How to save for a down payment?

Buying your first or fifth house is both exciting and stressful. For many of us, this is a great achievement. Being the most prepared possible is probably the most important step in buying a home, including saving for the down payment. The majority of Canadians think they need to save thousands of dollars before they can even look for a home. Although a large down payment is advantageous, saving for this payment may be easier than you think. There are several steps that must be taken to ensure that you save money effectively.

Have a goal

Image result for have a goal Your primary goal is definitely buying the house, but unfortunately this goal is not specific enough. Rather, set yourself smaller but precise goals. So, to your surprise, you’ll manage to pick up the money for the first installment faster than you thought.

What should these small goals be? Technically, these goals will be what you want them to be. But if you’re looking for inspiration, here’s a list:

  • Automatically transfer a portion of your monthly income to a savings account
  • Spend months on meals in restaurants and eat more often at home
  • Give yourself a savings goal higher than previously established. You will be delighted once you reach it.

Whatever goals you set, make sure you can reach them but at the same time get out of your comfort zone. So, you will be able to buy the house of your dream in a reasonable amount of time.

Plan a budget

 <b>Plan a budget</b>

After setting your goals, set a budget. We all know that budgets are restrictive. But that’s the only way to reach the end goal of buying a house.

First, you must calculate your monthly expenses. These should be the essential things:

  • Rent
  • Public services
  • Grocery
  • Auto / Gas / Transportation
  • Paying debts
  • Contribution to a TFSA or RRSP

Once you calculate how much money you need per month to live, deduct that amount from your total income and you will get the money you have left. It is suggested that you deposit the majority of this amount into your savings account.

You can also plan to rent with option to buy

Follow the budget

Once the budget is set, the most difficult part is to respect it. Let’s be honest, respecting a budget is not easy. It takes a lot of effort and dedication, but you must always keep in mind the ultimate goal of all this, the house. Focus instead on the pleasure you will have once you own a home.

Save smartly

 <b>Save smartly</b>

In addition to respecting your budget and saving, you must save in an intelligent way. That means you have to be prepared for the unpredictable. Life goes on and your goal can be slowed down if you are not well prepared. You need an emergency fund . While saving for the down payment, try to save some money for emergencies and contingencies.

Increase your monthly income

 <b>Increase your monthly income</b>

If you absolutely want to buy a house, you can also consider increasing your monthly income, which will help you save more and more quickly. Find a second job on weekends. Sell ​​items you no longer use. Or turn your passion into a job. Just make sure these extra efforts bring you extra income.

Buying a home is an important decision in everyone’s life and saving for it will not be easy. But if you make a plan and follow it to the letter, the down payment will be accumulated faster than expected.

Loans and programs to help you out of debt | Loans Quebec

Image result for loans to help you get out of debtIn Canada, there are different types of debt that consumers may have; some good and some bad. Unfortunately, debt problems are problems that many of us will face one day, in our lifetime. Whether using our credit cards, buying cars or getting mortgages. As mentioned above, not all debts are bad. A bit of household or consumer debt can actually be a positive thing for your credit history, your credit report or your credit rating, if this is handled correctly of course. On the other hand, problems of indebtedness can occur. Situations simply beyond our control. Even trying to pay for basic necessities can be a problem when financial emergencies fall on us. So, for all borrowers currently struggling to settle their debts, do not panic, there are always solutions. They are not all practical or easy, but if you work hard and stay motivated, you’ll get away with it.

In the article below, we will discuss some of the most common types of debt in Canada and around the world. We will also discuss some of the solutions available to you. Once you have read this, you will be able to think of the solution that will suit you the most.

Unsecured debt

Unsecured debt

This type of debt is called “unsecured” because it does not require any property that can be used as collateral in the event of default by the borrower. In fact, unsecured debt is also commonly referred to as “consumer debt” because it involves the consumption of goods and services, which, in general, are not going to gain in value, as a home would. The most common types of unsecured debt include, but are not limited to:

Unsecured credit cards

This is one of the most common types of debt. In fact, it will probably be one of the first types of debt that Canadians will have. Although the legal age for signing up for a credit card is 18, it is not uncommon for parents to give pre-paid credit cards to their children, or simply to introduce the idea of ​​credit. . Many borrowers even have multiple credit cards, each of which offers a different range of benefits. Some are free, others have annual fees, give reward points, or offer small increases in money at the end of the year.

