1. Enjoy a picnic at home or stargaze as you camp in your backyard. Cosy up with your favourite pet, listen to the birds and crickets and wake up to pink and amber skies.
2. Have an outdoor movie night in the warm summer breeze. Enjoy your movie with all the trimmings plus your favourite snacks and drinks. All it takes is a projector and a white sheet over a rope. Add popcorn, cotton candy or pop machines, and suddenly, you’ve got a great ambience.
3. Invite the kids to a COVID-friendly, outdoor staycation party! Pep up the fun with inflatable or stock tank pools. Three-legged races, surprise ice bucket dunks, try-not-to-laugh, blindfolded makeup, dress-up-like-a-princess, mannequin freeze, face painting, art, crafts and squirt guns are also fun!
4. Enjoy a day on the beach, complete with a picnic lunch and your favourite book or music. Soak in the refreshing breeze, waves and blue skies.
5. Stay cosy in your pyjamas or robe all day! Why not catch up on some much-needed sleep?.
6. Tour your city for places you have yet to explore. Check out free events and attractions! If you have a creative team, why not plan a surprise outdoor flash-music-dance performance?
7. Take a break from cooking and have your meals delivered. Enjoy being served while helping to support local businesses!
8. Create a fun-family wall with your favourite pictures and kids paintings (finger paintings too)!
9. Organize a spa day at home and invite the people in your bubble over. Ask each person to bring a small and inexpensive gift to add to the fun gift box. Finally, have everyone randomly pick their gift via a game-draw. Make the experience complete with light refreshments.
10. Learn a new hobby, language or skill. Know a second language? Perhaps you could teach someone for some extra money!
11. Organize a fancy dress or masquerade party for the kids in your family bubble! Spice it up by having them plan and enact a play for the parents. Celebrate their creativity with cute and inexpensive gifts for all.
12. Nature trails, hikes and parks are great for a day-getaway to refresh body and soul without needing to go too far from home. Take piggyback rides, fly kites and play Frisbee with your (or a friend’s) favourite pooch.
13. Attend a home project you have not been able to get around to in a long while, like organizing, painting or gardening!
14. Have the friends in your bubble over for a potluck, or make the day extra special by cooking together! Explore cuisines from different countries to make it more enjoyable.
15. Make your home look like a resort. Choose your theme (Hawaii, Bahamas, Disney, get creative!). Employ the enthusiasm and energy of your children to give your home a new look. Re-arrange furniture and use cost-friendly décors such as fresh cut flowers, kid-made crafts, candles, music and fragrances! It’s amazing what a low-cost, temporary home makeover can do to make you feel like you’re on holiday.

Fortunately, simple things can also bring lots of joy! While planning your staycation this year, be sure to give yourself enough time to set up and enjoy. Why not get the entire family involved and make some memorable videos?

Finally, stay healthy and safe as you follow the health advisories of your local authorities at this time.

Most importantly, relax, allow yourself to be silly and have some fun!

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1. Does this fit my budget?

Before anything, you need a budget to decide what you need and how much you are going to spend. Start with only the essentials and remember to allow for some spending money just to have fun. The most important thing is to stick to your budget! Keep temptation at bay by carrying only the amount of cash you need, or pre-load a grocery card with a fixed amount. Moreover, a grocery card can earn you cash-redeemable points on every purchase. If you choose to use credit, do so wisely and only as a convenience and pay early so you are not charged interest charged on your purchases. If you tend to shop online, you may wish to set aside a pre-loaded cash card for this purpose.

2. Do I need it right now?

Make a list of items you need before you go shopping. While in the store, stick to the list, but don’t miss out on any comparable items or alternate brands on sale, that can stretch your budget further. And don’t forget those coupons and gift cards long forgotten about!

3. Did I remember to write it down?

Keep a note of every dollar you spend, so you know where your money is going. Otherwise, it is more likely that you will unconsciously spend more than planned! Try taking on a no-spending week challenge every now and then if you can.

4. Escape the social media gala!

Pretty packages and sparkly sales can make you feel good at the moment, but leave you feeling guilty later on. Turn off social media (and tempting sales ads that pop up) except for a few minutes daily to catch up with friends. It will not only save you money, but time spent with family or investing in yourself is much more rewarding!

5. Sleep on it!

With most of us spending more time at home hooked to our smartphones and computers, the temptation to peep into online shopping windows a mere finger-click away is at an all-time high. When tempted, tuck away the shopping cart, come back a day or two later and see if you still want to buy all those items.

