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Five retirement savings tips for Millennials + MORE Jul 28th
A couple of years ago, Emilie Hunt had to go to the emergency room with a stomach virus. The bill took a huge chunk of money out of her savings, more than $800, and kept her from saving for a couple of months..... More »
TFSA contribution room calculator + MORE Jan 16th
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
TFSA is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds .... More »
Challenges Of The Canadian Lending Landscape + MORE Nov 23rd
The Canadian fintech marketplace is growing with significant speed. Canadians' adoption of financial technology -- or fintech -- is expected to triple over the next year according to Canadian advisory firm EY. Toronto-based urban innovation hub, entrepreneurial incubator and fintech cluster develope.... More »
Alternatives to high-cost payday loans Sep 7th
The post Alternatives to high-cost payday loans appeared first on MoneySense..... More »
Expanding TFSA limit offers little for lower, middle earners: study + MORE Jun 30th
The Harper government's recent move to raise the contribution ceiling on tax-free savings accounts offers little to benefit low- and middle-income Canadians, a new analysis of federal tax data has found..... More »
Canadians better at repaying debt in last quarter
– moneysense.ca
(Mike Kemp/Getty Images)Canadians with consumer debt were better at making payments on time in the first quarter of this year than they were in the same period over the previous two years, according to the TransUnion credit monitoring agency.
It says the delinquency rate on non-mortgage debt like credit cards, auto loans and lines of credit was down in the first three months of 2015, even though the average balance owing remained stable at just under $20,800.
The delinquency rate fell to 2.66%, down from 2.72% in the same period a year earlier and 2.87% in the first quarter of 2013.
Jason Wang, TransUnion’s director of research, says one of the reasons for the decline was that lenders and borrowers were increasingly cautious.
Wang says another factor was the Bank of Canada’s decision to reduce a key interest rate in January following a collapse of global oil prices that started in late November and continued into this year.
He says the central bank’s move reduced mortgage costs for some homeowners, who used the savings to manage their other types of debt…
How unused credit impacts your credit rating
– moneysense.ca
Q: Can having an unused line of credit for 20 years negatively affect your credit rating? —Don Sutton, Victoria
A: Decoding the human genome is a Grade 6 science fair project compared to decoding the credit rating algorithm. There are many variables that go into it but the first one that matters in your case is credit history: From this perspective it can be a positive that you’ve had a line of credit for such a long time. You haven’t used it, but you also haven’t abused it, so that’s good. The second variable is credit utilization—the ratio of your debt to your available credit. This line of credit shows that you have access to credit but aren’t too close to using it all up, which is also positive. That said, lenders always look at the total picture, says Clifton O’Neal from TransUnion. “There is no history to demonstrate responsible management of this line of credit. If you are maxed out on your other lines of credit, this unused line could be seen as a liability.” What I would do is order your credit report from either TransUnion or Equifax…
A: Decoding the human genome is a Grade 6 science fair project compared to decoding the credit rating algorithm. There are many variables that go into it but the first one that matters in your case is credit history: From this perspective it can be a positive that you’ve had a line of credit for such a long time. You haven’t used it, but you also haven’t abused it, so that’s good. The second variable is credit utilization—the ratio of your debt to your available credit. This line of credit shows that you have access to credit but aren’t too close to using it all up, which is also positive. That said, lenders always look at the total picture, says Clifton O’Neal from TransUnion. “There is no history to demonstrate responsible management of this line of credit. If you are maxed out on your other lines of credit, this unused line could be seen as a liability.” What I would do is order your credit report from either TransUnion or Equifax…
News guide: A brief overview of Greece’s financial problems and how it got here
– canadianbusiness.com
ATHENS, Greece – Greece is struggling to get a deal with its financial rescue creditors to get more loans. Without one, it could default on its debts, which could be the first step in a chain reaction that sees the country fall out of the euro currency union.
Here is a broad look at the key issues in the crisis:
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CURRENT ISSUE
Greece has been relying on loans from its fellow countries in the 19-country eurozone and the International Monetary Fund since 2010. Its 240 billion euro loans package is due to expire at the end of June but Greece has not gotten the last 7.2 billion euros ($8.2 billion) of that package. The talks are now about trying to get those loans before they expire.
Greece has a debt repayment on June 30 worth about 1.6 billion euros that it likely cannot afford without more loans from creditors, and larger payments in July and August it definitely can’t.
___
NO BOND MARKET
Greece needs loans because it cannot borrow on bond markets at affordable rates, as other countries do to finance their spending…
Here is a broad look at the key issues in the crisis:
___
CURRENT ISSUE
Greece has been relying on loans from its fellow countries in the 19-country eurozone and the International Monetary Fund since 2010. Its 240 billion euro loans package is due to expire at the end of June but Greece has not gotten the last 7.2 billion euros ($8.2 billion) of that package. The talks are now about trying to get those loans before they expire.
Greece has a debt repayment on June 30 worth about 1.6 billion euros that it likely cannot afford without more loans from creditors, and larger payments in July and August it definitely can’t.
___
NO BOND MARKET
Greece needs loans because it cannot borrow on bond markets at affordable rates, as other countries do to finance their spending…
Fed will likely signal a rate hike is coming later this year if economy strengthens further
– canadianbusiness.com
WASHINGTON – With evidence that the U.S. economy is rebounding from a winter slump, the Federal Reserve will likely signal this week that an interest rate increase is coming — just not quite yet.
Many economists say that if the economy keeps improving, the Fed will most likely raise its key short-term rate when it meets in September. That rate has been held at a record low near zero since 2008.
The Fed’s timetable has far-reaching impact: Once it begins raising short-term rates, other rates — for mortgages, auto loans, corporate borrowing — could head higher. Stock and bond prices could be squeezed.
In recent weeks, key sectors of the economy — the job market, retail spending, home sales — have improved. The gains mark a reversal from the January-March quarter, when the economy is estimated to have shrunk, in part because of a harsh winter.
On Wednesday, the Fed may sketch a slightly brighter picture of the economy in a statement after its latest policy meeting ends and in a news conference by Chair Janet Yellen to follow…
Many economists say that if the economy keeps improving, the Fed will most likely raise its key short-term rate when it meets in September. That rate has been held at a record low near zero since 2008.
The Fed’s timetable has far-reaching impact: Once it begins raising short-term rates, other rates — for mortgages, auto loans, corporate borrowing — could head higher. Stock and bond prices could be squeezed.
In recent weeks, key sectors of the economy — the job market, retail spending, home sales — have improved. The gains mark a reversal from the January-March quarter, when the economy is estimated to have shrunk, in part because of a harsh winter.
On Wednesday, the Fed may sketch a slightly brighter picture of the economy in a statement after its latest policy meeting ends and in a news conference by Chair Janet Yellen to follow…
