Happy New Year!

It's a new year and that means new resolutions. I know the last few months have been...well, I'll just say they've been interesting in my attempt to keep things positive. Look, I know a lot of you have been thrown into an economic tailspin and aren't feeling that fine in '09 but the important thing to remember is that you can make 2009 the year to take control. The best thing for all of us is to face our own economic situations head-on and think of feasible solutions for dealing with our debt. For this reason we've included a number of insightful articles in the January issue of our newsletter.

In this issue you can read about how five women from Vancouver were able to achieve financial success (and even got their own television show because of it) after years of avoiding dealing with their debt. And we didn't forget that it's a new term for young academics so we've included our top ten saving tips for college/university students. Finally, we'll also discuss how a number of health and behavioural issues are related to debt, so it's important to address and assess our lives in a holistic manner.

I think we've let 2008 wreak enough havoc on our lives; it's time we make 2009 the year we take control!

Laurie Campbell
Executive Director

Not all cookies crumble

We're still in high season for New Year’s resolutions and given our economy, many of us are thinking about organizing our financial situation. So we thought we’d ask the experts some advice on why it’s important to work towards dealing directly with debt. 

A group of five young women from Vancouver were in much of the same financial situation most of us find ourselves today. They were faced with a financial mess and desperately wanted to find a way to live the lives they had always dreamed of living. Rather than embarking on the road to financial redemption all on their own, they decided to form a little money group called, The Smart Cookies. Since then they have been on the Oprah Show, got their own television show on the W Network, and they’ve even written a book.  

The Smart Cookies proved that it’s possible to live a fabulous life while responsibly managing your money. It’s not about stinginess, or depriving yourself, or not being able to afford to have a little fun. It’s all about managing, prioritizing, and figuring out what’s important to you. This is what the girls refer to as the rather factor. Andrea Baxter from the Smart Cookies says that instead of going out and spending $50 on a nice dinner, you should ask yourself if you would rather be spending that money towards something that will bring more enjoyment and pleasure, such as saving-up for a car, or a trip, or even a new pair of jeans.  Once you’ve decided what you would rather spend your money on, you should set aside a certain amount every month for it.

After more than 40 years of serving the community, Credit Canada understands that one of the many reasons why most people run into financial trouble is the need for immediate gratification, and this especially concerns our generation. Executive Director, Laurie Campbell, is concerned because the North American culture seems to dictate that we need to have everything we want in life right now. We all have to come to terms with our own financial realities, and for some of us that means understanding the discordance between the financial lives we lead and the financial lives we've earned. Most people think it's only people who don't open mail from their creditors or who avoid collection calls that have financial problems, but the truth is that all these peoples' problems began with something most people do on a regular basis, and that's supplementing their income with credit, or rather, money that isn't theirs. What we're essentially doing is living a financial lie, and the first step is facing this reality.

Most people aren’t comfortable speaking openly about their personal finances, including one’s salary and any money problems one may be encountering. So a lot of people will perhaps find the idea of speaking openly and candidly with friends and acquaintances about these things very uncomfortable. But restructuring one’s economic lifestyle can be a very stressful and a difficult process. For this reason, the experts say that you’re more likely going to stick to your goals when people are holding you accountable on an on-going basis; therefore, it makes sense to work with others when getting a handle on your finances.

The Smart Cookies used their money group as a resource tool because each member went into the group with various areas she knew more about, whether it was investing, debt management, savings accounts, or credit. Getting your hands on the right information has a significant impact on your personal financial matters, so the Smart Cookies encourage people to reach out to resources in their community, including debt repayment programs, as long as these resources don’t cost you much.

The Smart Cookies recently published a book, The Smart Cookies Guide to Making More Dough, which acts as a guide to a money group while sharing their personal trials and struggles as they went through the process of getting their financial life back on track. The book gives readers insight as to how these women, with no professional financial background, went from financial disasters to financial masters just by going back to the basics and fundamentals of money management.  The book also provides readers advice on innovative and creative ways to increase income, because for some of us attaining financial stability comes down to simply that: making more dough.

If you're thinking of forming your own money group, don’t hesitate to call Credit Canada and book a Money Management and Budgeting seminar. This will be a great way for you and your group to be well on your way to attaining the financial freedom you’ve been hoping for.

You can see the Smart Cookies on the W Network, Mondays at 10:30 pm, Tuesdays at 11:30 pm, and Thursday mornings at 11:00 am.

For additional free financial resources and money management tools please visit www.creditcanada.com.

Top 10 saving tips for the

college/university student

As a university or college student you have to learn how to make your dollars stretch, and you've got to learn fast. So here are a few tricks of the trade to get you through the semester with some extra change in your pocket.

1. Meet Mr. Noodle – by the end of your university or college career you and Mr. Noodle will have forged a relationship with memories that will last a life time. When you are hungry, Mr. Noodle is there.  When you’re strapped for cash, Mr. Noodle says, “No problem, I got you.” When it is cold out, and you’ve just received a C+ on an essay or bombed a midterm, don’t worry. Mr. Noodle is waiting for you in your dorm room, ready to bring you that warm fuzzy feeling to your stomach.

2. Fight for Your Right to Party – as a university/college student, you will acquire excellent research skills. But why limit using these skills to the classroom alone? No, young grasshopper, you must learn to use your power for good, not evil. In other words, figuring out which are the best spots to visit and when to go for cheap drinks and no cover. Different clubs and pubs will have different deals, like cheap pitchers of beer, depending on the day of the week so do your homework and share the info with your fellow party-goers.

