Pros And Cons Of Student Credit Cards

It is hard for the students to avail the services of the usual credit cards as most of these credit cards need to be countersigned by the parents or guardians. This measure is helpful for the parents at large but is a bit inconvenient on the child's part. So, in such a situation prepaid student credit cards come as saviors and allow students to use their money when and where they want.

These prepaid student credit cards are getting popular with time as they do not require students to get them cosigned by the parents. Owing to this; the students actually feel getting mature and independent. But as these types of credit cards do not function like the usual credit cards do, so you had better know how these work beforehand.

The prepaid student credit cards basically are a type of credit cards on which the students need to deposit a certain amount of money. Moreover, you must know that these credit cards are not like the usual credit cards in Canada which can be used to borrow money via ATMs or banks etc but in fact you can use only that amount which you have deposited on your card. For instance, if you have deposited $200 on your prepaid credit card, then you can spend only this $200. So, this means that you only get to use the money that you earlier on preserved on your prepaid credit card and cannot use it like the usual credit cards. Once you have used the entire amount you initially deposited on it; you need to refill your card in order to use it again.

However, there are a few advantages with the use of student credit cards against regular credit cards. First and the foremost you can never run into debts as long as you use these prepaid credit cards. Moreover, with even a meager amount of around $75 you can get started with a prepaid credit card in Canada. This has made really easy for the students who usually possess less amount of money to put on the credit cards.

Furthermore, a long term benefit is that it helps you build your credit scoring. So, all those Canadian students who are serious about acquiring good credit scoring, you had better go for a prepaid credit card. The best thing about these credit cards is that nearly everyone of you can avail these cards as they do not investigate your credit history and have a really low minimum amount to deposit on. So, the moment you start using these cards, the detail of your monthly progress will be provided to the Equifax and TransUnion Canada.

Apart from this, these credit cards are a great way to master the art of money handling. As you will be depositing money on these cards, so you will learn to be careful about its usage as well. Prepaid student credit cards help students to understand the value of saving and spending wisely. These types of prepaid credit cards are best for meeting your daily expenses and will save you with the hassle of carrying paper money. But, you have to be 18 years old and should be a Canadian citizen in order to avail the services of such credit cards in Canada.

Cashback Credit Cards Secrets

Credit cards operate such that when merchants accept a payment by credit card they pay a percentage of the transaction money to their bank or money provider as commission. It is customary for renowned banks to share this back with their customers to make loyal customers and attract more with their rewarding credit card service. Banks very successful catch customer's attention by offering various deals and services on use of their cashback credit cards.

Credit card commission can be shared in the form of points like purchase discounts, package deals, gas filling etc, AirMiles, or a monetary amount. The money however that is given out has a special name, cashback credit cards. Banks then use from 0.5% to 2% of this money as service offers on cashback credit cards. This rebate is not done weekly or monthly, but annually to make sure that the customer doesn't take and use the credit card for a full year service. Reimbursements given out by the banks to customers is either in the form of credit or individual checks. Canadian cashback credit cards also have extended guarantee dates, theft insurance, baggage delay insurance and car rental insurance as part of their offers.

The advantages of cashback credit cards include the usage of free money where buying things is necessity, want, and even fun for some elite groups, hence they benefit most from their refund on luxury items. Now it depends on you if you want to search for cash back rewards on your own, or get it from your bank, that is ever ready to grab you up as their potential new customer.It has been noted that some banks offer an all time high cashback of 5%. Good customers who pay off their credit bills in full by the end of the month get selected for better credit ratings that earn them bonus points. A particular mastercard in Canada offers 'price protection' by making you a refund of equal to $100 on price difference if you get a reduce price inside 60 days of your purchase.

Now, cashback credit cards are not all good, as they do have some bad points too. Firstly, the lure of rewards encourages customers to make unnecessary purchases making it difficult to settle the balance. Secondly, some banks charge a high rate of APR that just adds to the customer debt. Thirdly, customers should make sure to read the terms and conditions before signing up. One thing to be aware of is that the rates that banks charge initially, is just for 6 months, with a gradual drop to 1% when customers go for purchases.

Canadian financial institutes offer a number of seminars each year to educate customers, so make sure you attend some for your knowledge and always be ready to deal with all the pros and cons when you have been hit by the sales pitch of a credit card seller.

How Do Personal Loans Work

With global recession and ever-high inflation rate, people most of the time find themselves unable to meet their daily needs and requirements. However, to keep the cycle of life moving one needs to meet all the demands of life, due to which many people are forced to take loans. Personal loans are the most convenient loans of all and are meant for bridging the gap between our salaries and our needs.

Personal loans are widely used for various needs. They can be used for clearing utility bills, an urgent replacement of any device, medical emergency or any other situation where you do not have the required money. Moreover, you may want to buy a property or a new car and need loan for that. Sometimes people also take personal loans to go on vacations or to spend on leisure. Whatever purpose you take out the loan for, make very sure that you are able to repay them back effectively. One blow leads to the other and if you do not or cannot pay up the debts in due time, you will find yourself trapped in a financial web in addition to the negative credit marking. Loans may give you instant money but they are not a child's play.

Loans are of various types. We can categorize them in to primarily two broad categories; Secured loans and unsecured loans. The loans in which you keep your belongings as the security of the money you borrow are called the secured loans. Secured loans are usually worth a hundred thousand dollars and that is why are usually borrowed if you need to buy a property or need a very luxurious and long vacation. In addition, the period in which you can repay this loan is around 25 years.

Then the second category is of unsecured personal loans. You do not have to provide any security in the form of your belongings or a property for the loan you borrow in this case as the loan amount normally does not exceed 25,000 dollars.

