by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
When you are looking for a home to live, you have two major options available to consider. Either you can rent a home, or else, you can spend your money and buy a new home. Most of the people tend to get stuck when making a choice out of these two options. That’s where you need to analyze the pros and cons associated with renting a home and buying a one. With that, you will be able to make an appropriate decision.
Pros of buying a home
When you purchase a home, you will be provided with the opportunity to build up equity along with time. The renters will not be able to experience it. You can buy a home with a home loan. Every month, you will need to make a payment against it. A portion of this payment would go as interest. However, the remaining amount will be used to settle the capital. As a result, it can be considered as a long-term investment.
People who purchase homes will be able to experience a large number of tax benefits as well. For example, you will be eligible for federal tax deductions. On the other hand, you will be able to make yourself eligible to receive homestead exemption as well.
After purchasing a home, you will be able to get a sense of belonging. That’s because you know that you have a place to call on your own. This can cultivate creative freedom as well. You will be able to go ahead and decorate the home according to the specific preferences that you have in mind. A large number of DIY project ideas are also available for you to consider. Hence, you will love that unique experience offered to you.
Cons of buying a home
You will have to spend a considerable amount of money out of your pocket to buy a home. This can be considered as the biggest drawback associated with it. It is true that homeownership has got the ability to help you build equity along with time. But equity is not related to automatic profit. If the prices of homes in your area reduce along with time, you will end up making a bad investment.
When you purchase a home, you will be provided with the responsibility of maintaining it. Maintaining a home cannot be considered as an easy thing to do. You will have to spend a lot of money on the repairs as well. For example, if your house is worth around $100,000, you will need to spend at least $10,000 for the repairs of your house throughout a period of 10 years.
Most of the houses are not sold furnished. Hence, you will need to spend additional amounts of money out of your pocket to furnish the house that you purchase as well. In addition, you will have to spend a lot of energy and time on it as well.
Pros of renting a home
Now let’s take a look at the reasons available for you to go ahead and rent a home.
When you rent a home, you will not be provided with the responsibility of maintaining it. You don’t even have to worry about the repairs. If a pipe bursts or if the toilet backs up, you don’t need to spend money out of your pocket to get that fixed. All you have to do is to get in touch with the landlord. The landlord would take appropriate steps to help you overcome the frustration that you are going through.
If you are a person who doesn’t prefer to stick to one location, renting a home would be the best option available for you to consider. For example, you might have to travel a lot because of your work commitments. In such a situation, purchasing a home would be a waste of money. Instead, you can simply rent out a home. Whenever you need to move to another location, all you have to do is to find a new home for rent in the new destination. The process is simple as that and you will be able to minimize the frustration.
After renting the home, you don’t need to worry about the changes that are taking place in the real state market. The home value fluctuates along with time. It can even go down under certain instances. But you don’t need to worry about it because you are just renting the house.
Cons of renting a house
The biggest disadvantage associated with renting a house is that there will be no equity building up. Hence, you will be just spending your money in the long run and you will not be able to gain anything in return from it. But there is a possibility for you to go ahead and sign up a rent to own agreement with the property owner. But you cannot confirm whether the property owner would agree to come into this kind of agreement.
People who rent out property will not be able to experience any federal tax benefits as well. The homeowners are being provided with the opportunity to go ahead and reduce the mortgage interest and property taxes from the federal income tax returns. But if you have just rented out the property, you will not be eligible for it.
When you rent out a home, you will not be able to do any customizations to it and call it a place of your own. That’s because you have agreed to a contract along with the property owner. This can make you feel like you are living in a place that is not owned by you.
Conclusion
As you can see, there are pros and cons associated with both options. Hence, you need to take a look at your personal preferences and then go ahead with the best option that is available to consider. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
When you are not in a position to settle your debts, you simply go ahead and file for bankruptcy. However, all the types of debts are not being covered when you file for bankruptcy. Hence, it is important for you to have a clear understanding of what debts are covered and what debts are not covered at the time of filing for bankruptcy.
