Debt Free Faster

Are you drowning in debt? If this is you are not alone.

Debt has grown like a virus over the last 10 years in Kelowna. Incomes in the Okanagan are stagnant for many, others are out of work and now paying off personal debt seem almost impossible.

Before you give up here are three ways to deal with your debt that can work ...

Life Insurance Needs DIME

How much Insurance do you really need?

If you buy too much, you will overpay for years, if you have too little, your beneficiaries will be left with liabilities. So getting the right amount is important.

Stressed Financial Life

Stress is becoming a way of life for many of us.  Regardless of income many are starting to feel the pinch ... and keeping up each month is harder than has ever been.

I have noticed after a number of meetings with my clients in the last 6 months, incomes are under pressure, personal debt is climbing and everyday costs are starting to rise.

Add to this the prospects of potential job loss ... most are not prepared as the economic slow down approaches the average family.

Today I found an article and infographic that confirms my worries (Thanks to Guy Kawasaki at alltop.com for the link)

What Credit Cards Numbers Mean

Take out your credit card(s) and ask yourself a question. Why does the credit card company use the numbers is uses? Just like cheques these numbers have a financial purpose.

I found this infographic today on the mind.com blog and it answers what your credit card numbers really mean and are used for.

Great infograophic below!

5 Ways to Spend Less Now

Spending less is like going on a diet. We rely on will power with out a method or system to reach our goals. And just like most diets we are doomed to failure.

Over time our debt starts to balloon and the only solution is a drastic change of spending habits. Unfortunately, just like crash dieting, the lasting effects of these changes only end in frustration and we eventually give up.

For most of us spending too much is not an illness but is a learned behaviour. The good new is this  behaviour can be changed.

After more than 15 years in the financial industry watching what works and what doesn't, here are 5 proven strategies that work in every day life to spend less and have more control over your financial life.

Financial Problems Start Here

I don't know about you ... but tax time is a time for financial reflection. All I want to know is ... am I making progress or am I falling behind.

Since I run my own financial business, I track everything, the gas for my car, car insurance and the costs to run my office. I also track my personal costs, food budget, hydro costs, and debt costs from the year. Every year I am amazed at how much I spend.

After more than 15 years in the financial industry if I had to pick the most important thing you can do to make your financial life better is to focus on your cash flow. That's right I am referring to dreaded "b word" ... budget

Like weight gain, cash flow problems happen over time. Before we go over some simple ideas on how to improve your cash flow ... let me tell you story and you see if this reminds you someone you know ...

Canadian Debt Worse than the USA

We Canadians are known for being privately proud of our country. Being so close to the United States we have become known as their much smaller brother, always second best.


But now we have something to point to, as being better at than the Americans ... we Canadian's carry more house hold debt than they do.


That's right! After watching financial melt down and the US economy crash, we Canadians continued to pile on the personal debt. 


Recently Bank of Canada Governor Mark Carney gave a stark warning to Canadian house holds in this report from CTV from the Vancouver Sun...

How Credit Cards Make Money

Credit Card Companies make billions of dollars every year. We all know this and except this reality when we choose to use plastic. 


But just how is all this money made? 


You maybe surprised to find out that a credit card company makes money in four ways. (Make sure to check the diagram below for a complete illustration)

How high is too high?

Interest rates are starting to rise ... how will you deal with increase on your cost of living?

For many with substantial size mortgages and balances on credit cards an small increase can mean the difference between dinner out and paying the hydro bill. 


The impact of increasing interest rates is one of the most overlooked risks when borrowing money. 


Why do we overlook or ignore something so obvious? Usually it comes down to two things ....

Back to School with a Credit Card

This year is first for us ... no one is going to school this year. But for many in Kelowna,  kids are back to school next week and life is getting back to normal.

Time to put away the beach towel and open the text book. And for many post secondary students it also means opening the wallet for the credit card.

As the cost of day to day living is starting to creep up many students are turning to credit to finance their life style as well and the cost of education.

And using credit too much can be quite an education.

Spies on Facebook

Are you on Facebook? Maybe you prefer Linkin or Twitter? Social Networking  is replacing  the phone as the preferred form of comunication today.

