Credit Canada

An important factor for many of you as you pay off your debt is the re-establishment of credit. CIBC CISA has recently set up a re-establishment program for successful graduates who have paid off their debt through Credit Counselling.

The opportunity to apply for a CIBC Secured Classic VISA Card has been made available to you upon the completion of a DMP. The credit limit will be equal to the amount you choose to deposit as security with CIBC (an amount between $500 and $5,000 Canadian dollars). A competitive interest rate will be paid on the security deposit, which will be returned to you once a solid credit history with CIBC has been established. To achieve this, payment of at least the minimum payment due must be made on or before the payment due date for 24 consecutive months; as well as complying with the CIBC Cardholder Agreement.

To find out more about how you can apply for a CIBC Secured Classic VISA Card after your successful completion of a DMP, call your Counsellor or Laurie Campbell at (416) 228-3328, ext. 208.

*VISA Int. / CIBC lic. user

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2000 Years of History

This is a fascinating time in history and I can't resist writing about the impact of time that January 1, 2000 will have on all of us. The millennium is regarded by all as a unique milestone in time. Using the Roman Calendar, it is measured by numbering the years consecutively from the first calendar year of Christ's life. There is a good case for the millennium ending on December 31, 2000 largely because there is no year '0' in our present system of calculating the calendar. However, it's obvious that most people will celebrate the new millennium on December 31, 1999. Further information about our calendar is that Julius Caesar ordered Rome to abandon the lunar calendar system and introduced the new calendar, which later became known as the Julian Calendar. It seems absolutely incredible that this same calendar with minor adjustments still serves the world today!

Everyone at Credit Counselling, our Boards of Governors and Directors and staff wish you and your families a very HAPPY HOLIDAY SEASON. We wish you well for the year 2000 and beyond! Please remember always that we're here to help you. Our pleasure is doubled whenever we share the achievement of your financial goals!

HAPPY NEW YEAR!

Affiliated with over 15000 offices in Canada and the United States including 27 in Ontario. Our agency is an Accredited Charter Member of the Ontario Association of Credit Counselling Services (OACCS) and a non-profit, charitable service organization since 1965.

Charitable Registration # 11922 9011 RR0001

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Have a Financially Sane Christmas

It's once again that time of year to start on that Christmas gift-giving list, if you haven't already. It's a good idea to begin with a review of last year's list, and a serious look for ways to cut your spending.

As you review your budget this Christmas, keep in mind that gift-giving is not the only way we can be generous with spreading of holiday cheer. Look again at your gift list. Would someone with small children enjoy an evening of free baby-sitting? An elderly relative may really appreciate having a room painted, the garage cleaned or receiving a handmade coupon book redeemable throughout the spring and summer months for yard work. Use the time you would have spent shopping for a gift for someone on your list to their real benefit.

Contemplate ways you can be generous with your time. No finer gift can be given than heartfelt thoughtfulness. To give our time exemplifies the true spirit of the holidays.

So take some time to review your finances and carefully plan a financially sane Christmas.

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Your Holiday Values

Read and prioritize the following value statements. Cross off those that have no importance for you and add any equally important ones that are not included. Remember, there are no right or wrong answers.

Suggestion: Do this with your family and significant others. First, have everyone fill out one of these forms. Then gather and discuss what you have written. Use this information to formulate a holiday plan that addresses, as much as possible, each person's needs and desires.

Rank the importance of each one to you. Use one as the most important.

The holiday season is a time...

___ to be a peacemaker in the world at large

___ to be a peacemaker in the family

___ to enjoy being with my family

___ to stregnthen bonds with my family

___ to exchange gifts with my family and friends

___ to party, entertain and visit with my friends

___ to help those who are less fortunate

___ to create a beautiful home environment

___ to strengthen ties to the religious community

___ for relaxation and renewal

___ to celebrate the birth of Christ  (Christmas)

___ to celebrate the survival of the Jews (Hanukkah)

___ to celebrate an African American tradition (Kwanza)

To Lease or Not to Lease...

Consumers are increasingly turning to leasing as a financing option, based in large part on the lower monthly payments leasing provides. While this is an important factor, there are a number of questions to ask yourself before you choose.

Staying On Track looks at this issue using the example of leasing a car.

Is ownership important to you?

When you lease a car, you pay to use it for a specific period of time, usually 36 months. When the contract (lease) is up, you do not own the car and now have two choices. You can either buy it from the leasing company or give it back.

When you buy a car with a loan, the car belongs to you, although the lender will have a lien against it until it is paid for. At the end of the loan, the equity in the car is yours. You can keep driving it or use it as a trade-in on a different vehicle.

Before deciding to lease or buy, consider your driving needs, how they might change and how long you plan to keep the car.

If you do value ownership, then making larger monthly loan payments is likely to be less expensive in the long run.

How many miles do you drive each year?

Most leases have mileage limits. If you exceed the limit, you are charged a per-kilometer fee at the end of the lease. The number of kilometers and the rate can be negotiated before you sign the contract if you do a lot of driving. It is less expensive to arrange this before you sign rather than after the lease is up.

How much can you afford up front?

As with buying, a trade-in or down payment affects the amount of the monthly payment. In leasing, this is referred to as capitalized cost reduction and security deposit. The more you pay in advance, the lower your monthly payment. But the size of the monthly payment is not the only consideration. Remember, in leasing, you are paying only to use the car and you are expected to return it in reasonable condition at the end of the lease. Excessive wear and tear will be charged to you when you return the vehicle or your vehicle will be worth less than the amount you must pay if then you choose to buy it.

Will you want to get rid of the car before the lease term is up?

If you do, you will be responsible for the balance of payments left in your contract, excess wear and mileage, and applicable taxes less any premium refunds on the insurance policy which you have prepaid. The car is usually then sold by auction and you will also be responsible for any shortage if the sale price is less than the residual value (predetermined value of the car at the end of the lease).

When you buy a car, however, you can sell it as long as you pay off any remaining loan balance. Any equity is yours.

CAUTION!

When shopping for a car, remember that lease terms are negotiable. You should shop for a lease the same way you would shop for a vehicle.

Whether leasing or purchasing, remember to read any contract carefully and get answers that you understand before you sign.

Leases are better for some while buying is better for others.

Make sure you think through your own needs and your financial situation, not just today, but for the next 36 months.

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Bank By Phone

Below is a list of institutions which provide telephone banking for credit counselling payments. You will need your client number to use the service. Please contact your own financial institution to get answers to any questions you may have regarding electronic or telephone banking.

CIBC 1-800-465-2422

Canada Trust 1-800-668-8888

Bank of Montreal 1-800-363-9992

Bank of Nova Scotia 1-800-267-1234

Royal Bank of Canada 1-800-769-2511

Banca Commerciale Italiana 813-2817

Toronto Dominion Bank 1-800-465-BANK (Toronto: 985-2265)

Credit Unions (Contact your local credit union)

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Disclaimer: The Credit Counselling Service of Toronto accepts no responsibility for the accuracy of any of the opinions or information contained in this newsletter. Readers should rely on their own enquires in making any decision touching their won or any other person's interest. Editor

Credit Counselling Service of Toronto
45 Sheppard Ave. East, Suite 810
Toronto, Ontario M2N 5W9