It is also possible for you to go ahead and file for bankruptcy without seeking the assistance of a legal professional. If you are going to do that, you need to be well-informed about the process. That’s why you need to take a look at the debts mentioned below and understand that they are not being covered in bankruptcy within Canada. As a result, you will be able to stay away from filing for bankruptcy unnecessarily within the country.
In Canada, student loans will not be covered in bankruptcy, as long as they less the 7 years old. It has been identified that most of the students living in Canada go ahead and obtain student loans. That’s mainly because education is so expensive in Canada and the students find it as a difficult task to cover up their expenses. However, you need to keep in mind that student loans are not covered in the case of bankruptcy. If you are not in a position to settle your student loan, you shouldn’t go ahead and file for bankruptcy. It will not be able to provide any assistance to you. Student loans in Canada can further be divided into several categories. They include privately lent student loans, federal student loans, and loans that are directly offered by the colleges. All these types of student loans will not be covered during a case of bankruptcy.
However, there is one exception, which you need to keep in mind. If you can prove that you are not in a position to work after your college or again in your life, due to a permanent or complete disability, you will be able to include your student loan in the bankruptcy and file for it. But in general, people are not allowed to go for it.
There are individuals who purchase valuable items, such as cars, merchandise, or jewelry. After purchasing these items, they go ahead and file for bankruptcy. This can be considered as another major mistake that they do. That’s because you will not be able to file for bankruptcy because of the items that you have purchased. If you are filing for bankruptcy, you will either have to continue making your payments for the lender or to give up the items that you have purchased.
You need to keep in mind that the lender of the loan has got a security interest against the item that you have purchased. In other words, you have come into an agreement with the lender in order to pay for the product in return for the item. In case if you fail to work according to that agreement, the right that you have to continue with using the item would be removed. Hence, you need to think about this factor at the time of filing for bankruptcy.
There is an exception in this situation as well. You will be able to surrender the merchandise, jewelry, or vehicle you bought back to the lender. Then you will be able to get rid of the obligation that you have in order to make a payment back. You will not be allowed to keep an item along with you. The security interest of the lender can be considered as the main reason behind the above-mentioned fact. Therefore, you will not be able to retain the item and stay away from making a payment to it.
Luckily, you will not be asked to remove the legal obligations that you have to pay for your child as a support at the time of bankruptcy. If you have an outstanding balance, which you are willing to use as this payment, you will be provided with the ability to keep it after the case.
- Credit card debt and legal payments made to the ex-spouse
If you take a look at the divorce cases, the spouse usually agrees to make a payment for the legal expenses. Or else, the spouse will agree to make a payment against the outstanding debts that are owed by the partner. These debts are in a position to provide tremendous assistance to you with surviving your bankruptcy.
You can go ahead and come up with an agreement in order to pay the credit card balance that is against your name. Then you can nominate your spouse as the person who makes that payment. Then you will not be able to turn around then proceed with filing for bankruptcy. That’s because filing for bankruptcy will not be able to help you settle those agreements to make the payments or the debts. Your spouse is still in a position to force you and to tempt you in order to make the payments.
The process of rebuilding your credit can be a long and frustrating one. If you go blind in this process, you will have to deal with a series of negative consequences. Therefore, you should stay informed and start rebuilding your credit slowly.
- Court-ordered restitution
Last but not least, you must understand that court-ordered restitution is not covered when you file for bankruptcy in Canada. If you don’t know, restitution is the amount of money that the court will ask you to pay, because of a personal injury or a financial loss that you have done for another party. Since you are guilty in this case, you will not be provided with any relief when you are filing for bankruptcy. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
You may be getting frustrated with the advertisements that most financial institutions do at the beginning of the year. They request you to invest in RRSP (Registered retired savings plan). Actually this time span is often described as the RRSP season. If you invest in RRSP within the very first two months (60 days) of the beginning of the year can be easily deducted from your income of the last year offering a faster tax refund.
