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

When the pandemic first started, the Canada Revenue Agency slowed their collection efforts on income tax debt owing. But with the economy reopened, we are starting to see notices filed by the CRA to individuals owing on income tax, including CERB and CRB debts. Is this a sign that the CRA is ramping up efforts again? What are your options if your employer is served with a Requirement to Pay notice from the government? What if you get a notice that you were overpaid for CERB/CRB or ineligible? Tune in to this panel discussion with Ian Martin, CPA, LIT and Scott Schaefer, CPA, LIT (our in-house tax experts) and host Doug Hoyes for lots of practical advice!

 

Additional Resources:

 

CRA Collection Letters for CERB Ineligibility or Overpayment. Can You File Bankruptcy? https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment/

What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/

Should I Borrow to Pay Taxes to CRA? https://www.hoyes.com/blog/should-i-borrow-to-pay-taxes-to-cra/

Today we rebroadcast episode #339 (and it's even more timely today). For many people, a car is a necessary expense to get to work and run errands. But what if you unintentionally bought too much car and your car loan is now creating financial problems? What are your options? Is it possible to get out of a car loan? On today's podcast, Ted Michalos and Doug Hoyes discuss when you might want to hand your vehicle back, how to do it, and what happens with the loan shortfall. Tune in for lots of practical advice!

Related link:

Voluntary Surrender: Should I Hand My Vehicle Back? https://www.hoyes.com/blog/voluntary-surrender-should-i-hand-my-vehicle-back/

For the average Canadian family, their largest monthly expense is their rent or mortgage payment, and unless they have a very expensive car, their second biggest expense is often food.

If you have a limited income, how can you manage your food budget effectively?

Is it possible eat healthy without breaking the bank?

On today's show we welcome Heidi Pola, a Registered Dietician who gives practical advice on how to eat healthy and save money.

Doug is joined by first-time guest Dr. Saul Schwartz, Professor Emeritus at the School of Public Administration at Carleton University in Ottawa, who holds a Ph.D. in Economics. They discuss Dr. Schwartz's recent paper titled "Tilting the Playing Field Away from the Discharge of Debts: The Case of Consumer Proposals in Canada." Together, they discuss the rise of consumer proposals over bankruptcies in Canada, surplus income, the influence of licensed insolvency trustees and creditors, unregulated debt advisors, and potential solutions for low-income debtors.

Time Stamps:

00:00 Introduction

03:35 Failure rate for consumer proposals

05:07 Why have consumer proposals overtaken bankruptcies in Canada?

08:33 Surplus income

12:12 Are the licensed insolvency trustees making more money on consumer proposals?

14:50 The creditors impact on a bankruptcy and consumer proposals

24:55 Unregulated debt advisors

33:39 Solutions for low-income debtors

44:22 Final thoughts

Related Links:

Dr. Saul Schwartz, Biography - https://carleton.ca/sppa/people/schwartz-saul/

The Adverse Effects of the Debt Advisory Marketplace on the Insolvency System - https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/adverse-effects-of-the-debt-advisory-marketplace-on-the-insolvency-system

Consumer Proposal vs Personal Bankruptcy - https://www.hoyes.com/consumer-proposals/consumer-proposal-vs-bankruptcy/

Is a Consumer Proposal the same as a Bankruptcy? - https://www.hoyes.com/blog/consumer-proposal-bankruptcy/

Who Does What in a Bankruptcy and Consumer Proposal? - https://www.hoyes.com/blog/who-does-what-in-a-bankruptcy-and-consumer-proposal/

Bankruptcy & Your Credit Score - https://www.hoyes.com/personal-bankruptcy/effect-bankruptcy-credit-rating/

Consumer Proposal And Your Credit Rating - https://www.hoyes.com/consumer-proposals/consumer-proposal-affect-credit-rating/

Negotiating Consumer Proposals. What Your Creditors Expect - https://www.hoyes.com/blog/negotiating-consumer-proposals-what-your-creditors-are-expecting/

Avoid The Surplus Income Penalty With A Consumer Proposal -https://www.hoyes.com/blog/avoid-the-surplus-income-penalty-with-a-consumer-proposal/

Why Surplus Income Is an Important Part Of Your Debt Recovery - https://www.hoyes.com/blog/surplus-income-important-part-debt-recovery/

Surplus Income Bankruptcy Calculator - https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/

Surplus Income Payments - https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-payments/

Will the Federal Government Finally Put an End to Unregulated, Unlicensed Debt Consultants? - https://www.hoyes.com/blog/will-the-federal-government-finally-put-an-end-to-unregulated-unlicensed-debt-consultants/

The summer is only half over, yet so much has happened to the economy in 2022. Gas prices have started to come down after intense surging, and interest rate hikes are at record highs and may keep going. What can we expect for the next six months of the year? Enter Doug and Ted. On today's podcast, Doug Hoyes and Ted Michalos give us their mid-year review and share their predictions for consumer debt levels, inflation, bankruptcy filings, and whether CRA collections will intensify in the Fall. Tune in for a lively discussion and practical advice on managing your finances for the rest of the year.