Now you can update your family on your son's graduation, show off your new born baby or share your pictures from  your family vacation. If you are like me things like Facebook LinkedIn and Twitter have become away of like for me.

Let me ask you, and be honest. Have you ever added a friend to Facebook, LinkedIn or Twitter you don't really know.  


In the age of Social Networking this could cost you.

Credit Cards Made in China

The world is getting smaller every day even in the financial world. The desire for a better life is starting to grow and driving a need for access to financial products.

All the things we have come to expect in Canada's financial banking system like lines of credit, mortgages, debit and credits cards are gaining interest world wide.


The other day I came across the website for The Bank of China using Google's translator.

There are credit cards for business, for women and business owners. Here are three different credit cards the Bank of China site is promoting. (Oh make sure to check out the interesting translation and spelling provided.)

Tax Refund? 5 Things to do with it

Over the next couple of weeks the Kelowna economy will receive a boost as many receive their tax refunds.

For many the plans are being made right now to, go on vacation, buy new living room furniture or treat the family to nice dinner out.

But before you cash that cheque you may want to consider these 5 financial suggestions that could make your financial life better today and in future.

Too much Mortgage too Little Money

I have seen it so many times. Kelowna real estate prices have climbed in last 5 years so much that many are buying more house than they can afford. When most purchasers are done once you do the math they are behind $200, $300 even $500 every month.

The the bottom line is their new mortgage payment is just too much!

How can someone make what seems like an obviously bad decision with the help of some one trained in the mortgage business?

Your I-Phone is Now Your Bank

The cell phone is becoming the central part to many of our lives. You can check your account balance, transfer funds, pay bills and even pay for purchases.

The recent tragedy in Haiti is a case and point the power of the cell phone. Almost one third of the money raised, 5 million dollars, was done by texting!

What is next you ask? Now you can deposit a cheque with a new app for the I Phone. The app market has really changed the usefulness and convenience of your cell phone.

Check out this video from BNET. Amazing!

The Card Game - Exposing Credit Cards

When was the last time your really checked the terms and conditions of your the credit cards in your wallet? If you are like most of us the idea of reading the fine print is not something you would particularly enjoy ... but what you don't know can harm you!

Here is an excerpt from the new series from PBS "The Card Game" exposing credit card companies, the fees they charge and the impact they are having on their customers. (Make sure to check the link below the video for a Canadian perspective)

The Price of Pre-Paid Credit Cards

Recently I had a family member come to me asking what I thought of pre-paid credit cards as a method of purchasing things on the internet. They did not have a credit card and figured if they put their money on a prepaid card they could control their spending and use it only when they needed it.

I suggested they read the "fine print" and if they liked what they found out to try it out and let me know how it went.

I didn't receive a call in a week so I called them back and you guessed it ... they were very unhappy. The 25 dollars they put on the card amounted to less than 17 dollars is actual spending money after set up and transaction fees.

Debt in Kelowna - Have we been here before?

According to the Bank of Canada ... household debt is emerging as the greatest risk to Canada's financial system and the financial lives of Canadian and Okanagan families.

The Amazing part of all this ... the personal credit crunch and rise credit card debt is nothing new ... check out these two video excerpts from the CBC archives from December 1978 and the second from November 2008.

Debit Cards... A Financial Nightmare!

What is flat like a pancake, gives you the freedom to have your wildest dreams and steals from you at the same time? A evil magic lamp you say? That might be a good name for it ... but most of us call it a debit card.

With the invention of the plastic money and credit cards ... the debit card has become the method of choice for spending money these days. In fact Canadians (Kelowna residents are no different) rank as one of the worlds biggest users of debit cards.

The reason most of use our debit card before we use our credit card is simple ... we are spending our own money... nothing is being added to our credit card balance with a no chance of paying interest. Since I am a big fan of eliminating of debt, the debit card seems a natural choice.

Financial choice is good, right? Wrong!

I know what your thinking ... more choice is better. More choice means lower prices, better services and a made to order life style only dreamed about by our parents. But this doesn't always lead to a better life. Let me prove it you.

You get a call from credit card company offering a better rate than any of your current cards. You do your home work, read the fine print and the offer is genuinely better for you and your family. So you sign up!