Personal Finance Strategies for Newlyweds

You had your dream wedding and you have become a couple with dual incomes and mutual responsibilities. Financial strategy is not the most romantic top that you can discuss as a newlywed but it’s definitely a top priority. You both want to enjoy your lives together and plan for that comfortable retirement.

Unfortunately many newlyweds set themselves up for failure. Financial hardship is a leading cause of divorce so to increase the harmony in your lives by talking about financial choices. Plan to merge your financial lives and stop any bad money habits before you bring them in the marriage.

Figure out where you both stand financially. Review all your debt obligations together. Sit down and plan out a way that you together can pay off the debt. It would be ideal to eliminate all debt prior to getting married not to burden your spouse with your debt. If this is not possible then you both must work hard at making your marriage and your family life debt free.

Have a budget. You are now merging two spending and saving habits into one. If you had a budget while you were single, it’s time to draw up a new one as a couple. You should first write down your fixed expenses like mortgage/rent, car payments, insurance premiums etc. Then write down your flexible expenses such as groceries, phone bills and utility. If your budget permits, try to contribute to a savings account as if it was a fixed expense. Track your spending for a while and then work together to identify and fix any common bad spending habits.

Optimizing Insurance. Now that you’re a couple, you need to change your insurance coverage. You should examine the different insurance plans and premiums and decide where the combination should occur. Get an umbrella package which will enable you to save while having all insurance under one package.

Some of the most common sources of arguments in marriage is money, so failing to discuss your financial backgrounds could be disastrous. Communication is key to survival in any relationship. With your budget in place and your plan for your future, you’re both ready for a successful and financially responsible marriage. Your stress levels will be reduced and your foundation will be strong. All this planning will ensure that money does not come between you and your spouse.

Be responsible and enjoy your life as one. For more valuable information visit www.prudentcreditrepair.ca

Defaulting On a Loan – The Dumps

Default, in the finance industry, happens when a debtor has not met their obligation according to a debt contract. This will occur when the debtor is either unwilling to pay their loan or they are not able to pay their loan.

When you default on a loan, it means you’re neglecting your financial responsibility. We are all aware of the reasons why someone would not be able to pay their loan. People lose their jobs or a sudden medical emergency may happen but whatever the reason may be, you should always communicate with your lender. Most lenders will work with you especially if your financial hardship is temporary.

Most of us have occasional late payments but when it evolves from a late payment to a missed payment to no payments, the debtor will suffer the consequences. The first thing that happens when you default on a loan is the organization will begin to contact you to get their money. It will start with friendly reminder calls or correspondence but as the default continues, they become more aggressive and the contact is more frequent.

Eventually your account will be turned over to a collection agency. This kind of action will begin to affect your credit. When this happens, it will be harder for the debtor to get other loans, it will increase your interest rates and sometimes may even affect your ability to get a job. It can even result in a repossession or foreclosure depending on the type of loan.

If you simply don’t have the money to pay, it still is best to be proactive. When you approach the situation in this manner, the lenders will peg you as a delinquent with no intention to pay and take their actions accordingly. If you are genuine and want to make the effort, then contacting your lender to create an easier payment schedule is more likely to happen or even having the interest rates reduced.

If you have already ignored the situation, it is never too late. Your credit will most likely already be damaged but the negotiation process is never off the table and there may still be a chance for damage repair.

Putting yourself in this situation can and will only lead you into a world of madness. You will be consumed by the stress of your finances, frustrated by the constant aggressive contact and the feeling of depression will arise and will only deepen. Take care of you and your financial health!

For more valuable information, please visit www.prudentcreditrepair.ca

What Should Your Credit Score Be?

Most of us depend on credit for many things such as buying a car, house or getting a loan. Your credit report is your credit history wrapped up in three digits. It measures your ability to make payments on time and is designed to help lenders determine your credit worthiness.

Credit scores in Canada can range from 300-900. The higher your score, the healthier your financial record is and lenders will view you as less of a risk to them. The interest rates you receive will be determined by your score. Maintaining a good credit score is essential to your financial well being.

What is a good credit score?

You are considered to have good credit if you have a number of 700 and up on your credit scale. This score will allow you to have fewer problems applying for loans and getting better interest rates.

You are in the okay range if your credit score is between 450 and 650. You may be viewed as a risk but one that is acceptable to most organizations depending where you fall between these 2 numbers. The closer you are to 650, the better.

