Life on Credit

The art of borrowing money

Tangerine Cashback Credit Card

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Money-Back Credit Card
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Tangerine cashback credit cards are offered by Scotiabank-owned Tangerine bank. They are available exclusively in Canada. It’s one of the most popular cash back credit cards available in Canada.

Overview

The main draw of the Tangerine cashback credit cards is that there is no annual fee attached to it. Each purchase a user makes using the Tangerine cards earns cash back. The earned rewards can be deposited directly back to the credit card account so that it applies towards the balance.

A user has to select 2% money-back categories to get 2% cash back on these purchases, plus 1% on all other purchases. Tangerine credit cards are usually attached to a Tangerine savings account, so the rewards can easily be deposited. Cashback rewards deposited to the savings accounts are treated just like other savings deposits and will earn interest. Users can choose the redemption option on the savings accounts and choose two 2% cash back categories. The other option is to have the money directly deposited into a credit account, where the rewards will be applied against the other balance.

The advantage of Tangerine is that rewards do not need to be requested in advance. Rewards are also unlimited and are not subject to a throng of restrictions. Lack of annual fee means users can get cashback without rewards being deducted by service charges. Money-back rewards are also awarded on a monthly basis, rather than an annual basis.

It’s important to note that white there is no annual fee, there are several charges for other transactions. Each foreign currency exchange will have a 1.50% charge added to the converted transaction amount. Cash advances are $2.50 in Canada and $5 outside Canada. Balance transfer charge is 1% of the transfer amount or a minimum of $5. Dishonoured payments cost $25. The overcharge limit is $20, and only one overcharge payment is allowed each month. If you want to print a past statement, it will cost you $5. No charges apply to print current monthly statements.

Tangerine cashback cards are for personal use only, and businesses are not issued these cards. A single card can have up to 5 authorized users attached to the account. These authorized users will be able to make purchases and can take cash advances on the individual credit cards issued to them. However, authorized users cannot change the credit limit on the account or request balance transfers to other accounts. The primary cardholder will be responsible for paying the total balance on the account. It’s important to note that the primary cardholder is responsible for any and all transactions authorized users make.

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Users can change the 2% money-back categories after activating the card anytime. Changes will take effect once the first monthly statement arrives. Users have the freedom to request changes throughout. However, existing categories must have been in place for 90 days before the changes can be implemented.

Pros and Cons

Pros

  • No annual fee being charged. Most money-back credit cards have annual fees of close to a $100.
  • Cash back is unlimited.
  • Users receive 4% cash back as a welcome bonus for the first 90 days.
  • After the first three months, users can receive 2% cash back on any two categories of their choosing, and an additional 1% cash back on all other purchases.
  • No earning caps or restrictions imposed on non-category purchases.
  • Cardholders can choose two categories from 10 options, which covers expenses such as gas, clothes, electronics, pharmacy, and certain recurring bill payments.
  • Freedom to change categories any time as wished.
  • Cash back rewards can be deposited to a savings account if desired.
  • Rewards are granted automatically. No requesting process necessary.
  • Add up to 5 authorized users to a single account.
  • Schedule automatic payments online.

Cons

  • No travel perks.
  • While the Tangerine cashback card can be used outside Canada, transactions may be limited or restricted considering international banking regulations and safety of overseas transactions.
  • A 1% balance transfer charge applies.
  • Balance transfers between authorized users is not allowed.
  • Overcharging is limited to only $20, and only one overcharge is allowed per month.

Comparison to Other Canadian Cashback Credit Cards

Currently, Tangerine cashback credit cards are highly favoured by consumers over other Canadian credit cards available on the market such as American Express Simply Cash Card and Rogers Platinum MasterCard.

One of the biggest advantages that Tangerine has is that cash back is unlimited and is deposited automatically without the need for formal requests. Users often have to make requests and sort through complicated bonus rewards programs to get the money-back on other similar cards.

Most cashback rewards programs offer bonuses at the end of each year. Tangerine cards offer cashback rewards on a monthly basis. Redeeming rewards is effortless and convenient. The rewards can be arranged to be deposited to a savings account or towards the balance of the account. This is an option absent from many other similar programs.

While the Tangerine card charges 1.5% foreign transaction fee, this is quite low compared to what many other money-back credit cards charge. Most offer rates closer to 2.5%.

There are other cards offering flat 2% to 4% rewards and bonus points for all purchases. However, these also require cardholders to show a minimum monthly income of $6,000 or more. The Tangerine card’s monthly income requirement is much lower. So, this is a good option for entry-level workers and those firmly in the mid-income category.

As there is no annual fee, the Tangerine credit card stands as a desirable alternative to cash back cards that demand premium yearly service charges.

Other similar programs, like American Express’s Simply Cash, offers 1.25% money back on all purchases. Tangerine offers only 1% money back on all purchases.  But remember, this is in addition to the 2% you get on selected categories. It’s easy to apply the higher rate for transactions you tend to conduct more frequently, like paying for gas, and also earn rewards for non-frequent transactions, like buying clothes, as well.

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Air Miles Reward Miles Guide

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Air Miles is the leading loyalty marketing program in Canada. This article will explain how the program works, its history, how customers can benefit, and possible disadvantages of the program.

Overview

Air Miles is one of the most popular rewards programs in Canada. Very basically speaking, consumers can sign up for the program with participating credit cards and merchants. When the cardholder makes a purchase at a qualifying store, the rewards program adds points to the cardholder’s account. Later, these points can be redeemed as air miles with a participating airline. Clients can receive lucrative discounts and cheaper prices on plane tickets with the rewards program. Cash back options are also available.