In case you have enough cash with you to invest in RRSP then this is the time to utilize it properly. Here the article will illustrate more about this concept.
Do you need to reach the bank immediately? Of course – No!
In case your boss is giving you the chance to invest in RRSP or VRSP (voluntary retirement saving plan) in say Quebec or anywhere in Canada then think about it seriously as an option to replace investing in an individual RRSP at a credit union or bank. You may want to know why? The reason is many and one of the basic reasons is simply that you can easily save hundreds and hundreds of dollars taken against management fees over your career span which is quite convincing. Since the management fees are deducted from some published returns it may seem to you as if they don’t exist. But the fee is always there.
A mutual fund management fee embedded within any individual RRSP vary and it can fall in between 2-3%. In case of Group RRSP is managed by a particular insurance company the management fee would be anywhere between 0.5-1.5% which is less and it can directly have a positive effect on the savings.
Post-holiday season- Is it the best time to contribute to RRSP?
Not many people own a substantial amount of dollars in their bank accounts to contribute to RRSP in the month of January/February. So, does that mean that this is an RRSP season and you can contribute effectively to save for your retirement? Of course no.
Smaller but frequent RRSP contribution
In order to have sturdy savings plan to save a sufficient amount for retirement, you need to have a regular RRSP contribution time period. This way the budget is simplified. It is pretty easy to invest $50 fortnightly as compared to contributing around $1300 at the end of the year.
It is always better to save during the period when the money is deducted from your salary directly prior to getting deposited in the bank account. This is an amazing benefit of group VRSPs and RRSPs.
Should I make RRSP contributions a bit early?
Yes. There are many reasons for this. When it comes to markets in North America, the end of month September is considered as the season of strength. You can make contributions at the start season of strength instead of during the RRSP season which is the end of the year.
It is better to make contributions early September rather than waiting for the RRSP deadline. It is one of the best strategies that work.
How to pay no income tax?
If you are contributing to Group RRSP via payroll deductions, you directly get a tax refund instead of when you actually file your income tax returns. Hence if you pay $50 at ever pay. $50 will get credited in the RRSP group but the net pay will be deducted by around $30. So, you end up saving $20 in income tax.
You can gain a lot by saving on tax instantly on every pay rather than getting just a single refund at once. This can give you thousands of dollars extra and there is no waiting for the entire year to receive your funds.
Can I get higher returns?
Yes, you can get higher returns by distributing your RRSP all throughout the year and it is because of income tax saving system that you get good returns. When you make RRSP contribution with each pay the amount is invested instantly on different markets and it automatically generates returns.
In case you wish to go all the way till the end of the year and contribute a similar amount to the number of your contributions for each pay there will be no return generated throughout the year. Contributing to each pay can convert into thousands of dollars extra for your retirement based on the bond market and stock performance.
Can I get benefited from HBP along with a group plan?
Group RRSP members can get benefited from the HBP plan (Homebuyers plan) to make most of the real estate market easily.
Start focussing on your RRSP contribution planning and try to give importance to RRSP contributions to gain maximum benefits. You can gain a lot through RRSP.
It is important to consider the contribution amount. In order to do it, you need to evaluate your budget, analyze current savings, and determine your future income and the retirement needs. You can also you various tools available to help you carry out the entire process.
Many people think whether contributing to RRSP is an ideal choice, of course, it makes sense too. Just ensure that it suits your future goals and income. Of course, if you need to build a savings plan that helps you with your retirement goal so that you can enjoy a similar lifestyle that you are enjoying today.
If you have a low income then you will not be able to get the benefits in tax deduction from RRSP contributions. You need to assess the situations that favor RRSP and accordingly need to make RRSP contributions. Of course, you need to plan your retirement well and for that, you need to evaluate your income, what are you expecting post-retirement, etc. You need to keep a check on your RRSP after making the contributions. You can also hire a financial consultant to guide you on properly making RRSP contributions and whether or not they are profitable for your income and retirement goals. It will help you in the long run and avoid making incorrect decisions. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management, Social Media
When you need cash for an emergency, you tend to go ahead with a payday loan. In fact, a payday loan would look like the only path of survival. But most of the people who obtain payday loans for their emergency cash needs end up with hassle and frustration in the long run. Therefore, it is important for you to take a look at the unseen aspect of payday loans and take appropriate steps in order to stay away from it.
