Monthly Archives: August 2010

Here’s a tip to determine whether or not you have too much debt: If you are using cash advances on your credit cards to “just get by”, you have too much debt. Credit cards are fine as a substitute for cash, but if you are constantly borrowing to pay your… Read more

Do you have a savings account? Is there any money in your savings account?  If you have no money in a savings account, why not? A savings account is an excellent place for your “emergency fund” (two or three months worth of living expenses if possible), and it’s also a… Read more

Yesterday we discussed not kiting your credit cards, meaning don’t use a cash advance on one credit card to make the minimum payment on another. Today’s tip: don’t borrow on your credit cards to cover daily living expenses.  There is nothing wrong with using your credit card to pay for… Read more

Today’s Tip: Don’t “Kite” your credit cards.  Kiting is a term that means moving money from one credit card to the next.  You take a cash advance on one credit card to make the minimum payment on another, and then repeat in  reverse the next month.  Kiting simply increases the… Read more

Your plan to be To Debt Free is going great. You have made a budget, and you are paying off your high interest debts first. In fact, you have already completely paid off one of your credit cards. Great! That frees up cash each month to pay off other debts,… Read more

To Set a Course to Be Debt Free, you make a list of your debts, and then make a budget to see what you spend today, then you analyze your budget to see what expenses you can cut. Let’s assume you have done all of these steps, and you now… Read more

A personal budget is a list of numbers. It’s meaningless unless you do something with it. To Set a Course to Be Debt Free, take your budget and look at it. Analyze it. And ask yourself this simple question: “What can I slash and burn?” Once you know where you… Read more

As we continue our series on Setting a Course to Be Debt Free, let’s review the first steps. First, start by deciding that you want to be debt free. You must make a conscious decision to achieve your debt free goal. Second, make a list of your debts, and check… Read more

Next week we will continue our series on Setting a Course to Be Debt Free, but today we will address a very common question: should I pay down my debt, or should I contribute to an RRSP? The answer depends on your circumstances. Here are the four questions you need… Read more

Now for the crucial next step in your plan to Set a Course to Be Debt Free. Take your list of debts and arrange them in order, from highest interest rate to lowest interest rate. Now you have a list with the highest interest rate debts at the top of… Read more