Additional Resources:

Ontario Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/

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

So far in 2022 the Bank of Canada has raised its overnight lending rate four times. Its most recent hike in July was the biggest one since 1998. If you're trying to buy a home now, what can you do to make the purchase affordable? Is it a good time to even get a mortgage? Would it be better to rent and wait? On today's podcast, Doug Hoyes and Ted Michalos walk you through the basics of mortgage borrowing, costs that comes with it, explain common mortgage terms, and discuss the factors to consider before buying a home in the first place. Tune in for lots of practical advice & explainers!

Links:

CMHC Mortgage Loan Insurance Cost: https://www.cmhc-schl.gc.ca/en/consumers/home-buying/mortgage-loan-insurance-for-consumers/cmhc-mortgage-loan-insurance-cost

What's Happening to Mortgages Now That Rates Are Up? With Ron Butler: https://youtu.be/Iw-HtqgOgJM

What options do homeowners have when they've got a lot of home equity and a lot of unsecured debt, but the bank won't let them refinance by borrowing against their home? On today's podcast, Ted Michalos and Doug Hoyes explain why homeowners often carry so much more debt than non-homeowners, how to deal with your unsecured debts whether refinancing is an option or not, and how an insolvency filing can affect your home. Given today's economic situation, this may sadly be a reality for many homeowners in the months and years to come. Tune in for lots of practical strategies and advice!

 

Helpful Links:

 

Second Mortgage or Interest-Free Consumer Proposal: https://www.hoyes.com/blog/second-mortgage-or-interest-free-consumer-proposal/

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

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

We often meet with clients who have struggled with their debt for a lot longer than they needed to. This is often because they feel embarrassed or ashamed to ask for help. But why do we struggle so much to talk about our financial situation? On today's podcast, Maureen Parent, LIT in our Kanata office returns to give insight as to why we are so afraid to talk about debt. Maureen and Doug draw from their years of experience helping clients and share lots of practical advice to help you overcome the fear of talking debt. Tune in!

Additional Links:

Is the 50-30-20 Budget Rule Even Do-Able Today? https://youtu.be/hANI5zadF2I

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

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

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

One of the most common borrow-to-invest strategies is to take money from your home equity to purchase an investment property. But is this always a good idea? What if you borrow to invest in the stock market instead? Is that riskier? Is it ever OK to take on debt to invest or is it something you should never do? On today's podcast, Ted Michalos and Doug Hoyes walk you through how to decide when you are ready to invest, the three ways to invest in stocks, what risks are, and the general dos and don'ts of using your hard-earned money to potentially get a return on it. Tune in for lots of practical advice!

Resources Mentioned in the Show:

Straight Talk on Your Money book by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034/

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

Residential House Prices, Historical Chart: https://fred.stlouisfed.org/series/QCAR628BIS

2022 has so far brought rapidly declining real estate prices, record high gas and food prices, and rising interest rates. It's looking to be a perfect financial storm. So how are all these variables impacting indebted Canadians? On today's podcast, Scott Terrio, Manager, Consumer Insolvency at Hoyes Michalos, returns to discuss what he's seeing from individuals struggling with debt, borrowing trends, and the role inflation is playing in household budgets. Scott and Doug also share their thoughts on why homeowner-driven insolvencies may rise soon and give practical advice for what to do if you're dealing with problem debt in this economic climate. Tune in for a lively discussion!

 

Links:

 

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

Ontario Bankruptcy and Consumer Proposal Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/

Podcast 399 – Is the Housing Market Finally Slowing Down? with Nasma Ali https://youtu.be/4XjDd4JOvVc

We are still in unprecedented times. House prices are going down even though inventory is limited. The unemployment rate is at a 40-year low, and yet insolvencies remain at record lows. What's going on? Will this climate last forever? Enter Ben Rabidoux. Ben returns to the podcast with Doug Hoyes to share his unique insights and research on where housing is heading, whether he sees mortgage rates coming back down, his thoughts on the employment rate and recession, and the show ends with the first-ever Debt Free in 30 wager

 

Links:

Ben Rabidoux on Twitter https://twitter.com/BenRabidoux

Edge Realty Analytics: https://edgeanalytics.ca/

Bank of Canada: Mortgage Rates: Bank of Canada: https://www.bankofcanada.ca/2022/06/financial-system-review-2022/#box1

Ontario Consumer Insolvency Statistics: https://www.hoyes.com/press/consumer-insolvency-statistics/

Statistics Canada, Household Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Episode #379, Will Housing Ever Be Affordable with Ben Rabidoux: https://www.youtube.com/watch?v=exHteyKX5Tg

Bank of Canada, 5 Year Bond Yield: https://www.bankofcanada.ca/?p=39890

Monthly mortgage payment on a typical home: https://twitter.com/BenRabidoux/status/1528768057178476544

Rising Interest Rates: 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/

Canada Historical Mortgage Rates: https://www.ratehub.ca/5-year-fixed-mortgage-rate-history

Landlord Rescue Property Management https://landlordrescue.ca/

Statistics Canada. Table 14-10-0287-01  Labour force characteristics, monthly, seasonally adjusted and trend-cycle: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701

Statistics Canada. Table 36-10-0112-01  Current and capital accounts - Households, Canada, quarterly https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Statistics Canada. Table 36-10-0639-01  Credit liabilities of households (x 1,000,000) https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610063901

 

 

Time Stamps:

 

00:57 Will housing ever be affordable?

