2013-05-23T13:16:10-04:00 Jeffrey Schwartz http://www.huffingtonpost.ca/author/index.php?author=jeffrey-schwartz Copyright 2008, HuffingtonPost.com, Inc. HuffingtonPost Blogger Feed for Jeffrey Schwartz Good old fashioned elbow grease. tag:www.huffingtonpost.com,2013:/theblog//3.2789534 2013-03-01T12:24:52-05:00 2013-05-01T05:12:01-04:00

Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/ Fraud Prevention Month, and the RCMP, Competition Bureau and Anti-Fraud Centre want to use this month to educate Canadians and raise awareness about common fraud trends and scams.

Every year thousands of Canadians fall victim to identity theft and fraud. By using your name, date of birth, credit card, Social Insurance Number and other personal information, savvy criminals can open credit card and bank accounts, redirect mail, establish cell phone services, rent vehicles, and even secure employment.

Last year alone, more than 36,000 Canadians were victims of identity theft and fraud, resulting in the loss of more than 78-million dollars, according to the Canadian Anti-Fraud Centre. In fact, fraud and ID theft are among the fastest growing crimes in Canada and the financial impact on individuals, families and businesses can be devastating.

Victims of identity fraud can experience financial loss and difficulty obtaining credit or restoring their good name -- and many, have seen their retirement savings, homes and businesses lost to this preventable crime.

The good news is, by managing your personal information wisely, cautiously and with awareness of the issue, Canadians can help guard themselves against identity theft and fraud. This is why it is so important for us all to protect our personal information:

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1. Erase all personal information before disposing or selling electronic equipment. This includes computers, cell phones, CDs, DVDs, diskettes and memory sticks.



2. Shred or destroy pre-approved credit card applications, credit card receipts, bills and related information when you no longer need them.



3. Never send confidential personal or financial information by email.



4. Ask yourself if you really need all the personal identity documents you keep in your wallet or purse. Remove those you don't need and keep them in a secure place instead.



5. Periodically check your credit reports, bank and credit card statements and report any irregularities to your financial institutions and the credit bureaus.



6. During debit or credit transactions, swipe the card yourself rather than allowing the cashier to do it for you.



7. Memorize all the personal identification numbers for your payment cards. Never write them on the cards.



8. Never use a public access computer or wireless network when banking or shopping online.



9. Avoid mail or telephone solicitations disguised as promotions or surveys offering instant prizes or awards. These scams are designed for the purpose of obtaining your personal details including credit card numbers.



10. Don't reply to spam emails, even to unsubscribe, and do not click on any links listed in a spam email. Many of these are phishing scams designed to access the personal information stored on your computer.

If you do become victim of identity theft and fraud, it is important to take these steps right away:

• File a police report


• Notify the credit bureaus


• Contact your bank and credit card companies


• Review your credit reports, and contact all unknown creditors listed under New Accounts or Inquires.


• Check with Canada Post to see if a change of address has been filed in your name.


• Alert Canada Post to make sure no one orders a passport with your information.

There are countless ways criminals can try to obtain your personal information. The more you know about fraud related crime, the less likely you are to be fooled.]]> tag:www.huffingtonpost.com,2013:/theblog//3.2622376 2013-02-05T12:51:25-05:00 2013-04-07T05:12:01-04:00

Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/ unsecured debt can often be a lot of fun and at times effortless.

On the other hand, paying off that debt is usually easier said than done!

Consumer debt has become a major concern in Canada. Right now, the average household debt-to-income ratio sits at an all-time high of 164.6 per cent. While the Bank of Canada and the Minister of Finance continue to warn about the dangers of carrying such high levels of debt, Canadians continue to pile it on.

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As a result of this buy now, pay later consumer mentality an increasing number of debt relief organizations popped up to "help" indebted Canadians address their financial problems. And while many of these organizations do a great job in facilitating a healthy financial future for their clients, there are a number of debt relief companies that take advantage of vulnerable consumers without providing any real solutions.

