Do You Really Need That Extra Credit Card?

Avoid Extra Credit Cards

First Published Date: Nov 30, 2009

It may appear that today many Canadians are walking a sort of a tightrope and the decision they make may not really be about whether or not to have a credit card but how many they are going to have in the first place. We all know with acclaim that with a credit card you can get to spend money you do not have, as long as you are able to pay up when you earn, there really should be no cause for alarm. Depending on how efficient you are with your payments, this can either be a blessing or a curse.

There is so much freedom and ease in amassing credit cards these days that one may need to really ask themselves if the really need to have that extra card they are applying for, or they just want an extra reason to spend money they have not earned. Because we do not have to pay upfront, there are many people who will get the extra card just in order to beat the limit they have in the other card they have, thus managing to acquire stuff they otherwise would not be able to afford. Of course the truth of the matter is if you are short of cash and you really need something, all you do is pull out your card and the shop attendant will swipe it and you walk away with all you ever needed, just as simple as ABC. It can come in handy when you are between the devil and the deep sea in some situation, which at times could actually be life saving.

We all know also that having a credit card helps you avoid the inconvenience of having to walk around with lots of cash and with a good use of one you will be able to track all your expenses. Shopping can become quite convenient and for those who may want to borrow some cash in future they provide a good credit history for you. There are even some companies who offer special discounts for those who shop using their credit cards and so you can imagine that there are plenty of advantages of owning a credit card. All you need to take care of is the management of your debt repayment and you will be safe.

However, just like with any other good thing there is always the downside of having a credit card. It becomes very easy fro the frivolous spender to amass a big amount of debt in small bits until most off the time they discover they are buried deep in it. In a little while many people discover that they were actually spending money they were not going to have in the next many months, it is no wonder that some people are many months ahead of their income in debt.

So do you need that extra card really? If you have managed your life without one you most likely can move on without a card, do not go for an extra card if at anytime time you have fallen behind in payment with your current one. Depending on what you earn, multiple credit cards may actually mean multiple problems and since the decision is yours to make, remember the responsibility will also be yours to settle the payments.

Now Is Still Not The Time For Major Borrowing

Government credit bad, Consumer credit good?

First Published Date: June 26, 2009

As the danger of a third election in four years hangs over a nation considered by the rest of the world to be so stable it is “boring”, it would be entirely understandable if the alarm bells in the brain of every Canadian started to ring right about now. After all, the prospects of the nation trading at a deficit any time soon are at present not amazingly good. This, however, has not stopped the press from suggesting that now is the time, if ever the time existed, to get out there, dust off your credit card and prepare to hit the shops with a vengeance. This advice comes via the newspapers from the Finance Minister Jim Flaherty.

If it sounds a little bit reckless for something a Finance Minister might say, this is with very good reason. The minister’s words were somewhat more considered, but by the time the press had had their way with them, it did sound a little bit more like incitement to spend the inheritance. What he actually said was “positive signs in financial markets give us cause for cautious optimism that a global recovery may not be far behind”. He added that Canada would lead this recovery and be at the front of the queue to boost business. There is, perhaps, some amount of mockery in the words as set out in the press, with some journalists not quite sharing the Minister’s optimism for the future.

Much of the implication behind the press reaction to what Minister Flaherty has said seems to be that the minister is saying everything he can think of in order to stimulate consumer spending in a time when the nation’s financial sector could do with a helpful push or two. This is not exactly an untried initiative, of course, but the average family may well be heartened by what they hear from the government. The theory of consumer spending stimulating the economy is a self-perpetuating one. Sure, it’ll boost the flow of cash through businesses. It will, however, only operate that way if it is allowed to, and this means that banks need to be as willing to lend as customers are to spend.

The next year to eighteen months will be interesting for those who like to read the global response to financial situations. Many countries in the developed world, including the United Kingdom, are due to hold general elections to decide on the makeup of their next government. Good governmental marshalling of the global economies in the next year and a half will see more incumbent governments re-elected, but to drop the ball now would be to almost guarantee and end to a government’s hold on power. Indeed, with one country’s economy affecting those of its neighbours, it could be that decisions taken in one country affect the election in another. Should you go out and spend, spend, spend in order to keep a few governments in their seats? Well, only if you can afford it. Now is still not the time for major borrowing.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on June 16, 2009.