04:25 Have mortgage pre-approvals impacted prices?

10:01 Will mortgage rates come down in the next few months?

11:25 Doug thinks we are in a recession already; Ben disagrees

11:50 The unemployment rate is at 40 year lows

14:55 Is the household savings rate going to tank?

16:40 Are credit card balances increasing?

22:30 Will insolvencies go up soon?

28:02 Ben and Doug make a wager

If you die with debt, does it get passed on to someone else in your family? Is it possible for an estate to file a bankruptcy or consumer proposal? On today's podcast, Doug Hoyes and Ted Michalos discuss what happens when you still owe creditors after you've passed and the impact on your estate. They provide practical advice on dealing with joint debt when one spouse has passed, how adult children can navigate debt repayment for their aging parents, and other dos and don'ts when it comes to dealing with an insolvent estate, including whether it's a good idea to file a bankruptcy or consumer proposal post-mortem. Tune in for lots of helpful tips!

Links:

Does Debt Survive Death? https://www.hoyes.com/blog/does-debt-survive-death/

CPP Death Benefit: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-death-benefit.html

CPP Survivor's Pension: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html

You may be wondering if you can strike a debt repayment deal with your creditors without going to a Licensed Insolvency Trustee and a formal insolvency filing. Well, it depends on how much you owe, who you owe, your assets, and lots of other factors. On today's podcast, Doug Hoyes and Ted Michalos walk you through all the different scenarios in which you could deal with creditors by yourself, the risks to that, benefits, and they discuss when filing a consumer proposal or bankruptcy is the better option. Tune in!

Related Links:

Can I Negotiate a Debt Settlement on My Own: https://www.hoyes.com/blog/can-i-negotiate-a-debt-settlement-on-my-own/

Negotiating Consumer Proposals – What Your Creditors Expect: https://www.hoyes.com/blog/negotiating-consumer-proposals-what-your-creditors-are-expecting/

Bankruptcy Protection in Canada: An Automatic Stay of Proceedings: https://www.hoyes.com/blog/bankruptcy-protection-in-canada-an-automatic-stay-of-proceedings/

We're facing massive inflation with more and more people turning to debt to make ends meet. Bankruptcies are still at record lows, but perhaps not for much longer. On today's podcast, Doug Hoyes and Ted Michalos give us an update on what's going on now and how the rising cost of living is impacting our wallets. They also explain why someone would ever need to file bankruptcy by providing some realistic scenarios that lead one to financial trouble. Doug and Ted also share their predictions for what's to come and give lots of practical advice for how to manage debt in today's economy. Tune in!

 

Links:

 

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

Why and How Does Someone go Bankrupt? https://www.hoyes.com/blog/why-and-how-does-someone-go-bankrupt/

Statistics Canada. Table 36-10-0112-01 Current and capital accounts - Households, Canada, quarterly https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Doug is joined by Kim Wilhelm, CEO of the Food Bank of Waterloo Region. Together, they talk about the various programs available to the local community in need of food. They discuss the impact cost of living has had on the food bank, issues of food inflation and food insecurity, changes in demand since the pandemic, ways to donate, and how those in need can access food.

Time Stamps:

00:00 Introduction

01:30 Food assistance programs

02:41 Hunger count

06:56 Food insecurity

08:13 How has the demand for the food bank changed since the pandemic

11:14 Food inflation

14:13 How does the food bank receive food

16:01 How can you donate cash to the food bank

16:51 The impact cost of living has had on food donations

18:20 How can you receive food from the food bank

22:04 Food bank delivery program

22:40 Food bank eligibility and agency support

29:44 Food banks most needed food items

33:40 Conclusion

 

Related Links:

Hoyes Michalos is a proud partner of the Food Bank of Waterloo Region - https://www.hoyes.com/community-involvement/

Food Bank of Waterloo Region - https://www.thefoodbank.ca/

Food for Thought Blog - https://www.thefoodbank.ca/blog/

Volunteer at the Food Bank - www.thefoodbank.ca/volunteer

Community Food Assistance Network- www.thefoodbank.ca/network/map

Hunger in Waterloo Region - www.thefoodbank.ca/about/hunger/

Real estate prices are down in many parts of Ontario after record increases. Not surprising since the Bank of Canada has indicated it will raise rates again. But what has this done to mortgages? What's happening when people renew? How has mortgage qualification changed? Enter Ron Butler, mortgage broker extraordinaire. On today's podcast, Ron is back to give us an update on what he's seeing on the ground with respect to mortgages. He also shares whether now is even a good time to buy. You won't want to miss this discussion – lots of insight and great advice. Tune in!

