Debt #3

Everyone has heard of “good” debt and “bad” debt. Despite what lenders try to sell you, there is no good debt. Good debt is usually viewed as a mortgage on a house, a car loan or lease – a debt created to obtain something you otherwise...

Debt #4

Necessary debt should be dictated by cash-flow. Define wants against needs and make sure the item in question is something you can afford on a monthly basis. If the purchase fits within your budget most lenders qualify this as a “good” debt. This type of...

Debt – Secured or Collateral

Secured or collateral debt is basically the same type of debt. A lender has the legal right to take back whatever you financed if you default on the lending terms and conditions. If you don’t pay the monthly bill on time, the lender can repossess whatever they...

Debt – Secured or Collateral #2

Once the lender has repossessed the asset the loan was against, many borrowers think that is the end of their relationship. That is not the case. The lender will sell the asset they repossessed and apply the sale proceeds, after deducting all costs of sale, against...

Unsecured Debt

As you have probably gathered, all other types of debt are unsecured. The Bankruptcy & Insolvency Act complicates unsecured debt as it has allocated certain priorities to certain unsecured debt – employees when a company goes bankrupt. The Act stipulates...

Budgets

Good budget practices often lead to happy home lives. Especially at this time of year, set a budget and live within it!