Apart from the regular personal loans, there the fast personal loans; these loans can be drawn anytime to meet any of your small day to day needs. These loans are or less amount and range between a 100 dollars to a grand. However, one thing you need to focus on is that you have got to repay this amount on monthly basis as well. It may sound a bit inconvenient but that's how it works. Also, if you think about it, they do more good in helping you meet your daily requirements than the bad in paying back. So, if you are going through any financial issue you can get it solved via these loans, which can now be availed online without any hassles.

How to Apply for Secured Credit Card

Credit cards have literally made it easier for us to spend money as we like, despite being tight on budget. As credit cards relieve us of paying in cash for the services we acquire on daily basis like in a restaurant, shopping mall, gas station etc. What we need to do is simply clear our bills at the end of the month. However, many credit cards cannot be availed by Canadians with bad credit history, students and immigrants in Canada.

However, there is still a ray of hope for all these Canadians who fall in any of the above mentioned categories. Well, if you want to get any benefits from credit cards, apply for secured credit cards. These secured credit cards have a number of advantages. But before discussing the advantages, let’s have a look what exactly does this term ‘secured CC’ mean.

Secured credit cards basically are a form of credit cards which work like any other credit cards, but what distinguishes them form others is the fact that they have a fixed amount deposited on them. This means that you can deposit an amount according to your needs with the bank or financial institution that you are getting this credit card issued from, and you can spend only that much amount. It may sound rather inconvenient; however, it is helpful for a lot of purposes

First of all, these types of credit cards are inevitable in case you are serious about rebuilding your credit score. If you have a bad credit history or no credit history, the lenders will not give you credit, and banks will also not issue you credit cards. So in such a situation, if you get a credit card which could help you in redeeming your credit history, you should go for it. These credit cards will actually start reporting to Equifax Canada and TransUnion right after you get such a card issued. Now since these cards are unlikely to get you into a debt you will be getting good ratings from these authorities.

Moreover, for immigrants in Canada, it often gets difficult to get a credit card and unless you get a credit card, you can not apply for different types of loans, which seems really necessary in these tough times. Immigrants in Canada need to start afresh, which means they have to build their credit score from scratch and for this purpose the credit cards which are secured seems most appropriate.

Apart from this, nearly anyone can avail these cards without much hassle. However, be sure to read the fine print of the company you are getting this card from. Plus, see if the interest rates are reasonable or not and ensure there are no extra fees and charges.

The Basics Of HELOC

Line of credit or LOC is a very convenient deal between the lender and the borrower of the loan. It basically focuses on the amount that is to be paid over a specified period of time and its specifications like term length and interest rates etc. It could probably be secured by collateral. HELOC is the secured type of line of credit. The secured lines of credit usually have a lower interest rate than the non-secured ones.

HELOC is Home Equity Line of credit and is a loan offered to the borrower keeping his home as collateral. Home serves as the security of the loan because your home is generally your most prized asset and it nearly always serves the purpose. There are different types of HELOC plans but usually you need to set the time period in which you are to borrow the money, say 15 years. Then after this period you are to repay the amount you have drawn with interest. The time period in which you can use the credits is called draw period. Some of the HELOC plans offer a renewal of the draw period once it is finished but there are also the ones that don’t. If the plan you are using offers this feature, you can draw extra credits as well.

Usually, HELOC plans or any other line of credit plan don’t bound you to draw credits every month or any other period, but there are also some plans that require a minimum amount that you need to draw over specified episodes. Moreover, some of the plans need the initial amount to be drawn for activating the plan. You are then given unique checks that you need to use every time you want to borrow money against your line of credit. A few plans may supply you a credit card or some other tool to draw the credit.

The interest rate and its application vary with the different types of plans. Usually in a line of credit arrangement, you are only to pay the interest on the amount you have drawn. But as home equity plans differ significantly from LOC plans, variations are expectable. These interest quotients are more than often variable throughout the term and depend on market indices.

The different HELOC plans also have different repayment policies. There are some that ask for the whole payment at the end of the draw period. In these plans, you cannot repay before the term period ends. Some others set specific fixed episodes of time where you can have the ability to repay the total amount in small parts and gradually clear the payment. A home equity line of credit ceases or foreclosures if you fail to make the repayments in due time. This is where a property kept as collateral comes in view.

For more information on HELOC please visit: http://www.canadabanks.net

Is It Easy To Obtain A Bad Credit Loan

Do you need loan desperately, but you are unable to get one because of the poor credit ratings? The doubts on a person with bad credit loan history are very natural. But that does not imply that you cannot have a loan just because you have not paid off some of the previous debts. You still have a straw of hope to catch on to even if you are having a bad credit history.

With the inflation so significant in today's market, a number of people are trying to get loans for one purpose or the other. But just because they do not have a good credit rating might put them in great turmoil. As, all the banks and other financial institutions demand a good credit rating in order to approve a loan. But, you can find the silver lining very easily if you follow the simple instructions.

Well, first of all, for bad credit home loans, you had better take a little help of the credit monitoring programs. As these programs will let you know about your credit ratings by keeping a track of them and will help you to improve them. Whenever you make the slightest improvement in the credit ratings, bring the information in your lenders knowledge instead of waiting for a treasure to be found. Usually, the odds of getting a loan really improve with the help of monitoring programs.

Other than this, another great way to improve the chances of getting bad credit loans is through debt consolidation. This means that you need to give a proof that you are on your way to pay off the outstanding credits or the debts. This simple step can actually prove to be a great landmark in your venture to get a loan with bad credits. The odds of the lenders letting you off the hook even with your guaranteed bad credit loans get really high once you have submitted the proofs that you will improve them.

There is a third way out of this sticky situation for which you need to prove it to the bank or the private lenders that you have a very stable income source as well as your personal residence for the home equity loans. Therefore, if you have a serious attitude and a determined mind toward improving your bad credit ratings, you must not lose hope as there are numbers of solutions. Furthermore, now many online sites also claim to prove some assistance to those having bad credits and also help them in lending loans.

