R.E.S.P. For Your Child’s Future

A college/university education is expensive and tuitions will only go up with time. An R.E.S.P. (registered education savings plan) is an excellent way to start planning for your child's future. Consult several institutions before choosing the one right for you. Families have 18 years after your child is born to generate as much of an educational nest egg as possible. The Government will contribute 20%tax free to your contribution. By properly researching this option, your family can start to get an action plan together. With the new year approaching, it would be wise to start a plan if you haven't already.

Know all of your facts before starting your R.E.S.P. One place to start is by Googling the Canadian Government’s R.E.S.P. web site.

http://www.hrsdc.gc.ca/eng/learning/education_savings/public/resp.shtml

Read up and learn all you can about what you are starting to enter in to. Consult lending companies and other institutions to make sure you are financially able to contribute is the first step in planning for your child’s future. Here are a few things you may want to take into consideration.

Positive things that support contributing to the future of your child’s education:

• The government contributes 20% of what you put in.

• There is not any annual contribution limit.

• There is a maximum lifetime contribution of $50,000.

• Lower income families are eligible to receive a higher contribution from the Government.

• Once your child qualifies for a part time or full time education program, family members are allowed to contribute to the fund (Christmas and Birthdays are perfect for this occasion).

• The fund does not have to be collapsed until the 26^th year of maturity. This gives your child extra time to get into the program they want. Should your child not be using this R.E.S.P. you may want to consider this nest egg to be used for yourself and transfer the funds to your retirement plan. Keep in mind that the Government contribution of 20% will be withdrawn and you will be paying the taxes on any amount the fund has made in the interim.

In order to make sure you have made the correct decision, here are a few things to consider:

• The RESP contributions are not tax deductible.

• If your child does not attend any post secondary school you need to be aware of the taxes and rules that apply when withdrawing or closing the account.

• If you are not financially stable, it is recommended that you do not start up an R.E.S.P. due to withdraw fees, admin fees and the potential cost of withdrawing earlier than it’s maturity date.

• You have already paid taxes on the amounts you have contributed. If the R.E.S.P. grows, the difference between what you put in and the 20% the Government adds will be taxed upon redemption. Note if the student is the one withdrawing from the fund the taxable difference is taxed at the student’s rate. If the fund will not be used, you are responsible for paying the taxes on any growth amount.

Your children are your future and New Year’s resolutions can start small and grow over time. To open an R.E.S.P. all you need is a Social Insurance Number for your child and an R.E.S.P. provider. Choosing a provider will be the most difficult task of all. Take your time, shop around and become as knowledgeable as possible.

For more valuable advice please visit www.prudentcreditrepair.ca

Clean up Your Debt by Consolidating it all For the New Year!

Consolidating all of your current debt will make a difference to you and your family in saving and planning for the future. Since the Bank of Canada has decided not to increase prime interest rates, now is a great time to take advantage of low lending rates. This means the lending rates will remain the same for the foreseeable future. The average family owes $150.00 dollars for every $100.00 they earn. How badly are you relying on credit to keep you going? Here are a few reasons why debt consolidation may be one solution for you.

Why should I consolidate my debt?

• By paying off all of your higher interest credit cards in full you will save the difference in interest. Pay all of your Store Credit cards, for example Sears, The Bay and Canadian Tire not just Visa MC and AMX.

• Your banking overdraft fees, interest and monthly surcharges will no longer be added to your current statement. No more penalties in late fee’s and account charges.

• Pay your balance and outstanding amount for your cable, Internet & phone (are you in a contract, If not shop around for better prices).

• Eliminate your stress of collection calls.

• Essentially get a loan for all debt that you owe, roll it into one monthly payment and make sure the interest charged is less than your previous combined interest charges.

Where to look for a consolidation loan.

There are other options to traditional banks' consolidation. Some are credit unions, trust companies and private financial services that provide affordable open vehicle title loans and home equity loans to people with bad credit.

How will this help you and your family?