It’s pretty rare nowadays for someone to have only one credit card and it’s not necessarily a bad thing. In fact, the responsible management of a credit card is one of the first steps that a consumer can take to a good credit score. As long as you pay your monthly balance on time and in full, you should start developing a credit rating and a healthy credit history.

Again, credit card debt can certainly get out of control when a consumer enters a revolving debt cycle. After all, it can certainly be tempting to simply make the minimum monthly payments, instead of paying off the balance in full.

Line of credit

Image result for lines of creditA line of credit is a temporary loan of a predetermined amount, most often given to borrowers with good credit, by banks and other financial institutions. Most banks can offer their customers lines of credit of approximately $ 50,000. In this case, the borrower can tap into the bottom as needed, pay only interest on the money he withdraws, and make minimum monthly payments affordable. Lines of credit are frequently used for financial emergencies or to finance a major purchase when the balance of a borrower’s bank account can not support it, such as home renovations or the repayment of high-interest debt. However, it is good to know that lines of credit can be secured and unsecured. Generally, an unsecured line of credit will have a higher interest rate because it does not involve collateral, as would a secured line of credit.

 

Personal and commercial loans

Personal and commercial loans

 

Just like a line of credit, a personal or business loan can be requested to fund everything a borrower might need. This expense can be for a vacation, a car or a house that requires attention, or in the case of a commercial loan, to finance the company of the borrower. Where the personal or commercial loan differs from a line of credit is that the borrower will receive a sum of money that will be repaid in monthly installments. The higher the credit rating of the borrower, the higher the interest rate will be.

Debt guarantee

Debt guarantee

 

This type of debt is called a “guarantee” because a borrower must offer something as collateral to secure the loan or credit proceeds he or she requests. Guaranteed debt is more often needed to finance larger, more expensive purchases that the borrower can not afford. The guarantee involved can range from a small security deposit to the home of the borrower. In short, all that the lender can legally seize to recover the money that is due to him in case the borrower would be in default of payment on his loan. However, a secured debt can not be included in a bankruptcy claim or a consumer proposal. Some common types of secured credit include, but are not limited to:

mortgages

A mortgage is one of the most common examples of secured credit. Here, the potential landlord applies for a mortgage in order to finance a house that he is looking to buy. Like any type of loan, the borrower will repay his home in monthly installments, including interest, the rate of which must be discussed with the lender. The most important thing to know here is that since the mortgage is guaranteed, the house is the asset that will be used as collateral. In other words, if a borrower is in default, his lender could be forced to take over the house and sell it to recover his loss. This is a “seizure”.

Guaranteed auto loans

Auto loans can be unsecured, but secured loans are more common. According to the same principle as a mortgage, a borrower can obtain a loan through his chosen lender, with whom he will finance a car purchased and paid in monthly payments. And if he can not make his payments, the car will be seized.

Guaranteed credit cards

A secured credit card is an option that borrowers with bad credit or no credit history can use for their consumer needs. Unlike an unsecured credit card, this type of card, of course, will require a deposit before you can start using it. The user will have a predetermined credit limit on the card (often equal to the security deposit, but not always) and will be able to use it, then pay bills as needed, all with a lower interest rate than an unsecured card. Once the borrower decides to close his secured credit card, if the debt is fully paid, the security deposit will be refunded. When a borrower uses a secured credit card responsibly for long enough, their credit rating will increase and they can then apply for an unsecured credit card, if they wish.

How to manage your debt

How to manage your debt

 

If you have difficulty managing your debt, whether secured or not, from a credit card or mortgage, sit back, relax and know there are ways to settle the problem. In fact, debt problems have become a relatively common occurrence across Canada. While it’s true that not all debts are bad, too much debt can become overwhelming, and it can be difficult to find a solution. Especially when all you have in mind is the amount of money you owe. As mentioned above, all of these options are not simple or practical, but they are probably going to be better than being stuck for the rest of your life.

