Canada Learning Bond, 202
Canada Student Loans, 128
car
expenses, 62
insurance, 14, 64, 87, 173–74, 218
payments, 62, 164, 211, 217
career, goal setting, 139, 144, 149, 151
cash advances
credit cards and, 15, 139
cash flow, 32, 82–84, 95, 115, 148, 206, 216, 231, 250
augmenting with credit cards, 20, 66, 103, 250, 273
impact of debt on, 30, 103, 125, 140
variable income and, 79–80
child care costs, 81, 63, 72, 211, 217, 218, 231
children. See kids
collection agencies, 122, 129, 252–55, 283
commitments, 40, 63, 97, 143, 299
credit and, 255–56, 266
investing and, 196–98
budgets and, 2, 9–10, 55, 58, 61, 101, 120, 158, 272–73, 275, 278, 281, 293
compounding return, on RRSPs, 190
consolidation loan, 26, 27, 29, 31, 95, 96, 100–102, 103, 104, 106, 108, 109–10, 128, 131, 250, 256
consumer debt, 25–26, 34, 42, 43, 44, 64, 79, 95, 104, 106, 107, 109, 158, 272, 281
credit cards, 12, 25, 26, 27, 29, 31, 43, 56, 79, 96, 101, 121, 231, 261, 278, 283, 285
lines of credit, 15, 25, 26, 27, 29, 31, 101, 121, 210, 250
repayment of, 26, 44, 105–12, 256, 272, 281, 286, 291, 292, 293
repayment proposal, 120
consumer proposals, 258
core values, 39–43
Core Values List, 39, 41, 42
credit bureaus, 267, 282, 288–89
credit cards, 12, 25, 26, 27, 29, 31, 43, 56, 79, 96, 101, 121, 231, 261, 278, 283, 285
augmenting cash flow with, 20, 66, 103, 250, 273
balance transfers, 95, 98–100
cancelling, 117–19, 118
cash advances, 15, 139
effect on your ability to borrow, 121, 283, 288–89
establishing good credit history and, 117–19, 265–66
insurance on balance, 12, 13
insurance perks, 290
interest rates, lowering, 12–13, 30, 96–98, 105, 174
over-limit fees, 12–13
paying off, 105–12, 272, 281, 286, 291, 293
restricting use of, 47, 53, 54, 55, 130, 153, 158–9, 179–80, 204, 286, 292, 296
secured, 265–66
using to your advantage, 130–31, 289–91
variable expenses and, 72
credit counselling, 255–56, 257, 265
“credit repair,” risks, 287
credit reports, 119–123, 285, 288–89
bankruptcy and, 122, 267
collection agencies and, 112, 129, 283
rating codes, 120–21, 122
credit score, 30, 103, 110, 111, 120, 122–23, 286
factors affecting, 282–85
credit, types of
open, 121
revolving, 100,101,121
See also credit cards; line of credit
credit-reporting agencies. See Equifax Canada; TransUnion Canada
critical illness insurance, 238–41
D
debt
consumer, 25–26, 34, 42, 43, 44, 64, 79, 95, 104, 106, 107, 109, 158, 272, 281
fatigue, 107
repayment of, 15, 23, 26, 32–33, 44, 61, 105–12, 256, 272, 281, 286, 291, 292, 293
overdra, 10, 26, 27–28, 29, 31, 71, 84, 106, 108, 125–27, 163
debt counselling. See credit counselling
debt repayment, 15, 23, 32–33, 61, 64, 65, 93, 107–13, 293
credit cards, 105–12, 272, 281, 286, 291, 293
lines of credit, 79, 231
student loans, 44, 127–30, 293
deposit insurance, 200–201
disability insurance, 212, 234–38
discipline, money management and, 79, 158, 214, 217, 278, 281, 291
E
emergency fund, 2, 15, 38, 45, 123, 158, 166, 176, 209–10, 211, 276, 287
budgeting for, 60, 70, 81, 159, 172, 212–19, 249–50, 275, 294
essential expenses and, 210–12
using, 219–20
Equifax Canada, 119, 120
equity investments, 200
essential expenses, 68, 69, 164, 165, 168–69, 210–12, 214, 218, 219
estate planning, 241–44
beneficiaries, 204, 227–28, 242–43, 244
guardianship appointment, 243
lawyers, 244
life insurance and, 228, 231, 232–33, 240
living trusts, 243