• By consolidating all of what you owe into one payment you will only be making one payment instead of juggling money from one account to the next.

• The consolidation loan will usually be at an interest level less than the interest rate your credit cards were at. Saving you money.

• Preserving you credit rating by paying off all outstanding debt will look great on your credit report. One monthly payment will generate positive credit history moving forward into the New Year.

• Trying to keep on top of each individual account, card, amount past due is time consuming and stressful.

Making resolutions for the New Year with a clean start will enable you to keep your promises. Consolidating your past financial debt into one affordable payment, lessening your over all interest and expenses is the perfect way to kick off the New Year.

Once you have made a fresh start you are now able to continue in the correct direction. You will start to climb out of debt, create good credit history and most importantly become less stressed by sticking to a budget you can afford. You may now start to, take back control of your debt and are on your way to remaining debt free!

For more valuable information about how to manage money, please visit www.prudentcreditrepair.ca

It's OK to wish folks 'Merry Christmas'

"CHRISTMAS EVE was a night of song that warmed itself around you like a shawl. But it warmed more than your body. It warmed your heart. Filling it, too, with a melody that would last forever," wrote author Bess Streeter Aldrich of the loveliest night of them all.

In previous years, I've written about the true meaning of Christmas and how, just as Manhattan is everybody's town, this is truly everybody's holiday. In those columns, I found myself quoting Blake Gopnik, who unabashedly declares, "Merry Christmas," and follows up with these words: "I know those Christian-sounding words ought to feel odd coming from my lips. I am a third-generation atheist of Jewish ancestry and I'm almost evangelical in my lack of faith. But the words feel fine - 'Merry Christmas!'"

Mr. Gopnik clings to this greeting because "saying something like 'Happy Holidays' or 'Best of the Seasons' sound like bland euphemisms, newspeak, el cheapo substitutes."

He adds: "The wonderfully secular, partly pagan solstice celebration that is coming on Dec. 25 has also had a tie-to Christ for about 1,800 years. The link is too well-forged to try to break it now without diminishing the whole event.

"I find beauty in the most clearly Christian parts of Christmas, and I'm not willing to lose out on it, or let the Christians keep it for themselves.

"I'll buy 'In God We Trust' as crucial decoration on the dollar bill and I'll use 'Merry Christmas' as the right words to usher in the solstice season. So in the full spirit of the holiday, I'd like to wish us, one and all - Christians and Jews, Muslims and Zoroastrians, even my fellow atheists, a very, very Merry Christmas."

AND SO, I, Liz, stand with Mr. Gopnik for the embracing of "Merry Christmas" and of Christmas itself, rather than reducing it to "political correctness." I never buy Christmas cards that say "Greetings of the Season" or "Happy Holidays."

I like to say "Merry Christmas" and I hope Jewish people will say it to me, as well, just as I say, "Happy Hanukkah." And on Dec. 26, I'll be saying, "Glorious and Happy Kwanzaa" to those who keep that as a holiday.

ONE JODY ROSEN wrote an entire book about the Irving Berlin classic song "White Christmas." He described how "a cantor's son from Russia took the Christ out of Christmas by composing one of America's favorite songs. It is the darkest, bluest tune ever to masquerade as a Christmas Carol. And it's not a carol - that implication is religious - it's just a popular song!"

And now for something entirely different. The unusual introduction for Irving Berlin's classic "White Christmas" is often sung in L.A. and New York. Seldom heard, these words precede "I'm dreaming of a white Christmas; just like the ones we used to know ..."

"The sun is shining, the grass is green. The orange and palm trees sway. There's never been such a day, in Beverly Hills, L.A. But it's December, the 24th and I'm longing to be up North."

AND, HERE is another "Christmas song" written by the very funny Tom Lehrer. Sometimes, if he is urged, fans can get Michael Feinstein in his stint at the Regency Hotel in New York to sing this one, whose lyrics include:

Mid the California flora, I'll be lighting my menorah. Like a baby in its cradle, I'll be playing with my dreidel. Here's to Judas Maccabeus! Boy, if he could only see us spending Hanukkah, in Santa Monica, by the sea!

