Banking in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Five things to watch for in the Canadian business world in the coming week Jan 10th
TORONTO – Here are five things to look for in Canadian business this week:
Housing data: Canada Mortgage and Housing Corp. releases data Monday on the number of housing starts in the country for December. The figures will be scrutinized by policy-makers following what has been a robust year fo.... More »
Visa vs. Mastercard: What are the differences (and do they really matter)? Jun 19th
A frequent question we hear at MoneySense is: Which is better—Visa or Mastercard? When looking for a credit card, there are all sorts of things to consider. What is the interest rate? Can you collect rewards points or get cash back for making purchases? Is there a bonus for signing up, and what ar.... More »
Canadian banks argue against Canada Post getting into banking Jul 14th
The lobby group representing Canada's big banks says there's no need for Canada Post to expand onto their turf because Canadians already have an abundant choice of financial services..... More »
Will GIC rates keep going up in 2024? Dec 23rd
As Canadians are painfully aware, Canada’s inflation has stubbornly persisted above the Bank of Canada’s (BoC) target rate of 2%. In response, the BoC has repeatedly raised the benchmark interest rate—which sets the pace for banks’ prime rates—since early 2022. While no one can predict wit.... More »
New law proposed to shift bank failure risk from taxpayers Mar 23rd
Canada will introduce legislation to implement a "bail-in" regime for systemically important banks that would shift some of the responsibility for propping up failing institutions to creditors..... More »
How to Tackle High-Risk Debt
– ratesupermarket.ca
Stressed out about your debt? You’re not alone – high debt levels are becoming an unsustainable issue for more than a third of Canadians; a recent survey from Manulife finds respondents are increasingly covering daily costs by turning to credit cards, borrowing from family, and selling off assets.
What’s most alarming is the type of debt we’re relying on; the high-interest, high-risk variety that not only racks up big payments, but dings your credit score as well.
The good news: by managing your existing debt wisely, you can mitigate the damage to your score and set yourself on the path to debt payoff. Here’s a look at your options.
Also read: How I Ruined My Credit Score>
Target Your Revolving Debt
Revolving debt is the most common type of credit available: it’s an open-ended loan that never needs to be paid off in full in exchange for regular minimum payments and high interest charges – think credit cards, lines of credit, and HELOCs. They’re also the easiest form of debt to abuse; with no payoff date in sight, balances and interest charges can pile up beyond a borrower’s control…