6. What’s the dream?

There is nothing quite like a dream goal to motivate and get you started on saving money. Set up an automatic monthly cash transfer to your savings account. Even if it means skipping your favourite coffee shop more often. Money not spent is money saved. Every little step counts!

Getting Debt Help

If you find yourself prone to emotional spending, speaking with a non-profit credit counsellor can make all the difference. Contact us and we will connect you with one of our certified non-profit credit counsellors to help you tackle that pesky spending habit. 

Not sure if you’re ready? Why not take our Debt Quiz and see how you compare to other Canadians. Taking our Debt Quiz will tell you whether it is time to bite the bullet in taking that first step toward credit free living and becoming debt free.

The post Emotional Spending – 6 Keys to Tackling It appeared first on Credit Counselling Canada.

Are you wondering whether you should pay off debt or save during the pandemic?  Well, you are not alone. Countless Canadians are asking themselves the same question.

The pandemic has undoubtedly changed our lives for the long term.  With our movements restricted and the world of work so uncertain, its been a key moment to think about whether the extra money saved on commuting, socializing, or memberships should be saved, spent or used to pay off debt.  Right  now, and for the next few months for the very least, it’s time to pay off those debts.

In reality, Canadian savings have fallen well short of the recommended level of 10% of net income.  According to Statistics Canada, Canada’s household saving rate fell to 14.60 per cent in the third quarter of 2020 from 28.20 per cent in the second quarter of 2020.  Coupled with recent news reports about rising debt, the statistics paint a compelling view of the Canadian debt burden.

Saving during the pandemic

In a crisis, interests rates falling to record lows make debt cheaper to service. In other words, it is literally in your best interests to pay off as many debts as possible.  Significantly for savers, low interest rates is a bad thing, meaning you have money sitting in an account that doesn’t make you much of anything.

If you have savings and debt, you could be losing money right now. Three or months savings is always encouraged to provide a buffer zone in case the unexpected happens, like losing a job, a fall in wages, or a medical diagnosis. But if you are debt-free,  if the worst happens, you won’t have payments you cannot meet hanging over your head.  For more information on saving, check out our tips on how to keep more money in your pockets.

Above all, speaking with a non-profit credit counsellor can make all the difference.  If you are debt and need help getting started, contact us and we will connect you with one of our knowledgeable non-profit credit counsellors.

The post Should You Pay Off Debt or Save appeared first on Credit Counselling Canada.

According to the government, AFSs are high-cost financial services outside of traditional financial institutions like banks and credit unions. For example, they include offerings like payday loans, instalment loans, lines of credit, and auto title loans.

Significantly, Credit Counselling Canada was invited to submit its ideas on strengthening protections for Ontario Consumers.

Imposing limits on the amount lenders can charge

Credit Counselling Canada was happy to weigh in with its suggestions for strengthening protections for Ontario consumers.  We noted how research findings have highlighted the need for more vigorous regulatory enforcement of laws to safeguard vulnerable financial consumers.  For instance, for many lower-income Canadians and increasingly middle-class borrowers, high-cost instalment loans have become a debt trap.

Critically, one important way to prevent harm to vulnerable consumers is by imposing limits on the amount which lenders can charge for the cost of borrowing. Furthermore, a fixed limit is easier to administer and more straightforward for consumers.

If you are facing a severe debt problem, we recommend that you call one of our member agencies today.  They will offer you free, private, non-judgmental guidance from an accredited credit counsellor on the best way for you to deal with your debts.  Let us help you find the right solution for your situation. After all, you have got nothing to lose by calling – except your debt.

For more information on the Ontario Ministry of Government and Consumer Services consultation process, see Alternative Financial Services.

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Saving enables us to reach our financial goals, whether for a down payment on our dream home, putting money aside for a  car, retirement, or the inevitable emergency.

Unfortunately, Canadian savings continue to fall well short of the recommended level of 10% of net income.  According to Statistics Canada, Canada’s household saving rate fell to 14.60 per cent in the third quarter of 2020 from 28.20 per cent in the second quarter of 2020.

The COVID-19 pandemic has had a tremendous effect, of course. Still, Canadians savings levels were at a low ebb even before COVID-19 hit the scene. Why don’t Canadians save?  Well, partly because we do not learn to become savers or pay ourselves first.  More often than not, today’s youngsters are more likely to spend all their pocket money as soon as it arrives than to save. Unhappily, it’s the kind of habit that follows young adults right up to their first paycheque.

Top Tip List

We’ve put together a top tip list that will help you and your children get right into the saving habit.