The current Air Miles Reward Program operating in Canada is similar to other programs operating in Spain, Netherlands, Middle East, and formerly in the United Kingdom. It is currently overseen and managed by LoyaltyOne, Inc., a private entity owned by Alliance Data Systems Corporation, which is a loyalty marketing specialist in retail, travel, hospitality, and other similar sectors.

LOC53History

The Air Miles Reward Program first launched in Canada in 1992. The program was based on a concept developed by three young Canadian entrepreneurs named Craig Underwood, Sam Duboc, and Rob Gierkink. They came up with the basic idea for Air Miles in a Toronto hotel room.

The founders of the concept designed Air Miles as essentially a marketing venture that would reward opportunities for consumers to travel in return for brand loyalty. Loyalty programs were not a new concept at the time. However, it was unique because it brought together a coalition of sponsors, instead of being tied to just one company. Air Miles is also one of the earliest ventures that sought to gather data with regards to consumer buying habits in order to make advertising more effective.

Upon launch, the program had only 13 sponsors, including Canada Safeway and Bank of Montreal. The program attracted nearly two million customers in the first six months of operation alone. Soon, the original group of sponsors expanded to include giants in retail, pharmacy, grocery and fuel industries. They also partnered with credit cards offered by American Express and Bank of Montreal.

Air Miles enjoyed tremendous growth during the first six years of operation. In 1998, the business was acquired by Texas-based financial services provider Alliance Data. Subsequently, several other companies, such as COLLOQUY and Epsilon, were aligned with Air Miles.

Air Miles is recognized as one of the leading businesses in Canada, and a venture that helped shape loyalty marketing across North America. Today, millions of Canadians have signed up for the rewards program, and it remains as popular as ever.

How It Works

Customers are offered miles on a point-based system depending on how much they spend at a participating store. How many miles a customer can earn will depend on the participating merchant or credit card. For example, a customer can earn a single air mile for $50 spent at ADI, or for $15 spent at Primus. In general, 1 air mile is rewarded per $20 spent at a sponsor.

There are three ways a customer can earn it: shopping with a sponsor either in store or online, using a participating credit card, obtaining an Air Miles bonus card as a gift, or directly purchasing from the official website. Customers can also benefit from various offers and promotions provided by sponsors, especially during special times like Christmas holidays.

Air miles are not offered indefinitely. The miles do expire after some time, usually a year. Therefore, once customers have stacked up a considerable amount of points, these points should be redeemed. The easiest way to redeem points is to go to the official Air Miles website and type in the Collector Number. Customers can also redeem miles by calling the toll-free 1-888-AIR-MILES (1-888-247-6453) number. However, this option is less preferred as it is time consuming and inconvenient.

Customers can also transfer miles from one account to another. For example, a customer can gift air miles to a friend or a family member by transferring points from his or her own account.

LOC52Pros

Customers can earn points for a number of airlines with the Air Miles loyalty program. Traditionally, customers had to sign up for the program with a single airline. With the Air Miles Reward Program however, customers can redeem points they earn with a number of different carriers.

The Reward Program offers access to hundreds of sponsors. Customers can earn miles by using a certain credit card, buying a blender, filling up the gas tank, or subscribing to a service. The options are nearly unlimited. Because the Reward Program spans a number of industries, customers have a higher chance of stacking up points simply by making everyday purchases.

On average, customers can earn an air mile per 20 cents spent with a participating sponsor. The rate of return is higher with bonus points. For example, a customer who purchases a $10 product with 20 Air Mile bonus points can receive close to a 20 percent discount on the product.

Cons

The rate of return can vary because different sponsors offer varying air mile points for products. For example, a customer can earn the same number of points for $20 or $60 spent at different sponsors. In this situation, the customer who spent less gets a bargain, while the customer that spent more is not enjoying a positive rate of return.

Customers could spend more than they should on products in order to earn points. For example, a customer could end up spending $50 at a participating store for a $10 product just to earn Air Miles points.

Is Air Miles Better than Other Similar Rewards Programs?

Air Miles is the largest loyalty rewards program currently operating in Canada. No other program comes close to the number of sponsors and offers they have for its customers.

Most loyalty programs in Canada are still confined to a single company. For example, customers can sign up for a loyalty program with United Airlines and shop at a limited number of retail outlets. With Air Miles, customers are offered a wider range of options, which makes this particular program truly outstanding among its peers.

Official Website and Companies Involved in the Program

The official website of the Air Miles Rewards Program is www.airmiles.ca. The official site has the complete rewards catalogue for the program. Customers can also access a gift guide, payment services, a flight calculator, and the latest offers and promotions.

Here is a list of prominent companies involved with the Air Miles Rewards Program as sponsors:

  • American Express
  • Bank of Montreal
  • Safeway Canada
  • Uber
  • Ace
  • McDonald’s
  • Overstock.com
  • Adidas
  • Alamo
  • United
  • Budget
  • Hilton Inn
  • Amazon.ca
  • Ann Taylor
  • Apple Store Canada
  • Macy’s
  • Mark’s

Capital One Costco Platinum MasterCard Review

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Capital One® Costco Platinum is a credit card available to Costco members which offers money back and plenty of added incentives. Rewards credit cards that feature cash back save money and also offer travel and other rewards.

Quick Overview of the Card

Capital One® Costco allows holders to earn generous cash back on regular, restaurant, and gas purchases but the percentages vary. You will earn 1 percent on daily purchases, 2 percent on gas, and 3 percent on your restaurant purchases.

  • Interest rate (cash advances, transfers, purchases): 19.75 percent
  • Annual fee: none

Note that transferring balances is currently not an option. On the good side, the card comes with added perks such as platinum benefits, including extended warranty and price protection, as well as insurance and travel benefits such as travel assistance, baggage delay, and travel accident insurance.

