Credit Cards posts

By Dan Caplinger
Daily Finance

The rise of electronic payments has revolutionized the way people spend money. But with debit cards and mobile payment systems gaining in popularity, it's easy to forgot the many benefits that old-fashioned credit cards have over newer payment methods.

As Bill Hardekopf of LowCards.com noted recently, as long as you pay off your outstanding balance every month (admittedly, a big caveat), using a credit card is often the smartest way to pay. Let's look at some of the most beneficial features of credit cards.

There's nothing like the adrenaline rush of scrambling to get to the bank during business hours to pay thousands of dollars in HST, income tax and CPP to the Canadian Revenue Agency (CRA) via bank draft.

Now you don't have to worry about those bank drafts thanks to Plastiq, an online-payment company that allows you to pay bills, including your taxes online. What makes it different is that Plastiq allows you to use your credit card at institutions that previously didn't accept cards such as private schools, colleges and government agencies. All you have to do is sign up on the Plastiq site, chose the institution, pay via credit card and be charged two per cent of your total amount in fees.

By Michele Lerner
Daily Finance

Every time you make a plane reservation or rent a car or pay for concert tickets, you're asked to provide a credit card number.

Liz Smiley, a social worker in Florida, provides a debit card number instead. Smiley has lived without a credit card for more than four years, and she doesn't miss it a bit.

If you're a frequent flyer, you likely have a travel rewards credit card in your pocket - and for good reason! Today's crop of travel cards go far beyond racking up points to swap for flight discounts; lenders are appealing to the jet set with VIP features such as airport lounge access, concierge services - and, in some cases, even short haul flights. Many also boast comprehensive insurance coverage, from medical to lost baggage. These wonder cards may claim to have your back in case of a catastrophe... but can they really take the place of travel insurance?

Here's a breakdown of insurance options commonly provided by travel credit cards, and what you should ask when it comes to your coverage:

If you're feeling tied down by credit card debt you're not alone. A recent Harris/Decima survey reports that nearly half of Canadians "always or often" carry balances on their cards, and one-in-20 aren't sure they will ever be able to pay off their credit card debt. Wouldn't it be liberating to just cut up those cards and call it a day? But the truth is, canceling a card might actually give you less financial freedom than you'd think, mainly because it could lower your credit rating. If you are thinking of closing down an account, here are some risks to consider, according to the founder of WEALTHdesigns.ca, financial planner Jason Abbott:

1. Closing a card can effect your credit score.
A lot of people don't understand if you close a credit card it can effect your credit score at the credit bureau, says Abbott. In fact, Abbott says he usually advises against closing down a card if you've only got two or three. "I advise having two to three credit cards -- two for emergencies and one for putting things on and then paying down."
Tip: Think of the credit card as a tool to improve your credit score -- so long as you put purchases on it and pay the balance down monthly, or at the very least make your minimum payment on time -- it shows you can use credit responsibly.

I don't know about you but I went all out last Christmas. Not only did I spend on friends and family but I even bought a few gifts for myself and took part in all of the gift exchanges I was expected to. Now, like many other Canadians, after the joy and merriment of the holiday season I've got higher-than-usual credit card statements as proof of my generosity and the headache of needing to pay down debt before interests rates add up. I know I'm not alone. On average, Canadians' personal debt levels increased by about six per cent at the end of 2012, according to a new report by credit monitoring firm TransUnion. Holiday spending is partially to blame for the rise in consumer debt during the final quarter of the year, says Thomas Higgins, TransUnion's vice president of analytics and decision services. But enough about accumulating debt -- how do we pay it off while keeping up with life expenses? For some advice, I spoke with Pat White, executive director of Credit Counselling Canada. Here are her tips:

1. Take Stock, Make a Plan
First, you have to sit down and look at what you owe. Then you can consider how to pay back your debt as soon as possible, coming up with a realistic game plan to do so. This might mean reviewing your expenses. There are some you can't change like rent, but discretionary costs like eating out, clothing and vacations, you can hold off on until your debt is paid down. It's important to keep in mind if you drag out paying down debt, interest rates will cost you more in the long run.

By RateSupermarket.ca

A recent consumer poll shows that when Canadians select their personal finance products, money talks. Consumers are far more likely to choose a product offering the highest return or best price, even over intuitive features that may better address their financial situation.

The findings were gathered by the Consumers' Choice poll, conducted by RateSupermarket.ca as part of their inaugural Best of Finance awards, which tested Canadian preferences toward types of financial products and resources, as well as sentiment toward recent market activity affecting consumers.

By Nicole Seghetti
Motley Fool


By far, the saddest cases in my years as a financial advisor were assisting widows after their spouses' deaths. Not only does a surviving spouse have a great deal to manage emotionally, but the financial burden can feel equally overwhelming.

Later in this article we'll take a look at who's responsible for a late spouse's credit card debt, but let's first address three important financial actions to take soon after the death of a spouse.

(STORY CONTINUES AFTER SLIDESHOW)

10 Characteristics of Debt-Free People

A recent report said that Canadians are paying down their debt, which is excellent news. However, we're still comfortable with debt when it comes to major life purchases.

The recently released TD Canada Trust Report on Savings found that when it comes to weddings, the first home, a car and children, we are fine with taking on debt.

After cleaning the garage and giving the household a good scrub, you may think you're done with spring cleaning.

Before you rest in your newly cleaning backyard lounge, have you thought about your finances?

Everyone thinks about taxes during the month of April, but how about bank accounts, bills and credit cards and other payments?

When was the last time you took a look at what fees and surcharges were being taken from accounts or being issued when you access your money? Does your wallet look like George Costanza's?

Mobilicity is asking consumers to take time to look at their finances and make sure your money is benefitting you.