Debt Free in 30

Nearly 9 million Canadians applied for CERB in 2020 to deal with the financial effects of COVID-19. To distribute the benefit quickly, the Canadian government conducted very little eligibility verification up-front. Many people believed they were eligible to get CERB but are now discovering that that was not the case. So, what happens if you received CERB but were not eligible? Will you be audited by the Canada Revenue Agency? And if you are audited, how do you prove you were eligible? Enter Jason Rosen. Jason is an experienced tax lawyer and co-founder of Rosen Kirshen (RK) Tax Law. On today's podcast Jason shares his thoughts on how the CRA might treat ineligible receipt of CERB and CEWS for employers. He provides practical advice for how Canadians can prepare themselves in the event of a tax audit and explains what may happen to those who applied to CERB knowing they were not entitled to receive it. Tune in to the show for lots of guidance on this pressing issue. Relevant Links: Rosen Kirshen Tax Law Website: https://www.rktaxlaw.com/ CRA Collection Letters for CERB Ineligibility & Repayment: https://www.hoyes.com/blog/cra-collection-letters-for-cerb-ineligibility-repayment CERB Eligibility: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/eligibility-periods.html CERB Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html New T4 Reporting Requirements for Employers: https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/support-employers-cra-covid-19.html CERB Eligibility Criteria: https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra/who-apply.html

Fintech has come up with a new way for making purchases online with Buy Now Pay Later apps. But is 'buy now, pay later' just another form of debt? Do these new apps actually help your budget or fast track financial problems? On today's podcast, we have first-time guest and Hoyes Michalos LIT Jennifer Kwon who walks us through how these apps work, how they benefit from people using them, and she simplifies the terms and conditions so you know what you're signing up for. And Doug Hoyes does the math to show much you'd really pay in interest if you fall behind on payments. Jennifer and Doug also share practical advice for how to use these apps safely to avoid financial trouble. Tune in to this episode for lots of great insight. Resources Mentioned in the Show: Leon's Financing: https://www.leons.ca/pages/visa-desjardins-financing Coupon Follow's Millennial Shopping Report: https://couponfollow.com/research/millennial-shopping-report Afterpay App: https://www.afterpay.com/en-ca/index Afterpay's Annual Report: https://www.afterpay.com/attachment/315/show Afterpay & Debit Card Usage: https://www.afterpay.com/attachment/67/show Afterpay Instalment Agreement: https://www.afterpay.com/en-CA/instalment-agreement Sezzle App: https://sezzle.com/ Sezzle & Credit Score Impact: https://shopper-help.sezzle.com/hc/en-us/articles/360046383071-How-does-Sezzle-impact-my-credit-score- Sezzle Late Fees: https://shopper-help.sezzle.com/hc/en-us/articles/360046781511-Why-was-I-charged-a-fee- Sezzle Info on Purchasers Spending More in App: https://sezzle.com/merchants Paybright: https://paybright.com/en/break-up-the-cost-7

Some loans feel like you've been paying them forever without an end in sight. In other cases, you may even be surprised to see your loan balances grow instead of shrink with regular payments. On today's podcast, Doug Hoyes and Ted Michalos define important terms for understanding how loans work, how to spot an expensive loan, and the risks you face with longer term loans. They also teach you how to avoid borrowing more than you can afford and provide practical advice for what to ask your lender while you're in the borrowing process. Helpful resources: Term vs Amortization Explainer: https://www.youtube.com/watch?v=gaMt1zW7ViA How Does Compound Interest Work: https://www.youtube.com/watch?v=mO5lhuXhWFk Debt Servicing Costs: https://www.youtube.com/watch?v=qoV5LD0eMk4 What is a Line of Credit: https://www.youtube.com/watch?v=yFR9Cag40OU How Car Loans and Loan Rollovers Lead to Insolvency: https://www.hoyes.com/blog/how-can-car-loans-lead-to-insolvency/ Why Payday Loans Won't Go Away: https://www.hoyes.com/blog/why-payday-loans-wont-go-away/

An unprecedented number of Canadians went from being office employees to working from home during this pandemic. Many also took on home office costs in 2020. So, what does this mean for our 2020 income tax filing? Which expenses will we be able to deduct and which ones will we not? On today's podcast, Ian Martin, CPA and Licensed Insolvency Trustee, shares his thoughts on how the CRA may approach expenses like office supplies, masks, furniture, internet and rent next year. Ian also gives us his honest opinion on how the CRA should approach tax audits of individuals. Tune in to this meaningful discussion with lots of practical tips! Additional Resources: 10 Tips for Dealing with CRA and Tax Debts: https://www.youtube.com/watch?v=Pp7rVK02OVI T2200 Declaration of Conditions of Employment: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2200.html T777 Statement of Employment Expenses: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t777.html