Links:

Butler Mortgage website: https://www.butlermortgage.ca/

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

Average Toronto house prices: https://wowa.ca/toronto-housing-market

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

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

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

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

 

Time Stamps:

4:43 When did the real estate market start to soften?

7:49 How are you supposed to afford a house in this market?

9:28 What is going on right now with the market?

13:49 How much more expensive is it to get a mortgage today?

19:20 What happens if you back out of a purchase?

26:03 This is the initial phase of a downturn

28:39 Should you buy now or rent?

32:10 Patience is a virtue – pause before you buy

A popular budgeting method called the 50-30-20 Rule dictates that you use 50% of your income on necessities like rent, 30% on wants, and 20% to savings and debt repayment. But is this even a realistic money management approach in 2022? With soaring cost of living, many people spend close to 70%-80% on necessities alone. So is this budgeting method a lie now? Enter Maureen Parent, LIT. On today's podcast, Maureen and host Doug Hoyes discuss how this budget method can be adapted for today's cost vs. income reality and offer practical tips for managing your money and building savings. Tune in for lots of great advice!

Related Links:

Top Tips to Help You Create Your First Budget: https://www.hoyes.com/blog/top-tips-to-help-you-create-your-first-budget/

Managing Money on a Variable Income: https://www.hoyes.com/blog/managing-money-on-a-variable-income/

The Secret to Budgeting: https://www.hoyes.com/blog/the-secret-to-budgeting/

Since the pandemic lockdowns, a large number of people became self-employed or started their own businesses. Why? Because of job loss or a desire for more flexibility. Makes perfect sense. But while there are many benefits to being your own boss – you get a lot of independence – is it always the right decision for you? What are the pitfalls and when is it just better to get a new job rather than start your own business? Tune in to today's discussion with Doug Hoyes and Ted Michalos as they share the ups and downs of being self-employed (including the potential for debt problems), practical advice and personal experience to help guide your decision.

 

Related Links:

 

From Employee to Consultant Leads to Personal Debts https://www.hoyes.com/blog/from-employee-to-consultant-leads-to-personal-debts/

Self Employed: Financing Wisely to Avoid Debt Trouble: https://www.youtube.com/watch?v=F_lo_0JP46Q

Bad Funding Choices for Small Business: https://www.youtube.com/watch?v=UaklFv3eBvI

Debt Traps of Buying a Business: https://www.youtube.com/watch?v=-HbW9ww2BNg

It's 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

Ontario real estate prices are pulling back. Is this the end of the housing boom, or just a temporary slowdown? On today's podcast we have first-time guest Nasma Ali, founder of One Group, a real estate agency based in Toronto. Nasma explains what's currently happening with the real estate market. She also shares when she noticed the housing market slow down in the GTA, whether housing will ever drop by 50%, and whether now is a good time to buy. Nasma also discusses sales transparency and why it's worth working with an experienced agent when making one of the most expensive financial decisions of your life. Tune in for lots of great practical advice and rare insight!

 

Related Links:

 

One Group website: https://onegroupre.com/

Nasma Ali on Twitter: https://twitter.com/nasmadotali

Nasma Ali on Instagram: https://www.instagram.com/nasmadotali/

Average Toronto house prices: https://wowa.ca/toronto-housing-market

Butler Mortgage rates: https://www.butlermortgage.ca/rates/

 

Time Stamps:

 

1:13 What is going on with real estate?

6:41 When did the slowdown start?

9:58 What is a bully offer?

13:29 Is now a good time to buy or should you wait?

20:30 Will housing ever be affordable? Will GTA prices drop 50%?

25:35 Sale price + transparency

30:55 Is there a real benefit to working with an agent? Can you DYI real estate sales?

More than 1 in 5 of our clients, people who file a bankruptcy or consumer proposal with Hoyes Michalos, are separated or divorced at the time they file with us. So, what happens when you have debt and are facing divorce? Can you divide debt in a separation agreement? What if it's joint debt? On today's podcast, Doug Hoyes and Ted Michalos explain how debt is managed when couples are facing separation and financial issues. They explain when it may be necessary for both parties to file insolvency if they have joint debt. They also discuss alimony, child support payments, and how joint assets are treated in an insolvency, among other issues. Tune in for lots of practical advice!

Links:

Should You File Bankruptcy Before or After Divorce? https://www.hoyes.com/blog/should-you-file-bankruptcy-before-or-after-divorce/

What Happens to Joint Property in a Bankruptcy? https://www.hoyes.com/blog/what-happens-to-joint-property-in-a-bankruptcy/

Divorce and Bankruptcy Law in Canada https://www.hoyes.com/blog/divorce-and-bankruptcy-law-in-canada/

When the pandemic first started, the Canada Revenue Agency slowed their collection efforts on income tax debt owing. But with the economy reopened, we are starting to see notices filed by the CRA to individuals owing on income tax, including CERB and CRB debts. Is this a sign that the CRA is ramping up efforts again? What are your options if your employer is served with a Requirement to Pay notice from the government? What if you get a notice that you were overpaid for CERB/CRB or ineligible? Tune in to this panel discussion with Ian Martin, CPA, LIT and Scott Schaefer, CPA, LIT (our in-house tax experts) and host Doug Hoyes for lots of practical advice!