CAN YOU cook a Christmas turkey? Here's Ben Schott's timetable:

Preheat the oven to 350 degrees.

For a 5- to 8-pound turkey, 2 1/4 to 3 1/4 hours. For an 8- to 12-pound turkey, 2 3/4 to 3 hours. For a 12- to 17-pound turkey, 3 1/4 to 3 1/2 hours. For a 17- to 20-pound turkey, 4 1/4 to 4 1/2 hours. For a 20- to 25-pound turkey, 4 1/2 to 5 hours.

Schott and I both advise you to buy a fresh turkey, not a frozen one. I also advise buying a small piece of cheesecloth to put over the turkey's breast so that as you baste it every half hour or so, the breast does not burn.

IN RESEARCHING this and going back to Blake Gopnik in the beginning. He reported that his own "Christmas-crazy family refuses to play carols written after 1900: Our favorite carols all predate the Enlightenment!"

MERRY CHRISTMAS to all and to all a great Eve and a goodnight and when you hear those reindeer stamping on your roof, just thank your lucky stars that you can still hear them.

The Pro’s and Con’s of Taking a Cash Advance on Your Credit Card

The holiday season is already upon us! We as consumers are left making difficult choices in how we choose to spend our hard earned money. When making decisions always way the pro’s and con’s before deciding to go ahead. Taking a cash advance on your credit card is an easy solution that can later have drastic consequences if not fully thought out. Here are just a few things to keep in mind when making the decision to take that advance.

The Pro’s in Cash advances off your Credit Card

·      Cash advances enable you to obtain the cash you desire at your convenience. It’s a very easy solution and you can use it as you see fit.

·      Cash is usually untraceable so that there isn’t any paper trail tying you to where and what you spent it on. For example if you are purchasing something for your significant other (a gift for the holidays but don’t want them to know about it?) cash is a great idea.

·      Some retailers will give you a better deal if they receive cash since they don’t have to pay for the transaction fee on their end. Saving the retailer up to 3.5% by using cash plays a big part in negotiating a better price. Often we forget retailers are also charged by the credit card companies when we use our cards at their locations.

·      If you are in another Country and you need local currency (regardless of the interest that may start immediately,) you will most often receive a fair exchange rate. Know your exchange rate and interest before making that trip.

The Con’s in taking the Cash Advance

·      Most often interest starts as soon as you take the advance out on your card.

·      There may also be additional fee’s associated from the bank machine you withdraw from on top of the interest that starts immediately.

·      If you have not found out your daily limit you could be in for a rude awakening and not be able to take out as much as you need, due to daily limits set up you were not aware of. These limits are usually for your protection incase you loose your card or are robbed.

·      Banks are notorious for upping your card limit with out you knowing. Know your balance before you make the choice so that you are not left stranded thinking you have availability left on your card.

·       Understand that the Banks will apply any payments you make to the older debt and not to your advance regardless if your old debt is with in the interest free grace period.

Other Options to Consider Instead of a Cash Advance

A short-term personal loan from the Bank or other third party lending institutions may give you a better rate instead of your Credit Card Company. You may also be able to negotiate payment terms that won’t look bad on your credit history if you can’t pay back the full cash advance.

The Bottom Line

Do your homework. Call your credit card company and fully understand all the variables. Don’t be embarrassed to ask about every possible scenario.

Questions you may consider asking: What is my interest rate? Will it start as soon as I take the advance? What is my daily cash advance limit? What additional fees could be applied, if so under what circumstances? What is compound interest? Will my monthly payment change?

Armed with knowledge you will make an informed decision and understand all of the Pro’s and Con’s in taking that advance or in choosing to go to a third party lender. For more valuable information contact Prudent Financial Services www.prudentfinancial.net

Creating a Budget for the Holiday Season and Beyond!

