Category Archives: Debt

Our Role in Helping Others Out of Debt

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This past week I got thinking about what the Bible teaches us about helping each other get out of debt. I have been studying personal finance for a few years and I recall reading something over the years which suggested taking extreme action against debt by cutting major living expenses; to the extreme of selling or renting their house and finding someone to live with in the meantime. With very low living expenses as a result, people could then make serious headway out of their debt! As my house is currently my only source of debt, I shrugged off this advice as something that didn’t really apply to me and probably better related to something a recent graduate with high student loans would say to their parents as they moved back into their old bedroom.

Or does it apply to me… in a different way?

I also recall thinking that while living with someone may be great for the debtor, what about the person whose house is invaded? What I did not think about at the time, was whether it is our responsibility as followers of Christ, to help others struggling with debt in such dramatic and simply put… inconvenient ways. Continue reading

The Other Cost of Debt

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Recent years have caused much debate over the impact and opportunities available to Canadians due to the high availability of cheap credit. Much has been written in personal finance circles about how the costs of credit cards, mortgages and zero percent financing on car loans can add up over time, regardless of low rates. The fact is that the hard costs of borrowing money (ie. interest payments), although not always intuitive or simple, can always be quantified. That said, I’ve found there is another possibly even more substantial cost to borrowing money which makes up the topic of today’s post. Continue reading

The Canadian Approach to Debt

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A paid off home has long been considered a fundamental of a good financial plan and something I hope to accomplish in my thirties. Currently 3 years into the first 5-year mortgage term with my lender, I have no plans to refinance and incur the associated financial penalties to lower my rate a few points. However, I do like to keep note of current lending rates and if you are a Canadian, you probably heard that the Bank of Canada cut it’s key overnight lending rate by 25% this week. While the jury is out on whether this was a good move for Canadians, my preoccupation with lending rates in general is purely out of curiosity as it has little bearing on my current financial plan. If the rates were to move sharply, whether up or down, my plan would be the same: to continue to pay off my mortgage as quickly as possible. Before I get into why, let me back up a little. Continue reading