Consumer proposal for debt and bank account change

I have been swimming in debt for a while. It felt like I wasn't progressing with the high interest that I was paying on my credit cards and loans.

I decided to get help. I'm currently in the process of getting a consumer proposal. It's a government program that involves repaying a portion of your debt. A licensed Insolvency Trustee negotiates with creditors on how much you need to repay.

This proposal consolidates the debt into manageable payments. It freezes debt interest charges. It also reduces stress.

The catch is that I needed to change banks. I can't have a credit card that is a part of this proposal with a bank account that gets my pay directly deposited. When this proposal is approved, sometimes credit card companies will take money from your chequing account to pay off the credit card before it is communicated that the proposal is official.

I had to change where my paycheque would be directly deposited. The change was straightforward through our Dayforce site. 

I was a bit stressed out that I did this change on Thanksgiving Day and it was immediately approved. I didn't know when the change would kick in. Would it be seamless or would I get a cheque mailed to me?

Well, all that stress went away. My pay was deposited last night, which was early. My payday is officially on Thursday. Bi-weekly.

I'm relieved!

I asked about how long it will take for my consumer proposal to be official. I got 1.5 weeks at least. I'm approaching one week on Friday. We had Thanksgiving Day, so I need to take that day out in my calculation.

Paid off a credit card

On Friday, I paid off a credit card that I've had for over a decade. It felt good.

I actually had to call customer service to get the final payoff balance. I had to wait another seven minutes on hold to have the woman calculate it.

I was on hold for nearly half an hour. At least I got the payoff total that I needed.

That's one problem about Canadian banks. They aren't upfront with your final balance. You are expected to pay what you owe on your statement. You then wait for another statement that calculates the interest.

I like how my bank in the US does it. There's the payoff balance and your statement balance for credit cards and lines of credit. You know exactly how much to pay off. You don't need to call customer service to have someone calculate the payoff balance for you.

Weird, Canada.

I'm happy that I have got rid of a loan and a credit card so far this year. My financial situation is looking better.

Bonus pay, relief, and friend

I gave my presentation online for work yesterday. It went well. I always feel great and relieved after it's done.

It's raining right now. I like rain at night. I find it soothing.

Yesterday, I got my bonus in addition to my paycheque. It feels good being temporarily rich. I have put the bonus towards paying off my debt, which continues to go well.

It's Friday at long last. I am seeing a friend, who is also my colleague, on Saturday. We haven't seen each other since last September. I am excited to catch up with her.

Credit update - great news!

I haven't talked about my finances for a while. All is great!

Last hour, I checked my credit score. My credit score went up by 60 points on the Canadian scale!

It is a big deal. I have been in the poor category for a few years. I am now in the fair category. Yay!

My goal is to get my credit score in the good range. I need a credit rating of at least 713, which is doable as I continue my journey to repair my credit rating.

I'm pleased. It does take a lot of work. It's nice to see results.

My financial situation is looking better

I am pleased with my financial situation these days. I have a single loan that I'm paying down faster by making additional payments when I can.

It's exciting seeing my progress. It takes a lot of hard work to stick to a budget and plan accordingly.

I have also been contributing more to my RRSP. I borrowed quite a bit out of this retirement fund and am trying to get it back to its original fund level. It will take some time, but I'm determined.

Loans and my debt

Here's an update on my financial situation. It'll be a medium post in length.

A couple of years ago, to repair my credit rating, I decided to take out a secured loan. Looking back, I shouldn't have done it. This loan company alleges that when you make regular payments to a secured loan, it helps your credit rating. Although somewhat true, repairing your credit rating takes time and dedication. It's not a quick fix like this company had implied. I didn't need to take this loan out.

Luckily, its term is only three years. I was closing in on two years of my loan. On Monday, I received a text message from the loan place saying that I could take out a cash loan thanks to my positive payments on my secured loan.

Now, I didn't want a cash loan. However, it allows the equity for the secured loan to get deposited back into my account and close that loan account. He said that I could pay off the new loan immediately. I decided to do it, as I just want out of both this secured loan and this cash loan that I never wanted.

The guy that I was dealing with was a pain as the process unravelled. I wanted the smallest loan amount possible, which is $2500. His confirmation text said $7500. Huh?