Debt consolidation loan

 

One of the first things you can try to do is apply for a debt consolidation loan from your bank or credit union. When it comes to this type of loan, borrowers with a higher credit rating will have an easier time getting a loan. Your lender will likely require some type of collateral, such as for secured debt. The more assets you have, the higher the loan will be. If you do not have collateral, your chances of approval will depend on other factors, such as your credit history and ability to repay a loan. However, if you manage to get a debt consolidation loan, you will know exactly when all your debts will be paid in full and you will also have a lower and more manageable interest rate.

Debt Management Program

 

Signing up for a debt management program means that you will be hiring a credit counselor and will work together to help you eliminate your debt once and for all. The credit counselor should be able to contact all your lenders and creditors and negotiate the terms of payments on your behalf. Your debts will then be consolidated into a single debt, which you will pay through your advisor in one fixed monthly amount. The only problem with such a program is that it is not a binding contract; some of your lenders may not accept it. However, if this is a possibility, enrolling in a debt management program will probably be less difficult and less burdensome than the following 2 options.

Consumer proposal

 

The main difference between a consumer proposal and a debt management program is the binding force of these. For the proposal to be accepted, more than half of your lenders must agree to participate. Once the proposal has begun, all debts included therein will be frozen, and you will be reimbursed through a trustee for up to five years. Meanwhile, your creditors will be forced to stop their actions against you and you will only need to deal with your insolvent trustee.

Bankruptcy

Image result for bankruptcyBankruptcy should be reserved for the most severe cases of indebtedness, because even if it could help you out, your credit will be damaged for 7 years. There are a number of situations that cause bankruptcy, and if you consider that among your options, you must make sure that you have no other choice. Like the consumer proposal, by declaring bankruptcy, you will work with an insolvency trustee who will help you file the bankruptcy claim. All your creditors will be contacted, any action against you (payroll, lawsuit, etc.) will stop and your debts will be frozen. A bankruptcy notice will then appear in your credit report for a minimum of 7 years, and you will need to rebuild your credit from scratch.

 

Overcome your financial fears | Loans Quebec

We all know, saving money and keeping your budget under control are the most important things a person could do, but it’s easier said than done. Managing your money well can be very stressful for you and those around you, but deciding to just give up and leave things as they are is even more stressful and dangerous for you and your well-being.

Getting started is definitely the hardest step, but we are sure that you are able to succeed today. These are our top four tips for you to overcome financial fears and eliminate all fears that prevent you from living a free financial life.

Put your goals in writing

 <b>Put your goals in writing</b>

The first step to overcome fears is to take a first step, any step. Start with something small. Rome was not built in a day. Trying to put your finances in order in one day will only lead to failure. To avoid this, write down all the goals you have on paper, which will allow you to prioritize and know where to start.

Make sure, however, that the goals you give yourself are realistic, without being too vague. You do not want to set unrealistic goals, but at the same time you want to challenge yourself.

Appropriate goals :

  • I would like to refund my credit card in 5 years
  • I would like to save $ 5,000 by the end of the year
  • I would like to save 5% of my pay for the emergency fund

Goals too vague:

  • Acquire financial security
  • Save money
  • Stop spending money

Do not worry about the length of your list, the goals of each are different, focus on what you have to do and go straight ahead.

Do not worry about how long it will take. Focus on your accomplishments

 <b>Do not worry about how long it will take. Focus on your accomplishments</b>

If you think about the time it takes you to accomplish your goal rather than focusing on how to achieve the goal, you will become stressed and depressed. You will lose confidence. While making the necessary efforts to accomplish your goals, keep a positive attitude and everything will be better.

The path to financial security may take time. Complaining will not change the situation. Instead of stressing over time, share the achievements with your loved ones and be proud of your achievements to date. Financial security is a pleasant goal to think about, but do not worry about the length of time it takes to get there.

Make a budget or plan for each goal

By making a clear plan for each goal set, you can keep everything under control while working on each goal individually. Some goals will go together. For others who do not go together, having a separate plan will not allow you to be overwhelmed by the workload.