powers of attorney, 243
wills, 221, 241, 242–43, 244
expenses
fixed, 72–73, 80
variable, 68, 69, 72–73, 74
F
Fair Isaac & Co. (FICO), 282
fixed expenses, 72–73, 80
G
GICs, 194–95, 197, 199, 200, 231
goal setting, 37–39, 41–42, 47, 48, 54, 58, 80–81, 116, 271–76, 296
achieving goals, 95, 102, 281
budgeting and, 86, 159, 163–166, 170, 175, 181, 214, 216, 217, 293, 294
career and, 139, 144, 149–151
kaizen, 298
kids and, 167
long-term goals, 38, 44–45, 70, 94, 190, 193–98
milestones and, 4, 38, 39, 43–46, 48
prioritizing, 39, 41, 42–43, 49, 50, 182, 292
visual aids and, 51, 53–54, 167–68
guardianship appointment, 243
H
Heart and Stroke Foundation of Canada, 239
Home Buyer’s Plan (HBP), RRSP, 28
home equity, 25, 95, 102–104, 263–65, 285. See also consolidation loan; refinancing
household budget, 80–81, 87, 147, 231
house/home
borrowing for, 121, 267–68
buying, 50–54, 140, 267–68
“house poor,” 61
insurance, 14, 61, 64, 86, 87
maintenance, 160
refinancing, 103–104, 251
I
instalment credit, 100, 101
instalment loans, 27, 120–21
insurance, 154, 204, 217, 221–24, 241
car, 14, 64, 87, 173–74, 218
credit card balance, 12, 13
critical illness, 238–41
deposit, 200–201
disability, 212, 234–38
employment, 212, 247–48, 249
health
house/home, 14, 61, 86, 87
life, 87, 224–34, 242
medical, 218
mortgage, 51, 52, 233
perks on credit cards, 290
pet, 88
self-, 222–23
Integrated Student Loans, 128
interest rates; lowering, credit cards, 12–13, 30, 105
investments, 190, 193–200, 206
GICs, 194–95, 197, 199, 200, 231
life insurance and, 226, 230, 231
long-term, 50
RESPs, 201–204, 205, 242–43
RRSPs, 200, 205, 206
term deposits, 197, 199, 201
J
job loss, 246–252
creditors and, 250
cutting expenses a er, 249–250
employment insurance and, 247–48
finding work a er, 248–49
K
kaizen, 298
kids, 50, 55, 152, 261
and bankruptcy, living expenses during, 263
child care costs, 81, 63, 72, 211, 217, 218, 231
education savings, 15, 37, 176, 287. See also RESPs
expenses, 75, 87–88, 154, 160, 175, 249
goal setting with, 167
guardianship appointment, 243
job loss and, 247
teaching good money habits to, 161–62, 167
L
l
ife insurance, 87, 224–34, 242
beneficiaries, 228
estate planning and, 228, 231, 232–33, 240
investments and, 226, 230, 231
“Life Pie, "e” (chart), 61–64
line of credit, 15, 25, 26, 27, 29, 31, 101, 121, 210, 250
augmenting cash flow with, 66, 103, 273
balance transfers, 95, 100
paying off, 71, 231
restricting use of, 286, 292
using to pay other debts, 54, 273
“living within one’s means,” 5, 112, 277–78, 279, 286–87
loans
consolidation, 26, 27, 29, 31, 95, 96, 100–102, 103, 104, 106, 108, 109–10, 128, 131, 250, 256
instalment, 120–21, 27
pay-advance, 26, 28, 29, 31, 123–25
student, 26, 27, 29, 31, 44, 100, 106, 121, 127–30, 260, 261, 293
long-term goals, 38, 44–45, 70, 94, 190, 193–98
long-term investments, 50
M
“magic jars,” 61, 69, 70–79, 83, 153
medical insurance, 218
milestones, goal setting and, 4, 38, 39, 43–46, 48, 51, 52–53, 272, 274, 276
money, attitudes toward, 46, 274–75, 278–79
mortgage, 51–52, 68, 72, 81, 82, 86, 211, 217, 227, 242, 276, 279
bankruptcy and, 260, 263–64
credit score and, 284–85
insurance, 51, 52, 231, 232–33
investment, 199
paying off, 37, 44–45, 61, 174, 273
second, 25, 26, 29, 31, 102–104
See also consolidation loan; home equity; refinancing
mortgage insurance, 51, 52, 233