Every January, we meet with clients who tell us they spent way too much during the holiday season. But given the current pandemic, income problems, and gathering restrictions, will 2020 finally be the year when Canadians spend less? On today's podcast, Diane Cunha and Doug Hoyes discuss what generally drives people to spend so much over the holidays and why this year might be different. They share practical advice for how to cope with COVID fatigue and resist the temptation to over-buy. Diane also answers spending questions from our newsletter readers. Lots of great tips in this show so be sure to tune in! Related Links: Deloitte 2020 Holiday Retail Survey: https://www2.deloitte.com/us/en/insights/industry/retail-distribution/holiday-retail-sales-consumer-survey.html Straight Talk on Your Money by Doug Hoyes: https://www.amazon.ca/Straight-Talk-Your-Money-Financial/dp/1988344034 Podcast 322: How to Build an Emergency Fund if You Have Debt: https://www.youtube.com/watch?v=YxyO8in9Swg​ Sign up for the Debt Free Digest Newsletter: https://www.hoyes.com/subscribe-newsletter/

It's the 10th annual financial literacy month sponsored by the federal government. Are we more financially literate than we were 10 years ago? Our debt levels keep increasing, so it doesn't appear so. Is it possible to learn money management skills, or do you have to be born with it, like athletic ability. On today's short podcast Doug Hoyes explains why he believes you can learn to manage your money, and he gives four lessons on how to do it. #FLM2020 Time Stamps: 7:28 – Lesson 1 – What do you want? 9:47 – Lesson 2 – Do it the easy way 11:11 – Lesson 3 – Understand the Other Guy 14:54 – Lesson 4 – Ask Questions Related Links: Government of Canada Financial Literacy Month website: https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html Government of Canada, have a plan to pay off your debt: https://www.canada.ca/en/financial-consumer-agency/campaigns/it-pays-to-know.html Government of Canada, de-emphasizing the most powerful debt relief options: https://www.canada.ca/en/financial-consumer-agency/services/debt.html The "Don't Budget" Video: https://youtu.be/u5q1Qge3k8s Can you create your own reality? https://youtu.be/PuiP9I6_cMg Getting out of debt requires a system, not just a goal https://youtu.be/ysvkV0uN7mM The Fable of the $20 bill https://youtu.be/5fYfAvSnNps Doug's Book, Straight Talk on Your Money, available on Amazon, Kindle and as an audio book: https://www.hoyes.com/straight-talk/

Every financial guru says you need an emergency fund. But if you also have debt, is it possible to balance saving and paying down high-interest credit cards or lines of credit? What are the steps to get started? On today's podcast, Diane Cunha, Certified Credit Counsellor at Hoyes Michalos discusses the different types of emergency funds, teaches us how to set aside cash even if we have debt, and gives tips on where to store our savings so they are easily accessible. Tune in to the show for lots of practical advice! Related Links: Credit and Debt Decisions That Can Backfire Podcast 288: https://www.youtube.com/watch?v=0mHPf8CLhs0 What To Know About Credit Cards So You Use Credit Wisely Podcast 235: https://www.youtube.com/watch?v=u-bMxcdl55A Emergency Fund or Credit Card Debt? What's the Better Choice? https://www.hoyes.com/blog/emergency-fund-or-credit-card-debt-whats-the-better-choice/ Why You Need an Emergency Fund: https://www.hoyes.com/blog/why-you-need-an-emergency-fund/

Description: Amid economic uncertainty, side hustles have become a popular way to earn extra income. But while many side hustles are good, some are risky and can lead to serious debt problems.​ On today's podcast, guest and Hoyes Michalos LIT Julie Wildman discusses the risks of multi-level marketing ventures (or MLMs). While an MLM can seem like a great opportunity to "be your own boss" and work from home, it often comes with significant upfront costs that are rarely recovered. Julie walks us through how MLMs work, their success rates, and who is often targeted in MLM schemes. She also shares practical advice for how to ensure that if you do go into the business of selling products, you avoid taking on a massive debt burden. Tune in! Related links: AARP Study of Multilevel Marketing, 2018: https://www.aarp.org/content/dam/aarp/aarp_foundation/2018/pdf/AARP%20Foundation%20MLM%20Research%20Study%20Report%2010.8.18.pdf

