free of their debts? This may sound odd since consolidation loans often make total debt cheaper to service through a lower interest rate. But banks know how to keep their clients with just the right amount of debt to continue profiting from interest charges. On today’s podcast Ted Michalos and Doug Hoyes break down just how exactly banks keep their customers in a ‘never, never plan,’ and offer practical advice to help borrowers actually eliminate their debts. Tune in!

Links:

Risks of Debt Consolidation Loans – The Hidden Traps: https://www.hoyes.com/blog/debt-consolidation-loans-the-hidden-trap/

Hoyes Michalos Debt Repayment Calculator: https://www.hoyes.com/debt-repayment-calculator/

Hoyes Michalos Debt to Income Ratio Calculator: https://www.hoyes.com/debt-to-income-ratio-calculator/

Government of Canada Credit Card Payment Calculator: https://itools-ioutils.fcac-acfc.gc.ca/CCPC-CPCC/CCPCCalc-CPCCCalc-eng.aspx

With record inflation, many people are feeling the pinch, and we’ve even been asked if it’s possible to skip a bill or two just to get to the next month. Well, on today’s podcast, we’re addressing this exact question. Which bills can be skipped, if any? Which ones should you absolutely pay? Can you delay paying your rent? And if so, how should you approach this? What about car payments, taxes, credit cards, or other loans? Maureen Parent returns on the podcast with lots of practical tips to survive these trying times. Tune in.

Links:

Maureen Parent on Twitter: https://twitter.com/MaureenParent7

Hoyes Michalos Kanata Office: https://www.hoyes.com/ontario-offices/kanata/

Hoyes Michalos Joe Debtor Bankruptcy Study  https://www.hoyes.com/press/joe-debtor/            

Ontario Government – search for a collection agency: https://www.ontario.ca/page/search-business-licence-registration-or-appointment

Government of Canada - search for a licensed insolvency trustee: https://www.ic.gc.ca/app/scr/tds/web

Credit Counselling and Getting Out of Debt https://www.hoyes.com/blog/a-different-view-of-credit-counselling/

https://www.hoyes.com/blog/are-not-for-profit-credit-counselling-agencies-now-just-debt-collectors/

Ontario Ministry of Government and Consumer Services  https://www.ontario.ca/page/ministry-government-and-consumer-services

Interest rates are at 18-year highs in Canada and if you got a mortgage in the last few years, you’re probably dealing with higher mortgage payments today. If rates keep rising, what potential challenges will come up for mortgage holders? What happens when you hit a trigger rate? What do costly mortgages mean for renters? On today’s podcast, mortgage expert extraordinaire Ron Butler returns to discuss the impact five straight interest rate hikes have had on mortgages and whether now is a good time to buy. Ron also shares a special announcement at the end of the podcast – be sure to tune in for some great insights and practical advice.

Links:

Ron Butler on Twitter: https://twitter.com/ronmortgageguy

High Interest Rates and Debt: What Can You Do/ https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/

Average Toronto House Prices: https://wowa.ca/toronto-housing-market

Butler Mortgage (Mortgage Rates): https://www.butlermortgage.ca/mortgage-calculator/

Show 293: Debt, HELOCs, and The New World of Mortgage Lending with Ron Butler https://www.youtube.com/watch?v=VDSd6z5EJzA

Show 334: Mortgages & Home Equity Refinancing: What Are The Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0

Show 376: Should You Help Your Child Get a Mortgage? with Ron Butler https://www.youtube.com/watch?v=INc3t7ikv-w

Show 403: What’s Happening Now that Mortgage Rates Are Up? https://www.youtube.com/watch?v=Iw-HtqgOgJM

We’ve now had our fifth interest rate hike in 2022 alone. Mortgages are costing more to service. And so are callable debts – which are debts that can have their repayment terms changed whenever at the lender’s discretion. On today’s podcast guest Scott Terrio returns to discuss how rising rates are putting more homeowners at risk of serious debt issues and even insolvency, especially as credit tightens. Scott also explains what callable debts are, how they work, and the dangers of carrying high balances on them when rates are rising. Scott and Doug also share lots of practical advice to help you spot when your own finances may be at risk. Tune in for a great discussion!

Related Links:

Rising Interest Rates and Debt – What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/

Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/

Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/

The Criminal Code of Canada says that it’s a criminal offence to charge an interest rate of more than 60%. The federal government is considering lowering that rate. Is this a good idea? What could go wrong? On today’s podcast, Ted Michalos returns to discuss whether this plan by the Government of Canada will make any meaningful difference, and what the unintended consequences of the proposal may be. Doug and Ted also share their four recommendations to the Government to better protect consumers when it comes to usury laws. Please note that the government will be accepting your comments until October 7, 2022, so tune in to this podcast to understand the issue and then send them an email with your thoughts at consultationconsumeraffairs.consultationconsommation@fin.gc.ca with ‘Predatory Lending Consultation’ as the subject line.

Resources Mentioned in the Show:

Department of Finance Canada Issues Consultation Paper on Criminal Rate of Interest: https://www.mccarthy.ca/en/insights/blogs/techlex/department-finance-canada-issues-consultation-paper-criminal-rate-interest

Garland vs. Consumers’ Gas Company: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/2138/index.do

Criminal Code, section 347, criminal interest rate: https://qweri.lexum.com/w/calegis/rsc-1985-c-c-46-en#!fragment/sec347/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoJC4BmAFgHYBKAGmW1MIgEVFDcBPaAHIhzSmFwIefQSLGEJCAMp5SAIUEAlAKIAZbQDUAggDkAwtuakwAI2ilscRoyA

Bank of Canada posted interest rates, chartered banks: https://www.bankofcanada.ca/rates/banking-and-financial-statistics/posted-interest-rates-offered-by-chartered-banks/

Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/

It’s Season #9 of Debt Free in 30! Life is changing fast – there’s no question about it. How can you navigate this crazy economy? How do you deal with an ever-limited budget? Doug Hoyes returns in this short season premiere rant to share what you can expect from our show this season and helpful resources to get you through these tough times. Tune in.

Resources Mentioned in the Show:

How One Man Retired Debt-Free at Age 48: https://www.hoyes.com/blog/how-one-man-retired-debt-free-at-48/

Debt Free in 30 Newsletter Archive & Sign Up: https://www.hoyes.com/newsletter-archive/

Insolvency Updates Newsletter Sign Up: https://lp.constantcontactpages.com/su/wAp31r4/insolvencyupdates

How to Rebuild Credit course: https://courses.hoyes.com/

It’s our final rebroadcast episode of the summer, and today we rebroadcast episode 400 of the Debt Free in 30 podcast and Doug Hoyes shares his wisdom on how to protect yourself against job loss. If the pandemic has taught us anything it’s that no job is secure. So, what can you do to avoid getting financially burned if you’re out of work? If you’re unhappy with your job, should you switch? What’s the smartest way to go about making a change? On today’s podcast Doug discusses three basic work truths and lots of practical advice you should understand to help you navigate the employment world.

Links:

Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/

Follow Doug Hoyes on Twitter: https://twitter.com/doughoyes