Let’s say your first goal is to pay off your credit cards in two years. Here is a list of factors to consider:

  • Compile all the bills on your credit cards and calculate the total amount of the debt.
  • Create a personalized spending budget.
  • Call your credit company and ask for a lower interest rate
  • Analyze if a personal loan could be beneficial to pay off credit debt
  • Transfer card balances with high interest on cards with smaller interests

The most important thing in this process is to make your money work for you. Take control of your debts and do not stop working until your goals have been achieved. By making plans, lists and budgets, you will eliminate a lot of stress, which will allow you to stay focused on the ultimate goal: to gain financial freedom.

Ask for help if you need it

There is nothing shameful about asking for help. In fact, to admit that you need help will be more beneficial than simply trying to solve the problem on your own. And the sooner you admit that, the more positive the results will be. Every normal person can not and should not handle their financial problems on their own. Family and friends are here to help.

Do not think that you are the only one to have financial problems. You will be surprised to learn the number of people who live exactly the same as you. So, share your problems with others, maybe they can help you with sound advice. Do not be afraid to seek advice from:

  • Your friends and family members
  • Your financial advisors
  • Your bank
  • Your financial planner
  • Internet forums

In addition, sometimes, it is important to admit that there is nothing left to do. In these situations, the advice of an expert is your best solution to get out of it. These professionals may suggest that you take out a personal loan to pay off all the debts and then have only one payment to make. They can also put you in touch with private creditors, explain how you should manage your credit cards and help you create an emergency fund .

Start taking the first step toward financial security today. Making plans, analyzing credit card bills, monitoring the bank account, all this can be very scary, but once you’ve taken the first step, the others will be easier and you’ll feel better about it. better.

Can your existing debt be reduced with new loans?

 No one wants to face an overwhelming debt, yet thousands of people face this reality every year. They borrowed more than they could hope to pay. As the old saying goes: when you’re in a hole, it’s wise to stop digging. It is therefore sensible to avoid borrowing even a penny more when the situation becomes so difficult.

Is it really prudent advice?

 Is it really prudent advice?

In reality, an adage cannot solve a question as complex as that of debt. Surely, increasing one’s liability by adding to the debt with new loans is not wise; the secret is to replace with good loans your existing bad loans.

Debt and rehabilitation of your tax life

 Debt and rehabilitation of your tax life

There is a caricature of the over-indebted people who imply that they spent irresponsibly, that they did not know how to live within their means, and so they deserve a bit of their fate. It’s true, there are some people for whom it’s true, but most of the over-indebted people are due to circumstances out of their control: a job loss, a medical emergency requiring travel or even care a relative can all lead to a level of debt that exceeds the borrower’s ability to pay.

A responsible person looking to get rid of his debts usually stops borrowing the minute his financial situation or income improves. There is no harm in wanting to avoid increasing more debt. A restructuring or consolidation of what is due in these circumstances, however, can be a tool that allows a borrower to better manage the costs and payments associated with his debt.

Get out of the high-interest debt trap

 Get out of the high interest debt trap

Financial difficulties can often come together. Someone who is in a precarious situation can easily miss a credit card payment or two, which often causes a salty increase in the interest rate on it. A reasonable rate of 11% can very quickly be 27% before the situation is stabilized. Render it, it can be even harder to reduce, let’s make pay the amount that is due on this account.

High-rate credit cards can trap a borrower in a nightmare scenario where he finds himself paying senseless sums with almost no progress towards deleveraging. Example: A $ 5,000 credit card balance with a 27% interest rate on which you make minimum payments of $ 130 per month will take more than seven and a half years to fall to $ 0! The total amount you would pay is $ 11,713, including the initial amount. That is, you would pay $ 6,713 in interest on just $ 5,000! Your first payment of $ 130 would only reduce the principal of $ 18, the difference being entirely an interest payment.

You can, of course, avoid this trap by making larger payments and decreasing the balance more quickly, but in an already precarious financial situation, this may be impossible. If you have three credit card accounts of this type and you make three payments of $ 130 out of a total of $ 15,000 in debt, you will find the time very long and the progress very difficult. These minimum payments would represent a significant financial obligation and an interest cost alone that would exceed $ 20,000.

In such a situation, it is clear that a loan with a more reasonable rate would be wise and responsible.

