Why and When Using Debt to Invest Makes Sense

Why and When Using Debt to Invest Makes SenseThe history of investing is full of cautionary tales regarding the use of leverage to enhance returns, and how it is your best friend until it becomes your worst enemy. But many times, the trigger that causes great losses resulting from leverage has nothing at all to do with the quality of the underlying investments. The story is quite simple. Let’s say there is a good idea with a fair…

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Top 6 Threats to Your Finances in 2014

Top 6 Threats to Your Finances in 2014Mounting debt We’re all another year older, and as the old song goes, deeper in debt. The latest measure of household debt by Statistics Canada shows the average household owes nearly $1.64 for every dollar it earns in a year. In the 1990s we owed less than a dollar for every dollar we earned but the creeping culture of consumerism has most Canadians living beyond their means. Late in the…

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Tuition Debt Carried by Many Parents to Help Kids

Tuition Debt Carried by Many Parents to Help KidsMany Canadian parents pay a hefty portion of students’ tuition fees, even if it means sacrificing their financial stability, to help their children avoid a post-graduation life burdened by tens of thousands of dollars of student debt. Ross Campbell, a 56-year-old financial planner, and his wife knew they wanted to help their two daughters graduate university without the girls owing a cent. “That was sort of a focus of ours,” Campbell…

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Shopping Leads to More Shopping

Shopping Leads to More ShoppingEver notice how sometimes when you go shopping for one thing, you end up bringing home four or five other things? How many times have you heard, “I only came in for…” at the check-out? Stanford University did some studies about how shopping can lead to more shopping. It seems that buying that fateful first item sets you on a shopping track that can end with you spending far more…

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Canada – A Nation of Debt, A Nation of Prosperity

Canada - A Nation of Debt, A Nation of ProsperityCanadian now owe almost two-thirds more in debt than they use, or have available, for available income according to Statistics Canada.  For 2012, the rise in debt was higher in every category with mortgage and consumer debt surpassing a combined $1.6 trillion. As Canadians continue to enjoy spending without restraint or apparent interest in saving the debt rose 5.5% higher int he last three months of 2012.  Not all is…

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5 Ways to Get Rid of Credit card Debt

5 Ways to Get Rid of Credit card DebtThe average credit card debt of a US household is over $15,000. That is a lot of money! Our neighbor to the north is in even worse shape in that an average Canadian household owes nearly $27,000 in credit card debt. Credit card debt can become an overwhelming problem if you don’t take care of it early because of the high interest rate. It’s best to avoid credit card debt…

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Student Debt Biggest Stress

Student Debt Biggest StressA poll of post-secondary students who borrow to pay for their education suggests 58 per cent expect to graduate with close to $20,000 in debt while another 21 per cent expect to owe more than $40,000, the Bank of Montreal said Friday. The poll done for BMO done last month also suggests more students – 27 per cent – are most stressed about paying for school, higher than the 22…

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Secured Credit Cards Can Help Build Credit History

Secured Credit Cards Can Help Build Credit HistoryNewcomers to Canada can have a very difficult time getting a credit card because they don’t have a  credit history. Building up a positive credit history is a good idea because it will make it easier to get a line of credit, a loan, or a mortgage later on.One way to do that is with a secured credit card as long as you understand how it works. Here are a…

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Debt Worries May Put Damper on Holiday Buying

Debt Worries May Put Damper on Holiday BuyingFeelings of financial insecurity could overwhelm the Christmas giving spirit, making Canadians less likely to splurge on holiday shopping this season, according to a survey released Tuesday by Deloitte Canada. With a growing number of respondents pessimistic about the economy and more people choosing to pay down their debts, holiday budgets could be squeezed. Only 29 per cent of Canadians surveyed said they expect the economy to improve in the…

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Canadian Debt Levels Keep Rising

Canadian Debt Levels Keep RisingCanadians continued to rack up debt in the second quarter of the year as they took advantage of low interest rates, Statistics Canada said Tuesday. The ratio of credit market debt to personal disposable income crept to 148.7 per cent in the July-September period, topping the old record of 147.3 set in the previous quarter. Credit market debt includes mortgages and consumer loans. Statistics Canada said the ratio increased as…

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