The holiday season, with its gift-giving spree, can be an expensive time of the year. So, if you don’t already have a budget, it would be timely to start one.

A budget is a financial plan for monitoring how money flows into and out of your life. It shows how much you’re earning and how much—and on what—you’re spending.

It may reveal buying habits you're unaware of; it can certainly help you plan more effective ways to spend and save for what really matters to you. And it will prevent you from going into a dangerous bad-credit zone, which will imperil your credit score.

Use a budget worksheet

Track your income

First, use a budget worksheet (see link below). Here you will record all your income sources, including investment income and self-employment income.

If you receive a regular paycheck (with taxes deducted at source), then enter the take-home pay only as the amount. This is the amount that you will have to work with to cover your expenses.

Track your expenses

Then, add your monthly expenses—everything from groceries and gasoline to mortgage payments, insurance premiums and RRSP contributions.

(If you make only one annual payment for something, divide it by 12 months.)

Then sort these expenses into two groups: fixed and variable. Fixed expenses stay largely constant from month to month: mortgage or rent, car payments, cable and utilities. These expenses are a basic part of your life and seldom change in the budget.

Variable expenses include entertainment, eating out and, of course, gifts. These expenses will vary from month to month, and are where it’s easiest to make adjustments.

Income vs. expenses

Now, add up your monthly income and your monthly expenses. Hopefully, your income is greater than your expenses. If so, you can use the surplus to top up your RRSP contributions or to pay off your credit card balance.

But if your expenses are greater than your income, you’ll have to bring the two into synch—either by earning more or by trimming expenses. Definitely say no to payday loans and only making minimum payments on credit cards. This is a fast track to bankruptcy or a proposal.

If you have to trim, start with the variable expenses. You can eat out less and go to fewer movies and concerts.

Be sure to do a monthly review of your budget, to see if you’re “on the money.”

After the first month, check your true expenses against what you had projected in the budget. This will reveal where you did well--and where you may need to do better.

Budgeting isn’t complicated, but it does require careful attention to details. Even more important, living within a budget demands discipline and commitment. But it’s a good way to stay financially sound and to avoid a bad credit score! For budget worksheet, please go to: http://www.prudentfinancial.net/downloads/Prudent-MonthlyBudgetPlanner.pdf

Say no to Minimum Payments on Credit Cards

For years, the low monthly minimum payments required on credit card balances allowed consumers to spend far more than they could really afford—causing many to have serious financial difficulties and a bad credit score!

Lately, however, some credit-card issuers have started to raise the level of the minimum monthly payment.

Let’s be clear: an increase in the monthly minimum is actually good for consumers, as they will be paying off their credit card debt sooner. But that can still cause some real hardship in the short-run.

Holders of MBNA MasterCard, for example, have seen their monthly minimums rise as much as seven-fold, causing a severe financial squeeze.

Many of those cardholders relied on MBNA’s introductory low-interest rate of 1.99%, only to see that rate escalate dramatically – to as high as 16.99% -- if they miss a monthly payment.

New rules

Federal rules introduced in September 2010 force credit-card companies to tell cardholders how long, in years and months, it will take them to pay off their outstanding balances if they pay only the minimum each month.

The Financial Consumer Agency of Canada has a credit-card payment calculator on its Website (www.fcac.gc.ca) that shows how much of a difference it makes to pay more than the monthly minimum.

For example, paying only 2% of your balance every 30 days barely covers the interest, and leaves almost nothing to whittle down the principal. On a balance of $2,000 or more, it would take you about 30 years to pay off the existing debt even if you never charged another item to the card.

If the monthly minimums rise to 4% of your balance, you will cover the interest but it will still take 10 to 12 years to pay off the balance even if you do not add any new charges.

Try a personal bad-credit loan

It would be better to take out a personal loan or even a bad-credit personal loan, for example, at Prudent Financial Services. That way, you will pay all the debt within one to four years, depending on the amount you borrow. Most loans of $1,000 or less at Prudent are paid off within the year if payments are made on time.

