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eNewsletter - October 2010 Volume 20
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| Greetings! | |
Dear ,
We're now into the fall and this is the time when most of us have to deal with the credit card debt we've accumulated on our summer holidays, be it from those two weeks in Rome or lazing on a beach in the Okanagan.
Credit card debt can be a killer for people trying to get ahead and in this newsletter we'll tell you what Ottawa is doing to help us be more credit responsible.
But not everyone has a spending problem. For some it's the opposite - they are afraid to spend - as Sheila points out in an interview for this recent MoneySense story.
Whether it's spending or saving that's on your mind, don't miss the October 14th free preview of Smart Money Essentials.
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Changes to Canada's Credit Card Regulations - by Karin Mizgala
|  The credit card bill that arrived in the mail the other day carried a sobering message.
The balance owing was $559, admittedly not a hefty sum at a time when Canadians collectively owe $1.2 trillion, an amount that has more than doubled over the past 10 years with credit cards and lines of credit accounting for much of that increase.
However, the Visa statement noted that by paying the minimum balance on the card -- $17 -- it would take seven years and seven months to pay off the $559.
The bill got paid in full, thereby saving almost eight years of payments but like those warnings on a cigarette package, the notice was a stark illustration of the ills that await those with bad credit habits. The warning is one of the changes to Canada's credit card regulations that are designed to protect Canadians from unforeseen costs and encourage them to reduce credit card debt. The announcement brings into effect regulations that were introduced almost a year ago.
It would seem we need all the help we can get. Canadians are carrying record debt loads and while we've been sheltered by record low interest rates, Canada's prime lending rate is edging up.
At the same time we long for financial freedom. More than two-thirds of Canadians in a recent survey conducted for Manulife Bank of Canada said becoming debt-free was their top financial priority.
If becoming debt-free is a top free priority for you, it's not too late to register for Sheila's Debt-Free Challenge that starts October 5th.
And while you're tackling debt, take time to catch up on these latest changes to Canada's credit card regulations.
Here's what the changes mean to you:
- All new credit card purchases will have a 21-day interest-free grace period when you pay your outstanding bill in full, so pay up and you've just earned an interest-free loan 21-day loan from your credit card company.
- Payments made by consumers must be allocated to pay off the balance with the highest interest rate first or distributed proportionally among each type of balance including cash advances and purchases. That means any payment that exceeds the minimum required should first go towards paying off the highest interest rate balance.
- Monthly credit card statement must list the time it would take to fully repay the balance if the minimum payment was made every month. If you want to put a price on your impulse spending before it's too late and the bill comes in, check out the Financial Consumer Agency of Canada's credit card payment calculator tool. It will calculate how long it will take you to pay off balances with minimum payments only and the impact of increasing payments, even by a small amount over the minimum.
- Credit card companies must disclose interest rate increases before they take effect, even if the information is in the credit contract.
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| Upcoming Women's Financial Learning Classes and Events |  7 Mistakes in Salary Negotiations - Find out the 7 mistakes you'll want to avoid during salary negotiations, and learn great tips on how to E.A.R.N. Your Worth™ - Downloadable Audio
Sheila's Debt-Free Challenge - Why spend one more day wondering when you will ever get out of debt? Learn to manage your spending and create a plan to get out and stay out of debt! Classes start Tues. Oct 5thSmart Money Essentials - Join our Weekend Intensive on Nov 20th & 21st in Vancouver, or start anytime with our Home Study program. If you're tired of worrying about your finances and ready to take control, this program is for you. To see if the Smart Money Essentials program is for you, dial into our FREE Preview Teleclass on Thurs. Oct 14th 6:30-7:30pm PSTCareers - Are you passionate about helping others to manage and make the most of their money? Are you a self-directed entrepreneur who wants to work independently but not alone? If so, we want to hear from you! Train to be an Associate of LifeDesign FinancialŠ as a Fee-only Financial Coach or a Money Matters Money Coach in a 5-day intensive training program from October 25th - 29th, 2010 on Salt Spring Island, followed by 3 months of experiential mentorship as you successfully launch your practice with our leadership and support.
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It's All About Connections
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 Welcome to our section on exciting events and resources to help women connect with each other and to the opportunities we have to take a leadership role in our lives and in our communities.
 I have a dollar. Teach me. Show me. Watch me.
Upcoming workshops with the Traditional Learning Academy - "Getting Started - Financial Literacy & Teens (Oct 7), Young Adults (Oct 14) and "Grads (Oct 21). Register at:
www.fourquartersfinance.com
Wealth Academy for Women - Everything a woman needs to know about her finances in one day!
Presented by Sophia Financial - Saturday Oct 16th 9:30 - 4:30 pm
You don't need to be a mathematician to be smart about your money. In fact, throughout this dynamic day you will not need your calculator even once! Women's common plea when it comes to learning about their finances is they don't have the time and they don't know where to start. We get it and we have the solution.
All proceeds benefit Vancouver's Dress for Success.
How Much is Enough? Balancing Money and Personal Fulfillment
Are you contemplating working less, differently or not at all? Living, earning and contributing in new ways requires new skills and strategies. Dreams can be readily sidetracked when anxieties (about money, personal identity, an uncertain future) outweigh our capacity to manage change and transition.
This workshop offers concepts, perspectives, and a variety of planning resources to help you increase financial confidence and personal direction. Take stock of where you are today; clarify and update your options; and begin to plan more systematically to reach your most meaningful goals.
Presented by Beth Hawkes, MA and Karin Mizgala, MBA
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