Read more about loans and bad credit loans here: http://www.canadabanks.net

How to Use a Loan Calculator

Wanting to know how much you will be paying back each month on the loan you need for say studies or maybe to buy a new home, can get complicated and the calculations not for the faint hearted it is handy to make use of loan calculators appropriate for the loan you wish to take.

Depending on the type of loan you are applying for, be it a study loan, personal loan or even a home loan, there is an appropriate loan calculator available for it. Usually agent costs would prevent many from finding the right loan plan for them and often lead to complications down the line. Doing your research beforehand has proven to save you time and money, and loan calculators are most useful in this case.

Several options are available to you online, depending your choice in the loan you need, and it is always wise to speak to the financial provider in person like with your bank. They will most likely be offering free advice and explaining the term of the loans will not be an issue to enquire about.

Spending some time getting to know the different kinds of loans out there will be to your best interest, as it will seem bewildering at first with so many different explanations and words your not normally use to hearing. The loan calculator will usually translate all that to basic numbers you will be facing with each installment.

Information like how much you will be spending each month and what your total repayment will be at the end, considering a fluctuating interest rate, are crucial to deciding on a loan that suits your needs. The loan and mortgage calculator will provide you this information clearly and concisely.

The two options of a home loan for example that allows either a fixed rate or an adjustable rate payment scheme, use different calculations for each case and are applicable due to the adjustable rate fluctuating with the interest rate. Using the correct loan calculator is important in this case.

Unsecured Loans on the other hand will differ from one lender to the next, yet with the use of the loan calculator it will be obvious where your moneys worth will be. Finding a suitable lender to do business with is a task far easier with the use of a loan calculator clearing the words that seems to be too much. Always ensure you read the fine print in any loan you sign for and be informed with the making the loan or mortgage calculator work for you.

The Prudent And Robust Canadian Banking Industry

The prudent and robust Canadian Banking Industry is the subject of admiration abroad. Since the onset of the global financial crisis, both Moody's Investor Service and the World Economic Forum have respectively ranked the robust Canadian Banking Industry as the first in the world for financial strength and the most sound in the world. Unlike many foreign banks, Canadian banks have not required injections of public capital. This Canadian industry has made Canada the only G7 country to not need the recourse of a government bail-out in order to survive the financial crisis. Unlike their American counterparts, Canadian banks are well capitalized, have been demonstrably better regulated and better managed. They have proven this as their American counterparts have stumbled and have been propped up by the Federal Government.

Unlike the fragmented regulatory framework in the US, Canada has a single regulator, which monitors bank operations and nips problem spots early. The regulatory policies are reviewed every half decade to keep in step with changes. There are twenty-one domestic banks with the six largest having over ninety percent of all domestic bank assets. The largest banks are Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank, Scotiabank and the Toronto Dominion Bank. All of these banks are well capitalized.

The first Canadian bank was the Bank of Montreal founded in the year 1817, which also started the first domestic currency to replace foreign currencies which were acceptable legal tender in Canada at the time. Subsequently new branches were established in other cities. It inaugurated a feature of Scottish banks where a few banks with large capital maintained numerous branches. This feature is shared by the majority of the big six, which has also been a factor in their resiliency in the face of economic stress. Their national range enables transfers of capital from regions with varying economies. These banks also have different types of business lines.

Today, it is believed the financial systems elsewhere are already beginning to move toward the Canadian approach with higher capital holding requirements and more diversified companies. The unique aspects of the Canadian banking system has allowed Canada to better withstand the recent financial crisis than the United States. The Bank Act of 1991 divides banks operating in Canada in three schedules. The Schedule I banks are allowed to accept deposits that are not a subsidiary of a foreign bank. Schedule II banks are a subsidiary of a foreign bank allowed to accept deposits in Canada. The Schedule III banks are foreign banks which can do banking business in Canada.

Generally, management practices have been more conservative in Canada. Both the banks and their customers have an aversion to excessive risk-taking. A culture of fiscal prudence has avoided embracing risky practices. Thus, by April 2009, American mortgage holders were 17 times more likely to be behind in their mortgage payments than those in Canada.

Despite the deterioration of global economic conditions, Canadian banks have been profitable. In 2008, five of the six largest reported a profit and all of the six reported profits for the first quarter of 2009. By August 2009, Canadian banks were breaking profit records in the midst of a recession. Royal Bank of Canada and National Bank of Canada actually produced higher profits than ever before. The relatively conservative risk appetite of Canadian banks has been a boon. Even though loan losses are expected to continue their rise in the near future, a more conservative culture has protected banks from large losses. They did not get involved in a major way in subprime mortgages and they have avoided heavy participation in more exotic and risky financial instruments. Being more cautious, well diversified geographically and across retail, wholesale and wealth management business lines has become their advantage and source of strength.

It has been said that the Canadian system can teach others to be more stable and resilient. But, this is another example of this quality being exhibited by the banks generally once again. In the Great Depression, when 9,000 American banks failed, not even one failed in Canada. During the Savings and Loan Crisis, two small banks failed for the first time since 1923. But, in America, nearly 3,000 failed. Meanwhile, while the number of banks failing is rising in America, Canada is the only industrialized country without a single bank failure.

Canadian Mutual Funds And The Investor

Are you interested in Canadian Mutual Funds? The concept of mutual funds is simple. The fund is made up of money from several investors. The money is then invested by a funds manager. The money is invested in stocks or other financial securities.

Investing in mutual funds is no different from other investments as far as having a short and long term goal. The investor, who does not have a goal, or objective, will not be as successful as the one who does. Also, an investor should not be investing money he should use for the necessities.