Other options

● Start paying cash for purchases and stop buying items that you can only finance on your credit card.

● Do some ruthless budgeting: identify areas to cut costs.

For further information please contact Prudent Financial Services http://www.prudentfinancial.net

Prudent's Gift of Giving photo contest.

Enter Prudent's Gift of Giving photo contest on Facebook.

Each day a $50 gift certificate is given away.

Every dollar will be matched in your name by Prudent to Sick Children's Hospital.

Click on the Photo Contest tab to the left to upload your favorite holiday photo, with a brief description.

Your name will then go into a draw. Daily winners announced Mon-Fri for the next four weeks.

If you want to watch a video on how to load your picture copy and paste this link in your browser http://vimeo.com/32646390

Good luck!

How to Build Credit for New Immigrants or If You Have to For Yourself

It’s very difficult to know where to start to build credit when you don’t have any. Financial institutions and creditor’s see new immigrants and people born here who have no credit at all as a high risk since they often don’t have any history to support their request for credit. If you search Google for www.canada.creditcards.com you will find more helpful information to help you along. Here are a few simple ways to get your credit started and to improve your credit so that lending Institutions and Creditor’s will start to give you a chance and approve you for credit.

Understand how credit works.

Get a credit report through Equifax or Trans Union to see what you have associated with your name. Sometimes you may not know you already have some positive credit created and sometimes you will find out you have a few things that are looked upon negatively, that you can then take care of.

Use Cheques & Open a Bank Account Savings with Overdraft in Your Name

When you do this you automatically start a paper trail the Banks can track that, will put you in a good light with creditors. Make sure your Ckeques don’t bounce and your overdraft is always paid, showing responsible payment histories.

Have your work Cheques deposited into your account and pay your bills through the Bank.

Once again this is all recorded and will show a good history of bills being paid on time or at least the minimum balance being paid. Your utilities (electric bill, gas bill, phone and internet) will also support a positive payment history.

Apply for a secure Credit Card through a Bank

This is a credit card that will hold (even a minimum balance of $500.00) until you have shown that you can use it, pay off the balance owing or minimum balance creating good responsible history that lending companies can track. Once they have seen you are responsible you can ask them to turn it into an unsecured credit card and continue showing the banks you are worthy of credit as you pay the minimum or complete balance off each month.

Remember the sooner you start your credit history the more positive credit you can generate. Many accountants will tell you that the best credit obtained is the longest credit history that indicates you have a job or income revenue coming in and that you are responsible for making payments to support your request for a loan or more credit.

For more valuable information please visit http://www.prudentfinancial.net/

Rebuilding your Life after Losing a Job or Bankruptcy

While plenty of reports today have talked about the recent upswings in our economy, there are still some issues and people have undeniably suffered as a result. If you've lost a job or gone through a bankruptcy, there are plenty of effects that it may have on your family and your life. Keep in mind that it certainly isn't the end of the world, but you may need to take a moment to prepare yourself and your family for the changes on the horizon. From seeking a loan after bankruptcy or a loan after a proposal to changing some of your daily routines, there are numerous considerations to make.

If you've lost a job, the first thing you'll be focused on is finding a new one. And if you've recently filed for bankruptcy then eventually you'll want to rebuild your credit through a loan after bankruptcy.

1. You should focus on more pressing matters. Start by taking a long, hard look at your expenses. There are numerous things that may not be necessary which you'll have to cut back on. Showers instead of baths, washing laundry on the cold setting, and other options will reduce the amount of your power bill, for example.

2. Once you've reviewed your expenses and dropped unneeded ones, modified your daily routines, and bundled any bills that you can your next step will be figuring out other cost saving measures. Food is a major expense, and your family will probably have to stop eating out as often and begin eating at home. This alone can save you big.

