Debt Free in 30

Did you know that in Ontario, anyone can call themselves a financial planner? With this in mind, how can you make sure that you are getting expert and unbiased advice on money management? Should you trust the financial planners who work at banks? Are they credible or do they just want to sell you mutual funds? My guest today says that if you want an honest assessment of your finances, you should speak to an advisor who doesn't sell products, but rather, advice. My guest today is Jason Heath, a Certified Financial Planner (CFP) and a fee-only financial planner, who explains how to select an unbiased financial planner. We also discuss if, as soon as your bankruptcy is finished and you can start saving money, you can afford to hire a financial planner.

Repaying debt requires a stable income. Even when you're in a debt relief plan like a consumer proposal, you need money coming in each month to make your payments. But what if you are faced with a sudden job loss and can no longer keep up with payments on your consumer proposal? Could you revive it after you find another job? What if you don't find work until after several months, could you restart your proposal then? My guest today says it is possible to revive a consumer proposal. Richard Howell is a bankruptcy lawyer, certified by the Law Society of Upper Canada. He has over 20 years of experience helping people resolve this exact issue, and has yet to face a situation where a proposal could not be restarted.

What if you could approach personal finance like most of us try cooking? Instead of learning a bunch of rules and principles, all you'd have to do is follow some tested recipes. Would this make it easier to save money, budget and build wealth? Today's guest thought so and the result was a new approach to money management he called Cashflow Cookbook. Instead of asking you to make sacrifices to save money, he compiled 120 ideas for you to be more efficient with your spending, while not having to worry about making drastic lifestyle changes. Unlike most money experts, Gordon Stein didn't have a career in personal finance. He worked in the tech industry and led large sales teams. But, his colleagues often asked him for advice on how to make ends meet. This prompted him to start thinking of creative ways to save money. Hear his story on today's podcast.

Credit scores are a way for a lender to assess how well you handle debt. To be able to set a credit score, the credit bureaus need information about credit use. This leads to a strange principle behind credit scores: the more access to available credit you have, the better your credit score will be. While that's good for your credit score, is that actually good for you financially? Are we too addicted to credit scores? The techniques needed to build a higher credit score can be surprisingly harmful to you. Sometimes having a bad credit score can actually be better. On today's show, my guest Ted Michalos helps us understand just how much credit we should really be using and why having a less than stellar credit score may actually be good for you.

Your credit report is a report card on your credit activity. While you can get a free copy of your credit report from many sources, not all credit reports are the same and not all sources provide full information. With so many free report providers, how do you know which one is accurate? My guest today stresses it's important to first understand what's actually on your credit report. Then you can take action to deal with any errors and omissions. Meg Penstone is a certified credit counsellor at Hoyes Michalos and has over 20 years of experience helping people with financial difficulty. She's also an expert on credit reports. On today's show we also discuss the problem with "free" credit reports.

Divorce can be expensive. In my experience, it's also one of the many causes for insolvency. The reason for this is when you are living together, you only have one bill for rent, cable, and utilities, but two incomes. You are in a better position to save money. When you separate, suddenly all these expenses become yours. What's more, if it's not an easy separation and lawyers are involved, it can cost tens of thousands of dollars. It's no small expense and it's often funded through debt. But, is it possible to have an affordable divorce? Do you need a lawyer for the entire process? What if you're on amicable terms? My guest today suggests there is an alternative to costly divorce: mediation. Colette Fortin is a mediator with Fairway Divorce Solutions in Kitchener. She helps people who are facing a separation develop a plan for their finances and children, with a focus on reducing cost and saving time. According to Colette, the reason why a traditional divorce can be so expensive is because of how much longer it takes to reach an agreement, so on today's show she explains the alternatives to a costly legal process.

Once upon a time, if you had a lot of credit card debt and owned a home, you could get a second mortgage to consolidate and pay off your debt. Interest rates were low and home values were rising. You could borrow against your home equity and pay down your unsecured debt affordably. But interest rates are rising. What's more, in some areas now, home values are declining. Mortgage rules are becoming stricter which means more people are being turned down for a second mortgage and the cost of borrowing is getting higher. On today's podcast Ted Michalos explains this alternative to refinancing with a very expensive second mortgage.

As a Licensed Insolvency Trustee, I'll always advise that you prioritize debt repayment. Why is it important to pay off debt first? So that you are no longer burdened by it. While that is the most prudent course of action, not everyone wants to wait until they are debt free before pursuing their dreams. For example, if you are a recent graduate, you might not want to delay starting a business until you've paid off all your debt. This is exactly the decision that my guest, Alex Grodnik, made. Still owing $75,000 in student loan debt, he left a stable job to follow his passion. But, should you follow in his footsteps? Alex says it depends on the kind of person you are and if you're willing to take risks. More on Alex's story, and some practical advice, on today's podcast.

Money management is hard. That's why so many people don't do it. Over the years at many credit counselling sessions with clients I've explained budgeting, and spreadsheets, and budgeting apps, and lots of other techniques to manage money. Some of my clients love the process of recording every transaction. Others, not so much. So, what can you do if you want to keep track of your money, but don't have the time or the inclination to keep a spreadsheet or spending journal? You cheat. By cheat, I don't mean "act dishonestly", I mean "avoid something undesirable by luck or skill", like eating healthy to "cheat" getting sick. On today's podcast I give my thoughts on how to manage your spending without a budget, and I explain how the 80/20 rule, known as the Pareto principle, can be used in all areas of money management, and in life.

I've said it before: when it comes to credit rating agencies like Equifax or TransUnion: You are not their customer. You are their product. Your data and loan history are for sale to any lender who is willing to pay for the data. But what if this could be flipped upside down? What if you could own your own credit history and control who gets to see it? Well, our guest today says that can be made possible with the power of blockchain technology. Derek Silva is the head of community relations at Bloom Protocol. Bloom is an end-to-end protocol for identity verification, risk assessment, and credit scoring and it runs entirely on the blockchain. Is it possible that Equifax will be replaced by Blockchain technology? That's our discussion today on Debt Free in 30.