In other words, it is not wise to invest money that one cannot afford to lose. The investor should also understand the level of risk. Money that is left over after the bills are paid, is the funds that the investor should use.

No investment is risk free, but some are less risky than others. Usually the investments that have the largest profit margins are the riskiest. The conservative investments might not be as profitable, but they are less risky. There are different types of mutual funds to invest. There is the growth mutual fund which will invest mainly in the stock of a well established company and is intended for long term capital gains.

The income mutual fund invests money in debt securities. An example of this would be an investment in government bonds. The risk is dependent on the credit rating of the debt security. Some investors favor this fund because of its high yield. Some investors like to have a more balanced portfolio and opt for a mix of growth funds and income mutual funds.

There is the no load mutual fund. Investors who do not want financial advice opt for this type. There are no commissions to be paid. The total amount of the investment goes into the fund.

But there are those who need financial advice. They choose the load mutual funds. They have to pay commissions, but they get financial advice. The benefit of the mutual fund is the same whether it is a load or no load fund. The advantage is that there are a pool of investors to share the cost.

But many feel that they are safer with other investors. The bottom line is that the market dictates profit and loss. An investor who has a good handle on the market will do better than the one who does not understand the market trends.




Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.

Diverse Services Offered By Bank Of Montreal

Bank of Montreal is based Toronto, Canada. It began operations in the city of Montreal. It was founded nearly two hundred years ago. It is therefore the oldest financial institution in Canada. Its deposits make it the fourth largest bank in Canada.

BMO as it is popularly known has over 900 branches. It has more than 7 million clients. Although its operations are mainly in Canada.

There are 3 main divisions of the financial services offered by this bank. The three categories are known as 'client groups'. This name comes from the fact that each of the groups serves and targets a market segment that is different from the other.

Personal and commercial client group is the first category. This department deals with retail financial services of the bank. This means that it offers financial services to businesses and individuals based in Canada. The services include handling checks, savings, personal loans, mortgages, credit cards and debit cards, loan calculators and other retail services.

The retail section also deals with the bank's insurance services. They include travel insurance and life insurance. Those who wish to save for retirement can take out income annuities. Mortgage life insurance cover is offered for home protection upon the policy holder's demise.

Investment banking group caters for those interested in capital markets. It deals with bond markets, securities and equity among other services. Corporates and the government benefit from these services. They are advised on the appropriate financial investments to make so as to maximize profits from the investments they make.

The third is the private client group which is also referred to as wealth management section. This targets clients with sizable assets. This department assists such clients to plan their estates. It also helps them to invest their assets based on their financial goals and personal criteria.

BMO also has strong social responsibility programs. It invests in its neighborhoods through volunteering, donations and sponsorship programs. For example, it donates to projects that support education, health, arts and culture. They also support programs dealing with community development, athletics and sports. Programs that support the conservation and protection of the environment are also sponsored by this bank.

Bank of Montreal gives affordable and accessible financial services to customers. The customer has a variety of services to select from. Potential clients can reach them online for answers to any queries that they may have.

Variety Of Services Offered By Royal Bank Of Canada

Royal Bank of Canada was founded in Halifax. It is Canada's the largest financial institution. This is based on its financial deposits, revenues and market capitalization. It is also considered to be among the world's largest banks.

It has its operations in Canada and also worldwide and this makes it an international financial institution. Its branches can be found in USA, Caribbeans and in forty eight countries globally. Its client base in Canada and other parts of the world runs into millions. This bank is divided into five business department.

First there is the Canadian Banking segment that offers business financial services plus personal banking services to Canadian residents. This service is offered via its many branches in all parts of Canada. It also makes use of ATM network, contact centers and internet banking. This enables it to reach approximately ten million customers in Canada.

Then there is its international banking segment which comprises of banking services in the US where it has over 400 branches. It also has a large client base in Caribbean countries where it has over 120 branches. It also serves clients in other 48 countries internationally.

It provides financial advice to corporates and government through its capital market segment. This advice is about the world's financial markets and innovative products to help these organizations achieve their growth objective. In fact the bank is recognized as one of the world's top 15 global investment banks.

The bank also offers insurance services. Canadian residents and businesses are provided with insurance services. These services include health insurance, home insurance, auto insurance, travel insurance among several others.

The last section is the wealth management department. This department enables the bank's clients to transfer, grow and protect their wealth. This service is offered internationally and serves high net worth clients who are also affluent. The department offers trust services, estate management services and asset management services directly to its customers.

This institution has gained recognition in its leading role in diversity. This is visible from its workforce. This bank not only employs a large number of women but it also awards them senior jobs. People looked at as visible majority also get employment. The disabled are considered fairly too.

Royal Bank of Canada is not only recognized for its financial services but also for its corporate social responsibility. It donates to charities worldwide. It also sponsors sports and athletics both locally and internationally. It has also initiated various programs concerned with preservation of the environment.

Financial Management and Financial Institutions

Finance is a branch of science that encompasses an array of economic and financial principles, aiming to increase the value of an individual, business company, or public entity. It focuses on money and the level of risk associated with many of the financial ventures. Finance studies and explains the processes through which money is saved, used, or spent.

Personal finance explores the application of a variety of financial principles to persons and family units. It deals with how the money is obtained and how it is spent. The process of decision making is often associated with time and level of risk. Personal finance involves credit cards, personal loans, bank accounts, insurance policies, tax management, and personal investments.


Corporate finance deals with the task of administering funds for the corporation's different activities. At the level of corporate finance, financial concepts are applied to increase the overall value of the company. As part of the process, the decision makers also take into account the management of risks. All business entities deal with and try to predict potential risks. It is the elimination of these risks that determine whether or not a company will be ultimately successful on the market.