Below mentioned are some prominent reasons, which would justify why payday loans are never a good idea available for you to consider.
What exactly are payday loans?
Before you take a look at the negative aspects of payday loans, it is better to have a basic understanding of what exactly the payday loans are and what they can lead you to. A payday loan is a kind of a short-term loan. You are borrowing the loan for a couple of weeks. Ideally, you should be in a position to settle this loan on your next payday.
When providing the loan, the lenders will take a look at your bank accounts and income statements. Then they will determine the ability of you to repay the loan by the next payday.
Why shouldn’t you go ahead with payday loans?
Now you know what payday loans are all about. With that in mind, let’s take a look at the reasons why you are never encouraged to go forward with them.
- Payday loans are expensive
Payday loans can be considered as one of the most expensive types of loans that you can borrow. If you take a look at an expensive credit card, you will notice that the interest rate is somewhere around 28%. But the interest associated with a payday loan is much above that. For example, if you obtain a payday loan of around $100 for a period of 15 days, you will have to pay a massive annual interest, which goes up to 400%. If you are not in a position to pay such a high amount of money as the interest, you shouldn’t even think about obtaining a payday loan. Usually, most of the people who are not in a position to obtain mainstream loans tend to go ahead with payday loans. It is true that you can easily get cash to your hands with the assistance of a payday loan. But you will have to pay a lot of money out of your pocket for the enhanced convenience offered.
- You will get stuck in the payday loans cycle
From recent studies, it has been identified that most of the people who obtain payday loans tend to get stuck in a repeat cycle. This is another reason why you are encouraged to stay away from payday loans. When you obtain a payday loan, you will have to spend a considerable amount of money on your next payday to settle it along with the interest. With this, you will not have enough money to survive until your next payday. Along with that, you will be tempted to go ahead and obtain another payday loan. That’s how you get stuck in a cycle. When you get stuck in this kind of cycle, you will find it a difficult task to overcome it. That’s where your credit ratings would go down.
- Your debt will grow fast
Once you obtain a payday loan, your debt will grow fast. That’s mainly because you will have to pay money at an extremely high rate of interest. In fact, you will be spending around three to ten times the amount that you have initially borrowed with the payday loan. This can lead you towards debt. Your debt will grow faster than you imagine. As a result, you will end up with a lot of financial difficulties in the long run.
- You can easily obtain payday loans
As mentioned earlier, it is extremely easy for you to obtain a payday loan. This can also be considered as one of the major drawbacks associated with it. That’s because you will be tempted to go ahead with it when you come across a financial requirement. You will even tend to obtain a payday loan at your lunch break. This is never a good habit. That’s because you never provide any time for you to think whether obtaining the loan is a good idea or not. You believe that it is the best solution out of all available options and go ahead with it blindly. With this, you will end up with a lot of negative consequences in the long run. When you identify those mistakes, you are too late.
- You will have to provide your bank account access
When you are obtaining a payday loan, you will be asked to provide your bank account access to the company that provides it. This can be considered as another negative effect linked with these loans. Your bank account contains a lot of sensitive information related to you. Hence, you should never go ahead and share the bank account details with another party. This is another major reason available for you to stay away from obtaining payday loans.
- You will end up with stress
Most of the people who obtain payday loans to cater to their emergency financial requirements end up with stress. That’s because the payday loans are linked with a higher rate of interest and you will come to a situation where you cannot settle them. In such a situation, you will end up with disappointment and frustration. This can bring in a lot of stress to your mind.
