Debt Free in 30

Latest Episodes:

331 – When is a Car Loan Bad Debt? With Scott Terrio Jan 02, 2021

Show notes

Car loans are one of the most common entry points into debt problems. That's because if you're not careful, you will easily spend more than you can really afford on a vehicle. While it's hard to avoid borrowing for a car altogether, there are steps you can take to protect your financial health. On today's show, guest Scott Terrio explains when a car loan becomes bad debt by sharing auto loan pitfalls, the dangers of loan rollovers, and budgeting considerations before buying a car. He also explains why you should think twice before borrowing against your car to consolidate debt. Tune in for lots of practical advice!

Related Links:

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

Buying and Maintaining an Affordable Car: https://www.hoyes.com/blog/buying-and-maintaining-an-affordable-car/

Should You Consolidate or Pay Bills with a Car Title Loan: https://www.hoyes.com/blog/should-you-consolidate-or-pay-bills-with-a-car-title-loan/

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

330 – COVID-19 and Household Debt: What Do We See for 2021? Dec 26, 2020

Show notes

The unemployment rate dramatically increased, debt levels continue to grow, and yet the personal insolvency rate in Canada dropped to 20-year lows when the COVID-19 lockdowns started in the spring. How long will insolvency rates remain low? Doug Hoyes and Ted Michalos review the unprecedented events of 2020, and offer their predictions on what will happen with debt and bankruptcy and consumer proposal filings in 2021, in one of our most anticipated podcasts of the year. Enjoy!

Full details of everything discussed:

https://www.hoyes.com/blog/how-covid-19-affected-household-debt-in-2020/

Time Stamps

0:20 A review of Doug and Ted's predictions for 2020

2:12 With high debt and high unemployment, why insolvencies didn't skyrocket

2:50 The personal savings rate hit an all-time high; why?

3:48 The impact of CERB on household income

4:49 The problem with statistics

5:32 COVID-19 impact on high, middle and low income earners

9:00 An example of a middle income earner most impacted by the lock down

10:40 The impact of deferrals

13:40 What will happen with debt in 2021?

16:06 The psychology of spending; why some of us will not increase out spending early in 2021

16:41 Comments on the real estate market

18:53 Prediction time!

19:17 Ted's prediction

19:51 Doug's predictions

24:55 The impact of an economic recovery on insolvency filings

329 - Fix Bad Credit Yourself – Tips & Tricks from an Expert Dec 19, 2020

Show notes

The first step in rebuilding credit is figuring out what's causing your bad credit in the first place? Too much debt? A recent bankruptcy filing? Depending on the reason, there will be different ways to approach the rebuilding process. On today's podcast, our guest is credit expert Richard Moxley, who walks us through the importance of having good credit, causes of bad credit, common misconceptions, and steps to rebuilding credit on your own. Tune in to the show for lots of practical advice!

More information:

Richard Moxley's Website: https://creditgame.net/

Rules to Master Your Credit Podcast 284: https://www.youtube.com/watch?v=jP6etPo_CQc

The First Step to Rebuilding Credit is No More Debt: https://www.hoyes.com/blog/the-first-step-to-credit-rebuilding-is-no-more-debt/

Time Stamps:

1:46: Why Does Good Credit Matter?

4:28: What Causes Bad Credit?

6:53: How Do You Know If You Have Bad Credit?

11:02: What are the Barriers to Rebuilding Credit?

12:13: What Are The Steps to Rebuilding Credit?

328 – CRA CERB Audit? CEWS Audit? What Should You Do? Dec 12, 2020

Show notes

Nearly 9 million Canadians applied for CERB in 2020 to deal with the financial effects of COVID-19. To distribute the benefit quickly, the Canadian government conducted very little eligibility verification up-front. Many people believed they were eligible to get CERB but are now discovering that that was not the case. So, what happens if you received CERB but were not eligible? Will you be audited by the Canada Revenue Agency? And if you are audited, how do you prove you were eligible? Enter Jason Rosen. Jason is an experienced tax lawyer and co-founder of Rosen Kirshen (RK) Tax Law. On today's podcast Jason shares his thoughts on how the CRA might treat ineligible receipt of CERB and CEWS for employers. He provides practical advice for how Canadians can prepare themselves in the event of a tax audit and explains what may happen to those who applied to CERB knowing they were not entitled to receive it. Tune in to the show for lots of guidance on this pressing issue.

Relevant Links:

Rosen Kirshen Tax Law Website: https://www.rktaxlaw.com/

CRA Collection Letters for CERB Ineligibility & Repayment: https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment

CERB Eligibility: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/eligibility-periods.html

CERB Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html

New T4 Reporting Requirements for Employers: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html

CERB Eligibility Criteria: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html

327 – Buy Now Pay Later Apps – Is it Debt? Dec 05, 2020

Show notes

Fintech has come up with a new way for making purchases online with Buy Now Pay Later apps. But is 'buy now, pay later' just another form of debt? Do these new apps actually help your budget or fast track financial problems? On today's podcast, we have first-time guest and Hoyes Michalos LIT Jennifer Kwon who walks us through how these apps work, how they benefit from people using them, and she simplifies the terms and conditions so you know what you're signing up for. And Doug Hoyes does the math to show much you'd really pay in interest if you fall behind on payments. Jennifer and Doug also share practical advice for how to use these apps safely to avoid financial trouble. Tune in to this episode for lots of great insight.