Some of these companies, with slick advertising campaigns promising quick and easy ways to fix debt problems, and offering unrealistic promises of drastically lower payments, make it difficult to identify which solution will improve -- not hinder -- your financial health.

The stress of dealing with unmanageable debt can be overwhelming for most consumers. Between creditor calls, collection threats and living paycheque to paycheque, these "get out of debt fast" opportunities can be very appealing. But are they too good to be true?

Like any other financial product, doing your homework when it comes to debt relief is essential to finding the right solution for your individual financial needs. There is no such thing as a one-size-fits-all approach to debt management. By researching the various solutions provided by countless organizations, consumers can distinguish between legitimate debt relief solutions, and those that will further damage their financial future:

• Blanket Recommendations -- There is no such thing as a one-size-fits-all debt solution. Consumers should be wary of agencies that do not take the time to review their personal financial situation and discuss all available debt relief options.



• Unrealistic Claims -- Avoid debt relief organizations that make unrealistic claims to lower your debt by 80 per cent, or promise to remove negative information from credit reports. Getting out of debt is simply not this quick and easy, and accurate information cannot be removed from an individuals credit file.



• Minimum Debt Requirements -- Steer clear of any debt relief option that requires you to be carrying a minimum amount of debt. No two financial situations are the same, and the agency should be willing to help regardless of the amount of money owed to creditors.



• High Fees -- High up front fees, early program exit fees, and fees associated with consultations or financial education materials are all warning signs consumers should be aware of. A debt relief program should always be voluntary and never require payment before a consumer enrols.



• Limited Creditor Communications -- Indebted consumers should never be required to limit or cut off communication with their creditors. If a consumer is making payments to a debt relief program, they should still be able to speak with their creditors.

Before signing up to any debt relief program, consumers should determine if it's the best solution for their individual needs. More importantly, Canadians should look for options that will not only help them address their current debt problems, but also provide the tools and skills they need to change their money management behaviours and build a healthy financial future.

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Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/
Unfortunately, most New Year's resolutions prove to be nothing more than lofty, pie-in-the-sky expectations that are unattainable. In fact, without a solid plan of action to achieve these resolutions, more than 90 per cent of people allow these good intentions to fall by the wayside.

Instead of making unrealistic and lofty resolutions this year, start 2013 off on the right foot by committing to a personal financial goal, and create a plan to achieve that goal.

Start by asking yourself what type of financial changes you want to make, and what are your perceived barriers to making those changes?

Once you have determined the changes you would like to make and the challenges you will face in making those changes, you can begin to set SMART financial goals for the month and year ahead. In order to succeed in achieving these goals, make sure they are Specific, Measurable, Attainable, Relevant and Time Bound.

Paying off debt is never as simple or as easy as racking it up in the first place. This is why it is unrealistic to resolve to eliminate debt in 2013. Instead, set an ultimate goal to reduce debt by a specific amount over the next year, and make short term goals to reduce it by a relevant amount each month. Not only will you be more successful in reaching your goal(s), you will also create the momentum necessary to continue measuring and achieving your financial goals throughout the year.

To help you get started on the road to financial health, try some of these proven methods to tackle debt, and make your 2013 financial goals a reality:

Budget
All good financial goals start with a plan. Creating a realistic household budget that accounts for your income and expenses will give you a solid starting point to set your debt repayment plan into motion. By understanding where you stand financially, you can begin to prioritize expenses and identify ways to measure and achieve your 2013 financial goals.

Stop creating debt
Now is the time to put away your credit cards and stop spending money. Reducing your spending alone will not eliminate debt -- but at least your debt won't get worse. Sticking to a cash budget will help you be more responsible with your money.

Increase your monthly payments
If you are only making the minimum payments on your debts, it will take years to pay them off -- and with interest you'll probably have paid double or triple what you originally charged. Use an online credit card calculator to determine how long it will take to pay off your balances by increasing your monthly payments.

Ask for lower interest rates
Higher interest rates keep you in debt longer because the majority of your payment goes towards interest instead of the balance. If you have a good payment history, ask your creditors for a lower interest rate. This will allow you to dedicated more money towards paying down your debts.