Due to all these reasons, you will need to think twice before you go ahead and obtain a payday loan. It is better to stay away from these loans whenever possible. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling
Bankruptcy is a period where you will have to go through a lot of pain and hassle. That’s why you need to go ahead and file for bankruptcy. By filing for bankruptcy, it is possible for you to experience a large number of benefits. They include some amazing health benefits as well. Therefore, you are strongly encouraged to get to know about what potential health benefits that you will be able to experience by filing for bankruptcy. When you are aware of the health benefits, you will be tempted naturally to go ahead and file for bankruptcy.
Bankruptcy comes along with a great deal of stress. As you already know, stress is never good for your overall health. It can lead your good health to a series of injuries and you will have to deal with all the negative consequences that come in your way.
Due to the stress factor, you are strongly encouraged to go forward and file for bankruptcy. It will be one of the best actions that you will be able to do in order to ensure your good health in the long run. If you get into any of the health conditions that stress can bring in, both you and your loved ones will be hurt. Therefore, you need to make sure that no person is affected because of your health. To ensure that, all you have to do is to go ahead and file for bankruptcy.
You should be in good health to overcome bankruptcy. There is no other person who can help you overcome bankruptcy. You will have to do most of the work on your own. But if you are not in a position to work, you will find it a difficult task to overcome bankruptcy. That’s why it is important to maintain good health and try your best to overcome bankruptcy and the negative health consequences that are associated with it.
Struggling too much within a short period of time can lead you towards a massive amount of stress. You will not be in a position to overcome the stress that you face in such a situation. Therefore, you need to look for a way to overcome stress. When you file for bankruptcy, you will notice how you can immediately get out of stress. This is something that even healthcare professionals encourage people to do. All the economic systems that exist out there in the country are unfair, impersonal, and harsh. Hence, you need to be in good condition to face them and end up with the victory. Otherwise, you will fall down from wherever you are.
As mentioned earlier, filing for bankruptcy is one of the biggest decisions that you take in your life. However, that decision you take is being provided with assistance by a large number of issues, which stay beyond your control. For example, when you get into an illness or come across an accident, you will end up with massive medical bills. In such instances, filing for bankruptcy can provide you with the chance to experience an array of benefits.
Most of the people in today’s world consider bankruptcy as a failure. But if you deep dive and take a look at the facts, you will figure out that it is not about failing. According to the US Constitution, people who are not in a position to take care of themselves and their dependents can file for bankruptcy.
In order to understand the potential health benefits linked with filing for bankruptcy, you should get to know about medical bankruptcy as well. There is no strict definition associated with medical bankruptcy. However, most of the people believe that individuals go ahead and fill for medical bankruptcy in order to get rid of their doctor bills and hospital discharge bills. At the time of an illness or an accident, you will have to pay thousands of dollars to the doctors and hospitals. But if you have filed for bankruptcy, you have said that you are not in a position to make those payments. This is not the simplest definition of bankruptcy and it can have a deeper meaning than that.
During an illness or an accident, you will not be able to work. Hence, you will not have a source of income. You are filing for bankruptcy because of that reason. However, most of the people forget this fact when they are filing for bankruptcy.
From the recently conducted experiments, it has been identified that most of the people tend to get overwhelmed because of the medical debt that they have to deal with. There are individuals who are left hopeless with staggering medical expenses. That’s mainly because they don’t have health insurance in order to cover them. The health insurance premiums are extremely high. As a result, an average person fails to get his hands on a medical bill.
According to the constitution, you are provided with the chance to go ahead and file for bankruptcy, with the objective of eliminating your medical debt. Hence, you will be able to experience the healthcare services and facilities that you are being provided with while enjoying peace of mind. But if you don’t a lot of medical expenses and if you are not in medical debt, you should not go for filing bankruptcy.
Now you are aware of some of the potential health benefits that you will be able to experience by filing for bankruptcy. As the next step, you should go ahead and file for bankruptcy. This will provide you with the opportunity to keep peace of mind in the long run. On the other hand, you will be provided with tremendous assistance to maintain your good health as well and work with your full potential to get rid of bankruptcy. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Portfolio
Are you looking forward to filing for bankruptcy in Canada? Then you will have a lot of questions in your mind, which need to be answered. Figuring out how long bankruptcy lasts in the country might be the biggest question that you have. Hence, it is important to figure out answers to that question and then move forward.
