6 Advantages of Debt Consolidation We are living in a society where debt is an essential part of life. We have moved away from a hard cash-based society to digital banking, which has given birth to debt instruments such as credit cards, lines of credit and loans. While Debt has its advantages such as paying for items later or increasing someone’s borrowing capacity, it can create havoc in someone's finances if not managed properly. We all use credit cards and sometimes end up carrying debts month to month until we are able to pay them down. Unfortunately, due to our human nature, we always put it off for later, thinking we will pay it off next month. Until this debt snowballs into a massive financial burden. So paying off the debt definitely has its advantages. So what are the advantages? Improves your credit score Consolidating your debts into a mortgage will give your credit score a nice boost. This is due to your reduction in credit utilization. Turn multiple payments into a s
How to manage your expenses? With spring in the air, we all are thinking about that “new” addition to our homes. However, Canada's housing affordability is hitting an all-time low, as per one of the big banks (the red one) recent report. This report was released at the beginning of March, where It shows, (as of the end of last year), a “representative” Canadian household would have to spend nearly 49% of its income to service a mortgage. That is an increase of nearly 8% from a year earlier. The long-term average to service a mortgage since 2000 is around 40.2%. The share of income needed to pay a mortgage is now at its highest level since the mid-1990s, which was just after Canada’s last real estate crash. The question is, how can we cope with it this time? I’ve put together some tips that may help you in the long run. This list should not be treated as financial advice but, it’s something I use personally. 1. Reassess your housing needs Weigh options out before spending a lo