Financial Stories Archives - Page 11 of 43

Getting Into Debt

Posted on July 30, 2016April 12, 2016 by Jordan Rumanek

Getting Into Debt:

Understanding and defining secured and unsecured loans:

Secured Loan: a loan that is backed by something of value that you own. If you do not pay the loan on time and you will lose whatever you have pledged as security.

Items purchased by secured loan include:

1. Houses, Condos, Land, Cottages

2. Vehicles, boats

3. Appliances

4. Furniture

Unsecured Loans: these loans not backed by collateral. The majority of debt in Canada is in this form: high risk and high interest rates

1. Credit cards

2. Student Loans

3. Personal Loans

4. Dental Bills and other medical costs not covered by a government or private plan

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Should I buy a home now?

Posted on July 16, 2016April 12, 2016 by Jordan Rumanek

Should I buy a home now?

Are you in the middle of a career change? Are you planning on moving to a new city or out of Canada? If you answered yes to either of these questions…this is probably not the best time to buy a home.

Owning (as opposed to renting) is almost always a better idea than renting unless you want flexibility. Owning a home is a huge commitment and it is suggested that you keep your home for at least 5 years, You need to also consider that owning a home has unexpected costs:

1. Furnace Repairs or Replacement

2. Maintenance/Repairs

3. Insurance

4. Utilities

5. Taxes/Fees (if a condo)

However, if you own, your monthly mortgage payments are an investment and payments eventually stop. There is also a measure of mental and emotional stability in owning your home.

Debt Help

Posted on July 9, 2016April 12, 2016 by Jordan Rumanek

Debt Help

Debt is what you owe and any debt is too much if it makes you feel uncomfortable…

If you are facing financial difficulties, take action. Simply ignoring your financial problems or hoping they will somehow go away will not solve anything and is likely to make things worse.

There are a number of organizations that can help and much of this help is free.

Sharing your problems will relieve the stress on you. Speak to friends and family about your situation. Consider also your church group, community organization or any clubs you may belong to. These organizations may be able to help.

Always get a second opinion from a professional before you make any major changes or financial arrangements. For example, a deal offered to you may have some consequences you may not be fully aware of. This applies particularly to deals involving debt consolidation or changes to your mortgage. A professional will know what questions to ask and what documents to review.

Reverse Mortgages

Posted on June 25, 2016May 3, 2022 by Jordan Rumanek

Reverse Mortgages

A reverse mortgage is a home loan for individuals or couples 55+ years or older. You borrow from the value of your home and does not require monthly mortgage payments. However, interest is added to the loan’s balance and if no payments are made the interest can eventually exceed the value of the home. Reverse mortgages are risky and you need legal advice before considering this even as an option.

Advertising makes a reverse mortgage sound attractive because they push 4 points of interest:

1. You don’t have a monthly payment until you move.

2. You can receive a lump sum of money if you’ve paid off your home—sometimes 50% of the value of your home.

3. If you are house poor, you have extra cash money—you can use the money for healthcare needs or home repair and living expenses.

4. Tax-free source of income

However…

Interest on the reverse mortgage increases which in turn decreases the equity you have in your home. The interest can sometimes increase to more than the house is worth and there are higher interest rates than most mortgages.

Category: Financial Stories

Getting Into Debt

Getting Into Debt:

Should I buy a home now?

Debt Help

Debt Help

Reverse Mortgages

Reverse Mortgages

Get Started Now

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Getting Into Debt:

Reverse Mortgages