It is a good idea to check for fees and rates that apply, including default rates, foreign currency conversion, minimum payment, etc. The current default rate is 25.9 percent if you miss your due date and are late on your payments. It also pays to check the foreign currency conversion rate if you frequently travel or shop in a foreign currency. With Costco MasterCard® Canada, the current foreign currency conversion rate on this card is 2.5 percent of the converted amount. There are other fees to watch for, including dishonored payment, balance transfer, over the limit, etc.

Who Is This Card for: Target Demographics

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This Costco MasterCard® is an excellent choice for customers who make frequent purchases and want to earn cash back. The more purchases you charge on the card, the more you earn based on the percentages above. Keep in mind that this card is the perfect choice only if you are a Costco member, allowing you to take full advantage of all benefits. And if you are not, you are free to apply for membership and then apply for the card. To do this, you will be asked to select a region to join Costco. You are also free to choose from gold star, business, and executive membership. Business membership, for example, is offered to ranchers, farmers, government agencies, non-for-profits, managers, and business owners.

How/Where to Apply?

There are different ways to apply with Capital One® Costco, and one is to verify that you are a Costco member and fill out an online application. All you need is to fill your names and membership number. If you need help, you can call Costco Card Capital One®, and they will be happy to assist you. The Costco MasterCard application is easy to fill, whether online or in-store, you are asked to provide your financial and personal information.

Pros of the Card

There are plenty of benefits for members, one being that cashback credit cards save money, and there is no threshold or limit on the amount you can earn. The Capital One® Costco Platinum MasterCard® offers money back in the form of rebate coupons that can be used in-store. Purchase assurance is an added benefit and so is car rental collision in case a rental vehicle is stolen or damaged. Zero liability is also an added benefit to protect members in case of unauthorized use. You can rest assured that your account will be monitored on a regular basis for fraudulent activity.

Cons of the Card

On the downside, customers only get 0.5 percent cash back on the first $3,000 spent on purchases. This is an incentive to spend more but it is a bad idea to go over the limit in an attempt to earn more. On the good side, members earn money back everywhere (at the pump, while dining, etc.) and not just at Costco locations.

How Does the Card Compare to Other Issuers and Major Canadian Competitors?

The Costco Canada credit card offers a good alternative to other cashback options but it pays to shop around and compare different rewards credit cards. Cashback cards are offered by major issuers such as the Scotiabank, MBNA, and other banks, unions, credit card companies, etc. Scotia Momentum Visa Infinite, for example, is offered by Scotiabank and features 1 percent cash back on regular purchases. However, in comparison to Capital One® Costco, customers earn 4 percent back on gas purchases. The SimplyCash Card is also a cashback option offered by American Express that features money back in the form of statement credit. Customers earn 2 percent back.

Any Better Alternatives to This Card?

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This depends on a number of factors such as whether you use one or multiple cards, whether you pay the minimum only, the annual fee and interest rate, etc. If cash back is your thing, then there are plenty of options. TD Canada Trust, for example, features a cashback card that allows you to earn 0.75 percent back. This looks like a less generous offer than Costco’s but customers benefit from perks such as free authorized users, automotive features, travel benefits, and a lot more. Optional coverage is also available.

Were There Any Customer Complaints/Scandals after the Launch?

While the launch was quite successful, the number of people who chose to become Costco members was larger than expected. Customers complain about problems such as confusing statements, slow resolution, frequent fraudulent activity, and relatively low credit limits. Other major issues are no automatic monthly payments, slow payment processing, and long hold times. Costco representatives announced that they were working hard to resolve these by allocating more resources.

How Does This Card Compare to the Old Costco Partner AMEX?

The major reason to choose an AMEX card was their long-time partnership with Costco. Costco assured existing and new customers that they would have the opportunity to earn generous rewards despite the split-up with AMEX.

In the end, how does the former AMEX card compare to the new Platinum MasterCard? It seems that the launch is a win for cardholders in that the old card has an annual $4,000 limit in purchases. The best part, of course, is that the transition has no effect on your credit score.

Home Trust Credit Cards

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Home Trust is a major mortgage and loan provider that offers a selection of financial solutions, including retail credit, deposits, VISA credit cards, and other products. Customers are also offered retail credit and receivable purchase plans. The home improvement program offers fully open loans, instant approval, and flexible financing solutions for kitchens, room additions, patio construction, decks and patios, flooring, air conditioning, and other items.

Home Trust Credit Cards

Home Trust offers credit cards for bad credit by VISA to its customers, regardless of their credit profile. Secured versions are available to borrowers with tarnished scores who are unable to access other sources of funding.

Home Trust Equityline® Visa Card

This card is available to borrowers who have equity in their homes and offers the opportunity to earn cash back on eligible purchases. It is a good solution for home improvement projects and business financing. This card by Visa allows customers to earn 1 percent back on everyday purchases and comes with no annual fee and benefits such as guaranteed hotel reservations, legal assistance and health services, and emergency card replacement. Virtually everyone qualifies. Given the low interest rate, this is a good solution for high-interest balances and debt consolidation. Customers who repay the outstanding balance in full are free to cancel the card.

  • APR: as low as 9.99 percent
  • No annual fee
  • Up to $100,000 in credit

Home Trust Secured Visa Card

This is another product for customers with less than perfect and bad credit that goes with a maximum credit limit of $10,000 and minimum limit of $500. Holders are free to use the card to book vacations and to make purchases over the phone and online. The main benefit is that payments are reported to the major bureaus meaning that timely payments allow borrowers to establish credit.