I also didn't want insurance protection, as I was going to pay the loan off immediately. At least he got that detail correct.

I have to call a special department to have my loan completely paid off. Fun! I wanted a specific day to have automatic payments come out of my chequing account to coincide with my payday. Nope, that didn't happen. It's the same special department that I need to get that changed. Even though I am not making regular payments, I'd rather be safe than have money taken out of my account that I have not budgeted for.

He asked for my bank statement overs the last three months. Since we were texting, I sent them that way. He then asked for them sent to his e-mail account. Why not say that to begin with? I actually had to download the statements from my laptop and transfer them over to my phone. I could have avoided the extra work.

During this process, I felt like this guy wasn't clear and upfront. He wanted a pre-authorized form filled out with my banking information. I put the company name in. When he got it, he wanted it blank. Well, why not tell me that upfront? I'm sending you a document with my banking information through the Internet. How safe is that it have any person take that information and authorize taking money out of it when the company name is blank?

Yeah, I had it. I told him off that I didn't appreciate these missing details, including the loan term. He frankly wasn't understanding my point of view. I told him so and said that we need to move on. I was tired of texting him who had the listening skills of a brick wall. I'm sure that I hit 100 text messages just to this guy by the end of this loan setup.

In the end, the loan money has been deposited to my bank account. My secured loan has been closed. I am waiting for the equity to get deposited. I'll call this special department to pay off this loan and close this account later on today.

What I am not thrilled with is the fact that having this loan company do a credit check on me will temporarily make my credit rating go down. It's sad that I simply couldn't pay off the secured loan without opening another loan. Then again, the secured loan was at a higher rate of interest and it's really not worth going through the loan for another thirteen months.

Other than this weird loan situation, I am thrilled that I can make more payments towards paying off my debt and improving my financial situation.

It's payday!

I get paid by my employer every two weeks. Technically, I get paid every other Thursday.

I do love my bank. It deposits my pay electronically by 22:10 on Wednesday night. I spend a bit of time paying various bills based on my bill payment schedule. It's an Excel spreadsheet. I have had a number of variations over the years, but the current one has guided me out of my darkest debt stage.

It makes me so happy paying bills and seeing results. I also like that I can put money away towards my retirement and emergency fund. It was challenging doing it a year ago.

Things are looking up and good with my finances. It takes a lot of effort and planning to get out of debt. I'm so pleased that budgeting has paid off (pun intended)!

Update on my debt reduction and fizzy drinks

Being in a pandemic for months has been unnerving and uncertain. One positive that I have mentioned in the past is that I'm not shopping all that much, other than for essentials (groceries and medication), and the odd need (computer eyeglasses).

Because I haven't been commuting to work, I have saved time, money, and aggravation. With money, I have saved so much that I have been putting that money towards my emergency fund and retirement savings (it's called a Registered Retirement Savings Plan or RRSP in Canada), and paying off my debt.

For a few years now, I didn't have an emergency fund. Either my paycheque was that fund or I'd have to dip into my RRSP. I was not proud of doing the latter, but it did help. I am so pleased that I have an emergency fund for unexpected expenses at long last. I hope that I don't have to dip into my RRSP again.

I have been building up my RRSP. I have regular monthly payments that I contribute to my own plan. I also have a certain amount put into my RRSP plan with my employer. I have contributing a bit more, which makes me feel good.

I have also been paying my credit cards in larger amounts. I'm extremely happy. Progress is good.

Even though I haven't been shopping that often, I decided to treat myself by buying a Sodastream machine. It basically makes tap water fizzy.

Why? Well, I drink tea and diet pop. With the latter, it's time to reduce the number of cans and bottles that contain pop. Instead, I can make my own carbonated drinks and reuse bottles.

I pick up my Sodastream machine later on today. I am looking forward to figuring out my new hobby!

Debt reduction is going well

I like the idea of providing a monthly update on reducing my debt. It is going extremely well.

July is a good month this year. I get paid three times, so I feel that I can pay off more debt.

I paid off my line of credit last month. It felt good. Luckily, the limit isn't huge. However, it took me a year to pay it off.

I still have two credit cards that are mine. I have one corporate card that sits there.

I use a MasterCard for daily purchases, such as groceries and takeout. I typically do debit, which has been helpful in reducing my debt and credit card usage. The other is an American Express card that I detest using. There is a backstory associated with my disgust for this company. The reason why I still have it is that I've been a customer since 2005 and it helps my credit rating.