3. Once you've adjusted your life adequately, you can start focusing on steps to rebuild your credit like bad credit loans. Financial organizations can help you plan your budget and even line you up with a loan after a proposal or bankruptcy to get you started.

Losing a job or a home can be difficult, and will likely require sacrifices from every member of your family. But if you stay focused and positive, it isn't an issue that is insurmountable. Start by figuring out some basic life changes to cut your bills and then meet with a financial company to see what options are available to you for securing your future. These two steps are the first towards regaining your financial footing and moving forward into the future. It may be painful and difficult, but it is certainly possible.

Fore more valuable information, visit www.prudentcreditrepair.ca

Should You Get a Payday Loan? - The Dangers of Payday Loans

You've probably seen them, whether on your morning commute or through an online ad – the ads offering you a fast cash advance in the form of a payday loan. They hype themselves up as bad credit loans that can help you get a quick influx of money when you really need it, often using nothing but a couple of recent pay stubs as the only requirement. But while getting a few hundred dollars may seem tantalizing, the truth is that whether you apply online or visit a brick and mortar location, payday loans are bad news for pretty much anyone who takes one out.

Payday loans are looked at with such a negative light by most financial experts that the government is actually in the process of cracking down on them.

• There are plenty of reasons, but the chief ones lie in their predatory nature and the huge interest rates associated with them.

• Their advertising likes to gloss over their negative aspects by claiming that they're bad credit loans are easy to get after bankruptcy, but the truth is that there are plenty of better ways to rebuild your credit than to do business with these lenders.

Consider that the normal payday loan is a two or three week loan up to around three hundred dollars.

• Now consider that when you calculate the overall interest you'll pay you end up actually being charged between three hundred and ninety, to eight hundred and ninety one percent interest – far more than even the worst bad credit loans.

• Current laws place criminal usury rates at sixty percent, but a few exploitable loopholes let payday loan companies circumvent these restrictions

• They also charge huge fees, often hidden ones that borrowers aren't even aware that they're paying until it's too late. Certain restrictions are already in place, but the problem is far from contained.
• 
  

Another issue lies in back to back loans which rollover debt and create a never-ending cycle of interest, debt, and danger. A borrower can't repay the entire loan, and it's rolled over into a new one until the interest is so high it's nearly impossible to get out of. Don't let yourself be fooled by flashy ads or the promise of bad credit loans made easy. These loans normally don't even report to credit organizations and won't help your credit in the least – they'll only put you in more financial trouble. Simply put, there are better options out there for anyone, regardless of credit history.

For more valuable information, visit www.prudentcreditrepair.ca

Conserve on Household Energy and put Money in your Pocket

Have you tried cutting down on your Tim Horton’s coffee every day to see how much money you save? Often it’s the little things that can save a lot of money year round. When energy prices are rising, you may ask yourself, “How can I reduce my costs and save money on energy?” The federal government is bringing back the popular eco ENERGY Retrofit for Homes Grants Program, which assists eligible homeowners to receive grants up to $5000.00. It is important to have an energy evaluation completed before any work begins. On average, the program saves 20 percent on the energy bill. Apart from applying for the Retrofit Program, here are a few helpful tips below that you could consider implementing to start saving immediately:

• Install dimmer switches to use less electricity. Keep your fridge and freezer full since food acts as an insulator to maintain a certain temperature. Install a Programmable Thermostat then set the temperature lower at night and when you are away.

• Install ceiling fans to keep the air circulating in your home and your air conditioner won't have to work so hard.

• Wash laundry in cold water - 90% of the energy consumed by your washing machine is used to heat water. Turn the dial to cold, and lower the bill. Line dry your laundry and let Mother Nature dry your laundry.

• Switch to CFL bulbs. CFL light bulbs use four times less energy than incandescent bulbs. Install Motion Sensors - motion sensors can be installed both inside and outside the home to ensure that lights only come on when needed.

• Turn Off Heat/Dry on Your Dishwasher.

• Install a Programmable Thermostat.

• Install Low Flow Shower Heads. The less water flowing through your shower head means less water to heat.