• Spend no more than 90% of what you make. The rest should go into savings. Pay 10% to yourself first, then work with what is left in terms of spending and giving.  Try it for 28 weeks until it becomes a habit.  Though things may be tight to begin, start with a small amount and build from there.  Many bank accounts offer automatic saving features that make it even easier to save
• Add a little more to the amount every few months – you’ll be surprised how quickly its get to be a habit
• When supported by your employer, try saving through payroll deductions at work.
• Move savings into another account where you have to pay to withdraw money, so that it is not so readily accessible
• Focus on creating an emergency fund of at least three months of living expenses. Once you have achieved three months, continue until you have six months. Now, that’s cause for celebration!
• Use various saving account features to spark your savings and watch your money grow. Options like RRSPs, RESPs, TFSAs and other savings tools can help you get more from your savings

Make saving a fun family project teaching your kids to save. Even children as young as 4-5 years can get into the spirit

Of course, saving may not be possible when you are out of work. In that case, it is a matter of starting as soon as you can.

By developing the beneficial life habit of saving today, you’ll get to keep a lot more money in your pocket tomorrow!

If you are debt and need help getting started, contact us and we will connect you with one of our knowledgeable non-profit credit counsellors.

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Consumer rights and debt is an increasingly important topic. As modern societies move toward open data movements in government, health care and banking, it’s important to note that North American society wasn’t built on a bedrock of a citizen’s right to know.

Sociologist Michael Schudson reveals how consumer rights movements between the 1950s and 1970s were based mainly on environmental activists’ demands, consumer advocates and investigative journalists.  Schudson outlines this drive toward modern transparency in his book, “The Rise of the Right to Know: Politics and the Culture of Transparency, 1945-1975.”

Schudson’s book campaigns for greater openness across several domains such as truthful communication in health care and transparency at all business and government levels. Today, in an era of constant information and the uncertainty amid COVID-19, it’s important to revisit this idea of consumer rights, specifically around consumer debt.

Most find it hard to open up about their finances and lack the courage to ask for help

Broadly, consumer rights ensure people obtain accurate and unbiased information and that they are not mistreated. Additionally, being informed on individual rights increases economic welfare. It also improves societal health by bolstering demand for openness and encouraging industries to make ethical progress.

In the consumer debt space, access to non-judgmental, confidential options is essential. Most find it hard to open up about their finances and lack the courage to ask for help. Despite a recent drop in consumer insolvencies, Canada is a heavily indebted nation. Unfortunately, that is not going to change anytime soon.

In a recent Credit Counselling Canada survey, Canadians revealed the issues they face when seeking debt assistance. The greatest challenge was a lack of focus on financial wellness and education (72 per cent). Next, a lack of transparency around fees (70 per cent). Then, concern about conflict of interest and a lack of transparency around an organization’s motives (69 per cent).

The survey also shows motivates people to get out of debt. It’s one of the oldest tropes in recovery, and a claim that’s been repeated for decades. You’ve got to hit rock bottom before you can change course. Strikingly, nearly four in 10 Canadians would have no idea where to turn when facing rock bottom.

More work needed to build awareness

Major work is needed to increase awareness of consumer rights around debt and debt relief. Canada is taking steps in the right direction. The Financial Consumer Agency of Canada recently renewed its Consumer Protection Advisory Committee, seeking to strengthen financial literacy and ensure appropriate regulations are in place. Nevertheless, more can be done.

Canada should look towards models in the U.K., Australia and New Zealand. Together these countries have invested upwards of $115 million in financial help services to supplement their COVID-19 relief packages. Although Canada has responded swiftly to address the immediate emergency, there is no long-term strategy to build Canadians’ financial well-being beyond the crisis. These countries have put the interest of indebted consumers first.  Moreover, they have developed a progressive framework of sustainable options, including the critical service of non-profit credit counselling.

Protecting the right to unbiased, safe and holistic debt relief requires action from several players. Governments, local community foundations and charitable foundations can band together to support the financial literacy goals of non-profit credit counselling. Funding can also help shift the economics of debt repayment through incentives for banks and credit unions to innovate.  Meanwhile, community centers and organizations can provide space and resources for consumer debt education. Finally, Canadians can seek out Canada’s non-profit, certified credit counsellors as a smart place to start.

It takes a collaborative approach

There is no panacea for Canada’s consumer debt problem. A cross-sector, collaborative approach that includes the non-profit, credit counselling sector is essential.

There is a clear path ahead.  One that involves a dual commitment to economic transparency and a progressive consumer debt approach. Egalitarian society advances when consumers have greater access to information and a protected set of rights. As we make our way through the second wave of the pandemic, we must strive to enshrine and elevate those rights.  Learn about Credit Counselling Canada’s bill of rights for Canadians in debt.