Finance covers three major areas: investments, financial markets and institutions, and investments. Financial management deals with how a business entity or an individual budgets or allocates funding in order to ensure a sufficient inflow of cash. This involves maintaining and administrating a person's or a business's financial assets. The companies hire financial managers to assess the financial circumstances of the business and to come up with strategies to increase profit generation. Financial management is the task of one manager or a team of experts. The cash flow of the business depends on the performance of this individual or group.


There are various financial institutions among which investment funds, insurance companies, credit unions, and banks. These bodies work as intermediaries for both capital markets and debt markets, and lenders and borrowers. They help facilitate the flow of cash from businesses, investors, clients, and many other entities. Financial institutions operate to provide financing to businesses, earning profit as part of the lending process. These institutions also provide financial security in different forms such as savings and insurance. Financial markets provide the tools for people to buy and sell services and products. These can be various commodities and goods. Thanks to the existence of markets, sellers and buyers meet each other. Financial markets facilitate international trade, the raising of funds, and the transfer of financial risks.


Budgets document the company's plan and may include the objectives of the business entity, the set targets, financial results, the required investment level to achieve the planned sales, and the funding sources. While long term budgets span over 5 to 10 years, short-term budgets focus on the functioning of businesses during one financial year.


Investments allow individuals or companies to buy assets in exchange for profit in various forms, for example income, interest, or appreciation. Financial management and the management of risks also play role in investments. The careful ROI and investment analysis will bring positive results to the companies and individuals who venture in the field of investment. All fields of finance are interrelated. Individuals who specialize in different branches of finance typically have working knowledge that spans over the whole science of investment.

Debt Consolidation FAQ

Debt consolidation is simply a method for creating an umbrella under which to place all outstanding debts into one new large loan or repayment program and proceeding with payoffs. There are a couple methods to use to accomplish this task.

Consolidating debt into a larger loan

This is where you obtain money from family, friends or a financial loan institution such as a bank or credit union in an amount large enough to pay off all the debt you wish to consolidate. By doing this you are left with a single loan, which will make managing your finances easier. It clears the deck, so to speak, of the old debt load. It replaces the old debts with one much larger new debt. In reality, you may end up paying more by the time you are done with the debt consolidation than you would have under the separate bills. This is due to taking a longer time for repayment and possibly having more interest in the final accounting. Even if you end up paying more, debt consolidation may allow you to improve your credit score and get on the path of financial health. Consolidating your debt will make budgeting easier, as you will deal with one single payment monthly.

A debt consolidation program.

You can do this via third-party, which can be a non-profit organization. They negotiate with the lenders you owe money to, trying to lower your interest rates, reduce the interest you already owe, and in some cases lower the loan principal. They can also propose a debt settlement plan, in which your creditors accept lower repayment installments. One thing to remember when using a debt consolidation program is that you still need to keep your spending under control. If you keep overspending, You don't stand a chance in your efforts to eliminate debt.

Do-it-yourself approach to debt consolidation

You may want to seek out and obtain a new credit account that is large enough to transfer the old debts over to, if your credit record is still in good shape. If you have damaged credit, the chances of getting a very large new credit account would be very slim to non-existent.

However debt is repaid, debt consolidation means that you bring all debt into a new form. The old financial obligations are retired and substituted for a larger loan, easier to manage.



Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.

Is getting a bad credit loan in Canada easy?

A bad credit is not something one ought to be ashamed of, particularly now in the circumstances of global financial insecurity and market stagnation. Among other uses you have in mind, bad credit loans may help you obtain a mortgage, purchase new estate, or purchase a second home. You can furthermore pay off other loans or credit card debt. If you live in Canada and are looking for a loan to fix your tarnished credit score, you have to shop around and find a lender that could meet your needs for financing.

You might have late or overdue payments on your mortgage that in turn were made by an unexpected job loss or some other unfortunate event, or missed payment on your auto loan or credit card. The first thing that comes to mind when considering of how to obtain a loan with that lousy blot on your credit record is applying for financing with one of the many sub-prime lenders. They have mushroomed across the county since the Canadian economy started giving in to the external financial shocks. Some banks give credit just to customers with good credit scores. However, other lenders are actually vying for your small business. The guide below will seek to save you some money and possible financial woes by looking for some reasonable financial establishments. The first two operate on the margin between prime and sub-prime lenders and would not rip off your pocket with mind-blowing interest rates.

CreditAxis is a financial services provider which has specialized in financing people with bad credit records in the United States and Canada. The devoted officials of CreditAxis are ready to help you remedy your damaged credit score or provide the financial assistance you require to overcome your current financial troubles. The maximum amount you may apply for is $25,000. The provider provides access to bad credit card deals, bad credit student loans, bad credit equity loans, fast cash loans, bed credit debt consolidation loans, auto loans, etc. You may obtain a lifetime membership with CreditAxis for $35 onetime fee that is payable by credit card or cheque.

ThinkCash is yet another bad credit loans provider which has specialized in providing short-term small loans ranging from just $250 to $2,500 to risky borrowers from Canada. The financing is supplied by the First Bank of Delaware with which the company is affiliated. Customers enjoy fast approval process while no paperwork or waiting in line is involved. The maximum sum that a first-time borrower may apply for is $1,000. Regular customers may borrow between up to $2500. Borrowers may pay their debt in several installments or as a lump sum. There is no penalty for full repayment of the loan, and you may choose when to do it. But, the faster you pay off the loan, the smaller the interest rate on the borrowed total. It is advisable to think twice before selecting ThinkCash, because the annual percentage rate (APR) on a loan of $1,000 is as high as 219.4%, believe it or not! So, consider this option only if you if you need a short term loan that will help you cover emergencies and unexpected events.

Canada-based Credit loan is another bad credit lender available to residents of Canada. Its loan portfolio includes consumer loans and cash advances with immediate approval. They go from just $1,000 to more substantial housing loans and other financing solutions. The company also offers credit repair and debt consolidation services and it does not charge a membership fee.