1st Option

  • APR: 14.9 percent
  • Monthly fee: $5
  • Annual fee: $59

2nd Option

  • Purchase APR: 19.99 percent
  • Cash Advance rate: 19.99 percent
  • No annual fee
  • Interest-free period: at least 21 days

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About the Company

Home Trust is a Canadian trust company that is federally regulated and serves a large customer base, from borrowers with past credit problems to customers with no credit history or provable income and self-employed entrepreneurs. The company was founded in 1977 and was originally named the Home Savings and Loan Corporation. It is publicly traded under the ticker HCG on the Toronto Stock Exchange. Headquartered in Toronto, the company has branches across Canada and is a member of VISA Canada and the Canada Deposit Insurance Corporation. Home Trust takes pride in offering flexible solutions and non-traditional financial products to help clients consolidate high-interest balances, save on interest, or purchase a home.

Top 5 Student Credit Cards for Young Canadians

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Young Canadians usually have a more limited exposure to credit, which makes it more difficult to get approved for unsecured loans and specialty credit cards. The good news is that issuers offer student cards that are specially designed for young people enrolled in college.

Options Available to Young People

Young Canadians have several options to look into, including department store, secured, prepaid, and student credit cards. Secured cards require that customers first make a deposit and then use the money to pay bills and make payments. This is one option if you want to build credit. A department store card is another option that gives you access to exclusive promos and deals but the rate is often higher compared to standard cards. A prepaid card is a third option that works much like a standard debit card and payments are not reported. A student credit card is also an alternative, and there are perks such as cash back incentives, no annual fee, and discounts on school-related items and purchases.

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What Are the Benefits of Student Credit Cards

Student credit cards offer a number of benefits, among which additional protection in the form of zero fraud liability, miles, cashback points and other incentives, and lower credit limits. Many issuers also offer convenient tools to save users valuable time, help them stay current on their payments, and avoid penalty interest and negative impact on their credit score. Such tools are, for example, automatic bill payment, spend analyzer, and others.

How to Apply

It is easy to apply for a student card if you meet the requirements. Many issuers offer online applications and ask customers to provide employment, personal, and financial details such as your social insurance number, mother’s maiden name, whether you are a landed immigrant or Canadian citizen, and whether you are a domestic or foreign student. You may be asked to provide information such as your expected graduation date, program start date, whether you apply on your own or together with a co-signer, etc.

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Fees to Watch for

Like other credit cards, student cards come with fees such as penalty interest, annual fee, cash advance fees, foreign currency conversion fees, and others. If you find good deals with no annual fee, this is a great way to save on charges. There are other fees to check for with your issuer, including late payment and over-the-limit fees, replacement, lost, or emergency issue card charges, and additional cardholder fees. The latter is usually $0 on no annual fee, low fee, and low rate credit cards. Fees and charges vary from one bank to another and can be different for business and individual cards. Some issuers charge fees for urgent card delivery as well as balance transfer fees, overdraft fees, surcharges, and so on. Make sure you check with your provider to ensure there are no hidden charges and penalties.

Top 5 Student Credit Cards

Many credit unions, banks, and online services offer student cards, including CIBC, Laurentian Bank, Desjardins, and others. If you are a regular customer and have a savings or checking account or an outstanding balance, it pays to check with your bank first.

#1. No-Fee Scotiabank Value® Visa Card SB

Scotiabank features a handy student card with card protection and introductory rate of only 3.99 percent. The introductory rate is for both cash advances and balance transfers, and makes it a good choice if you need to consolidate high-interest credit card balances. The card also offers car rental discounts, itemized transactions, and free supplementary cards. All in one this is a great student credit card choice.
• Annual fee: none
• Interest rate: 16.99 percent
• Credit limit: $500 (min)apply

#2. Tangerine Money-Back Credit CardMoney-Back Credit Card

The Tangerine Money-Back Credit Card is a great choice for students, as it doesn’t have annual fee, and is actually one of the top cashback credit cards in Canada. The card offers 2% money back in many categories, and 1% on everything else. However for a limited time you can get 4% cashback in the 2% categories for the first 3 months. The card has no limit on the amount of cashback rewards you can earn.
• Annual fee: none
• Interest rate: 19.95 percent
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#3. Desjardins VISA® FOR STUDENTS ONLY Credit Carddesjardins-students

Also a great choice to start building credit, VISA for Students Only comes with handy features such as free-of-charge access to credit reports, travel insurance covering the first 3 days of each trip, mobile device insurance, and more. Cardholders benefit from additional perks such as flexible financing, no annual fee on additional cards, payment reminders, and the option to manage their account from their tablet, mobile device, or computer. There are additional features such as generous Hertz discounts, mobile payments, and no transaction fees.
• Interest rate: 12.9 percent
• Annual fee: $30

• Interest rate: 19.9 percent
• No annual fee

#4. Laurentian Bank Student VISA® Black Cardvisa_laurentian

Laurentian Bank also features a student VISA card with perks such as exclusive discounts, free additional cards, and more. In addition to virtual mail statements, customers also benefit from convenient payments at bank branches, online, by phone, and by mail. This product is a great choice to build credit if you are studying aboard and are a full-time student. You can use it to make payments in emergency situations or pay daily and small expenses. If you usually maintain a balance, you may want to look into other options.
• Interest rate on purchases: 19.99 percent
• Monthly fee: none

#5. CIBC Aventura® Visa* Student Cardcibc-student

CIBC Aventura is another student card that offers the option to collect rewards points and features benefits such as accident coverage, travel medical insurance, mobile and online banking, authorized spending limits, and a lot more. Customers are free to use the online banking system to request additional cards, increase their limit, and make payments. The first purchase earns 5,000 rewards points. Cardholders also earn 2x bonus points on travel purchases at the CIBC Rewards Centre and 1 bonus point on regular purchases.
• Interest rate on purchases: 19. 99 percent
• Annual fee: $39
• Up to 3 free additional cards