• Eliminate “Phantom” Electrical Use. A surprising 75% of the energy used by home electronics is consumed when they're turned off. These "phantom" users include: televisions, VCRs, stereos, computers, basically anything that holds a time or other settings. Plug all of these items into power strips and then get into the habit of turning off the strips until you use them.

Making your home energy efficient as well as saving money can keep your dollars in your pocket so you don’t have to stress about making high monthly payments. But if you can afford an energy audit, remember the government is willing to give you a rebate of half of the cost or up to $150.00 if you are not able to find a company to give you an estimate for free. For more valuable information, visit www.prudentcreditrepair.ca

Why is it so Important to Have a Better Credit Score?

As you go through life, you'll quickly learn the various aspects of it that have serious impacts on you. Health is a good example, and another is your credit score. Simply put, bad credit can have detrimental impacts on your life in a number of ways. From trying to purchase a new car to insurance rates, your credit score will affect nearly everything related to your finances. You'll save money with a better credit score and have more opportunities, which is why understanding the basics of credit and how to improve it are vital for your financial future as well as your future as a whole.

A better credit score will help you save money in numerous ways.

• You may not be able to get a loan at all with a poor credit score. If you can, there's a good chance that it will feature a much higher interest rate than if your credit score was good.
• A bad credit score tells lenders that you're a risk. That risk means that they want more incentive to loan you money, and that incentive comes in the form of higher interest.
• You could pay thousands of dollars extra due to your bad credit score. Even auto insurance companies may charge more in premiums due to bad credit.

What factors contribute to my credit score?

• Your credit score is the sum of a simple mathematical formula that potential lenders use to assess just how likely it is that you'll repay your loans on time.
• Nearly everything that you've done financially will show up on your credit report, which is why it's important that you pay your bills on time and don't overextend yourself financially.
• A number of different factors will influence your credit score, and knowing what they are will help you. Your credit report will show your length of credit history, outstanding debt, your loan payment history, the incidence of negative factors like defaulting on payments or outstanding collections against you, and more.

Lending companies will look at these factors to determine whether or not you qualify for their loan as well as just what your interest rate will be. A history of paying your bills on time will help them see that they can trust you with a loan, so it's vital that you take the time to make sure you always repay your loans. Even financial mistakes you make when you're young can remain on your credit report and haunt you for years, so be sure that you treat your finances and debts with the respect that they deserve.

For more valuable information, visit www.prudentcreditrepair.ca

Money Management 101 how to Take Control of Your Finances

Every penny counts in today's economy, whether you're struggling to make the rent on a lower salary than you're used to or whether you're still marching forward through these rough economic times. Everywhere you look you'll see articles or reports on how to save money, rebuild credit, or just put groceries on the table. There's one basic principal that can help you tremendously, however, and it applies to those dealing with financial difficulties just as much as it does to those who are still doing fine financially. That principal is basic money management, and if you lack it then you'll never be able to keep your head above water.

1) Basic money management.

Design a budget that fits your needs. It can take time to plan out your budget, but it's an investment in time and energy you can't afford not to make.

Make a list of all your expenses and bills.

Compare that list to your income after taxes.

This will give you an idea of how much money you have left over each month to spend or save. Doing so may also give you an idea of bills you can eliminate and luxuries you can afford to do without, two excellent ways to save money.

2) Take a look at your credit report.

Be sure to review your various credit cards as well and note which ones have the highest interest rates. If you can avoid using those high-interest cards, you may be able to save money in huge sums over the course of a year.

Knowing if you have good credit or if you need to repair your credit can help you see just how you've done with money management in the past and learn what you should focus on in the future as far as your credit is concerned.