 

Additional Resources:

 

CRA Collection Letters for CERB Ineligibility or Overpayment. Can You File Bankruptcy? https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment/

What To Do If You Owe Back Taxes to CRA: https://www.hoyes.com/blog/what-to-do-if-you-owe-back-taxes-to-cra/

Should I Borrow to Pay Taxes to CRA? https://www.hoyes.com/blog/should-i-borrow-to-pay-taxes-to-cra/

When you go bankrupt in Canada, you have to make a payment into your estate, for your creditors. This is called a surplus income payment. But are surplus income limits out of touch with today's cost of living realities? How can it be fair that someone living in a major city like Toronto or Vancouver must pay the same amount into a bankruptcy as someone living in a small town, with lower living costs? On today's podcast Doug Hoyes and Ted Michalos discuss the issues of surplus income payments, how debtors can make informed financial decisions before filing an insolvency, and when it may be better to file a consumer proposal instead of a bankruptcy. Tune in!

 

Resources Mentioned in the Show:

 

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

Superintendent of Bankruptcy Directive No. 11R2-2022 Surplus Income https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br03249.html

Hoyes Michalos What is Surplus Income? https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-payments/

Hoyes Michalos Surplus Income Calculator: https://www.hoyes.com/personal-bankruptcy/cost-of-bankruptcy-fees/surplus-income-calculator/

Inflation Statistics, Statistics Canada https://www150.statcan.gc.ca/n1/daily-quotidien/220316/dq220316a-eng.htm

Average rents in Toronto: https://www.torontorentals.com/blog/toronto-gta-december-rent-report-2021

After two years of working from home, many people are being called back to work in the office. But since 2020, costs, like gas, have soared.  How much more expensive is it going to be to go back to the office? Is it a good idea to look for another job that offers remote work instead? What are the risks to that? On today's podcast, Doug Hoyes and Ted Michalos discuss which costs are now higher, who is more likely to be adversely affected, the potential risks of changing jobs, and give advice on how to cope financially. Tune in!

 

Links:

 

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

We often want to help friends and family financially when they ask for help. But sometimes that help leads to financial problems for us (like co-signing a loan and ending up having to pay it!). How do you say no without seeming harsh or unhelpful? On today's podcast, we have a panel discussion with Scott Schaefer, LIT Maureen Parent, LIT and host Doug Hoyes, with a special appearance by Ian Martin, LIT, sharing cautionary tales of financial help backfiring on their clients. They also explain why we find it so hard as human beings to say no to giving help and share practical advice for how to navigate requests for money from friends and family. Tune in!

Links:

Never Loan Money to Family and Friends: https://www.hoyes.com/blog/never-loan-money-to-family-and-friends/

Straight Talk on Your Money Book: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034

Maureen Parent, LIT, Kanata: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/

Scott Schaefer, LIT, Kitchener: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/scott-schaefer/

Ian Martin, LIT, Kitchener: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/ian-martin/

Join Doug and Ted as they uncover the hidden costs of home ownership that often surprise new homeowners. From maintenance and repairs to rising interest rates and potential job loss, they discuss real-life examples and offer practical advice on deciding whether to buy a home, mitigating risks, and estimating unforeseen costs. Plus, they break down the costs of renting versus buying in today's market. Don't miss this informative discussion on the true cost of owning a home.

Time Stamps:

00:00 Introduction

01:20 Mortgage vs rent payments

03:31 Upfront costs of purchasing a home

04:41 Maintenance costs

16:05 Unexpected costs of home ownership

18:18 Practical advice

27:22 Conclusion

Related Links:

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

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

Renting Vs. Buying: Which One Makes More Sense?: https://www.hoyes.com/blog/renting-vs-buying-which-one-makes-more-sense/

Why Does Home Ownership Cause Financial Problems?: https://www.hoyes.com/blog/why-does-home-ownership-cause-financial-problems/

How to Avoid Being House Poor – https://www.hoyes.com/blog/how-to-avoid-being-house-poor/

Why a House Does Not Guarantee Financial Security: https://www.hoyes.com/blog/why-a-house-does-not-guarantee-financial-security/

How to Get a Mortgage Even After Bankruptcy: https://www.hoyes.com/blog/how-to-get-a-mortgage-after-bankruptcy/

You've paid off your debts. Now you have some cash to invest. How do you get started? On today's podcast, Doug Hoyes and Ted Michalos walk you through what you need to consider before you invest. They explain how TFSAs, RRSPs, RESPs, and RDSPs work and when you should put your money in each. They also discuss the risks that come with stock trading and the true costs of mutual funds. Doug and Ted also explain the different investor personality types so you can better understand yourself. Tune in for great practical advice!

