Some of the most common money issues that can affect us and one’s family can be a sign that something financially is not right and it needs to be addressed. Each situation will be different, so taking a step back and seeing what the issue(s) may be, can help.
Sources of Money Issues
Money issues can range from a number of factors.
No Savings. Not having any type of savings can be stressful especially if an unexpected bill arises, and more than likely it can and will happen. Having a rainy day fund, or to start saving for the future can help alleviate some of that financial stress. Having enough money in your savings to help cover your expenses for a few months in case you lost your job can make a world of difference.
Borrowing – if you have problems making it from paycheck to paycheck and you need to borrow from friends/family: A good next step would be to start a budget and track all your spending. See where your money is going, and help find out where the spending issue may lie.
Overdraft – your bank overdraft itself has a high interest rate in addition to a possible extra fee from your bank to have the overdraft. Bank fees alone per month add up over a year. Adding overdraft fees to this just adds up on your expenses. The average overdraft fee from Canada’s Main banks range from $4/$5 per month when going on a fixed monthly rate, plus there’s interest added on to the amount overdrawn, and the interest rate from some of the major banks rage from 19% to 21% per annum.
Credit Card Debt – if you carry credit card balance each month, the interest on Credit cards can be very high. Paying just the bare minimum will not help pay down your credit card in a timely manner, and cost you more in the long run. While it is tempting to use your credit card to get those extra points for that trip, the interest alone added up over the year will not make that trip worth it. See our Credit Card Debt page for tips and advice.
Debt Consolidation Loans – careful consideration needs to be considered when looking into Debt Consolidation. We always recommend taking to one of our Trustees so they can review your situation and find out what is the best possible solution for your personal situation. Read more on debt consolidation here.
If you find that your money problems are escalating and you are not sure what to do, or find that there seems to be no way out, try scheduling a call with one of our trustees for a free initial consultation.
If you are in the Greater Toronto area and want help, call the offices of David Sklar & Associates at 416-498-9200 to book your free consultation. We will assess your finances and show you how you can get out of your money crisis and get on with your life.