A warning from those that know – Canadians are carrying way too much debt. That’s the finding from a new survey by the Certified General Accountants Association. The CGA says 84 per cent of Canadians carry debt – 14 per cent say it’s increasing too fast and a full quarter of us aren’t saving any money, even for retirement. If it continues on the current pace it will only put more downward pressure on the economy. It’s all too easy to use that plastic to pay day-to-day living expenses. Years of cheap and easy credit and the lure of rewards have left people like Alex struggling. “The purpose of the credit card was to gain points for free airmiles, but then they changed the policy to 20 per cent only – unfortunately it’s not working the way we wanted it to. But we still have the debt now.” He says he is not keeping up. “Right now we are month-to-month paying it off – it’s a little dry for sure right now.” Source: NEWS 1130 Ready to break the cycle of big loans, long terms and more debt? Mogo only offers small loans and short terms which means
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Federal Finance Minister Jim Flaherty announced new credit card regulations Thursday. The changes will require financial institutions to provide better disclosure about interest rates. The government wants credit card companies to provide timely advance notice of changes to rates and fees. However, the finance minister has ruled out tougher measures such as placing a hard ceiling on interest rates. It comes a day after the U.S. Congress wrapped up legislation restricting when and how a credit card company can raise an individual’s interest rate, who can receive a card and how much time people are given to pay their bills. U.S. President Barack Obama is expected to sign it into law on Friday. Source: CBC Remember to get off the plastic with Mogo. We provide small loans with short terms. That means less debt!