 

Resources Mentioned in the Show:

 

RDSP & RESP expert – Big Cajun Man's website: https://www.canajunfinances.com/about/

Jason Heath, Certified Financial Planner: https://objectivefinancialpartners.com/

Sandi Martin, Certified Financial Planner: https://springplans.ca/

Investment Selling is Not Financial Planning: https://www.hoyes.com/blog/investment-selling-is-not-financial-planning/

Podcast 360 – Planning Retirement with Limited Savings & Income: https://www.youtube.com/watch?v=nth1wjv5s8M

Podcast 215 – What is a Robo-Planner? Automated Financial Planning: https://www.youtube.com/watch?v=rXW7a7EdCKA

Our latest bankruptcy study revealed that the average female debtor's unsecured debt increased 6.5%, while her male counterpart only had a 0.7% increase in his unsecured debt load in 2021. Why is this? What are specific issues that women in debt face? On today's podcast, we have an all-female panel of Trustees, who share their insights from client interactions, as well as personal experiences. They discuss why women have less take-home pay compared to men; share advice on how women can advocate for themselves in the workplace; discuss the pink tax and its effect on spending, and much more! Tune in for a great roundtable.

Related Links:

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

Why Women Face Higher Bankruptcy Risk: https://www.hoyes.com/blog/why-more-women-are-filing-bankruptcy/

Profile of Jennifer Kwon, LL.B., LIT, Mississauga: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/jennifer-kwon/

Profile of Rebecca Martyn, LIT, Windsor: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/rebecca-martyn/

Profile of Maureen Parent, LIT, Kanata: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/

Because there aren't already enough lenders out there, Canada Post has now also come out with their own loan called the 'MyMoney Loan,' partnering with TD Bank. It's a strategic alliance, aimed at Canadians in rural, remote, and Indigenous communities. But, this Canada Post loan is not so cheap. While it's more affordable than a payday loan, is it really a viable option for Canadians who can't easily access a traditional bank? Find out on today's podcast with host Doug Hoyes and guests Rebecca Martyn, LIT, Jennifer Kwon, LIT, Maureen Parent, LIT, and with a special appearance by Tom Cooper from the Hamilton Roundtable for Poverty Reduction.

 

Related Links:

Canada Post Press Release https://www.newswire.ca/news-releases/canada-post-and-td-enter-strategic-alliance-to-expand-access-to-financial-services-for-canadians-861926361.html

Canada Post My Money Loan https://www.canadapost-postescanada.ca/cpc/en/personal/mymoney/loan.page

Canada Post 2020 Annual Report https://www.canadapost-postescanada.ca/cpc/doc/en/aboutus/financialreports/2020-annual-financial-report.pdf

Canada Post 2021 Quarterly Reports https://www.canadapost-postescanada.ca/cpc/en/our-company/about-us/financial-reports/quarterly-financial-reports.page?

DFI30 Episode 145 Poverty Reduction: What Can We Do? With Tom Cooper  https://www.youtube.com/watch?v=juYQjuP0g9w

Hamilton Roundtable for Poverty Reduction https://hamiltonpoverty.ca

The Hoyes Michalos 2021 Joe Debtor Bankruptcy Study revealed that insolvent Canadians owed the highest level of unsecured debt since 2016. In 2021, the average insolvent debtor owed $50,484 in unsecured debt, with income tax debt and student loans driving insolvency filings. On today's podcast, Doug Hoyes and Ted Michalos explain why this is just the tip of the iceberg and that student loans and tax debt balances are likely to go even higher in the future, along with other consumer debts. Doug and Ted also discuss other key findings from our Joe Debtor 2021 study. Tune in!

Links:

Hoyes Michalos Annual Consumer Insolvency Study (Joe Debtor): https://www.hoyes.com/press/joe-debtor/

CRB Repayment: https://www.canada.ca/en/services/benefits/ei/cerb-application/transition/questions.html

CRA Interest Relief: https://www.canada.ca/en/services/taxes/income-tax/personal-income-tax/covid19-taxes/interest-relief.html

Predictions for Consumer Debt Coming Out of the Pandemic: https://youtu.be/LCE6EkOwi8E

Why Credit Card Debt Fell During the Pandemic & Will It Rise Again? https://youtu.be/Fqh_DF0xUrc

We know how hard it can be to live paycheque to paycheque or not have money available when a bill payment is due. Fintech is also recognizing this issue and developers have now created what's called 'early wage access' or 'pay advance' apps. But are these apps really a good idea? Will getting paid sooner fix a cashflow problem or will it create more budgeting issues? How should you actually deal with a lack of income? Tune in to today's podcast as Doug Hoyes and Ted Michalos discuss these apps, their risks, and what to do instead to budget successfully.

Links:

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

Dayforce Wallet: https://www.dayforcewallet.com/ca/faq

Dayforce Prepaid Mastercard Fee Agreement https://www.dayforcewallet.com/dayforcewallet/media/wallet/documents/cha.pdf

Earnin App https://www.earnin.com/

Dave App https://dave.com/

Lenders sometimes 'trick' us by posting only the weekly cost of borrowing a loan (which is a much smaller number) than the monthly cost in their ads. Or they offer you an 8-year term on a car loan, which stretches the cost over more years, reducing your monthly payment, but increasing the total interest you pay. In both cases, the lender 'wins' by getting your sale and you end up owing a lot more than you originally planned for. So how can you avoid falling for lender tricks and approach offers more with a more critical eye? That's the discussion on today's podcast with guest Scott Terrio and host Doug Hoyes! Tune in.

