Line Of Credit: Not a Second Income

Line Of Credit: Not a Second IncomeDebt to Income Ratios

Yes, sometimes a line of credit is useful if you need money immediately and realize that using your credit card is not the best financial decision. Most often, it is never the best decision to use your credit card for big purchases unless you actually have the money in the bank and you are going to pay it off immediately. There are situations when people want to earn points or miles on their credit card and make this decision. However, most other times it is not in anyone’s best interest to carry a balance on a credit card.

First, if you decide to research line of credit options, which you should always do, make sure you shop around to get informed and compare interest rates.  Secondly, you will notice that many financial advisors will advise you to cap your line of credit and then make sure you pay off that line of credit before you get a new line of credit. For example, if you need $5,000, do not take the $20,000 the bank may offer you. First of all this is not a bonus for you and it becomes more and more difficult to pay back the line of credit when you start thinking that it would be so great to not only get a new bedroom set for the kids but also a new washer and dryer.   

In short, do not take more of a line of credit than you need and make certain you pay back everything before you spend again. This will also help you build financial confidence because you will be paying off your goal quickly.

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. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Spend Less Than You Make

Spend Less Than You MakeDebt

Start today! You have to save and live within your means. This means a little discipline and common sense. We all know this is much more difficult than we imagine. Think about how status has come to be rewarded: we have perceived wealth and we tend to have a preoccupation with possessions.  You can walk into a department store and think to yourself: I deserve it! Yes, you deserve to have the life you want but this comment: ”I deserve it” needs to be about your future.

Step 1: Take away the ability to give in to temptation and you will start spending less. Don’t go to your favourite stores without a plan, don’t grocery shop hungry, decide that you truly don’t need anything because you probably don’t and probably won’t for a long time. Finally, don’t compare your spending and needs to anyone else’s spending and needs.

“GRATITUDE IS RICHES. COMPLAINT IS POVERTY”…DORIS DAY

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. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

RRSPs: What you should know!

RRSPs: What you should know!RRSP

A Registered Retirement Savings Plan (RRSP) provides annual tax benefits for saving for retirement. It is often suggested that couples set up an RRSP together: a spousal/common law RRSP, however, this type of investment assumes that partners will be together forever. The higher income earner (in this situation) benefits in the short term due to tax breaks. The lower income earner is supposed to benefit when they reach retirement. When setting up a plan such as this, make sure the plan actually benefits both parties in both the long and short term. If in fact this is uncertain (and most financial circumstances are difficult to determine), it may be best to set up a Tax Free Savings Account (TFSA) as a couple, this way both parties benefit equally.

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.  

 

Finances and Your Family

Finances and Your Family

bankruptcyFinances and Your Family: One step to a brighter financial future..

(RESP) Registered Education Savings Plan: This is a registered education tax -free savings program with the government of Canada. It is estimated that any higher education in the next ten years will be approximately 45,000-75,000. Saving a small amount annually for your children’s education is a great way to give them their inheritance-or a portion of their inheritance- when they truly need it. As soon as possible, apply for a SIN number for your children (Call 1-800 O Canada, 1-800-622-6232) and start saving. Ask your financial advisor about your options and how much the government will match in your child’s account annually. You could receive up to 100.00 per year in government grants for opening the account. Remember that you can not take the money out so deposit the minimum amount but do so consistently.

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.