#6. MBNA Rewards MasterCard® credit card for Studentsmbna-student

This student credit card is yet another option if you are new to credit and offers immediate cash access, online account access, and unlimited rewards. Each dollar spent brings 1 rewards point. You can redeem points for charitable donations, money back, gift cards, travel purchases, and brand-name merchandise. To apply online, college students are asked to provide information such as date of birth, SIN (optional), monthly payment and housing status, employment status (unemployed, self-employed, retired, homemaker, employed, etc), and other financial and personal information.
• Interest rate: 19.99 percent
• Grace period: 21 days
• No annual fee

Conclusion

As you can see, big banks and other major issuers offer plenty of choice to help you build a solid credit history and stay current on utility and other payments. A student credit card is a handy tool if you make payments by the end of the grace period. Just make sure you check for transaction fees such as cash equivalents, over-the-counter cash, and ATM fees, account fees, and other charges. Ask about the default rate in case you are late on your payments because penalty charges can be considerably higher. If you have a credit card with high interest charges, there are student cards with a balance transfer option to benefit from a lower interest rate. Ask about the promotional rate as well and the amount you can request if you choose to make a balance transfer.

How Not to Overspend and Set a Realistic Christmas Budget

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It is so easy to overspend during this time of the year now that everyone is excited about Christmas and spending quality time with family and loved ones. This said, you may want to create a realistic budget to meet your daily expenses, pay bills, buy presents, and have fun with your family and friends.

How to Make a Holiday Budget

The first thing to do is to set financial limits and make a list of your spending goals and categories. List your regular monthly expenses such as groceries, rent or mortgage, utilities, outstanding balances, and so on. Then list your income, including wages, salaries, and additional income you may have. This will help you to find out whether you have surplus income to spend on presents or you have to rely on cash in your savings account. If you don’t have enough cash for a rainy day and no surplus income left, there are low-cost borrowing solutions to look into. Back to spending categories, you can make a list of Christmas expenses such as post-Christmas sales, holiday clothing, travel, Christmas tree and décor, entertainment, and holiday meals.

Holiday Gifts

You may include expenses such as kitchen and baking gifts, service gifts and tips, and holiday photos. Other items you can list include Christmas cards, shipping and postage, gift wraps, stocking stuffers, and of course, gifts. Shop around and calculate how much you need in total. If you want to have a more detailed list and plan, think of everyone you will meet and give a gift – grandparents, siblings, cousins, spouse, kids, uncles and aunts, etc. Other people on your list may include coworkers, bosses, partners, church staff, neighbors, and service providers. List all names on a list and divide them into categories, for example, “no gift”, “gift made”, and “gift to make”. This will give you a good idea about the number of people you can afford to give a present. Focus on the “gift to make” category and assign the amounts you plan to spend. Then assign amounts for the “gift made” category (the amounts you have already spent). Calculate how much you have in total. If the total amount is less than your budget for holiday gifts, then you can move names from the “no gift” category to “gift to make”. This is a great way to ensure that you are able to give presents to more people. If you want to, you can also make a gift list and list each gift in addition to gift amount. Alternatively, you can use the envelope system for holiday-related spending.

Think of the types of gifts that are suitable for colleagues, neighbors, and friends. May be Christmas treats, cookies, or anything else? This depends on your budget. Once you do this, have a list of all expenses, and a good idea of how much you need, you may want to start tracking your ongoing expenditures. After you paid for gifts or anything else, make sure you record all expenses to keep track of your spending. This will give you a good idea of the cost of the holiday season.IMG_0100

Other Considerations

To make things run smooth, it pays to prioritize expenses, especially during the holiday season when you have additional expenses. Priority expenses include things like your rent or mortgage, outstanding balances, and utilities. It is important to pay these first, along with council tax, payroll and income tax, spousal and child support, etc. Other expenses to meet include student and personal loans, medical bills, and credit card debt. It all depends on your financial situation, whether you have debt and how much you owe, and other considerations. Finally, there is one golden rule to follow, whether during the holiday season or any other time – live within your means and don’t overspend.

On a Tight Budget

If you are on a tight budget, there are great ideas for free gifts – you have one valuable resource to use, and this is your creativity. If you have enough time, you can think of gifts such as personalized CDs, repurposed old frames, homemade cookies, etc. You can create a scrapbook, album, or photo collage or you can knit or crotchet a sweater, table cloth or anything else. There are plenty of gift ideas such as homemade bread, good reads and books on your shelf, an encouragement jar, and so on. Whatever comes to your mind, really, is best because you know your loved ones well. And if you are short of time and have a tight budget, look for Christmas sales and discounts, promos, and online sales. Online retailers save on rent, salaries, and other expenses and offer exclusive discounts and hot deals.

6 Steps to Reduce your Credit Card Debt by Thanksgiving

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There are many benefits to dealing away with debt within a short period, the most important being less stress and more money to spend on leisure, groceries, and home improvement.

1. Create a Budget

It is a good idea to create a budget to find out where your hard-earned money is going. The first thing to do is to list your combined income, including wages and salaries, bonuses, commissions, rent, and other sources of additional income you may have. Then make a list of your ongoing expenses such as mortgage payments or rent, groceries, cleaning detergents and cosmetics, daycare, clothing, and utilities (gas, phone, internet, water, etc.). Compare your expenses and income to find out if you spend more than you can afford.