Consolidate debt
Rolling all of your credit card debts into a single monthly payment with a low interest rate can help you reduce debt and achieve your financial goals. With solid credit scores you may qualify for credit card balance transfers or an unsecured debt consolidation loan. Either way, payments are lower each month and reduced interest rates allow consumers to get out of debt faster.

Create more cash flow
Tracking your spending, identifying areas to cut back and getting a second job are all proven strategies to increase cash flow. Allocating any extra earnings or budget savings to debt repayment can help accelerate the time it takes to pay down debt and achieve financial goals.

If you're having a difficult time managing your debts and don't know where to start, contacting a trained, not-for-profit credit counsellor will put you on the right track. They can help assess your debt and provide you with options to make debt repayment a priority in 2013.

Visit www.consolidatedcredit.ca for more information on credit counselling, debt management and budgeting.

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Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/ holiday budget. If you are like most Canadians, this is the exact moment you will reach into your wallet and pull out that emergency credit card -- after all, doesn't holiday shopping constitute an 'emergency'?

No matter how good our intentions are going into the holidays, it's easy for us to over-extend ourselves and get caught up in the spirit of holiday spending. No matter how much we budget, plan and save for the holidays, occasionally we all find ourselves in a position where we are strapped for cash and feel the pressure to buy "just one more gift."

For many, this is the point where we either stop shopping or cross that thin financial line and set ourselves up for a nasty holiday debt hangover.

So, what do you do when the holiday well has run dry and you still have a few gifts left on your shopping list?

• Leave the plastic at home. If you have already maxed out your budget, using credit cards will only cause more financial trouble. If you must make a purchase, use cash.



• Cash in reward points. Check out the offerings from the loyalty programs you subscribe to and use the points you have accumulated to purchase gift cards or gifts from their catalogs.



• Start a new holiday tradition. Focus on friends and family by giving them quality time with you as volunteers at a local shelter or food bank rather than giving a quantity of gifts.



• Give of yourself. Create gift certificates offering services to your friends, neighbours and family. Gifts that represent the true spirit of the holidays are more meaningful than something you can buy in a store.



• Sell items online. One man's junk is another's treasure. Gather items that you no longer use and sell them at second hand stores or on websites like Kijiji and eBay. Use the extra cash to make your final purchases or to pay off the ones that busted your budget in the first place.

If you have truly extended your budget, put your credit card away. Stop spending money and think of creative ways to recognize those closest to you. Homemade gifts, new traditions and time together are just a few of the many ways to give gifts without going overboard on spending or losing the true spirit of the season.

More often than not, we get carried away by holiday spending and forget that the true meaning of the season is spending time with loved ones and creating memories that will last much longer than this year's hottest gift.

If you already know that the New Year will come with a heavy holiday debt hangover, start making a plan to pay down your credit card debt today. Starting the year off with a clear picture of your finances and a budget to be debt free in 2013, is the best gift you can give yourself and your family this year.

Jeffrey Schwartz is the Executive Director of Consolidated Credit Counseling Services of Canada. Visit www.consolidatedcredit.ca for more information on credit counseling, debt management and budgeting.





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Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/
This year, even more cost-conscious consumers will go online to research, comparison shop and seek out online deals to make their holiday budget stretch further. According to Deloitte's 2012 Holiday Outlook Survey, 55 per cent of Canadians plan to complete some of their shopping online, and 40 per cent plan to use their smart phones or tablets to make holiday purchases through apps and mobile sites.

Technology has changed the way we approach the holiday spending season. Surfing the net and using apps to seek out the best deals are great ways to save money, but letting your guard down while shopping online can put you at greater risk for identity theft and credit card fraud.

If you plan to let your fingers do the shopping this year, follow these tips to keep your budget and your identity safe:



• Make a Budget and Stick to it -- Before you begin your online holiday shopping make a list of the gifts you want to buy and how much you can afford to spend on each item. Online advertisers put a lot of effort into creating ads that will not only entice you to make a purchase, but that are targeted to your specific online spending habits To avoid making impulse purchases stick to your budget and only purchase items from your list.

