I was raised by a single mother of three who instilled a fierce need for independence in me. I’m not the “I buy my own rings and shoes” kind of independent woman but the kind who is a conspiracy theorist and relies on no one but herself for anything because no one else can be trusted!
My quest for independence has not resulted in me crushing all men in my path, a la Madonna, but rather an all consuming, irrational fear of being vulnerable and dependant as a senior. I’m probably the only thirty year old who has experienced sleepless nights worrying about my Power of Attorney for Financial Affairs and Power of Attorney for Health Care getting together and plotting against me just to get their hands on my tiny estate...trust no one!
In my quest to retain independence as a senior I save more than I can afford for retirement. This may not appear to be a bad thing but I’ve put myself in a vulnerable position unintentionally by having nowhere to go but my credit card in case of emergency. My RRSP is the last place I’ll want to go due to withholding tax and inevitable bamboozling at my next tax filing since the withdrawal would be calculated as income and taxed to within an inch of its existence. What’s a girl to do? Until recently the only thing to do was ask the Universe not to send me emergencies but now the answer is to get a Tax Free Savings Account!
The basics:
Of course the mantra of a conspiracy theorist is “it’s too good to be true...” but in this case I must admit it really is true. In an ideal world you would contribute to a TFSA as well as your RRSP but who lives in an ideal world? When faced with either a TFSA or an RRSP contribution a very general rule of thumb would be to consider your needs for an emergency fund and your income in relation to the tax deduction offered by an RRSP.
So, throw your hands up at me momma Rogers. With this TFSA that I’m rockin’ I can continue to “depend on me” well into my retirement even in case of a financial emergency!
Have questions? We are here to help
A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!
Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.
Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.
Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.
