My Blog
My name is Margaret H. Johnson. I own two credit counselling and debt consolidation businesses and am currently President of The Canadian Association of Independent Credit Counselling Agencies (CAICCA). Welcome to my blog!
I have over 36 years of financial industry experience in both lending and collecting. I am an Accredited Insolvency Counsellor, Registered by Industry Canada. View my bio.
I keep a journal of thoughts that I'd like to share with you, and I have asked my team at my company Solutions Credit Counselling Service Inc. to contribute their industry experiences as well. The more info the better! I hope you enjoy these, and please share your thoughts and comments!
Beware of Debt Settlement Scams
Written by Margaret Johnson | Wednesday, 16 May 2012
If you are knee-deep in debt, you have likely noticed recent radio and TV ads featuring a well-known Canadian celebrity with a sonorous voice pitching a “debt-settlement” program that promises to pay off overdue loans at a fraction of the original amounts owed. Sounds too good to be true? Well apparently it is.
Saskatchewan BBB warns about debt relief scams
Written by Margaret Johnson | Tuesday, 15 May 2012
The Better Business Bureau of Saskatchewan been receiving inquiries from consumers who have been contacted by debt relief services promising to lower rates and help with their debt.
BBB Saskatchewan has some tips to help consumers separate legitimate credit counselling services from scams:
Consumer Alert: Debt Settlement
Written by Margaret Johnson | Thursday, 10 May 2012
The Ontario Government’s Ministry of Consumer Services is the latest government body to issue a consumer alert “warning consumers to exercise caution when considering a contract for debt settlement services.” They warn that “complaints about companies offering debt settlement services are increasing,” and “most of the complaints are about unclear or misleading contracts, excessive fees, and failure to reduce debts as promised.”
If you are considering using a debt settlement company read the following official government warnings and learn the difference between debt consolidation and debt settlement. Make an informative decision!
Government of Canada Consumer Alert
Ontario Government Consumer Alert
Instant Loans
Written by Margaret Johnson | Thursday, 29 March 2012
The ‘Alternative Credit Sector’ grew out of the forest of modern personal finance like a fungus that sucks out the remaining life from weaker and dying species. The early agents of the modern credit society were labelled by many as poverty lenders who specialized in poor people who could not qualify for credit from mainstream banking or financial institutions. Harsh and often unconscionable terms for repayment accompanied these loans with the most notable condition being usurious interest rates - so high and excessive that the loan recipients were assured to remain poor while having their suffering intensified and extended well into the future.
Household Debt and Rising Interest Rates
Written by Margaret Johnson | Wednesday, 28 March 2012
“The news is out, and it’s all over town," as Hank Williams once wrote. Interest rate hikes have already been seen from the banks on mortgages, unprovoked by a Bank of Canada rate increase because there wasn’t one. The Royal Bank and the TD Bank raised mortgage rates in February to 3.39% on their four year fixed rate. This reenergized speculation that a Bank of Canada interest rate hike looms on the horizon. This first step with higher interest rates also renewed competition over 4 and 5 year locked-in mortgages.
Women in Kitchens or Boardrooms
Written by Margaret Johnson | Tuesday, 06 March 2012
On CBC today an exchange between Kevin O’Leary and Amanda Lang about Europe’s recent efforts to improve the presence of women in corporate boardrooms reminded me that women still have a long way to go.
An article by Tavia Grant in the Globe and Mail revealed that women remain dramatically underrepresented in boardrooms across the developed world. A debate has been resurrected whether or not forced or voluntary measures to diversify boards should be implemented. However, it is quite clear that voluntary measures have failed dramatically.
So where do we really stand?
Debt Settlement Companies to be Regulated!
Written by Margaret Johnson | Friday, 03 February 2012
Regulations Protect Against Unfair Debt Settlement Fees: Rondeau
Debt-settlement Agencies Must Now Be Licensed
Amendments to the Consumer Protection Act regulation have been made to protect Manitoba consumers by banning upfront charges, setting maximum fees and requiring debt-settlement agencies to become licensed, Healthy Living, Seniors and Consumer Affairs Minister Jim Rondeau announced today.
“We want to be sure that people already struggling with debt don’t find themselves paying large fees upfront with no guarantee the service will actually reduce their debt,” said Rondeau. “Some consumers have found themselves worse off than before signing up for debt settlement.”
Under the debt-settlement model, consumers may be told to stop paying their creditors and put money aside in a separate account. When the account accumulates a large enough balance, the agency will then attempt to persuade the creditors to accept a smaller payment than what is owed. Debt-settlement agencies have claimed to reduce debt by a significant amount but there is no guarantee the creditor will take anything less than full payment, said Rondeau.
Budgeting
Written by Margaret Johnson | Wednesday, 18 January 2012
Shelter
The shelter expense for family budgets is one of the most misunderstood categories of all. Why? Because we are told we have total control over the choices available.
The first and second issues are inseparably linked: availability and affordability.
Availability
Where do you live? Actually, the questions is, “What geographical location do you reside? Are you in a remote community, a large urban centre, a rural setting? These situations dictate price and availability.
In larger urban centres there may be appear to be more choices but vacancy rates determine availability as market conditions (supply and demand) affect house prices.
In other words, urban centres tend to be more complicated. Where you live may depend upon the need for schools, access to public transit or the worksite.
Now that we are finished this short summary of issues we do not fully control, we move on to affordability.
The 5 Year Lock-In is Back
Written by Margaret Johnson | Wednesday, 18 January 2012
The Bank of Montreal’s January 12th 2012 media-attracting announcement of 2.9% interest for a 5 year mortgage sent a few shivers up and down my central nervous system. Why? Because I remember all of those locked in mortgages in the early 1980s – where people rushed to get locked in at extremely high rate mortgages at 18% or more because of fear.
Fear is a great motivator. Especially when it is disguised as a great opportunity to protect yourself from something bad like interest rate hikes – just lock-in now for 5 years.
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