Self Help Debt Management

Money Make Sense:

Financial Management

What makes us Unique:

"A discovery Journey in life"

MOTTO:

Read
Learn
Practice

Setting Goals:

Define your goals, and be very specific.

Question yourself of the cost involved. And don’t jump to conclusion.

When do you want to achieve it? (timeframe)

Decide what your needs are, and what you really expect to be real.

Short Term: (4 weeks)

Example: you want to pay your rent or pay bills on monthly basis.

Middle Term: (2 to 12 months)

Example: you want to save for Christmas gift or something you are longing for a long time.

Long Term: (1 – 2 years)

Example: you want to buy a home in more than a year. Or save up for the child’s future education and or retirement for self.

Goal:

Budget:

Monthly Income:				Bills: confirmation #
Income Source	Budget Amount	Actual Amount	Difference

Work monthly
Child tax benefit
Universal Child Tax
Old Age Pension
Others

Total
Monthly Expense
Expense Category	Budget Amount	Actual Amount	Difference
Talus - cable/internet/ph
Cell Phone
Hydro
Credit Card:
Car Payment
Car Insurance
Car Fuel
RESP contribution
RRSP contribution
Loans
Food/grocery
Entertainment
Personal Items
Gifts

Total
*Total Income - Expense*

Savings
Bonds
Investment

Banking Short Term Long Term
Chequing
Saving
Investments: Government	Canada Savings Bonds	Canada Premium Bond
Mutual Funds
RDSP – Registered Disability Saving Plan – contribution age 59.

Resources websites

British Columbia: Ministry of social Development and Social Innovation

www.gov.bc.ca

Government Benefit Programs low income families

BC Family/Child Tax Benefit

www.sbr.gov.bc.ca

BC Housing Rental Assistance / BC Housing SAFER program

www.bchousing.org

Child Care Subsidy

www.mcf.gov.bc.ca

Medical Service Plan /

www.healthservice.gov.bc.ca

Fair PharmaCare

www.health.gov.bc.ca

First Time Home Buyers Program

www.sbr.gov.bc.ca

Home Owners Grants (reduces property tax)

www.sbr.gov.bc.ca

First-Time Home Buyers’ Tax Credit

http://actionplan.gc.ca

Employment Service

www.servicecanada.gc.ca

Worker’s Compensation

www.awcbc.org

Fuel Tax Refund Program for People with Disabilities

www.sbr.gov.bc.ca

Receive Credit History Report:

Credit Report:

Your credit report is your re cord of the money and how you make your payments. It is an important part of your financial life to establish and maintain a good credit history.

There are Two Credit Bureaus in Canada.

Equifax Canada Inc.

Consumer Relations Department

Box 190 Jean Talon Station

Montreal, QC H1S 2Z2

Phone: 1 800-465-7166

Fax: 1-514-355-8502

E-mail:consumer.relations@equifax.com

Website: www.equifax.ca

TransUnion Canada

Consumer Relations Centre

P.O. Box 338 LCD 1

Hamilton, ON L8L 7W2

Phone: 1 866-525-0262

Website: www.transunion.ca

Hours of operation Monday to Friday from 8 am to 8 pm eastern time.

Credit Rating Scale
Rating Description
R0	Too new to rate; approved but not used
R1	Pays within 30 days of due date, or pays as agreed
R2	Pays in more than 30 days but less than 60 or no payment past due
R3	Pays in more than 60 days but less than 90 or two payment past due
R4	Pays in more than 90 days but less than 120 or two payment past due
R5	Account is at least 120 days past due but is not yet rated R9
R6	No rating exists
R7	Paid through a consolidation order, consumer proposal or credit counseling debt management program
R8	Repossession
R9	Bad Debt or placed for collection or bankruptcy

Recover your Credit History

A difficult credit history can be recovered over time by doing the following:

Request your credit report and correct error on your credit file by providing the credit bureaus with written documentation.
Bring your Personal Tax Return up to date.
Pay your existing credit cards and bills on time.
If you had a traumatic life which changed your life. Make a note to your credit file stating your situation. Example: Collection activity result of interruption of income due to health issues.
“Honest is the best policy”.
Secure Credit Card. Example: PC Financial or Canadian Tire of only a $100. Use and Pay on time will build your credit.

Hint: Prepaid Credit Card is not a real credit card, and this does not build your credit.

Self Help Debt Management:

Creditor	Amount Owing	Interest Rate	Minimum Payment	Priority	Monthly Payment
e.g. Visa	$110.00	19%	$10.00	Yes	$25
1.
2.
3.
4.
5.
6.
Total	$	%	$		$

To comply with self help debt management:

You have to follow your budget
Distribute your financial goals
Ask you creditor for options of payment
Consolidate your payment
Stop using credit card while reducing your debt
Follow your needs

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