Line of Credit Basics
When you apply for a loan and get approved, you enter into an agreement with the lender on a line of credit. For instance, if you get a personal loan, you will receive a personal line of credit, outlining how much you are able to get and how long you can get it for. You only get a line of credit with unsecured loans and these are hard to get because you have to have a very good credit record. With the unsecured loan, you are able to get quick access to line of credit funds.
An Easy Way to Make Your Kids Rich
If you are over 55 years old and live in British Columbia, you may be eligible to defer the property tax on your home until you sell it or pass away. The Province will charge you a very small simple interest, currently set at 2.5%, and a nominal administration fee. The rate is variable and is never greater than Prime minus 2%. But the best part of this deal is that the interest is simple, as opposed to compound.
Is Your Mortgage Protected?
If you own a home, chances are you have a mortgage. There are multiple types of mortgages – open-ended, close-ended, fixed rate, variable, etc. In the recent years we saw the emergence of so-called all-in-one accounts which combine checking and savings accounts, a line of credit and a credit card with a mortgage. This can significantly reduce your overall interest expenses and enable you to be debt-free years earlier, while at the same time providing convenience and ease of management by giving you only one combined monthly statement. But this is a subject of one of our next posts…
Are You Afraid of Your Credit Report?
Everyone has a credit report at some point, and it’s not always good! If you have ever filed for credit, whether it be for a credit card, cell phone or a loan, you have a credit score. Everyday, many people are trying to get approved for mortgages, car loans, student loans, etc. and are getting nowhere. It is essential that you know what your score of credit is before applying for anything. There are many avenues to take to getting it, especially with the Internet and different credit bureaus, so you can easily access your score. And now, a lot of places are offering free credit reports!
How To Build And Maintain Good Credit
Good credit in today’s society has become almost as important as a good name, reputation or education. We have become increasingly dependent on our ability to borrow money. While twenty years ago most people would hardly use credit for anything other than a house, today we use credit to buy more and more things – cars, TVs, stereos, computers and even cell phones.
Auto Industry and the Global Financial Crisis
Amidst all the noise about failing companies and government bailouts, louder than anything else in Canada we hear the voice of our auto industry. They claim to be hit by the global financial crisis more seriously than others and ask for taxpayer money. One of the major roles of the government is to stabilize the economy, and there is nothing wrong with financially supporting a large company or a whole industry to help them overcome temporary difficulties. But are their difficulties truly temporary? Is the liquidity crisis to blame for their troubles? Is everything going to be OK once credit starts flowing again?
A Dollar Today or a Dollar Tomorrow
A few days ago I had an argument with my wife about whether I should pay my traffic violation ticket now or wait until I absolutely have to. In British Columbia (we have Communist-style-evil-monster-government-monopoly auto insurance) ICBC can deny insurance renewal until all outstanding penalties are paid. My renewal is not coming up for almost a year, and if I have to pay a penalty, I prefer to delay that moment for as long as I can. But my wife believes that a dollar is a dollar, and it is better to pay today. This argument has prompted me to write this article.
Net Present Value (NPV) is a basic financial planning concept which reflects the fact that a dollar today is not the same as a dollar tomorrow. Disagree? How about a dollar in ten years? Would you prefer to receive a certain amount today or the same amount in ten years? Most people would rather get the money now.
Another Tax Saving Opportunity
This new savings vehicle was just introduced in Canada in January and most financial institutions already offer it. While the best way to choose the right product for you is to speak with your advisor, it is a good idea to have an understanding of how it works and what your options are.
What Type Of Online Banking Is Right For You?
There are many types of online banking, but out of all of those offers, emailed invites and account info, how do you make sense of which one is right for you? First, narrow down what type of banking is most important to you. If you are looking to buy a home sometime soon, then you may look at a bank that offers a low interest mortgage. If you want to pay bills quickly and easily, a no fee banking account where you can manage everything with the click of the mouse might be better.
How to Deal With Downsizing
More and more often, we hear the word downsizing. This is what companies do during recessions, and we are entering the scariest one in half a century. As gloomy as it may sound, downsizing is actually a healthy and reasonable response of a business to a slowing demand. Payroll expenses are mostly fixed, which means that no matter how much the company is producing, staff still needs to be paid. Therefore, reducing the headcount is a rational step. Also, labor costs are usually high in proportion to other expensed, especially in the industrialized world, and cutting them will make more difference to the bottom line than, for example, using smaller size fonts or turning computers off at night. A business is not a charity and its purpose is to survive and remain profitable. Therefore, unless you work for a collections agency, you need to be prepared.
