There are many organizations that present ‘debt management programs’ as a solution to your debt challenges. In reality, these organizations essentially attempt to negotiate an informal debt settlement on your behalf for a fee. You would sign a contract with a debt consultant who will then work with your unsecured creditors on reducing your interest rate and how much you owe while extending the time period you have to pay back debts. You will then...

Many Canadians use credit cards on a regular basis — but have you ever considered what a credit card actually is? Essentially you are borrowing money from your financial institution, with the intent of paying it back within a specific timeframe. Failure to pay off your entire balance results in high interest rates (around 19% or more) on the remaining balance, while a failure to make your minimum payments may hurt your credit score, increase...

A payday loan is a short-term loan designed to provide you with some extra money until your next paycheque. Typically speaking, a payday loan is limited to 30% of your take-home pay. You are expected to pay back this loan once your next paycheque arrives by providing the payday loan provider with a post-dated cheque. While a payday loan doesn’t require credit approval, it is one of the most expensive ways to borrow money, with interest rates...