2. Cut Back on Some of Your Expenses

Now that you have a budget, it is time to discuss different ways to cut on some expenses and use the money to repay any outstanding balances. If you spend too much on dining, for example, think of preparing homemade meals for your family. There are other ways to save on monthly or ongoing expenses, and one is to save money on transportation. You can do this in different ways – sell your vehicle, use public transportation (e.g. subway, bus, train), car pool to work, etc. In addition, you can save on debt in at least several ways by consolidating student or consumer loans, refinancing, and transferring high interest balances. There are automatic debt repayment plans as well.thanksgiving

3. Look for Additional Sources of Income

If you are unemployed or underemployed or have a seasonal job, then you may want to look for additional sources of income. One option is to look for part-time employment or a second job to increase your income. There are other ways to make money in the form of passive income. One is to open a high interest savings account to earn a higher yield. Another option is to invest in other low-risk products such as certificates of deposit or government securities. This is provided that you have some free cash on your hands.

4. Increase Your Payments

This is one way to save on interest charges and repay outstanding balances over a shorter period for a debt-free future. Always try to pay more than the minimum, especially on high-interest credit cards. If you have a low-interest card, you may want to use it to make payments. Note that if you only pay the minimum on a high-interest account, charges accumulate over time, and you are more likely to be late on your payments. Late and missed payments can have a negative impact on your score and future ability to borrow.

5. Reduce your interest rate

There are several ways to reduce the interest rate, and the most obvious one is to shop around for cards with low interest rates. In fact, some financial institutions actually offer such cards and advertise very low rates of about 6 – 8 percent. This is the standard rate provided that you make on-time payments. Penalty rates are usually significantly higher and apply to late and missed payments. Another option is to apply for a balance transfer card. If you have high-interest cards, then you pay a lot in charges, especially if you only pay the minimum each month. If you use a card with a high interest rate, then you should always try to cover the full amount. Otherwise it is better to use a low-interest product or transfer your existing balances to a card with a promotional period and a low rate. There are good balance transfer cards with long promo periods of 12 – 18 months and zero or a very low rate over the intro period. A third option is to contact your issuer and try to negotiate a lower rate. If you are a regular customer with a steady payment history and healthy credit score, they may actually agree to do this to keep you in.

6. Use Cash or Debit

This is a good idea, especially if you have multiple card accounts and a lot of debt to sort out. Either use your debit card to make payments online and in-store or carry cash with you. You may want to take small amounts with you to avoid the temptation to make frivolous purchases and overspend.

Conclusion

As you can see, there are many ways to reduce your debt load by Thanksgiving, from developing a budget and finding additional sources of income to trying to reduce the interest rate and using cash. If you have multiple debts, including consumer loans, mortgages, and credit cards, you may want to develop a repayment plan to get rid of debt faster.

Peoples Trust Credit Cards

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A FDIC-insured company, Peoples Trust serves large private and institutional investors and individual customers. Peoples Trust is a Vancouver-based trust company that offers a selection of financial solutions and services, including prepaid and secured cards, mortgage servicing and origination, high-interest accounts, and mortgage backed securities. The full array of financial solutions also includes residential, construction, commercial, and multi-family mortgages and deposit services – e-savings, TFSAs, RRSPs, GICs, etc. The company specializes in mortgage syndication and offers loan advances, construction loans, and mortgages with terms of 5 to 25 years. Fixed rate loans of $50 million or higher are offered as well as flexible underwriting solutions. Both floating rate and fixed rate loans are offered. The company also offers mortgage administration, including renewal and discharge processing, assumption, property tax collection, and payment processing. Customers also benefit from services such as legal instructions and mortgage initiation, default and arrears management, CMHC reporting, property inspections, and annual statement monitoring. Peoples Trust is also affiliated with Edmonton and Calgary Apartment Associations, B.C. Care Providers Association, Canada Deposit Insurance Corporation, and others.

Peoples Trust Credit Card

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This secured credit card allows customers with fair and tarnished scores to build or rebuild credit. The card can be used to pay for services and products and to make car rental and hotel reservations. Cash advances are also offered to help customers pay urgent expenses. This product is designed for newcomers to Canada, discharged bankrupts, and borrowers with no or limited credit history and bad credit issues. The deposit made is equal to the credit line offered. The minimum deposit is $500, and the good news is that cardholders earn interest. It is easy to apply online. Customers provide information such as occupation, years at current employment, yearly income, current employer, etc.

• Cash advance interest rate: 24.5 percent
• Purchase rate: 12.99 percent
• Penalty rate: 24.5 percent
• Annual fee: $69.60
• Supplementary cards: $35.40
• Grace period: 25 days
apply

About Peoples Trust Credit

Peoples Trust was founded in 1985, and is now part of the group of Triple Five companies. The company is headquartered in Vancouver and maintains offices in Toronto, Calgary, and Vancouver. Peoples Trust specializes in long- and short-term investment solutions and offers online banking facilities. It is also involved in different community initiatives to support organizations and volunteer programs. Employees are offered a comprehensive benefits package, including dependent life insurance, employee assistance program, extended health care, provincial health benefits, and more. Staff is committed to offering superb quality client services and innovative financial solutions. A privately owned company, Peoples Trust offers professional, personalized services and administrative support and advice on CMHC insured and conventional mortgage loans.

Scotiabank Credit Cards at a Glance

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The Bank of Nova Scotia offers specialty and standard credit cards with add-ons and incentives such as concierge service, complimentary hotel room and ticket upgrades, bonus rewards points, low annual and service fees, and many more. The bank offers business and personal cards and additional cards as well as secured and unsecured versions, depending on the customers’ debt to income ratio, income level, and credit score. There are low rate, no annual fee, student, travel, cashback, and other types of cards on offer with plenty of added features, including optional and complimentary services. Clients can choose from American Express and Visa offers with different credit limits, security features, travel and shopping benefits, and a lot more. There are special offers for creditworthy customers as well.