Essentially, good money management comes down to understanding your budget and exercising a bit of self-control. Online financial sites like Prudent Financial will have budget and mortgage calculators that you can use to figure out where your money is going, and can simplify financial planning. Look at where your money is being spent, cut out all of your unneeded expenses, and force yourself to try to save money whenever you can. Rewarding yourself is great, but buying a new pair of shoes or going out to eat each week are costs that can add up. It may be tough at first, but once you see your bank account starting to gradually improve, the efforts that you make will be well worth it. For more valuable information, visit www.prudentcreditrepair.ca

The Danger of Credit Cards and their Impact on your Homeowner's Insurance

It seems like every store you set foot in today offers you credit cards. With the opportunity to be able to apply right at the checkout counter and get a new credit card instead of having to buy out of pocket for your purchase, and with promises of easy approval, these cards are certainly tantalizing. But they also carry dangers with them – dangers that can impact areas of your life that you're unlikely to be considering while filling out the simple application for them. In short, retail credit cards can carry some very serious threats behind them.

The Pro’s and Con’s of Credit Cards:

1. In most cases, credit cards don't have quite the flexibility or the better terms that some of the best credit cards have.
2. Some may have great interest rates, but many have higher than average ones. And if you find yourself in a financial bind, they're usually among the first cards that you decide to skip a payment on.
3. Carrying a high balance or missing payments on your credit cards, even retail credit cards, can not only impact your overall credit score and make it more difficult to get a personal loan at a great interest rate, but they can also affect your homeowner's insurance.

How Credit Cards can affect your Homeowner’s Insurance

· Seventy five percent of customers in a recent surveyed had no idea that bad credit could drive up their homeowner's insurance, but it's the truth.

· And since a huge number of people include their homeowner's insurance in their mortgage payments, that means that your monthly mortgage payments may end up being even higher than they should be.

· It's hard to fathom, but the allure of retail credit cards could actually result in you having to pay out a higher mortgage payment and get worse insurance rates on your home and even your vehicle. Because of these, there's been talk of trying to make some changes.

The repercussions you never knew in the Fine Print

There's now talk of filing formal petitions to change this unfair practice. Insurance companies don't have to ask for your permission before checking your credit score due to a simple matter of confusing contract wording. Most never even realize they're paying more for insurance due to their credit score. And since homeowners still paying loans have to have insurance, there is actually very little that they can do once their credit score drops. With inaccuracies in credit reports being fairly common today, and with the shady nature of these insurance rate increases, most agree that the time has come to change this system completely. For more valuable information, visit www.prudentcreditrepair.ca

Money Management for Kids

Enabling your child to work with money will build a foundation for managing money through their teens and into adulthood. When your child asks for something, they will choose to put some thought into it if they are using their own money. They will start to understand the value of money, and the fact that it does not grow on trees. It is never too late to start an allowance concept with your child, but it is recommended that the concept is taught during Kinder Garden years. If you want the “I wanna have” to stop; this system will work and it does make shopping less stressful for both you and your children.

Starting an allowance for the start of the School Year is a great idea. Starting an allowance is often a difficult thing to create when you have to figure out what is acceptable for both parent and child, and in putting an amount to what is fair - all the while making sure it fits with into the home budget as well. Clearly detailing what is normally expected in School and at home is a good place to start, then you can go from there in acknowledging what they want and a clear achievable way for them to obtain their goal in working towards it.

Take a poll of your child's friends and other families you know asking what range and scope they're using with their child. This will ensure you are familiar with the comparison’s your child will make once you have started up an allowance. In the early years sticker charts and favourite foods are a great means to reward good work and achieved goals. Moving forward there will always be requests for more. How you both learn from this situation will leave them with great negotiating skills for future raises at work.

Starting a savings account is also a great idea once they get a little older, and helping them choose how to manage it is one of the best qualities you can help them cultivate. Even the act of going to the bank and opening up an account (take a look at the transaction fees and your homework prior) is reward enough in making that first deposit. You may wish to match their contribution depending on what the account is set up for. If the purpose of the account is to be used only for larger purchase items they need to save up for, then at least the details of how it is used is predetermined.

For more valuable information, visit www.prudentcreditrepair.ca