As of late, I don't like these automated e-mails from American Express, stating in the subject line, "Future transactions may be declined." I am trying to figure out when this automated message disappears. It feels like Amex is being so kind to approve a transaction when my credit card isn't maxed out or close to its credit limit.

My credit score has increased by 16 points from the last score back in May. I am pleased. It has been hard work improving my credit score. I hope that it gets to a satisfactory level in twelve months. At this rate, I have a decent shot at it.

I am working from home for the rest of the year. I will continue to save more money, thanks to not commuting and fuelling my car with gas as often.

Weekend and countdown to vacation

I'm glad that the weekend is here. 

If I'm not mistaken, my vacation is coming up. It is weird that I'm not travelling somewhere and staying at a hotel for a week. Instead, I'm doing a staycation and will do day trips.

Friday was the first day of patios and businesses opening up. There are strict guidelines going into phase 2. I'm cautiously optimistic. I'm happy that businesses can serve customers in a patio setting. Although some of my favourite retail stores have reopened, I don't have any desire to shop there. I'm good with hitting the grocery store, restaurants for takeout, and the drug store.

I'm content with what I have. What I need are essentials.

I am also optimistic about my debt situation, too. I'm paying more of it off thanks to staying and working from home. It's such a great feeling.

My anxiety has died down. It's not completely gone, but I barely noticed it on Friday. It's a great sign.

Have a great weekend, everyone!

Debt reduction update

I haven't written about my debt reduction progress for a bit, other than continuing to save money staying at home. Commuting to the office is gone. I don't fill up my car with gas all that often. I go out twice a week for groceries, essentials, and takeout to help my favourite restaurants out.

As a result, I have more disposable income. It has been great contributing to my retirement saving and regular savings accounts. I had to dip into the former when my debt situation wasn't great. I didn't have an emergency fund. My regular savings account is that emergency fund that I have wanted and needed.

I get paid this week. It's a huge turning point. I will be paying off my line of credit completely. I am thrilled.

I do recommend having a budget and sticking to it, no matter how great or grave your debt situation is. I have been using an Google Sheets spreadsheet for a while and it does wonders. It's a question of being disciplined sticking to your budget, which is the toughest part.

Credit cards - a decade ago versus now

I just placed an online order with a store that I have not shopped with for a decade. My account still works, which is great.

The funny thing? Almost all credit cards on file have not been active for years. To me, it was nice to see. I have worked so hard to reduce the number of credit cards that I had. I'm down to two personal credit cards. One of them is an American Express that stays at home.

It's supposed to feel like summer this weekend. I need to haul out my summer clothes. I'm not ready for a heatwave!

Self-isolation and debt improvement

I am fortunate to be able to work from home and get paid. The shift from working a couple of days a week to every week at home isn't a huge deal for me.

However, what I have noticed is that I am saving money. As a result, it is helping me pay off my debt. I am in better financial shape at this point than I had predicted.

My commute is roughly 50 km in one direction. I used to fill my car's tank with gas each week. I do it once a month now. With gas prices being low these days, I have been saving roughly $160.

These days, I make most of my meals at home. I go out two times a week to get groceries and takeout. I don't eat out as much. I don't go to Starbucks as frequently as I used to. Again, I save more money.

I haven't travelled in over a month. I don't have airfare, hotel, or car rental bills to pay off.

A while back, I pointed out that I was doing well paying off my debt. Well, I am nearly done paying off another credit card. I will be down to two active credit cards. I will be keeping both of them, but one will sit there as a backup. The reason for keeping it is that I've been a customer for well over a decade with this credit card company. It looks good on my credit report if I continue having it. It's not my favourite credit card, so that's another reason why I am not tempted to use it.

Things are looking up financially for me. It has been a lot of hard work to get to this stage. Sticking with a budget helps. Being isolated at home is another method that has helped, which I didn't expect as a benefit.

Taxes and financial outlook

On Sunday, I filed my taxes. I am roughly 1.5 months early. I am looking forward to getting money at the end of the month.

Things at work are better. For a while, employees didn't get bonuses for three years because our company was digging itself out of debt. Last year, we got a bonus and it was amazing. I get one again at the end of the month, which is supposed to be better than the previous year. Yay!