In Canada, several factors could affect the term of bankruptcy. As a result, the time period that a person has to be in bankruptcy within the country differs from one person to another. As soon as you receive a discharge, your bankruptcy would end. In other words, it is the event where all your debts are being canceled.
In most the cases, you will be able to receive the discharge after a period of 9 months. However, it is important to keep in mind that this is the minimum period. It can get extended due to a court order. In addition, you need to be aware of the exact factors, which are in a position to create an impact on the time period that you will have to be in bankruptcy.
- Surplus income
Surplus income can be considered as one of the most determining factors, which are in a position to create an impact on your term of bankruptcy. In case your income is higher when compared to the limit that is defined by the government, you have to worry about this factor. In such a situation, there is a high possibility for the bankruptcy to be extended for over 9 months.
- First bankruptcy or not
In case if you have not become a victim of bankruptcy before in your life, you will be able to receive the discharge after a period of 9 months. In fact, this is an automatic discharge. But if this is not your first time, there is a possibility for the bankruptcy to be extended. The period of extension will be determined by the registrar or judge of the bankruptcy court.
- Changes in the law
The laws that are related to bankruptcy in Canada were established back in 2005. Several amendments were introduced to these laws along with time. In fact, the laws are being amended on a continuous basis. Possible amendments that can take place in the future are also in a position to create an impact on the term of bankruptcy.
- Opposes in discharge
If you can create an income, which can be used for sustainable living, you will be able to get rid of bankruptcy. In other words, you need to show that you are in a position to take care of yourself as well as your dependents. Then you will be granted the discharge. However, there are instances where people fail to prove this. In such instances, their discharges will be opposed. As a result, you will have to remain in bankruptcy for an additional period of time.
- Completion of all duties
There are a few specific duties, which you will need to complete while you are in bankruptcy. Failing to complete these duties in a timely manner can delay your bankruptcy. Due to this reason, you are strongly encouraged to pay special attention to the completion of all your duties.
It is better if you can deep dive and have a better understanding of the duties that you will need to fulfill during bankruptcy. Then you will be able to fulfill those duties and make sure that you are granted the much-needed relief from bankruptcy.
While you are in bankruptcy, you will be asked to go ahead and attend a series of meetings that are organized by the creditors. In these meetings, you have the opportunity to go ahead and ask all questions that you have in your mind about bankruptcy from the creditors. As a result, you will be able to get rid of all the doubts that you had in your mind as well. Even if you don’t ask any such questions, it is important to attend these meetings. They are in a position to create a tremendous impact on your duration of the bankruptcy. In other words, you should not miss out on any meeting.
Your income tax is also in a position to help you with reducing the period of bankruptcy. You should give all the T-4 slips to your trustee along with other essential information. Then the trustee will be able to complete all the outstanding tax returns from the date that you filed for bankruptcy. You should also keep in mind that all the income tax debt would get accumulated within the bankruptcy. Therefore, you will need to make the tax payments separately. If you make these payments, you will be able to reduce your period of bankruptcy in an efficient manner.
During the time of bankruptcy, monthly reporting is extremely important as well. At the end of every month, you will need to report all your living expenses and the monthly household income. In case if there are any changes in the situation of the trustee, you will have to include those details in the report as well. This report must be submitted along with the copies of the pay stubs. All the forms that you need will be provided by the trustee. It is up to you to fill up these forms by including accurate information.
If you want to make yourself eligible for an automatic discharge after a period of 9 months, you should go ahead and take part in 2 different credit counseling sessions as well. It is possible for you to go for one on one counseling sessions or group sessions. The very first session out of these two is held within 60 days and the other will take place within 210 days. If you attend to these sessions, you will be able to make yourself eligible for automatic eligibility. Any help for financial problems contact gtacredit.com or call 416 650 1100