• Shop on Trusted Sites -- Only shop on secure and trusted websites where the web address begins with "https." The "s" informs consumers that they are shopping on a secure site, while the closed padlock icon and green URL indicate that personal data is encrypted. Even if you do see these Trust Marks, you may want to take the extra precaution of only shopping on websites you know from brands you recognize.

• Consider Using a Prepaid Credit Card -- Re-loadable, pre-paid credit cards can offer the convenience of shopping online without the danger of having an open credit line available to identity thieves. Load enough money onto a pre-paid card to cover what you plan on spending for the holidays. This keeps impulse purchases down and if someone steals your identity, they only have a limited credit line to access.

• Never Shop on a Public Wi-Fi Connection -- Public hot spots may seem like a great place to grab a coffee and browse the internet, but they also provide easy access for hackers to steal your identity information. The best place to make online purchases is from the safety and comfort of your own, secured home internet connection.

• Monitor Your Accounts -- It's always good practice to keep a close eye on your bank and credit card accounts -- especially when shopping online. If you do choose to shop with a traditional credit card make sure to keep track of all your charges. Once you have finished shopping, use a debt calculator to add the new charges to your current balance. This will provide you with an idea of what your new minimum monthly payment will be.

• Don't Shop via Email -- Some deals are just too good to be true. If an online deal requires you to send your credit card or personal information via email, it is a scam. While retailers may send out special sales and deals to email subscribers, they will always use a coupon code or website link you can use to redeem the bargain. Only fraudsters and thieves request personal information via email.

When it comes to scamming consumers, fraudsters are becoming increasingly savvy. If you do become a victim of identity theft, you'll want to take these steps immediately:

• File a police report.
• Notify the credit bureaus.
• Contact your bank and credit card companies.
• Review your credit reports, and contact all unknown creditors listed under New Accounts or Inquires.
• Check with Canada Post to see if a change of address has been filed in your name.
• Alert Passport Canada to make sure nobody orders a passport with your information.]]> tag:www.huffingtonpost.com,2012:/theblog//3.1920152 2012-09-28T07:19:15-04:00 2012-11-28T05:12:01-05:00

Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/ owes $1.54 for every dollar earned. That's a lot of money. This year, many families will pay about the same amount in interest on credit cards as they spend for food!

Being debt-free or eliminating debt is more than merely a financial battle; for many, it's emotional, psychological and habitual. That's why learning smart spending habits is crucial from a young age. Getting your kids involved in financial planning and shopping gives them impactful, hands-on experience in budgeting. Most kids are ready to start handling small amounts of money by age seven or eight.

Here are some great tips to teach your younger children to budget and save:

 No matter what they're shopping for, give your kids a budget and let them create the shopping list. Set up a reward system if they spend less than the budgeted amount, and encourage them to browse flyers for sale items.

 Need to re-stock on school supplies for next semester? Teach them to shop around for the best price -- things like pens, pencils and notebooks will likely be more affordable at a dollar store, for example.

 Food usually gets kids' attention. Have them help you plan your grocery list for school lunches and snacks, and let them calculate the tip at a restaurant if they are old enough.

 Require them to spend their money for some of their "needs" as well as their "wants." For example, encourage them to contribute (at least in part) to gifts for their friends' birthday parties, or get them to pitch in on a new pair of sneakers.

 Save, save, save! Kids should be saving a portion of their allowance or paycheque (for those working part-time at their first jobs). I recommend starting with 10 per cent of the amount earned. Again, this is about creating a habit that they will carry with them as they grow up.

By helping you to plan, save and shop, as well as using their own money on select items, your kids will learn to budget, and evaluate "needs" versus "wants," putting them on a path to financial success from a young age.

Older kids who are in college or university need a strong background in financial management skills to help avoid debt problems that can cause depression in students and affect study habits and academic performance. In addition, students strapped with high credit card debt have a more difficult time repaying student loans and have an increased probability of default. My number one tip is to teach them how to handle credit wisely:

 Before they apply for their first credit card, ask what they will use it for and more importantly, how they will pay the bill. Advise them to start with one card with a low credit limit, and use it responsibly before they even consider getting another.