I am looking forward to taking that money and paying off my debt. I also hope to invest some of it. I am working on an emergency fund in my savings account. It has been years since I've had a decent one.

I like that my financial situation is getting better. It has taken a while, but it's nice to see things coming together.

Credit update, including a credit card renewal

I have lots of good news about building up my credit rating. For a good year, I have been working hard to rebuild it. I am slowly seeing results as I continue to pay off my debt and make more than the minimum payment each month.

I got a free account through TransUnion to check my credit rating at my convenience. Since I have been monitoring my credit rating, it has improved from being very poor to poor. Although it's still not great having a poor rating, I am out of the very poor rating level, which is a huge step. I am so pleased with my progress. I hope that a year or so from now, my credit rating will be considered fair. I'll then work my way to making it have a good rating again.

Baby steps. So far, so great.

A while back, I posted about whether a credit card company will renew my card. It expires next month. I got my replacement card on Friday. I am thrilled!

When one bank decided that I was a risk and didn't renew my credit card with a low limit ($1,000), it was quite a blow to my credit-rebuilding confidence. Even though I never missed a payment with this card, this bank decided to shut down my account because my credit rating wasn't great. My track record meant nothin at all.

With the other credit card company that decided to renew my card, I am thankful. I was hoping that it would because I do like what this card does for me. As a customer, this bank has made me feel good that it's trusts me. I can only think of a couple of times where I was late with payments, but only by a couple of days. It has given me some slack, which I appreciate.

I am pleased that I have two credit cards. They serve my needs well. I won't repeat my mistake by getting multiple credit cards when my credit rating improves. It was a trap that I won't fall for again.

Anyway, I wanted to share my good news about my financial situation. Things are looking up and I am happy.

Side gig

I have a side gig. Or, some would call it a side hussle. It's interesting. It just happened.

For a while, I have been writing reviews on a social app. Someone recently noticed and wants me to do the same thing. What's different is that I get paid for this work. Hey, that's different!

I do the same thing as I've been doing for a few years now. I visit business as the customer that I am. If I'm ordering and eating food, I write about all of that. If I'm getting my car serviced, I write about my experience. I get paid for doing it now.

I got my first payment for my first review yesterday. The extra money comes handy these days. Although my debt situation has improved a ton, I am three loan payments away from paying it off completely. That extra money will go towards even more aggressive payoff of my credit cards.

It's cool. We'll see how things go.

Pay raise - yay!

Good news! I got a raise. It's a miracle, considering how things are going at work.

My raise is 3% of my base salary, which is higher than the norm without our department. I am grateful. I haven't got a raise for the last two years.

I am looking forward to having some extra money. Naturally, it will go towards my debt.

Optimism with finances

Things are looking good with my finances. By the end of this month, I should have paid off a credit card that started my debt issues. It has been a lot of hard work to pay it off. I am glad that I'm nearly there.

I have a loan that should be paid off by late May or early June. It's difficult to predict when the last payment day is. I made extra payments, which is throwing off how the last day is being reported. I dislike how inflexible computer systems are.

Anyway, I estimate that sometime in June, I will have more income to build up my emergency and retirement savings, and continue paying off more of my existing debt such that I don't need to care about maxing out my credit cards.

I'm so happy with my progress.

Tax return and financial health

On Sunday, I filed my tax return. It's nice to get it out of the way. I am roughly 1.5 months early filing it.

I am pleased with how things are going with paying off my debt and getting back on track. This year has some exciting changes:

• Number of credit cards paid off: 2
• Number of loans paid off: 1

I will also be focusing more on saving money. It's sad that I have had to abandon this practice for a while to pay off debt. It's important to have a decent reserve for emergencies. These days, it's my retirement savings and I don't want to dip into it.

I'll need to build up my retirement savings, which I am looking forward to. I'm optimistic and excited! It's nice to feel good about how far I have come.

Bonus pay coming soon to my chequing account

On Monday, it was confirmed that my bonus pay will be deposited at the end of the month. I am excited!

I have a loan that will be completely paid off at either the end of May or early June. I am putting this bonus pay towards paying off a credit card. I will be in decent financial shape come the summer.

It's nice to look ahead and see how bright my financial situation will be. Yay!