A new personal loan and a new reduced interest rate

If we continue with the example above and replace the same credit card from $ 5,000 to 27% with a personal loan of the same amount at 13%, the same payment of $ 130 would allow you to settle the account 40 months plus early and pay only $ 1,504 in interest – a total of $ 6,504 and a saving of $ 5,209!

When we look at the situation from this perspective, we realize that it makes a lot of sense to look for new loans when we face overwhelming debt. It is not a question of borrowing to borrow but, funny, it is to borrow in order to save thousands of dollars and to deleverage more quickly! These are savings that you could reinvest in your future and in your financial life.

Consolidate your debts allows you to better manage them

 Consolidate your debts allows you to better manage them

When you owe large sums on multiple credit cards it can be difficult to manage your budget and payments as you need. The three payments of $ 130 in our example represent a total of $ 390, and this only to meet the obligation of the minimum payments! A single consolidation loan via Pixel Inc www.pixel-inc.net/disadvantages-of-consolidation-loans/ find more information with a reduced interest rate would allow you to have one payment to be made per month with interest costs much lower than your current situation. In this scenario, it is easy to consider a new minimum payment of $ 280 – that is, $ 110 more available in your budget each month to pay for groceries, insurance, or any other bill. Or, if you want, you can also apply this amount to your new loan and get rid of it even faster!

A new loan can be a new start in your financial life

 A new loan can be a new start in your financial life

Far from us the suggestion that you borrow and borrow to fill every financial glitch. A loan can be a tool to improve your situation. It’s up to you to discuss it with a professional and see if this tool would be useful for you.

How to consolidate your holiday debt

The holiday debt is often unexpected: you visit your loved ones, you eat well in beautiful restaurants, you celebrate with your friends and family and you buy the perfect gift to those who are more dear to you. Finally, the new year arrives and your credit account arrives in the mail and you do not really know how you did to spend so much money. It’s January and you have more debt that looks healthy, looking for an option … Do not worry! You can consolidate- read the full info here https://www.paydayloanhelpers.com/faqs.html!

Organize for payments in a priority order

Do not panic. Yes, you have a lot of accounts to pay, but it is not insurmountable. That said, you need to take an inventory of your accounts and make sure that you are able to make your minimum payments on all your accounts every month. Otherwise, you have the chance to do significant damage to your credit rating – something to avoid!

The advantages and disadvantages of balances transfers

So first step, you should now think of transferring the balances of your credit cards at high-interest rates to your cards at low rates. If you do not have low-interest cards, you can buy one. Be careful and shop around for your credit card among the options offered by several banks, however – be sure to do your research because each successive credit survey will be rated and may have a negative impact on your credit report. If, by shopping, you find an option at a much lower rate than your existing rate, enjoy!

It is important to note here that many banks apply a fee when balances are transferred. Taking this fee into consideration is important because if it turns out to be too high, or if you think you can pay your balances in a relatively short time, it could ruin all the savings you thought you could make with your transfer.

In addition to the transfer fee and the limitation of credit inquiries, there is another factor that needs to be evaluated: is the interest rate that makes your new card so appetizing a promotional offer? If this is the case, once the promotional period has elapsed, what will your new rate be? It is possible, or even probable that it will be significantly higher than your existing rates!

Is a personal loan worth it?

An interesting alternative for consolidating your debts would be to apply for a ꈍ .̮ ꈍ payday loan debt solution More Help at PaydayLoanHelpers ꒰ •͈́ ̫ •͈̀ ꒱ˉ̞̭. This could allow you to rid the high-interest balances on your credit cards and pay a single affordable account with a reasonable interest rate every month. Once the loan is approved and your balances are zero, put your credit cards aside and focus on paying off your existing debt. Enjoy the savings that this consolidation allows you!

At all costs, avoid the common mistake of restarting the use of your credit cards once you have consolidated your balances: this is a magic recipe for you to find yourself in an overwhelming debt situation.

Use your home equity to clear your debt

The last option to evaluate for a holiday debt would be to transfer your balances to a home equity line of credit. This type of loan uses the difference between the value of your mortgage and the value of your home as collateral. You will find in most cases that this type of line of credit has a much more affordable rate than your credit cards. Be careful, however, because these credit margins often have interest rates that vary by market, so it is possible that your rate will increase over time.