Links:

Scott Terrio on Twitter: https://twitter.com/ScottTerrioHMA

How Car Loans and Loan Rollovers Lead to Insolvency https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/

Although the Bank of Canada held interest rates steady in their January 26, 2022 announcement, rates are expected to increase in 2022. When that happens, will you be financially ready for higher borrowing costs? Could you afford to pay an extra, say, $50-$100 a month towards your debts? On today's podcast, Doug Hoyes and Ted Michalos breakdown how a rate hike would impact your finances, whether it's better to get a variable or fixed loan, and why it's important to prioritize debt repayment in a low-rate environment. Tune in for a great discussion.

 

Links:

 

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

Bank of Canada Policy Interest Rate https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

Understanding the Bank of Canada Policy Interest Rate: https://www.bankofcanada.ca/2021/04/understanding-policy-interest-rate/

Bank of Canada Mandate: https://www.bankofcanada.ca/publications/annual-reports-quarterly-financial-reports/annual-report-2020/mandate-and-planning/#:~:text=The%20Bank%20of%20Canada%20is,committed%20to%20a%20better%20Canada

Statistics Canada, Consumer Price Index Graphic https://www150.statcan.gc.ca/n1/en/pub/11-627-m/11-627-m2022004-eng.pdf

Butler Mortgage, Mortgage Rates https://www.butlermortgage.ca/rates/

Episode 383, Predictions for Consumer Debt Coming Out of the Pandemic https://youtu.be/LCE6EkOwi8E

For the first time ever on Debt Free in 30, we've gathered some of our Licensed Insolvency Trustees from across Ontario to share what they're seeing on the ground. How has the pandemic impacted indebted individuals? Has the vaccine mandate affected jobs and income? How is Canada Revenue Agency handling consumer proposals? All these questions answered and more, with insights from our Barrie, Mississauga, Oshawa, Cambridge/Brantford, Scarborough/Markham, Windsor, Kanata/Ottawa, and London area experts. Tune in for a great discussion.

 

Related Links:

 

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

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

Our guests, in alphabetical order:

Mark Borysiak, Barrie https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/mark-borysiak/

Howard Hayes, Cambridge and Brantford: https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/howard-hayes/

Jennifer Kwon, Mississauga https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/jennifer-kwon/

Rebecca Martyn, Windsor https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/rebecca-martyn/

Maureen Parent, Kanata and Ottawa https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/maureen-parent/

Ianina Raguimov, Oshawa https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/ianina-raguimov/

Joel Sandwith, London https://www.hoyes.com/ontario-offices/london/

Nicholas To, Markham and Scarborough https://www.hoyes.com/about-hoyes-michalos/bankruptcy-trustees/nicholas-to/

 

Time Stamps:

 

1:26 – How is the pandemic impacting the average indebted person?

10:16 - How are vaccine mandates impacting people's finances/jobs?

13:50 – What are creditors doing?

21:40 – How has rising real estate impacted people with high unsecured debt?

31:15 – How is the CRA handling income tax debt?

If you ignore an old debt, will it just go away? What if it's been removed from your credit report already? What if a creditor hasn't reached out to you about it in years? Does that mean you don't have to pay? Not exactly. On today's podcast, Doug Hoyes and Ted Michalos discuss how the Statute of Limitations works in Ontario, updates to the law, and which debts it does and doesn't apply to. They also review three scenarios to help you understand what may or may not happen when it comes to owing old debts. Tune in for lots of practical advice!

Links:

Ontario Limitations Act and Old Debts: https://www.hoyes.com/blog/ontario-limitations-act-old-debts/

What is the Limitations Act: https://youtu.be/97h2u9lqCCY 

Ontario Limitations Act via Ontario.ca: https://www.ontario.ca/laws/statute/02l24

Eyton Case, In re: John Trevor Eyton, 2021 ONSC 1819 (CanLII): https://www.canlii.org/en/on/onsc/doc/2021/2021onsc1719/2021onsc1719.html

Superintendent of Bankruptcy, Directive 6R: https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02402.html

Is it always worth the expense to have an accountant file your taxes? When is it OK to file them on your own? On today's podcast, Ian Martin, LIT and CPA, returns to provide practical advice for how to approach tax filing on your own and when it's time to seek professional help. Ian and Doug Hoyes also discuss the high cost of instant tax refunds, why not filing your taxes can be risky even if you don't owe anything, and they address common myths about income tax filing. Tune in for a great discussion!

Links:

Instant Cash Back on Tax Refunds. Is It Worth It? https://www.hoyes.com/blog/instant-cash-back-on-tax-refunds-is-it-worth-it/

Tax Returns Not Filed Because You Are Afraid You Have Tax Debts? https://www.hoyes.com/blog/tax-returns-not-filed/

Doug is joined by Technical Platform Cybersecurity Specialist, Eric Boivin from Flare. They discuss how cyber attacks can target your bank accounts and personal information, leading to money loss or identity theft. How weak cybersecurity can lead to debt, especially for those with student loans, mortgages, or credit card obligations. Eric shares practical advice on how to avoid fraud, choosing the best password using a password manager, and tools for watching financial accounts for suspicious activity.