Scotiabank No Fee Credit Cards

No-Fee Scotiabank Value® VISA Credit Cardsb

This card is definitely a great deal for people with bad credit and comes with a special intro rate, VISA checkout, no annual fees, and 3.99% introductory interest rate on balance transfers for the first 6 months. The bank also offers special discounts, safety features such as credit card protection, and the opportunity to repay high-interest outstanding balances. Card checks are also available to help pay utilities, groceries, medical bills, and so on.

• No annual fee
• APR: 16.99 percent
• Intro rate: 3.99 percent apply

No-Fee ScotiaGold® VISA card SB_gold

Note: This card is no longer available. The information described here is solely for existing Cardholders.
A yet another no-fee Scotiabank offer, this card is the perfect choice for frequent travelers because of the added everyday and travel benefits. In addition to exclusive car rental discounts, the card comes with rental car collision coverage, commission-free travelers checks, and other add-ons. Credit card protection is an optional safety feature, and cardholders benefit from add-ons such as instant cash advances, chip technology, and more.

• Purchase APR: 19.99 percent
• Credit limit: $5,000
• Annual fee: none
• Grace period: 21 days

SCENE® VISA* CardSB_scene

SCENE VISA also goes with no annual fee and rewards points for purchases at select retailers and for everyday purchases. You earn 2500 bonus SCENE points with your first $500 in everyday purchases in first 3 months, and there are added benefits such as exclusive rental discounts, mobile wallet features. Clients are free to exchange points for free movies, entertainment, and more. A free movie is worth just 1,000 points, and customers get 10 percent off snacks.

• Annual fee: none
• APR: 19.99 percent
• Credit limit: min $500apply

Scotiabank Low Rate Credit Cards

Scotiabank Value VISA* cardSB_value

This is a great card for major savings on balance transfers, and holders benefits from no transfer fees and a special rate of 0.99 percent valid for six months. Added incentives include discounts on AVIS rentals, supplementary cards, VISA checkout for smartphones, laptops, and other devices, and the option to pay down balances over a shorter period.

• APR: 11.99 percent
• Free supplementary cards
• Annual fee: $29
• Grace period: min 21 daysapply

Scotiabank Cashback Credit Cards

Scotia Momentum® VISA Infinite* cardSB_monentum_infinite

Scotia Momentum goes with a fee waiver during the first year, cashback on regular and drugstore purchases, gas, and grocery store purchases. Cardholders earn 4 percent back on groceries and gas and 2 percent on recurring bill payments. Purchases at drug stores also earn at 2 percent. One percent is offered on all other purchases. Insurance and standard benefits apply, including flight delay and trip interruption coverage.

• NEW Offer: 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). A welcome offer value of $350*.
• APR: 20.99 percent
• Credit limit: at least $5,000
• Annual fee: No annual fee in the first year, including on supplementary cards. For accounts opened by November 1, 2020apply

Scotia Momentum® Cash back VISA* cardSB_momentun_no_fee

A great cashback offer by Scotiabank, this card features a special intro rate offered on transfers and advances as well as card checks, up to 2 percent cash back on eligible drug store, gas, and other purchases, and other incentives. The intro rate during the first 6 months is just 1.99 percent. Worldwide acceptance and Scotia card protection are added benefits. The bank also features a handy calculator to help calculate cashback.

• APR: 19.99 percent
• Credit limit: min $500
• Annual fee: $39apply

Scotia Momentum® No-Fee VISA* CardSB_momentun_no_fee

A no-fee VISA card with great features, Scotia Momentum comes with a special rate of 7.99 percent and 0.5 to 1 percent cash back, 22.99% on cash advances and balance transfers. Cash back is offered on eligible grocery, everyday, gas, and other purchases. Recurring bill payments earn 1 percent, including subscriptions, home and car insurance coverage, utilities, cable and phone. Cashback applies to purchases at service stations, pharmacies and drug stores, supermarkets, grocery stores, and other participating merchants.

• APR: 19.99 percent
• Min credit limit: $500
• No annual fee
• Grace period: 21 daysapply

Scotiabank Student Credit Cards

L’earn VISA* cardSB_learn

This card comes with money rewards and helps students build a healthy credit score. Students earn up to 1 percent in cashback and benefit from added features such as instant cash advances, 20 percent off rental discounts, and card checks. Holders are free to order additional cards or optional balance protection.

• No annual fee
• APR: 19.99 percent

Scotiabank Rewards Credit Cards

ScotiaGold Passport® VISA* card

This card is also a good choice for frequent travelers and goes with comprehensive travel insurance, 1 point for each $1 in eligible purchases, 5 percent cashback, and other incentives. Add-ons include rental car collision, trip cancellation, and travel emergency insurance. Cardholders benefit from major savings on travelers checks and emergency medical insurance.

• APR: 19.99 percent
• Annual fee: $65apply

ScotiaHockey® NHL® VISA* card SB_nhl

Note: This card is no longer available. The information described here is solely for existing Cardholders.
Scotiabank offers a specialty rewards card that goes with discounts on in-store purchases, rewards points, and other incentives. Discounts are offered on car rentals and NHL merchandise. The first purchase on the card earns 5,000 rewards points.

• Earn rate: 1 point per $1 in purchases
• APR: 19.99 percent
• Annual fee: $29

Scotiabank Rewards® VISA* Card SB_rewards

This product is a great choice for customers looking for a credit card with rewards and no annual fee. The card goes with points to be redeemed for cruise deals, holiday packages, hotel accommodation, airfare, and more.