Amazon Canada Rewards Visa Credit Card Review

A Visa Card That Saves You Foreign Currency Transaction Fees

First Published Date: December 5, 2013 ADawnJournal.com

Probably 90 percent of retailers have some sort of credit cards tied to some kind of reward points of their own, so why not Amazon Canada? Today, I will talk about some of the features the Amazon.ca Rewards Visa card offers.

The instantaneous benefit of this card is that once you are approved, Amazon.ca will take off $15 of your next purchase on the Amazon online store. And then there are ongoing reward points for each transaction you make (whether online or offline). For example, spending $1 at Amazon.ca earns 2 points (works out to be 2 percent cash back) and spending $1 anywhere else (where Visa is accepted) earns 1 point (works out to be 1 percent cash back).

There are also promotional financing offers on qualifying purchases of $199 or more. For example, you can take 6 months to pay without paying interest on $199+ or 12 months to pay on $499+ purchases. These can change any moment. So check at Amazon.ca before you make any large transactions to take advantage of promotional offers.

The best feature of the Amazon.ca Visa card is that it does not have any foreign exchange fees when you use your card outside Canada. All other major credit cards charge a 2.5 percent fee if you make any transactions outside Canada. If you travel a lot, saving 2.5 percent on each transaction can save you a lot of money.

Should You Pay Off High Balance or Low Balance Debt First?

Tips For Paying Off High Balances or Low Balances First

First Published Date : May 13, 2012 ADawnJournal.com

Paying off debts involve making plans and sticking to them vigorously to get rid of all debts. One simple question always comes to mind while making debt payment plans, whether to start paying off low balances or high balances, low interest or high interest debts first. Today, I will discuss which strategies to pick and what to consider in terms of getting rid of your debts.

Let me tell you right up front that there is no best right answer. Paying off high balances and paying off low balances – both strategies have positive and negative sides. I personally like starting with low balances without looking at interest rates.

Pros and Cons of Paying Off Low Balances Without Looking At Interest Rates

– If you start with paying off lower balances, seeing those smaller debts evaporate will keep you motivated to stay on your debt management plan.

– Easier to manage your finances, as you are reducing smaller debts one-by-one.

– This strategy can cost you more money in the end, as you may be carrying higher balances with higher interest longer.

– Makes your life stress free, as you are dealing with less debt accounts day-by-day.

Pros and Cons of Paying Off High-Interest Debts Without Looking At Balances

– Best strategy to save money on interest charges

– You may get discouraged to stay on debt management plan seeing debts not going away soon enough.

– If you have higher balances with lower interest charge, this strategy does not make managing your finances simpler, as you are dragging the low interest debts longer.

Last Word

Which strategy is best to follow? It depends on your situations and objectives. Before deciding on anything, look at the pluses and minuses for both of the strategies and pick the one that makes sense for you. And yes, don’t forget to stop taking on new debts. No debt management plans will work if you don’t stop accumulating new debts first.

Do You Really Need A Visa Debit Card?

What Is A Visa Debit Card?

Published Date: September 23, 2012 ADawnJournal.com

Recently, I have noticed a steady stream of Visa debit ads as Canadian banks are trying hook up more clients with their comparatively new product, the Visa debit card. Today, I will discuss a few things about the Visa debit card.

The first thing you need to know is that although the name has Visa attached to it, the Visa debit card is not a credit card. Think of it as a bank card, but with international usability. A regular bank card issued by any bank becomes a worthless piece of plastic when you board a foreign-bound plane. However, a Visa debit card becomes your friend when you are in a foreign country.

You can make purchases around the globe with a Visa debit card – just like using a Visa credit card. However, the money comes out of your bank account instead of your credit card account. Visa debit card transactions are made through Visa’s network and protected by same security features and zero liability Visa offers like a Visa credit card.

Now the question may arise – why do you need a Visa debit card when you can use a credit card? Actually you don’t. If you have no problem paying your credit card bills on time in full, you may not need a Visa debit card. However, a Visa debit card is a good option for those who don’t want to deal with credit cards or do not have credit cards. Because money is coming out of your bank account directly, there is no question of ending up with credit card balances. You only buy what you can afford.

Although my bank mentioned that they will be sending me a new Visa debit card to replace my regular bank card, I will continue using a regular reward credit card when I travel outside Canada. And to carry a minimum numbers of cards, I will leave my Visa debit card at home.