China’s Li pledges more reform, says debt under control + MORE Mar 16th

March Break is nearly here, and for many winter-weary Canadians that means a welcome jaunt to a sunnier climate. However, travelling may be harder on the wallet this year due to weaker spending power. But not to fear, would-be vacationers – this week’s travel tips will have you enjoying life in the jet set in no time. Read on for the full story.
INFOGRAPHIC: How to Fly for Free
A weaker Canadian dollar may be clipping vacationers’ wings, but there’s no need to settle for a staycation! There are tons of travel rewards credit cards on the market that can help offset your travel costs – but finding the right one (and understanding how points work) can be confusing. Check out our infographic for insider tips on taking to the skies for less.
Read Penelope’s Blog | How to Fly for Free
Travel in Canada Grows Due to Weak Loonie
Did you know: a vacation in the U.S. could cost you 30% more this year? It’s no wonder canucks are choosing to stay north of the border this vacation season, according to a recent Expedia study…

Q: I am a 55-year old with three kids who are in university. I have exhausted our RESP savings and am having a cash flow problem. My wife and I have about $250,000 in RRSPs and another $150,000 in LIRAs. We have had some money difficulties over the last couple of years and now have a $450,000 mortgage on a home that is worth around $650,000.
I am a good earner and make close to $200,000 before taxes. I am a psychologist in private practice. My wife works for me and we income-split to help reduce taxes.
The dilemma we are facing is whether or not we should sell our house and downsize into something a little cheaper in order to reduce our mortgage, or use some of the money that we have in RRSPs to pay down the mortgage and help with the kids’ education. Once they are done, we will have a lot more money to put against the mortgage, but what is killing us is the interest on the mortgage.
We are also thinking about building a house and have found a nice lot. We could probably do it for about $500,000…

BEIJING, China – Chinese Premier Li Keqiang pledged Wednesday to press ahead with an overhaul of the state-dominated economy and financial markets despite slowing growth, saying the country’s rising debt levels are under control.
Li’s comments at a news conference were the latest installment in a high-level campaign to reassure jittery global markets about the health of the world’s second-largest economy following stock market and currency turmoil.
Li, the country’s top economic official, expressed confidence Beijing can carry out plans to shrink bloated steel and coal industries while still meeting its economic growth target of 6.5 to 7 per cent. He promised to make it easier to set up private businesses and said financial markets will be made more market-oriented to support growth.
“We will continue to pursue market-oriented reform,” said Li at the event held following the closing of the annual session of China’s ceremonial legislature.
The premier acknowledged concerns about rising debts and potential bad loans at banks but said debt levels and manageable due to large reserves at financial institutions and a high savings rate…

Canadian household credit market debt, which includes consumer credit, mortgage and non-mortgage loans, increased to $1.9 trillion at the end of last year

The latest household debt stats have been released by Statistics Canada – and they reveal a trend of persistent consumer and mortgage borrowing across the nation. The average debt-to-income ratio hit 165 per cent in the fourth quarter of 2015, up from 164 per cent in the previous quarter. That means the average Canadian now owes $1.65 for every dollar they earn after taxes.
Total debt, including consumer credit and non-mortgage and mortgage-based loans, grew 1.2 per cent to $1.923 trillion at the end of last year –  but a whopping 1.262 trillion of that can be attributed to mortgages.
This follows a report from TransUnion that finds the average Canadian credit card balance has hit $3,610 – a three-year high.
Cheap Borrowing to Blame
It’s not surprising debt – and particularly mortgage borrowing – continues to grow in Canada; consumers have been spurred to borrow by the central bank for several years, as record low interest rates have been the norm. The Bank of Canada (BoC) cut the cost of borrowing to 0…