CEO of Credit Counselling Canada

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It’s the start of a New Year, and like thousands of Canadians, you may be worried about the size of your debt.

For decades, non-profit credit counselling has provided a pathway for indebted Canadians to get back on track. Now we have more proof that credit counselling works. Back in 2003 and 2004, Equifax Canada and Trans Union of Canada carried out independent research on successfully closed credit counselling files. The research showed that credit counselling does help Canadians get back on track with their personal finances after being in debt.

More recently, a 2019 report by Credit Counselling Canada (CCC) using data from TransUnion comparing long-term outcomes of Canadian Debt Relief options points to clear benefits. Five years after filing, DMP clients have the highest credit scores over those who filed a consumer proposal or bankruptcy. DMP clients also reduce their total debt substantially.

Paul Le Fevre, Director, Operations, Equifax Canada outlined these results in a media release “Equifax Canada analysis shows that consumers who have successfully completed a Credit Counselling Program through an accredited not-for-profit agency demonstrate a significantly improved credit score and lower delinquency rates compared with average Canadian consumers”. In fact, consumers in the research data who participated in accredited credit counselling programs significantly increased their credit scores. Indeed, they have a reduced credit risk compared to Canadians who didn’t access non-profit credit counselling.

Getting Further Ahead Without Debt

Credit counselling clients who repay their debt successfully through a non-profit agency are farther ahead because of the in-depth education. Education does make a difference. Learning how to manage money effectively and plan for the future and living without credit are key factors in their success.

Here is just one example of thousands of testimonials that CCC members receive each year.

 “When my husband and I went to the agency, we were heading towards bankruptcy. We decided on a debt repayment program and were to pay a percentage of our debt  once a month. I really feel that this program saved us from going bankrupt, and getting our credit and record back on track. We also used the budget planner that is recommended with the plan to help us out. Now our debt is paid off, and we can afford the things we could not before. We are both so glad that they could help us out, and hopefully can help others out, too.”   Susan N, Nova Scotia  

Financial Literacy Approach

In the last year alone, CCC members provided money management education to over 160,000 individuals. The largest percentage was through direct contact with consumers needing assistance one on one. Over 60% of the total accessed education and training through workshops, webinars and financial literacy sessions in schools, community groups and lunch and learn opportunities. Education is the backbone of the services members provide to consumers. The demand for financial education has grown exponentially.  Across the country, CCC members are extremely well equipped to be the ‘go-to’ resource when financial questions arise.  

We have advocated for education through accredited, non-profit credit counselling agencies for decades. It is refreshing to see this confirmation that the work we do really does make a difference! People learn valuable financial skills, including developing spending plans, setting savings goals and establishing emergency funds. Credit Counselling Canada members are all registered charities /non-profit organizations.  They provide accredited services that assist Canadians across the country. 

No matter your age, skill level or current financial position, CCC members can help. Contact a member now to see how we can help you.  

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Here are the top 6 online financial literacy tools offered by our members:

7 Steps Money Management Workbook- This is offered by the Credit Counselling Society and is a valuable financial literacy tool for anyone who wants to know how to budget efficiently. It outlines everything involved in setting up a simple budget in 7 easy steps, giving users a handy guide to keeping their expenses below their income on an ongoing basis.

Online Personal Budgeting Webinars – Webinars are a popular way for busy individuals to learn whenever and wherever they have time. The Credit Counselling Society puts on free personal budgeting webinars on a regular basis. These are geared towards teaching personal budgeting strategies rather than family budgeting.

Online Financial Courses – For those who prefer to learn over a longer period and who may not have the time to attend traditional classes, Money Mentors offer online financial courses. Courses are free and topics covered include; budgeting, managing credit, debt management, retirement planning and much more.

Surviving a Layoff Booklet – This handy booklet is offered by Credit Canada Debt Solutions and provides advice for those who find themselves suddenly without an income. There are valuable tips for dealing with creditors including template letters to use for communicating your situation.

It’s Your Right: Protecting Yourself Financially as You Age Toolkit – This is offered by Family Service PEI and is geared towards helping seniors protect and empower themselves financially as they age and become more vulnerable. It’s a perfect financial literacy tool for seniors who value their independence and who want to remain in control of their financial lives.

Money Mentors Podcast – This podcast, offered by Money Mentors, is a new initiative broadcasting interviews with money experts. The topics discussed are wide and varied and the format makes for easy learning while on the go.

Credit Counselling Canada members work hard to empower Canadians to better manage their money. To learn more about the education initiatives taking place through not-for-profit credit counselling, visit our financial literacy education page.

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