• APR: 19.99 percent
• Annual fee: none

Scotiabank Travel Rewards Cards

Scotiabank Gold American Express Card

This travel rewards card offers 1 point on every two dollars in eligible purchases and features travel benefits and a flexible redemption schedule. Easy access and the option to book travel online are add-ons in addition to discounts on airfare, vacations and cruise packages, and car rentals. Points can be redeemed for gift items, investments, and more.

• NEW Offer: Earn 20,000 bonus Scotia Rewards points with your first $1,000 in everyday purchases in first 3 months. (For accounts opened by March 1, 2020)
• APR: 19.99 percent
• Annual fee: $120apply

Scotiabank American Express CardSB_amex

Scotiabank offers customers the opportunity to earn 20,000 in complimentary points and features a flexible rewards program that allows cardholders to earn 4 points on purchases made at entertainment venues, restaurants, grocery stores, and gas stations. 1 Scotia Rewards point on all eligible everyday purchases.

• Purchase APR: 19.99 percent
• No annual feeapply

Scotiabank Credit Card Application

It is easy to apply online or at the local branch, provided that you haven’t declared bankruptcy recently (during the last 7 years), are a Canadian citizen, and fill in an application you’re your personal, income, financial, and other information. Applicants are asked to provide details such as deposit and savings accounts, time at job, place of employment, residential address, stock and investments.

Online Banking

Scotiabank also offers online banking facilities with beneficial features such as e-transfers, info alerts, Western Union money transfers. Customers are free to make money transfers, pay bills, check their account and balance history, and make pre-authorized payments. There is an option to open a trade account online and benefit from attractive pricing and commissions.

Too Many Bills to Pay? What Bills to Pay and What to Put Off

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Bills are piling up and you are short of cash to meet all expenses. You receive letters from financial institutions and utility companies as well as threatening calls. This is a warning sign that it is high time to put your finances in order and start to prioritize. There are expenses you cannot cut off completely such as insurance, groceries, and shelter and bills you can delay paying or you can look for cheaper alternatives.

Most Important – Basics

Obviously, you cannot go without basic necessities such as food, shelter, and utilities and there are bills you cannot delay paying.

Groceries

We buy groceries on a weekly and even daily basis and while there are ways to save on groceries, you cannot live without food. A balanced and diversified menu is essential for your health. Whenever you can, use grocery store coupons.LOC36

Shelter

Shelter means security for your children, family, and belongings. Whether paying rent or mortgage, you need a certain sum of money on a monthly basis. Otherwise you risk losing your home or your landlord will take action against you.

Transportation

Transportation is also an important consideration. We use public transport or drive to work, for grocery shopping, emergencies, and so on. There are unexpected expenses such as car repairs as well.

Utilities

Utilities are basic expenses for gas, power, water. This is the minimum to keep your home heated, clean, and safe. There are ways to save on utilities such as buying energy efficient light bulbs.LOC34

Insurance

Home, health, and auto insurance are necessary expenses. Home insurance covers your property and belongings while health insurance pays for hospital accommodation, treatment at the ER, medical expenses, and more.

Less Important

While you cannot deprive your children of shelter and food, there are expenses and services that are less important for the health, safety, and wellbeing of your family. Less important expenses are those that bring comfort and enjoyment but you can cancel subscriptions such as gym memberships and magazine subscriptions if need be. The same goes for internet, cable TV, and cell phone plans.

Phone

Obviously, it is important to have a phone in case of emergency. What you can do is cancel your cell phone plan and keep the landline.

Gym Membership

Unless you go to the gym for health-related reasons, look for ways to reduce membership costs. One way to do this is to cancel your membership and shop for deals during the slow season. Another way to save money on membership is to go at the end of the month and check for deals and promos.LOC35

Cable TV

There are ways to reduce your cable TV bill and free up cash to pay for necessities and emergencies. You can lower your bill by paring down your subscription plan. Another option is to cancel your plan and comparison shop to find a low-priced plan. Downsize and bargain.

Internet

To lower your internet bill, contact your provider and ask for lower-priced packages. Check what competing providers have on offer for new customers and ask your neighbors, colleagues, and friends about the types of deals they are getting. One way to negotiate a discount with your current provider is to tell them that you are not satisfied with the level of service.

Credit Card Bills

Credit card and loan balances contribute to piling debt. If money runs tight, it is time to look at your income and prioritize bills. Your income should cover basic necessities and debt payments at the very least. If you have multiple debts, you may want to prioritize and pay high interest balances first. If you have cash advances or payday loans that go with extremely high rates, think of ways to repay these debts first.

Decisions, Decisions

The most important step is to decide what to keep and what you can do without until you repay your debts, find a well-paid employment, and get back on your feet. Compiling a list of your expenses helps create a realistic budget. This is a good way to find out where your money is going. List your basic expenses first to see how much you are left with for other expenses. Then you can make a decision on what you can do without, whether it is cable TV, gym, or magazine subscriptions.LOC33

What to Do Next

The first step is to decide what bills to put off and how to scale down your expenses. The next steps are to pay outstanding balances and find a second job, additional source of income, or a high-paid position. If you have high-interest cards, shop around for a balance transfer card with a long introductory period and zero interest rate. You may want to open a savings, money-market, or checking account and use it as an emergency fund to cover the basics and pay off existing debts.

Conclusion

There are ways to create a realistic budget and stick to it to be able to meet all expenses, both basics and expenses such as cable TV and gym memberships. It is important to prioritize necessities, activities, and expenses to avoid excessive debt and live within your means. Talk to all family members and discuss different ways in which everyone can help lower your household bills. This is also a great way to teach your children a lesson to learn how to be financially responsible.