Time Stamps:

00:00 Introduction

04:46 How can you protect yourself against cyber attacks

10:00 Passwords

20:51 What can you do to protect yourself from a cyberattack?

31:32 Practical advice

Related Links:

Flare Website - https://flare.io/

Flare LinkedIn - https://www.linkedin.com/company/flare-io/

Bitwarden Password Manager - https://bitwarden.com/

2021 was an interesting year for Canadian consumer debt. Insolvencies remained at record lows and many people were able to pay off their credit cards. But will these trends continue? On today's podcast, Doug Hoyes and Ted Michalos review what happened with consumer debt, insolvencies, and savings in 2021 and, provide their predictions for what's to come in 2022. With government income supplements winding down, collections activity starting again, and limitations periods near expiry, the new year should be interesting, to say the least! Tune in for their analysis.

 

Links:

 

Debt Statistics: What Happened to Debt During the Pandemic & Recovery of 2021 - https://hoyes.news/what-happened-to-debt-2021

Episode 348 – How Deflation Will Impact the Economy and Your Debt with Jeff Booth: https://youtu.be/7Kt7KBfemh8

Statistics Canada. Table: 36-10-0639-01. Credit Liabilities of Households: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501

Statistics Canada. Table: 36-10-0112-01. Current and Capital Accounts: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Statistics Canada. Table 14-10-0063-01. Employee wages by industry, monthly, unadjusted for seasonality: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006301

Statistics Canada, Labour Force Participation Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701

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

Federal government, fiscal update: https://budget.gc.ca/efu-meb/2021/report-rapport/intro-en.html

Bank of Canada, definition of Money Supply, and data: https://www.bankofcanada.ca/rates/indicators/key-variables/monetary-aggregates/

Money supply, Bank of Canada, https://www.bankofcanada.ca/rates/banking-and-financial-statistics/selected-monetary-aggregates-and-their-components-formerly-e1/

Monetary Aggregates, Bank of Canada, https://www.bankofcanada.ca/rates/banking-and-financial-statistics/selected-monetary-aggregates-and-their-components-formerly-e1/

Statistics Canada. Table 14-10-0063-01  Employee wages by industry, monthly, unadjusted for seasonality  https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410006301

Statistics Canada, Labour Force Participation Rate https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028701

Statistics Canada. Table 17-10-0005-01  Population estimates on July 1st, by age and sex

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501

Statistics Canada, Household Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Consumer Price Index, annual avg, not seasonally adjusted: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501

We all agree that life is getting more difficult for the average person. The cost of living is going through the roof; wages are stagnant, and no matter what you do, it seems impossible to get ahead. On today's podcast, Doug Hoyes explains the three forces that are conspiring against you: demographics, technology, and bad money. How did we get here? And how can you compete in today's challenging economy? Tune in to this special episode for Doug's insights and practical advice.

 

Resources Mentioned in the Show:

 

House Prices, Canadian Real Estate Association: https://creastats.crea.ca/en-CA/

Hourly Wages, Statistics Canada: shorturl.at/gGQT1

Rembrandt sketch, The Parable of the Talents: https://www.pubhist.com/w26841

NHL Statistics: https://www.quanthockey.com/nhl/seasons/2019-20-nhl-players-stats.html

Inflation, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501

2020 Canadian Federal Budget: https://www.budget.gc.ca/2021/report-rapport/anx1-en.html

Canada Emergency Wage Subsidy Statistics: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-statistics.html

Canada Emergency Response Benefit Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html

High-Income Tax Filers, Statistics Canada: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action

Baby Boom, Statistics Canada: https://www12.statcan.gc.ca/census-recensement/2011/as-sa/98-311-x/98-311-x2011003_2-eng.cfm

Historical Price of Oil: https://www.macrotrends.net/1369/crude-oil-price-history-chart

Historical Inflation Rate, Canada: https://www.macrotrends.net/countries/CAN/canada/inflation-rate-cpi

Historical Wages, Project Link Data from Statistics Canada & various sources: https://worthwhile.typepad.com/stephen/link/

Episode #271, TFSA, RRSP and Debt: https://youtu.be/7zn3JeAonV4

If you are new to credit or have recently completed an insolvency filing, you may be thinking about ways to improve your credit score without taking on more debt. While debt is necessary to have in order to build your credit, there are some strategies to improve your credit score without taking on more debt. On today's podcast, Maureen Parent, LIT, returns to discuss what makes up a credit score and how you can improve it without a lot of additional debt. She also talks about the importance of utilization rates, how to build a long credit history, why cash savings and rent payments don't count towards your score, and what to avoid so you don't harm your credit. Tune in for lots of practical advice!

 

Links:

How to Check Your Credit Report for Free: https://www.hoyes.com/blog/how-to-check-your-credit-report/

Straight Talk on Your Money by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034

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