How To Refinance Your Mortgage?

A vast majority of homeowners are paying too much interest every month due to the fact that their mortgage has not been refinanced lately, and the drastic decrease in the payment could quite possibly help strengthen their financial situation. A lower interest rate can free up additional cash flow monthly, and it also can help consumers pay off their home quicker by applying more money directly to the principal of the loan. The good news is that it is not hard to refinance your mortgage and these steps will help considerably in the process.

Homeowners need to understand that the changing housing market is certainly going to impact the value of their home, but this is normally only of concern to individuals that owe a significant portion of the estimated worth. Consumers with plenty of equity don't need to worry about being able to borrow against their home. It is never a bad idea to have an independent appraiser take a look at the property and give an estimated guess as to what the home will appraise for. The interest rates will be much higher for a loan that is based on less equity in the home.

An important part of the refinancing process is making sure that the best deal possible is obtained, and it is necessary to realize that most Canadian banks are known for rewarding loyalty. Customers that already have an existing relationship with the financial institution will find it much easier to borrow. The associated terms and interest rates will most likely be lower as well.

An individual's credit score is going to influence the lending decision of the bank, but there may be more leeway than most people believe. Any negative history present on the credit report should be explained in detail. References should be provided if at all possible, and employment stability should be proven by pay stubs or a letter of reference.

Homeowners should refinance their mortgage if it makes financial sense, so it is critical that all fees and costs are not too high. As long as the new loan is going to be paid off in the same amount of time or quicker, a person normally stands to gain by refinancing their current loan. Contacting the existing lender can often make for a fairly easy process, and in some cases a full application won't even be required. Certain programs may exist that will enable existing clients to redo the terms of their mortgage without refinancing the entire loan.

Refinancing your mortgage does not have to be a difficult process, and following the above best practices is an excellent way to accomplish the task. Successful refinances can help improve the overall financial picture of a family and make the future brighter.



Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.



More information about Refinancing here:
http://www.financialdictionary.net/
http://www.mortgagedictionary.net/
http://www.yourloan.ca/

Debt Management or Debt Consolidation

Borrowers who can’t keep up with their monthly payments have important decisions to make. They have to figure out which is better: to manage their debt and thus keep it under control or to consolidate it and make it more manageable in this way.

Management or Consolidation?

Cruel as it may sound, debt builds against the financial health of a private person just like the cancer spreads inside the patient’s body. In this line of thought, debt management is applicable when your debt is still manageable, that is, while it could be controlled by means of careful budgeting and responsible planning of the expenses. There are quite a few financial institutions, including virtually all big banks in Canada and the United States, which provide flexible and secure debt management services to their costumers. Essentially, debt management boils down to somebody else’s taking control of your financial situation so as to save you from your own habit of building debt. Its ultimate goal is debt reduction and, in time, debt elimination. Before starting your search for a debt management provider, note that most of the really good debt managers know their price and their services are everything but cheap.

When does debt consolidation come in handy?

Debt management may be compared to some kind of medical treatment meant to prevent the financial cancer in the form of debt from spreading further. Debt consolidation, on the other hand, comes in handy when one already finds it difficult to keep track of numerous debts that he or she has accumulated. It is likely that the borrower will keep on building them avalanche-like in the future, leading in the end to financial collapse, which is also known as bankruptcy.

How does debt consolidation work?

Debt consolidation helps make your debts more manageable by paying off your numerous old debts with one single fresh and often larger debt. If you come to think about it, this could save you tons of cash on interest rates and late payment charges. Instead of paying off many credit cards or consumer loans each month, some of which you are very likely to forget about and incur penalty charges, you will be making one single payment that will cover all your smaller debts.

Debt consolidation isn’t easy to get

When applying for debt consolidation, you practically go to some provider of financial services and tell him: “Look, I have built a startling amount of small and useless debts that are like a millstone on my neck, but if you give me this large loan that I am applying for, I promise to get rid of them and be a good payer in the future.” Will you believe it, if it were you in the banker’s shoes? Probably not but in fact, there are many financial companies on the market whose job it is to help people pay off their debts by means of debt consolidation. All you have to do is shop around for a reliable lender with reasonable interest rates and convince it that you are not going to screw it up again. Good luck!


Information on more debt and bankruptcy and financial terms

Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided "AS IS", and all warranties, express or implied, are disclaimed by the author.

6 Ways to Protect Your Wealth and Lifestyle in a Financial Crisis (Canadian Edition)

Financial crisis happens to even the most wealthy and careful of people. Maybe it’s a downturn in the economy, an unforeseen problem in your business, or maybe you broke up from a partner. Whatever it is it’s important to have measures in place in case you can’t keep you wealth and current lifestyle. These 6 tips should come in handy.

1.Make sure you bank account is insured with the Canada Deposit Insurance Corporation. They protect you up to $100,000 for all financial services offered by chartered Canadian banks.

2.If you need to remortgage your home, so be it. If it keeps you from going under in the short term you have time to map out your financial situation and hopefully get back on track. You may be able to lock in a better rate.

3.Budget. Pride is a counterproductive emotion when it comes to finances. So what if you can’t eat at the fanciest restaurants for a few months, it’s better than getting in to irreparable debt and not being able to eat at them ever again. Go for a cheaper bank account, reassess your car and home insurance options; even do the little things like turning off standby on electronic equipment.

4.Act sooner rather than later. The world economy doesn’t look too bright. It can only go up from hear right? Wrong, it might hit rock bottom first. Sort out debt before it is too late. Security comes before luxury. A good way to keep yourself afloat is to stop using credit cards and use debit cards. Then you can only ever be in the positive.

