Debt Free in 30

Latest Episodes:

321 – Is Multi-Level Marketing (MLM) a Scam? Oct 24, 2020

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Description:

Amid economic uncertainty, side hustles have become a popular way to earn extra income. But while many side hustles are good, some are risky and can lead to serious debt problems. On today's podcast, guest and Hoyes Michalos LIT Julie Wildman discusses the risks of multi-level marketing ventures (or MLMs). While an MLM can seem like a great opportunity to "be your own boss" and work from home, it often comes with significant upfront costs that are rarely recovered. Julie walks us through how MLMs work, their success rates, and who is often targeted in MLM schemes. She also shares practical advice for how to ensure that if you do go into the business of selling products, you avoid taking on a massive debt burden. Tune in!

320 – Dealing with the End of Debt Deferrals Oct 17, 2020

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As of August 31st, 778,000 Canadians with a mortgage at Canada's big banks deferred or skipped a payment on their mortgage. The deferral periods for many mortgages and other credit loans and products have now come to an end. What does this mean for your debt? On today's podcast, Ted Michalos and Doug Hoyes review different credit products (mortgages, credit cards, lines of credit, auto loans) and discuss what may happen to your balances and debt carrying costs now that the deferral periods are over. They also share practical advice for how to negotiate with your creditors and steps you can take if you don't have the cash to start making your debt payments again. Tune in to this very timely and helpful episode!

Helpful Links:

Dealing with the Consequences of Loan Deferrals When the Deferral Period Ends: https://www.hoyes.com/blog/dealing-with-the-consequences-of-loan-deferrals-when-the-deferral-period-ends/

What To Do If You Can't Pay Deferred Mortgage Payments: https://www.hoyes.com/blog/what-to-do-if-you-cant-pay-deferred-mortgage-payments/

CMHC Residential Mortgage Industry Report: https://assets.cmhc-schl.gc.ca/sites/cmhc/data-research/publications-reports/residential-mortgage-industry-report/2020/residential-mortgage-industry-report-2020-en.pdf

CBA Fast Facts on Bank Measures in Response to COVID-19: https://cba.ca/fast-facts-on-bank-measures-in-response-to-the-covid-19-pandemic

Scotiabank Auto Loan Payment Relief Terms: https://www.scotiabank.com/ca/en/personal/scotia-support/terms-and-conditions/auto-loan-spl-payment-relief.html

319 – CERB Transition to EI: What Does It Mean For Your Budget & Debt? Oct 10, 2020

Show notes

The Canada Emergency Response Benefit (CERB) has now come to an end and is transitioning to four different financial aid programs: EI, CRB, CRSB, and CRCB. But what do these income supports mean for Canadians' household budgets and debt repayment? Will they be enough to help Canadians still battling the financial effects of COVID-19? And which individuals no longer qualify to receive federal help? On today's podcast, our guest is David Macdonald, Senior Economist at the Canadian Centre for Policy Alternatives (CCPA). David explains the financial impact of switching from CERB to these new aid programs. He walks us through how these programs work, eligibility, and whether Canadians who have returned to work at reduced hours can still get help. He also shares his thoughts on the long-term implications of these supports for the Canadian economy. Tune in to this important discussion with Doug Hoyes.

We also encourage you to check the Government of Canada website for up-to-date information as these programs may evolve: https://www.canada.ca/en/department-finance/economic-response-plan.html#individuals

Additional Links:

David Macdonald on Twitter: https://twitter.com/DavidMacCdn

CCPA Report – 1.8 Million Canadians Better Off with a Higher EI and CRB Floor: https://behindthenumbers.ca/2020/09/28/1-8-million-canadians-better-off-with-a-higher-ei-and-crb-floor/

Canadian Centre for Policy Alternatives: https://www.policyalternatives.ca/

David Macdonald's first appearance on Debt Free in 30 – ep. 114: Basic Income: Is It a Silver Bullet for Poverty? https://www.hoyes.com/blog/basic-income-is-it-a-silver-bullet-for-poverty/ and on YouTube (audio only): https://youtu.be/mi3tWjg1bC4

Our podcast on Modern Monetary Theory https://youtu.be/TMGDaTGx3V4

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

Time Stamps:

2:22 CERB – How it worked, qualification requirements

5:44 The new Employment Insurance, how it works, who qualifies

8:32 How taxes work for CERB and EI

9:44 Why a lot of Canadians may have a big tax bill in the spring of 2021

12:15 Is it possible that CRA creates special rules to mitigate the big tax bill many Canadians will face in 2021?

17:00 CRB (Canada Recovery Benefit) – what it is, who qualifies

21:00 CRSB (Canada Recovery Sickness Benefit) – what it is, who qualifies

22:30 CRCB (Canada Recovery Caregiving Benefit) – what it is, who qualifies

24:30 What if I'm only working one day per week? How does that impact my benefits?

27:50 Who qualified for CERB, but now won't receive any income support?

30:25 What are some of the shortcomings in the current programs you would like to see addressed?

33:30 Are we moving towards a Basic Income?

37:00 These programs are very expensive; how will we pay for them?