Mortgage Prepayment Savings Account, 45
N
non-essential expenses, 113, 249
O
overdradebt, 10, 26, 27–28, 29, 31, 71, 84, 106, 108, 125–27, 163
P
pay-advance loans, 26, 28, 29, 31, 123–25
peer pressure, 54–58
pension, 189, 191–92, 205, 231, 232
pet insurance, 88
powers of attorney, 243
priorities, 53, 246
budgeting, 62, 80, 181, 278
debt repayment, 26, 256, 292
goal setting and, 39, 41, 42–43, 49, 50, 182, 292
R
refinancing, 25, 26, 29, 31, 95, 102– 104, 110. See also consolidation loan; home equity
RESPs, 201–204, 205, 242–43
Canada Education Savings Grant (CESG), 201–203, 243
Canada Learning Bond, 202
scholarship trusts, 203–204
revolving credit, 100, 101, 121
RRSPs, 200, 205, 206
bankruptcy and, 262
compounding return, 190
Home Buyer’s Plan (HBP), 28
S
savings-matching programs, 191
scholarship trusts, 203–204
secured credit cards, 265–66
self-insurance, 222–23
Service Canada, 192
shopping, 176–83, 198, 298
budget-conscious, 53–55, 152–56, 160–65
for financial services, 237–38, 288
marital strife and, 54
planned spending, 163–64
stopping, 47, 131, 153–56, 297
See also peer pressure
short-term investments, 199–200
snowballing debt repayment, 44, 110–12
spending analysis, 10–20
Spending Analysis Worksheet, 11–17, 21–23, 64, 66
“staycations,” 16–17
student loans, 24, 26, 27, 29, 31, 44, 100, 106, 121, 127–30, 201, 293
bankruptcy and, 127, 260, 261
Canada, 128
credit reports and, 121
discharging through bankruptcy, 127–28, 260, 261
integrated, 128
paying off, 44, 127–30
T
Tax Free Savings Account (TFSA), 212–13
term deposits, 197, 199, 201
Til Debt Do Us Part, 40, 150
TransUnion Canada, 119, 120
travel. See vacations
V
vacations, 14, 37, 38, 43, 50, 69, 154, 157, 182, 231
at home, “staycations,” 16–17
budgeting for, 16, 45, 55, 81, 83, 159, 160, 163, 168, 170, 171, 287
insurance and, 237, 290
time, as job benefit, 143, 248
using home equity and credit for, 102, 105, 139, 266
variable expenses, 68, 69, 72–73, 74
credit cards and, 72
visual aids, 51, 53–54, 167–68
W
wills, 221, 241, 242–43, 244
work, attitudes towards, 138–39
worksheets
Budget, 60–61, 67, 73, 75, 91–93
Spending Analysis, 11–17, 21–23, 64, 66
About the Author
GAIL VAZ-OXLADE, one of Canada’s most successful and respected financial writers, is the author of several bestselling books, including It’s Your Money, Money-Smart Kids and Never Too Late. She delivers her no-nonsense approach to money management as the host of the television shows Princess and Til Debt Do Us Part. Visit her online at gailvazoxlade.com or on Twitter @gailvazoxlade.
Copyright
Debt-Free Forever
Copyright © 2009 by Gail Vaz-Oxlade.
All rights reserved under International and Pan-American Copyright Conventions. By payment of the required fees, you have been granted the non-exclusive, nontransferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, down-loaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of HarperCollins e-books.
Epub Edition © NOVEMBER 2011 ISBN: 978-1-443-41282-7
Published by Collins, an imprint of HarperCollins Publishers Ltd.
First published by Collins in an original trade paperback edition: 2009 This revised trade paperback edition: 2011
™ is a trademark of CW Television Inc. used under license. Til Debt Do Us Part is copyrighted and used with permission from Frantic Films Corporation.
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