3. Your Closet is My Closet – let’s say you’ve got a hot date but you’ve got nothing to wear. Do you go shopping? Heck, no! You better save those student dollars for more cheap beer and Mr. Noodle.  See, there’s a certain code of ethics when you’re a student that allows you to get away with things that you may find unacceptable later in life and having full-reign over your roommates’ closet, anyone on your same floor’s closet, and the closet of those people who you’ve recently met is just one of those special perks you get when you're a college or university student. But remember that you will probably need to request resources from these people again, so don’t burn bridges and treat the clothes you borrow with the utmost of tenderness and care. And ALWAYS read the instructions of how to clean the garment before you attempt to wash it. Too many lucky sweaters have been destroyed by the good intentions of friends. 

4. Swap Party – whenever you begin to feel that your closet needs to be revamped, organize a swap party with a few of your friends. This is a great opportunity for you to mingle while getting rid of things that you no longer use. Remember that you don’t have to limit swapping to clothes. You can also swap beauty products, furniture, accessories, music, and boyfriends, I mean old movies. A new wardrobe, a new excuse to get together with friends, and not a single penny spent. Not too shabby.

5. Study Group Potluck – you will have countless nights when you’ll be cramming with your friends. Rather than spending over $10 on the highly anticipated study break, consider bringing the snack yourself. Not only will this keep those coveted $10 in your pocket, but this will also serve as a great excuse to procrastinate: you can’t study because you’ve got your study group snack to make! The best part is that the more you procrastinate by making an excellent snack, the more everyone will like you.

6. Go Big or Go Home – go grocery shopping with friends and roommates so that you can take advantage of the discounts you get when buying in bulk. Remember to invite someone who has a car, that way you can all save on transportation costs and not have to carry everything on the bus, or even worse, carry it home walking.

7. Get Booked – textbooks will probably cost you around $1000 per academic year or about $500 per semester, so if you can cut this cost down you’ll be saving big time. One trick is to buy the books you need from people who have already taken the course; however, sometimes instructors will change the textbook they use from year to year so make sure you have an up to date list of the books you need. Another option you have is to split the cost of the textbook and share it with other students in your class.  Ensure that you come-up with a feasible schedule for sharing the book. This will also help you keep on top of your readings since you’ll know you only have the book for a couple of nights a week. 

8. Dating on a Dime – we know the deal. You meet a girl, you’d like to take her out but you’ve got no cash. What most people don’t understand is that you don’t need a lot of money to have an awesome date; you just need to put a little more effort and creativity into it. You can cook dinner for your date then head out to a venue to watch some live (and free) music, or go to an art show, or a live poetry reading. Remember to keep an eye out for interesting events your campus is hosting and suggest going to one with your date, such as guest lectures, music recitals, art exhibitions and plays. The great thing about campus events is that they’re pretty good, often free of charge, and they usually have refreshments, which means free food.

9. Looking Good and Feeling Better – life on campus can get pretty stressful at times, especially during midterm and exam periods. So when the going gets tough, the tough should head to the gym to let off some steam. Most colleges and universities have their own gyms and recreational centres and as a student you have access to these facilities for a minimal fee, something like $10 for the entire academic year, so take advantage of them.

10. Say it Loud, Say it Proud – most stores, movie theatres, attractions, and fast food chains offer discounts to students, even if they don’t advertise it. So when you go to the check-out counter remember to tell the sales clerk that you’re a student and see if you can get a deal.

So there you have it, my frugal friends. Some words of wisdom passed onto you by those who have gone before you and learned the ways of the savvy saver.  Now it’s your turn to continue the saga.

The debt effect

It's no question that a person's financial stability has a direct effect on their overall quality of life, but recent studies have concluded that enduring forms of financial stress have a profound impact on not only a person's health, but also on their behaviour. A recent article in the Toronto Sun discusses how during economic hardships people are more likely to engage in counter-productive behaviour such as drinking, drug use, over shopping, over spending, overeating, and even adultery. These behaviours lead to more expenditures which only lead to more stress; making an already bad situation even worse.

There is ample research on the effects of financial stress potentially has on a person's health, such as high blood pressure, weight gain, headaches, gastro intestinal problems, and insomnia. However, people who have traditionally found value for their life through their careers and business transactions are more likely to feel a sense of loss and emptiness when this area of their life is unsuccessful. As such, they turn to other things to fill this lost sense of worth, such as extra-marital affairs.

What studies such as these demonstrate is that all areas of a person's life are interconnected to one another, so if you're experiencing trouble in one area, such as your finances, and it persists you'll more than likely experience problems in other areas of your life, such as your physical health, mental well-being, and emotional relationships. This is why it's crucial for people to be proactive when it comes to their financial troubles.

The only solution is to become financially literate and seek help if you should require it. For this reason Credit Canada has made a whole slew of financial resources and tools available for free from our website, www.creditcanada.com. This is also why we offer free and confidential debt counselling. This is why we continue to push for legislation that will make it easier for clients to pay back their debt in an orderly manner, so that they aren't at the mercy of creditors. This is why we continually reach out to the community through community partnerships and events such as Credit Education Week Canada. But most importantly, this is why Credit Canada will continue to support you in achieving financial freedom, and attaining overall health, balance, and

well-being.

If you or anyone you know is currently experiencing financial difficulties, please don't wait until things get worse. Call us now at 416-228-3328 because we'd love to help!