 Help them decipher the fine print on the inserts enclosed with their bill. Credit card offers differ substantially, and issuers can often change the terms at will, or with only 30 days notice.

 Encourage them to pay off their balance each month. Here's a good example to share: If you owe $1,000 on an 18 per cent card, for example, and you pay only the minimum each month, it will take you 12 years and seven months to repay the balance!

 Educate them about late payments. Even one late payment can put a black mark on their credit record -- and might cause the issuer to raise their interest rate to the maximum allowed under their agreement.

 Help them set a budget. A good rule is to keep debt payments less than 10 per cent of their after-tax income. If they take home $750 per month, for example, they should spend no more than $75 a month on credit card payments.

Creditors market heavily to post-secondary students since they have good earning potential and lots of expenses. Being armed with the right information and know-how can save your kids a lot of money and stress. For more budget resources, contact a not-for-profit credit counseling agency.]]> tag:www.huffingtonpost.com,2012:/theblog//3.1587757 2012-06-12T12:38:53-04:00 2012-08-12T05:12:06-04:00

Jeffrey Schwartz http://www.huffingtonpost.com/jeffrey-schwartz/ 27 Dresses, Katherine Heigl's character was always a bridesmaid. She had a
closet full of puffy dresses she never would wear again, and hosted countless showers and
bachelorette parties. Money was no object. Meet Jennifer Hills, a communications advisor and
recent condominium owner who is single. She's been a bridesmaid four times in four years and will
be again this year.

Hills estimates each wedding has cost her $1,500, between hosting parties, buying her shoes and dress, hair, makeup, etc. When she was living at home it was easier for her financially. Now, with a mortgage to pay, she will begin saving for a wedding as soon as she is asked.

This is truly a double-edged sword: on one hand it is a great thrill and honour to be recognized by the
bride and groom; on the other, costs can quickly add up and dampen the enthusiasm.

"It is such an honour to stand up for my friends," says Hills. "To prepare for this year's wedding
I am being more diligent with my money, budgeting wisely and cutting back on some of my non-
essentials."

Brides need to be aware of the sizable financial commitment, and be reasonable in their
expectations of what their attendants can afford. The good news is you don't have to go broke
participating in a wedding party. The key is to keep expenses in control every day and maintain a
budget, especially if you have a huge financial commitment like a mortgage.

Ultimately, this isn't only about money but it sure is nice not to worry about it. There are ways to
control the expenses if you are an attendant in a wedding, like:

• Weighing your relationship with the bride before you accept; family or close friends are an
obvious "yes," while a co-worker may not be.

• Being honest and letting the bride know how much you can afford to spend on the wedding.

• Being prepared to politely decline if you can't afford to participate.

• Starting to save as soon as you say "yes."

• Wearing shoes you already own, buying neutral accessories, carpooling and doing your own
manicure and pedicure to save money.

• Splitting the cost of showers and bachelorette parties with the other attendants.

• Buying one shower gift even if there are multiple showers -- it's your presence the bride
wants, not your presents.

• Taking advantage of group discounts on hair and make-up artists arranged by the bride.

• Visiting consignment stores if you get to pick your own dress; sometimes they carry brand
new dresses at a fraction of the cost.

• Renting a dress for the occasion from Rent Frock Repeat will afford you vintage or designer
duds at just a percentage of the cost.

• Selling the dress to a reseller after the wedding to recoup some of the cost.

If you find you have exceeded your budget you can take back control of your finances. Implement a
budget, reduce expenses and focus on paying your debt(s), beginning with the highest interest rate
debt first. By creating a fixed payment schedule on your credit card balance(s) you will make a huge
impact on the time spent in debt, but remember -- this only works if you commit to stop using credit.

There are also qualified financial professionals, such as a trained credit counsellor from a not-for-
profit credit counselling agency, available to review your situation and provide advice free-of-charge.

Careful preparation means you can celebrate with the bride and groom worry-free and celebrate your financial situation too!]]>