318 – Could Canada Have a Simpler Tax System? with Neal Winokur Oct 03, 2020

Show notes

Filing income taxes can be complicated, especially if you're a self-employed individual. And if you can't afford an accountant, you fall behind on filing your taxes and face trouble with the Canada Revenue Agency. Could we make the Canadian tax system simpler? And what would a simpler system mean for tax deductions? Enter Neal Winokur, author of the The Grumpy Accountant - One Fed-Up Tax Pro's Practical Plan to Fix Canada's Senselessly Complicated Tax System. On today's podcast, Neal shares his radical vision for an easier income tax system and what it would look like for everyday Canadians. He and Doug Hoyes also discuss whether the government could consider other sources of revenue instead of income taxes and the impact on Canadian politics. It's a lively discussion so be sure to tune in!

Related Links:

Neal Winokur's website: https://grumpyaccountant.ca/

The Grumpy Accountant - One Fed-Up Tax Pro's Practical Plan to Fix Canada's Senselessly Complicated Tax System On Amazon: https://amzn.to/33Wpnd9

317 – Globalization, Inequality and Debt With Jeff Rubin Sep 26, 2020

Show notes

Today's first time guest is Jeff Rubin, who was the Chief Economist at CIBC World Markets (where he worked for over 20 years). He has just released a new book: The Expendables: How the Middle Class Got Screwed by Globalization, where he says that the decline in permanent, well paying full time jobs is a direct result of free trade agreements that transferred jobs to lower wage countries, leaving factories in Canada idle. On today's show Jeff Rubin argues that globalization allows the rich to get richer, and that leads to increasing inequality, and that leads to high debt levels for the average Canadian. Is there a solution? We discuss that and a lot more on today's show.

Helpful Links:

Jeff Rubin on Twitter https://twitter.com/jeffrubin

The Expendables How the Middle Class Got Screwed By Globalization link to book on Amazon: https://amzn.to/2FLeORE

Debt Free in 30 Podcast on Modern Monetary Theory: https://youtu.be/TMGDaTGx3V4

Topics Covered:

00:47 What is globalization, and who are the expendables who got screwed by it?

2:48 What's wrong with moving jobs to lower wage countries? Consumers pay less, and corporate profits are higher; what's the problem?

5:55 Does outsourcing lead to lower wages, lower interest rates, and lower inflation?

7:40 How are low wages tied to consumer debt?

9:50 Interest rates are very low, so does it matter that governments have high deficits?

11:18 How does globalization lead to more middle class debt?

13:43 Does globalization lead to speculative bubbles (like the stock market and the housing bubble)?

15:51 Do you agree or disagree with David Ricardo's Theory of Comparative Advantage? Are we not better off if we do what we are best at?

18:48 With globalization we have more exposure to other cultures; does that increase the chances for world peace? Is that not an upside of globalization?

20:14 What are the solutions to the problems caused by globalization?

21:27 Donald Trump and Bernie Sanders both have the same trade policy

23:39 Not being able to get N95 masks was a big problem, because we didn't produce them in Canada. Do you expect in the future to see more manufacturing returning to Canada?

27:15 Contrary to popular belief, why do you not think we have a progressive tax system?

29:10 But if we had a more progressive tax system, would that not lead to money and jobs and wealthy people leaving the country, making our economic situation even worse?

33:00 Closing comments: advice for the average Canadian hurt by globalization.

316 – Combating the Stigma Around Food Insecurity with Wendi Campbell Sep 19, 2020

Show notes

Like debt problems, food insecurity can happen to anyone. What causes individuals and families to require food assistance? On today's podcast, we have first-time guest Wendi Campbell, CEO at The Food Bank of Waterloo Region to help us get a better understanding of local food issues and what "food insecurity" really means. Wendi also addresses common misconceptions surrounding food bank visitors and discusses the importance of working together as a society to help alleviate the problem of food insecurity.

The Food Bank of Waterloo Region is accepting non-perishable food donations through contactless drop-offs at their location on 50 Alpine Court in Kitchener, ON. Financial donations can be made online at https://www.thefoodbank.ca/donate/. Of course, if you are outside of the K-W region, you can donate to your local food bank if you have the means.

Helpful links:

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

Stats on Hunger in Waterloo Region: https://www.thefoodbank.ca/network/hunger/

The Food Bank 2018-19 Financial Statement: https://www.thefoodbank.ca/wp-content/uploads/2019/09/FBWR-2019-financial-statements-final.pdf

315 – Debt, Savings & Consumer Spending with Ted Michalos Sep 12, 2020

Show notes

Last week, Doug Hoyes walked us through several key statistics, including insolvency filings, household savings rates, and loan deferrals. On today's show, he digs deeper into the 'whys' behind the numbers with guest Ted Michalos. Tune in as they give an update on why personal insolvencies are down and how much longer they expect filings will decline; They also discuss why savings rates are up and whether they will remain high; and why car sales have increased despite many people working from home. Doug and Ted also offer practical advice for managing your debt if you are still looking for work or if you have benefited financially from the lock-down. Don't miss a great discussion!

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