Anything under 450 is considered bad credit. You will be looked at as a high risk to the lenders. You will have significant trouble acquiring loans. Nowadays, there are plenty of places that will approve you for a loan but the downfall is that your interest rates will be sky high.

There are other factors that contribute to your credit score. The major factors contributing to your score is made up of the amounts that you owe and your payment history. The lesser factors are the type of credit you are using, the percentage that is new debt and the length of your credit history. These are all factors that are considered when determining your credit score.

You have a right to see your credit report. No one can have access to your report unless you allow it. Remember that every time you apply for a loan or credit card, you are allowing the company to check your credit report.

Knowing your actual credit score is a great start. You should understand the key factors that affect your score and learning how to increase and/or maintain your score over time is also important.

For more valuable tips and information please visit www.prudentcreditrepair.ca

I Can’t Afford To Pay My Tax Debt

After you file your tax return, you will be sent an assessment notice from the Canada Revenue Agency (CRA) which shows the balance of the tax owing. If it is in a refund balance, this is money that the CRA owes to you but if it shows a balance owing then you must pay the CRA those monies by the payment deadline. After the payment deadline if the balance is not paid, interest will accrue and will be compounded daily.

What if I can’t afford to pay the balance owing to the CRA?
If you are already neck deep in debt and can’t afford to pay off the balance owing with the CRA, you have options:

Negotiate a payment plan with the CRA – You can contact your nearest CRA office and explain your circumstance and offer them a payment schedule that you can manage. So for example, if you have a balance owing of $1200, offer them $100 for the next 12 months. The CRA is aggressive and will always try to get you to pay the balance of in full but if they do accept the repayment plan, they will continue to charge you interest and penalty until the debt is paid off. If the CRA doesn’t accept the offer, they will take further action against you to try and collect the money owing.

Get a personal loan – These loans have become the premiere loan choice during a temporary financial problem. It is one of the quickest ways to pay off your debt. The interest rates will likely be less than what the CRA rates are and if you choose the proper financial institution to borrow from, they will even help you rebuild your credit rating through regularly reporting all payments.

In order to avoid this problem in the future, you must determine why you owe the money, whether it’s due to cashing out RRSPs, if you’re self employed or just not contributing enough from each paycheque. In either situation, you must acknowledge where the problem is and find a solution so that you don’t find yourself in this situation again where you have to pay a lump sum at the end of tax season when you really can’t afford to. There is nothing more frustrating than working hard to maintain your daily finances only to get slapped with another debt.

For more information about personal loans to pay off your tax debt, visit www.prudentcreditrepair.ca

Can Reward Credit Cards Affect Your Credit?

Reward credit cards allow you to collect points or miles towards purchasing flights, hotels, rental cars, merchandise and other free stuff. Usually you’ll have to collect enough points in order to buy your desired freebie. Not all reward programs are created equal and every points system is different in the way it works.


It’s hard to turn down free rewards. This is how credit card companies entice people to sign up to use their credit cards. It’s important to remember that these companies are in the business to make money and they’re not offering these rewards with the possibility that they’ll lose money. These reward cards are beneficial to you if you pay back the balance in full each and every month otherwise you’ll be paying for the reward yourself in interest and annual fees.


How can a reward credit card affect my credit rating?


For many people, it’s easy to get sucked in through the tempting sign up bonus offers or immediate discount on your purchase. What starts happening here is that you can get caught up in the hopes of getting further discounts and you focus on accumulating those points that you fail to see that your debts are piling up. The more cards you have, the harder it is to keep track and all the while your credit rating is being tarnished.


Every time you sign up for a card, the lender requests a credit score and an inquiry is placed on your credit report. If you have too many requests for credit, your behaviour will be associated with those who have a higher chance for default. Even if you don’t use your credit cards, the available amount of credit you have can harm your credit score.


Reward credit cards can save you money but you have to be extremely knowledgeable on how these cards should be used so keep things in perspective.


When people spend with credit, they tend to overspend so if you find yourself in that position, stop putting things on your credit card immediately until you have your card paid off. Once this, limit your cards to 1 or 2 and then you can reconsider using them for rewards as long as you are able to pay off the balance IN FULL every month.


For more valuable information and tips on how to manage money, visit www.prudentcreditrepair.ca