5.Save! Take a percentage of your income and put it aside EVERY month. You’ll eventually get in to the mindset that the percentage isn’t disposable income anymore. You’ll eventually have a nice nest egg for unforeseen circumstances. Make sure you use a high interest bank account with easy access. There are many online savings accounts that have no restrictions but good rates.

6.Spend less than you earn. Sounds simple right? But many people live on credit or spend before their wage comes in.

A lot of this is common sense and there are many other techniques you can use to keep yourself secure. Just because you traditionally earn a lot doesn’t mean you have to spend a lot.

What are liquid assets?

The term liquid asset refers to financial resources that can be converted to cash with relative ease. This type of assets covers cash, US treasury bills, money market mutual funds, bonds, stocks, etc. In some states, precious metals such as silver and gold are also regarded as liquid assets. Money is the most liquid assets of all. Investments in the futures and stock markets are more liquid than investments in residential property. In fact, the most liquid market is the foreign exchange market because huge amounts of money change hands every day. In this sense, a single person or company cannot influence the exchange rate.

A characteristic feature of liquid assets is that they are readily saleable on the market. There is a high degree of certainty about the value of liquid assets: the price level of the next sale is typically close to the level of the last trade.

In simple words, a liquid asset is one that can be exchanged efficiently for another good or asset. Assets are described as liquid if they are sold quickly and with no loss of value. For example, one may be able to sell his car or house on eBay in a couple of hours, but there is a good chance that the assets would be sold for less that they are worth. Assets such as real estates and houses take longer to sell at a reasonable market price and are less liquid. Fixed or illiquid assets are not readily saleable as there are no markets to regularly trade them on (or their value is hard to determine).

In personal finance, liquid asset (apart from cash, funds in checking accounts, etc) is any item that may be sold at a fair market price is a short amount of time. These may be appliances, CDs, collectibles, and anything else that brings a good amount of money fast. In the world of business, liquid assets are the assets which a company can sell or trade quickly: cash, stocks, bonds, and funds in banks. Companies have to dispose of liquid assets in order to keep up with their payments. Businesses that do not have an adequate amount of liquid assets can go bankrupt because of a cash flow crisis. However, if a company has too many liquid assets, it is not profiting from these resources by investing them.

Market makers, together with speculators, are the major contributors to assets’ liquidity. These are companies and individuals seeking to make profit from the rising and falling prices of particular assets. They dispose of and provide capital which increases liquidity.

Central banks are key players when it comes to increasing the liquidity of money. They implement various monetary policies to exert control over the monetary supply of the country. Central banks buy and sell government securities and other financial instruments and use interest and exchange rates to implement monetary policy.

How to get the best loan in Canada?

The first thing to consider when contacting your potential lender is your credit score. As a rule, Canadian loan applicants with higher credit score are considered more reliable payers than those who have a lower credit score. Therefore, they usually qualify for the best interest rates that a lender has to offer. Before applying for a mortgage or a loan consolidation, the first thing to do is to check out your credit history. If you spot any inaccuracies, get in touch with your credit bureau and ask them to re-examine and correct your credit score. However, if your credit score is poor, it is best to raise it before you file an application for another loan.

Getting the best loan is as much a matter of careful planning and research, as it is a matter of negotiation. Once again, your credit score comes in handy – applicants with higher credit scores usually hold stronger positions when negotiating with their lending institution or bank. Keep in mind that most banks typically have options to adjust the interest rate on your loan in your favor, or waive certain service fees.

Being a diligent payer involves a careful monthly budgeting as well as good planning of your financial future. You probably know that you should not take more than you can carry. This rule of thumb is also valid for loans – you should not apply for a loan that will break your back in the long run.

If you are planning to apply for a mortgage, you have to consider how long you intend to stay in the house. If you plan to inhabit it for, say, five or six years, you will probably benefit more from a floating interest rate. On the other hand, if you plan to use your home for some twenty or more years, you may benefit more from the stability of a fixed interest rate.

When choosing your lender, you should compare fees as well as interest rates, plus the annual percentage rate of the loans they offer. If you are applying for a mortgage, you should ask your potential lender or, even better, each of the lenders you contact, to give you a formal “good faith estimate” of all fees you’ll incur with your loan. Thus, you will get a detailed breakdown of costs which is much more accurate than the overview that you’ll get with a mortgage offer. In addition, you should make sure that your Canadian lender understands your individual circumstance and specific financial needs. For instance, some lending institutions have developed special loan offers for applicants with poor credit, while others may have more diverse financing solutions for those who can afford relatively small payments. If you are planning to pay off your mortgage in advance, ask the lending institution for any prepayment penalties.

Sources: Dictionary of Financial Terms

How to avoid bankruptcy

If you are deep in debt and you cannot stand the collection calls from your lenders or creditors any longer, maybe you have already considered filing for bankruptcy. Before you go ahead and discuss the issue with your lawyer, stop for a while and consider some of the hidden traps paving the way to bankruptcy.

Under the legislation of most of the world’s developed economies, a debtor may file for a statement of bankruptcy and, if the statement is granted, he or she may get the chance to reorganize or eliminate some of the debts. The key word here is ‘some’. It’s a common mistake to think that as soon as you file for bankruptcy, you will automatically get rid of all of your debts. For example, a bankruptcy statement does not erase your back taxes, student loans and some of other bad credit loans that you have.

Which is even worse, at some point after you have filed for bankruptcy, your lenders may still file a claim against you and repossess your movable or immovable property. It is true that bankruptcy relieves the debtor from the liability to pay off his or her debts. However, the creditors or lenders may still have the right to foreclose or repossess the debtor’s property unless he or she manages to pay off the entire balance because there is a lien attached.

There are several ways to avoid bankruptcy, depending on one’s financial circumstances. A debt settlement is a good option for all debtors who find it difficult to cover the monthly installments on their debts. Your bank may also offer you a debt consolidation or a bill consolidation program that will slash the interests on your debts.