Resources Mentioned in the Show:

Leon's Financing: https://www.leons.ca/pages/visa-desjardins-financing

Coupon Follow's Millennial Shopping Report: https://couponfollow.com/research/millennial-shopping-report

Afterpay App: https://www.afterpay.com/en-ca/index

Afterpay's Annual Report: https://www.afterpay.com/attachment/315/show

Afterpay & Debit Card Usage: https://www.afterpay.com/attachment/67/show

Afterpay Instalment Agreement: https://www.afterpay.com/en-CA/instalment-agreement

Sezzle App: https://sezzle.com/

Sezzle & Credit Score Impact: https://shopper-help.sezzle.com/hc/en-us/articles/360046383071-How-does-Sezzle-impact-my-credit-score-

Sezzle Late Fees: https://shopper-help.sezzle.com/hc/en-us/articles/360046781511-Why-was-I-charged-a-fee-

Sezzle Info on Purchasers Spending More in App: https://sezzle.com/merchants

Paybright: https://paybright.com/en/break-up-the-cost-7

326 – Why Some Loans Never Go Away Nov 28, 2020

Show notes

Some loans feel like you've been paying them forever without an end in sight. In other cases, you may even be surprised to see your loan balances grow instead of shrink with regular payments. On today's podcast, Doug Hoyes and Ted Michalos define important terms for understanding how loans work, how to spot an expensive loan, and the risks you face with longer term loans. They also teach you how to avoid borrowing more than you can afford and provide practical advice for what to ask your lender while you're in the borrowing process.

Helpful resources:

Term vs Amortization Explainer: https://www.youtube.com/watch?v=gaMt1zW7ViA

How Does Compound Interest Work: https://www.youtube.com/watch?v=mO5lhuXhWFk

Debt Servicing Costs: https://www.youtube.com/watch?v=qoV5LD0eMk4

What is a Line of Credit: https://www.youtube.com/watch?v=yFR9Cag40OU

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

Why Payday Loans Won't Go Away: https://www.hoyes.com/blog/why-payday-loans-wont-go-away/

325 – Income Tax Deductions & COVID-19 Work From Home Nov 21, 2020

Show notes

An unprecedented number of Canadians went from being office employees to working from home during this pandemic. Many also took on home office costs in 2020. So, what does this mean for our 2020 income tax filing? Which expenses will we be able to deduct and which ones will we not? On today's podcast, Ian Martin, CPA and Licensed Insolvency Trustee, shares his thoughts on how the CRA may approach expenses like office supplies, masks, furniture, internet and rent next year. Ian also gives us his honest opinion on how the CRA should approach tax audits of individuals. Tune in to this meaningful discussion with lots of practical tips!

Additional Resources:

10 Tips for Dealing with CRA and Tax Debts: https://www.youtube.com/watch?v=Pp7rVK02OVI

T2200 Declaration of Conditions of Employment: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2200.html

T777 Statement of Employment Expenses: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t777.html

324 – Will We Finally Spend Less This Christmas? Nov 14, 2020

Show notes

Every January, we meet with clients who tell us they spent way too much during the holiday season. But given the current pandemic, income problems, and gathering restrictions, will 2020 finally be the year when Canadians spend less? On today's podcast, Diane Cunha and Doug Hoyes discuss what generally drives people to spend so much over the holidays and why this year might be different. They share practical advice for how to cope with COVID fatigue and resist the temptation to over-buy. Diane also answers spending questions from our newsletter readers. Lots of great tips in this show so be sure to tune in!

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

Podcast 322: How to Build an Emergency Fund if You Have Debt: https://www.youtube.com/watch?v=YxyO8in9Swg

323 – Is Good Money Management a Talent or a Learnable Skill? Nov 07, 2020

Show notes

It's the 10th annual financial literacy month sponsored by the federal government.

Are we more financially literate than we were 10 years ago? Our debt levels keep increasing, so it doesn't appear so. Is it possible to learn money management skills, or do you have to be born with it, like athletic ability.

On today's short podcast Doug Hoyes explains why he believes you can learn to manage your money, and he gives four lessons on how to do it.

#FLM2020

Time Stamps:

7:28 – Lesson 1 – What do you want?

9:47 – Lesson 2 – Do it the easy way

11:11 – Lesson 3 – Understand the Other Guy

14:54 – Lesson 4 – Ask Questions

Related Links:

Government of Canada Financial Literacy Month website:

https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html

Government of Canada, have a plan to pay off your debt:

https://www.canada.ca/en/financial-consumer-agency/campaigns/it-pays-to-know.html

Government of Canada, de-emphasizing the most powerful debt relief options:

https://www.canada.ca/en/financial-consumer-agency/services/debt.html

The "Don't Budget" Video: https://youtu.be/u5q1Qge3k8s

Can you create your own reality? https://youtu.be/PuiP9I6_cMg

Getting out of debt requires a system, not just a goal https://youtu.be/ysvkV0uN7mM

The Fable of the $20 bill https://youtu.be/5fYfAvSnNps

Doug's Book, Straight Talk on Your Money, available on Amazon, Kindle and as an audio book:

https://www.hoyes.com/straight-talk/

322 – How to Build an Emergency Fund if You Have Debt Oct 31, 2020

Show notes

Every financial guru says you need an emergency fund. But if you also have debt, is it possible to balance saving and paying down high-interest credit cards or lines of credit? What are the steps to get started? On today's podcast, Diane Cunha, Certified Credit Counsellor at Hoyes Michalos discusses the different types of emergency funds, teaches us how to set aside cash even if we have debt, and gives tips on where to store our savings so they are easily accessible. Tune in to the show for lots of practical advice!

Related Links:

Credit and Debt Decisions That Can Backfire Podcast 288: https://www.youtube.com/watch?v=0mHPf8CLhs0

What To Know About Credit Cards So You Use Credit Wisely Podcast 235: https://www.youtube.com/watch?v=u-bMxcdl55A

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/

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

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