How loans and interest affect you as a consumer and a taxpayer by Deryk Richardson by

How loans and interest affect you as a consumer and a taxpayer by Deryk Richardson by https://padlet.com/mythanon/moneymatters en-us 2017-03-31 18:32:24 UTC 2026-01-04 14:38:33 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Simplehouse.png The importance to be in the know. mythanon https://padlet.com/mythanon/moneymatters/wish/164162784 Hi everyone, Deryk here!

I strongly believe that knowing HOW to use your money is better than knowing how to MAKE your money.
These days even an exceptional paying job won't buy you a home in 10-15 years with your average living expenses right now.
This is why it is important to know how to spend your money, because it can both save you money and increase your cash flow.
Today, I will discuss school loans, car loans, and mortgages. They are definitely worth taking advantage of!
We will also briefly discuss how interest affects you, and also how credit score works.

Enjoy!
]]> 2017-04-02 13:43:02 UTC https://padlet.com/mythanon/moneymatters/wish/164162784 Student Loans - OSAP Explained mythanon https://padlet.com/mythanon/moneymatters/wish/164163574 https://www.youtube.com/watch?v=Tg--qw16X2A
This video demonstrates how to set up OSAP and when it's important to start paying it. She also illustrates how simple the entire process really is. You just sign up (which can be complex), and wait until 6 months after you finish school to start making payments on the interest. It's the only loan I know of where you do not have to make payments for 1 or more years depending on your length of program. Regardless, you do not want to have a huge amount of money over your head when you finish school, so work on making payments wherever possible while you are in school!
Lifehack: Put this devoted money in a savings account generating interest, and leave it until 6 months after your program!]]> 2017-04-02 13:54:52 UTC https://padlet.com/mythanon/moneymatters/wish/164163574 OSAP - 2017 mythanon https://padlet.com/mythanon/moneymatters/wish/164164373 https://www.ontario.ca/page/osap-ontario-student-assistance-program?gclid=Cj0KEQjwwoLHBRDD0beVheu3lt0BEiQAvU4CKkmu_RF9vijxIdjNEgmGgYvFd7zIV-1HDda6Haw05R8aAmYI8P8HAQ
OSAP has changed drastically this year. From one of the inside pages:

Ontario’s student aid transformation will make average tuition free for students with financial need from families with incomes of $50,000 or lower

This is a major change for anyone with lesser income. This will also bring more people the opportunity to go to post-secondary schools.
If you are planning on enrolling in post-secondary, before you pay anything make sure you inform yourself of any way to save money, or possible earn free tuition. The website posted above has a basic calculator to estimate your student loan and what you will have to pay back.

]]> 2017-04-02 14:07:34 UTC https://padlet.com/mythanon/moneymatters/wish/164164373 We needed change... mythanon https://padlet.com/mythanon/moneymatters/wish/164164953 As you can see, only 20% of children from households who earn 10k or less yearly attend post-secondary. Try thinking this way, 80% of those children do not attend post-secondary. Ugh.
We needed to make a change and allow more less-fortunate children have the opportunity to go to post-secondary.]]> 2017-04-02 14:15:32 UTC https://padlet.com/mythanon/moneymatters/wish/164164953 Car Loans, do NOT finance! mythanon https://padlet.com/mythanon/moneymatters/wish/164166716 This article brings reality to the situation of majority of people financing vehicles. In the past, usually car loans were 5 year terms. Which was "fine" as the majority of people replace their vehicle every 3-4 years. The problem is now people are taking on much longer terms; 8-9 year terms! By the time they replace that vehicle, they are only 4 years into the term and roll over that debt onto the next car.
Lets explain financing a little here.
The idea is you are paying off the car monthly or bi-weekly, usually with a down-payment up front to reduce the APR. However, the APR is sometimes lower if the term is longer. The lower the APR, the better, right? NO, absolutely not. A low APR and short term go hand in hand. You are constantly paying interest every month/bi-weekly on that vehicle! The fact is, throughout your life you should be focusing on increases your cash flow. Any time you EVER pay interest, you are throwing money out the window, reducing your cash flow. Financing sounds good, but it isn't. This post shows just how many Canadians fall for into this situation and it gets worse and worse.
Buy what you can afford, now. Own it, pay no interest!]]> 2017-04-02 14:39:44 UTC https://padlet.com/mythanon/moneymatters/wish/164166716 We're set to get a house! mythanon https://padlet.com/mythanon/moneymatters/wish/164170496 But wait! There are some important steps to take!
You need to start by determining just how much money you can put down. Keep in mind here, the more you can put down, the better! Why you ask? The more you put down, the better chance you will be approved, and the lower the interest rate can be! In the video, he uses the acronym LTV. The idea here is, you want the amount you borrow against the cost of the home to be as low as possible. You may have $100,000 saved up for a down payment, but finding extra pennies can really make an impact at that time!
Also, there are many risks involved. Be VARY careful before signing any mortgages! Do your homework, pull out the calculator and work out just how much the home will cost in the end! Work out how much it will cost monthly! It is obvious that setting up a mortgage is one of the biggest financial decisions of a persons life. So make sure you take every step to making the right decision.]]> 2017-04-02 15:30:35 UTC https://padlet.com/mythanon/moneymatters/wish/164170496 How interest grows fast! mythanon https://padlet.com/mythanon/moneymatters/wish/164186661 So we racked up a small amount of $597 worth of credit card debt. Starting in Jan 2017, and then making minimum payments (paying the interest) from here on out. By March 2036, 19 years later, we end up paying over 3 times the original amount borrowed just in interest. Now this isn't very realistic for a small debt. Think of student debt! Imagine you owed $12,000 now, and decided to pay it over 30 years. Do you know how much in interest you would have paid?]]> 2017-04-02 19:04:09 UTC https://padlet.com/mythanon/moneymatters/wish/164186661 Credit Score mythanon https://padlet.com/mythanon/moneymatters/wish/164187088 In Canada, we commonly use 2 different formats for calculating credit score: Trans-union and Equifax. The number for your credit score is just a rough idea of how you are handling credit. The higher, the better. The lower, the more banks will look at you as a risk and won't offer you credit and loans.
Large corporations and banks don't have a number to look at, as again this is just for you to have an idea. What they look at is your history. Your history is how the number is developed in the first place.
Confusing? Lets make it simple.
Your credit score is generally based on how well you make payments on debt. Another factor is how much debt you have accumulated. Keep in mind, loans/credit was designed for you to get something before you come up with the funds to pay for it. If you use credit this way, the way it was designed, your credit will be fine. ]]> 2017-04-02 19:09:51 UTC https://padlet.com/mythanon/moneymatters/wish/164187088 I reflected on what I learned here. mythanon https://padlet.com/mythanon/moneymatters/wish/164188488 2017-04-02 19:27:00 UTC https://padlet.com/mythanon/moneymatters/wish/164188488