Alternatively, you may contact a credit counseling agency to help you avoid bankruptcy. Your credit counselor will offer you a plan under which you will be able to cut down interest rates and wave off or minimize interest charges that are incurred because of late payments on your account.

If you opt for payday loan consolidation, you will be able to consolidate several payday loans, replacing them with an reasonable monthly payments.

If you do not want to pay fees to professional debt advisors, you can try to work out your own plan to avoid bankruptcy. It will be a good start if you contact your lenders and try to negotiate lower monthly installments on your debts. Naturally, lenders want to see their loans repaid and may be inclined to negotiate better terms on your payments. This strategy may ward off your financial worries for the time being but in the long run, your debts will prove costlier, as you will be paying more money in interest rates. Instead, you may try to cut down some of your daily expenses and pay more money to your lender or creditor each month. This strategy will help you pay off your debt faster and save you considerable amount of money in interest rate.

Top 10 tips on how to save money

“A penny saved is a penny earned,” says Benjamin Franklin. Indeed, with the global economy just having started to emerge from the recession, money saving strategies have gained considerable importance and specific gravity. The ten best money saving tips below will help you manage your household budget more efficiently and with a greater ease.

1. Watch less television. When you are watching TV, you are constantly bombarded with commercials that prod you to spend money. Turn off the TV and you will save a lot!

2. The third money saving advice is called “the thirty day rule”. Quite often, we buy expensive things that we do not really need. Next time you decide to buy something and you are not sure if you really need it, just wait thirty days before making the purchase. Quite often, the buying urge abates with time and thus, you can save a lot of money by abiding to the thirty day rule.

3. Let’s start with the place where you keep your money – your bank. Does your bank really respect you as a customer? Believe it or not, you can save a fortune by answering this simple question. You should choose a bank that does not rip your pocket by imposing high maintenance fees. At the same time, the bank should provide a decent interest on your checking and savings accounts.

4. Never go shopping without first compiling a shopping list. When you are in the supermarket, stick to your shopping list just like the mariner sticks to his compass, or else - you may leave the shop with a whole lot of unnecessary things and an empty wallet.

5. Fast food is not a bargain. Not only is the fast food unhealthy, but it is often quite expensive. Try this: instead of buying a sandwich from the fast food stand near your office, make a healthier sandwich at home and eat it during your lunch break.

6. Plan your holiday carefully and well in advance. You can save a fortune on cheap all-inclusive deals and visit the coolest places for the hottest prices.

7. You can save a lot of money on tax reductions, if, for example, you donate your old clothes and shoes to charities.

8. Always turn off the light when you leave the room. Invest in energy saving solutions for your home. You may buy a tankless water heater, energy saving bulbs, and other appliances that save on energy.

9. Use your credit card only in case of emergency. Buying a pair of Bally’s shoes and then paying them off for the rest of the year is not an emergency. But if you need to pump some gas in your car’s tank and you don’t have enough cash, you can pay by credit card (especially if the next gas station is two hundred miles away). You know what I mean.

10. Look for bargains and deals. However, you should do it only when you really need something. Don’t go shopping for the sake of it. Stick to the money saving tips and you’ll manage your monthly costs more effectively.

Sources: Canadian Banks and Canadian Payday Loans

Get Rid of Credit Card Debt Once and for All

People are getting tired of the downturn in the economy the credit card debt, but it is not improving. If you have credit card debt and can’t see the light at the end of the tunnel then these tips should help you get back on the right track. You just have to be honest with yourself and the people within your family.

1.Asses your credit card debt honestly. It’s not good thinking “it’s ok, I’ll pay this off in a few more months...” Get down to raw figures and actually look at how much you owe in total. It might blow your head off, but at least you’ll know. Now you can manage it realistically. The next step is to find out what your biggest financial drains are a month. If there is anything you can cut out, great, do it. If it means drinking “Rola Cola” for a year instead of Coca Cola it isn’t the end of the world.

2.Next you must do a budget that doesn’t rely solely on more credit. Paying off credit cards and loans with more credit cards and loansmeans you’ll die in debt. You have to determine where the problem is and change it, instead of rolling everything over every month. You don’t lose weight by continuing to eat cake. You don’t get out of debt by continuing to spend the same amount of money.

3.Start saving. I know saving seems crazy when you need to pay off debt, but money that is saved is your money and can get you out of problems in the future. Put a small percentage of your wage each week in to a savings account.

4.Pay off the most expensive credit cards first. You can’t take baby steps here. What’s the use paying off the easy cards? You’ll still have a black cloud over you.

5.Don’t spend more than you earn. Stay in a few weekends a month. Don’t buy anymore clothes for this year. If you need brand name clothing, fair enough, but why brand name food? You’re eating it not wearing it. Turn off all the lights when you leave a room, unplug electrical equipment on standby, use public transport. When you think about it, there is a lot you can do to cut your monthly spending and it doesn’t always have to be that way. When you are out of debt you can up your lifestyle a little.

6.Seek professional help or credit counseling, they can guide you on the best way to take action and put everything in a clear and easy to understand manner.

7.To fight the temptation, once you have paid off any credit cards, cancel them and dance on their grave. The ideal is to end up with one credit card that you only use when you have to and use your debit card for everything else. The key to getting out of credit card debt is to be honest with yourself and make a plan. You need to understand your situation and have a plan of action before it can change.

8.If it all seems too much to manage seek debt consolidation services where your debts are taken on by an organization and you are left with one big loan or card. It doesn’t necessarily make it cheaper, but it is a damn sight easier to manage.


Disclaimer: The information contained in this website is provided as an information service only and does not constitute financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice which takes account of your particular objectives, financial situation or needs, you should consider seeking independent financial advice from a Financial Services Licensee.