As of August 31st, 778,000 Canadians with a mortgage at Canada's big banks deferred or skipped a payment on their mortgage. The deferral periods for many mortgages and other credit loans and products have now come to an end. What does this mean for your debt? On today's podcast, Ted Michalos and Doug Hoyes review different credit products (mortgages, credit cards, lines of credit, auto loans) and discuss what may happen to your balances and debt carrying costs now that the deferral periods are over. They also share practical advice for how to negotiate with your creditors and steps you can take if you don't have the cash to start making your debt payments again. Tune in to this very timely and helpful episode! Helpful Links: Dealing with the Consequences of Loan Deferrals When the Deferral Period Ends: https://www.hoyes.com/blog/dealing-with-the-consequences-of-loan-deferrals-when-the-deferral-period-ends/ What To Do If You Can't Pay Deferred Mortgage Payments: https://www.hoyes.com/blog/what-to-do-if-you-cant-pay-deferred-mortgage-payments/ CMHC Residential Mortgage Industry Report: https://assets.cmhc-schl.gc.ca/sites/cmhc/data-research/publications-reports/residential-mortgage-industry-report/2020/residential-mortgage-industry-report-2020-en.pdf CBA Fast Facts on Bank Measures in Response to COVID-19: https://cba.ca/fast-facts-on-bank-measures-in-response-to-the-covid-19-pandemic Scotiabank Auto Loan Payment Relief Terms: https://www.scotiabank.com/ca/en/personal/scotia-support/terms-and-conditions/auto-loan-spl-payment-relief.html

The Canada Emergency Response Benefit (CERB) has now come to an end and is transitioning to four different financial aid programs: EI, CRB, CRSB, and CRCB. But what do these income supports mean for Canadians' household budgets and debt repayment? Will they be enough to help Canadians still battling the financial effects of COVID-19? And which individuals no longer qualify to receive federal help? On today's podcast, our guest is David Macdonald, Senior Economist at the Canadian Centre for Policy Alternatives (CCPA). David explains the financial impact of switching from CERB to these new aid programs. He walks us through how these programs work, eligibility, and whether Canadians who have returned to work at reduced hours can still get help. He also shares his thoughts on the long-term implications of these supports for the Canadian economy. Tune in to this important discussion with Doug Hoyes. We also encourage you to check the Government of Canada website for up-to-date information as these programs may evolve: https://www.canada.ca/en/department-finance/economic-response-plan.html#individuals Additional Links: David Macdonald on Twitter: https://twitter.com/DavidMacCdn CCPA Report – 1.8 Million Canadians Better Off with a Higher EI and CRB Floor: https://behindthenumbers.ca/2020/09/28/1-8-million-canadians-better-off-with-a-higher-ei-and-crb-floor/ Canadian Centre for Policy Alternatives: https://www.policyalternatives.ca/ David Macdonald's first appearance on Debt Free in 30 – ep. 114: Basic Income: Is It a Silver Bullet for Poverty? https://www.hoyes.com/blog/basic-income-is-it-a-silver-bullet-for-poverty/ and on YouTube (audio only): https://youtu.be/mi3tWjg1bC4 Our podcast on Modern Monetary Theory https://youtu.be/TMGDaTGx3V4 Hoyes Michalos Bankruptcy Study: https://www.hoyes.com/press/joe-debtor/ Time Stamps: 2:22 CERB – How it worked, qualification requirements 5:44 The new Employment Insurance, how it works, who qualifies 8:32 How taxes work for CERB and EI 9:44 Why a lot of Canadians may have a big tax bill in the spring of 2021 12:15 Is it possible that CRA creates special rules to mitigate the big tax bill many Canadians will face in 2021? 17:00 CRB (Canada Recovery Benefit) – what it is, who qualifies 21:00 CRSB (Canada Recovery Sickness Benefit) – what it is, who qualifies 22:30 CRCB (Canada Recovery Caregiving Benefit) – what it is, who qualifies 24:30 What if I'm only working one day per week? How does that impact my benefits? 27:50 Who qualified for CERB, but now won't receive any income support? 30:25 What are some of the shortcomings in the current programs you would like to see addressed? 33:30 Are we moving towards a Basic Income? 37:00 These programs are very expensive; how will we pay for them?