by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling
All of us love to take a break from our busy schedules and go on a vacation. To get the best vacation experience, you will need to save money. However, it is not something difficult as you think. That’s because a variety of methods are available for you to save money for your vacation and take your experiences to the next level.
Below mentioned are some of the most effective methods, which you will be able to follow in order to save money for your next vacation.
- Open a bank account and save
Apart from the bank account that you have, it is possible for you to go ahead and start another dedicated bank account. Then you will be able to save your money in that bank account for the vacation. It is possible for you to set up automatic money transfers to that account as well. Then you don’t need to worry too much about saving money for the vacation. That’s because you will be saving money automatically to spend an unforgettable vacation in the future. It is better if you can open up an interest-bearing account. Then the money you save for your vacation would grow along with time.
- Do a side job
If you don’t get enough money from your job to save for the vacations, you can go ahead and select a side job. The extra hassle that you put in order to engage with a side job is totally worth it when compared to the fun and excitement that you will be able to get during the vacation. Both online, as well as offline side jobs, are available for you to do when you are trying to save money for your vacation. It is up to you to take a look at those side jobs and select a one that you can easily do.
- Use your car to make some money
If you have a car, you can easily use it in order to make some money. For example, you will be able to become a Lyft or an Uber driver and give rides for the people in need. Or else, it is even possible for you to rent out your car. By renting out your car for one month, you will be able to save enough money to enjoy a complete vacation. Hence, you can think about giving it a try.
- Reduce the money that you spend on your food
You must be spending a lot of money on your monthly budget on food. If you want to save enough money for traveling, you are strongly encouraged to reduce the money that you are spending on food. You will be able to save a lot of money by purchasing food in bulk. Or else, you can think about shopping for food you want from the farmer’s markets. If you have enough space, you can start your own garden as well. All these methods can help you to save a considerable amount of money that is being spent on food.
- Start a travel blog
By starting a travel blog, you will get paid for taking your vacations. However, you need to keep in mind that this is not a direct method of saving money for a vacation. Instead, you will be spending your money to go on vacation. But you can get that back with the assistance of a travel blog. You can easily start a blog for free, without any technical expertise. Then you will be able to put up advertisements on the travel blog. You will be paid for the visitors who come and go through the posts that you have shared on the travel blog.
- Look for the deals on outdoor equipment
From recent studies, it has been identified that the families are spending a considerable amount of money to purchase outdoor equipment. There is a possibility for you to save a lot of money on it as well. All you have to do is to start looking for the amazing deals that are available on outdoor equipment. For example, you can take a look at garage sales. Or else, you can even purchase used rental equipment as they can offer the same experience to you at the end of the day. You can think about buying and re-selling outdoor gear as well.
- Reduce the money that you spend on workouts
You can also go ahead and reduce the money that is being spent on the workouts. You don’t always need to go to the gym in order to workout. For example, if you are a person who only engages with cardio workouts in the gym, you can simply do that at the comfort of your home. Or else, you can think about hitting one of the local jogging tracks. You can also learn alternative workouts, which you can do at the comfort of your home, without spending any money out of your pocket. Yoga can be considered as a perfect example to prove the above-mentioned fact.
- Save money on the credit card
If you are having a credit card, there is a high possibility for you to save a considerable amount of money on it as well. For example, you can look for the amazing deals that are available for your credit card from the merchants. If you have a credit card that accumulates airline miles, you must go for it as well. Then you will be able to fly for free in the upcoming vacations.
- Sell your stuff
If you have stuff that you are not using, you can simply sell them. This method can also help you to save a considerable amount of money for the vacation. You can take a look at your home and see what items you don’t really use. Then you can advertise them online and sell them. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling
As an earner in Canada, you are legally bound to making the tax payments to the Canada Revenue Agency. In fact, you need to focus on making your tax payments on time. Failing to make these tax payments on time can lead you towards a variety of negative consequences in the long run. That’s because you will be charged for penalties and interest.
Interest
In case if you have any owing balance for 2017, you need to be concerned about the penalties that you will have to face. All people who have owing balances will need to make a daily compound interest payment. This has started on the 1st of May. This would be applicable for all the unpaid amounts of debt, which is owned for 2017.
The outstanding amount includes all the balance payments, assuming that the Canada Revenue Agency assesses your returns again. Moreover, the Canada Revenue Agency will charge interest from the people on their penalties as well. This would start from the immediate date, following the due date of filing. The specific rate of interest that you have to pay will change in every three months as well. You can do your own research on the internet to get a clear understanding of the prescribed interest rates.
If you are having money that you owe from years before 2017, the Canada Revenue Agency would continue charging the daily interest on those amounts as well. Hence, the payments that you make will be applied against the amounts of debt that you have from the previous years. If there is no previous debt, the amount you pay will be applied against debt that you have in 2017.
Late filing penalties
Most of the people in Canada end up spending a considerable amount of money on the late filing penalties. Lack of knowledge can be considered as the main reason behind the above-mentioned fact. If you are yet to make a tax payment for 2017 and if you go ahead and file for the tax return for the year 2017 after the due date, Canada Revenue Agency will charge a late filing penalty for you. As per 2017, this late filing penalty is 5% of the outstanding balance that you owe. In addition, 1% of the balance amount that you owe for every single month of the late tax return will also have to be paid. This would be counted for a duration of 12 months.
As mentioned earlier, the Canada Revenue Agency would charge for your late filing fees for the tax returns on years before 2017 as well. If the Canada Revenue Agency charges for years 2014, 2015, or 2016, the late filing penalty that you have to pay in 2017 will become 10%. In addition, you will need to make a 2% additional payment for every complete month, where your tax return is late. This is applicable for a period of 20 months.
Failing repeatedly to report the income
If you fail to report your income to the Canada Revenue Agency repeatedly, you will be asked to make a penalty payment as well. This is applicable for the individuals who failed to report in 2014, 2015, 2016, and 2017. In such a situation, you will be asked to make a territorial, provincial, or federal income penalty. However, you will be accused of this penalty only if you fail to report when the amount of income is over $500 for a given tax year.
The territorial or provincial and federal penalties that you will have to make are equivalent to the reduced amount of:
- 10% of the total amount that you failed to report on the tax return for the year 2017.
- 50% of the different amount that exists in between your understated taxes, which are related to the specific amount that you couldn’t report and the specific amount that is being withheld with related to the specific amount that you failed to go ahead and report.
But still, you are provided with the ability to go ahead and inform about a specific amount that you failed to report. You can do this voluntarily. If you do that, the Canada Revenue Agency has got the ability to waive off the penalty amounts that you have to pay.
Penalty for providing false statements
When you submit false statements, you will be asked to make a penalty by the Canada Revenue Agency. Therefore, you should always stick to true and credible statements when you are filing for your taxes. The penalty that you will have to pay for the submission of false documents will either be $100 or 50% of the total understated tax amount that is related to the omission or the false statement. You will need to make a payment equivalent to whatever the higher value calculated by the above two parameters.
Waive or cancel penalties
If the taxpayers in Canada are not in a position to meet the tax obligations, the Canada Revenue Agency would waive or cancel the penalties. This happens when the taxpayers fail to make their payments due to conditions that are beyond their control. However, it is important to keep in mind that grant reliefs offered by the Canada Revenue Agency is limited to a specific period of time. It usually ends within a period of 10 years, where you have made the request.
Now you are aware of how much money Canada Revenue Agency will charge from you in the form of penalties and interest. If you want to stay away from these penalties and interests, you are strongly encouraged to pay special attention to your tax payments. Then you will be able to keep peace of mind and continue making the tax payments. 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 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
