Good debt vs bad debt

Good debt vs bad debt -

We all have debts each and every month. But there are debts that work towards a healthy financial future, and debts that hold you back and erode your credit rating.

Let’s explore good debt vs bad debt.

Bad Debt.
This would be something like a credit card balance that keeps rolling over month after month. You may be just covering the minimum balance. Even as you hit click on your online payment or drop that cheque in the mail, over the long run, this type of debt is frowned upon by the credit rating powers that be. By not paying off those credit card balances, it tells potential lenders you are maxed out on debt, and not capable of handling further debt.

Buying what you need vs what you want.
Borrowing to buy a new piece of electronics, or cell phone is definitely debt that needs to be questioned. You should always ask yourself, “Do I really need this? How will this purchase improve my financial situation?”

Good Debt.
You’re starting a new job. It’s a job with great potential but unfortunately it’s not convenient to transit and arriving on time each day to work. You decide to borrow to buy a car. This is good debt. You’re investing in your future. Now, however, if you buy a car that is too expensive for your budget, you’ve shifted back into bad debt.

Investing in your Future.
Real Estate. Buying a home that matches your budget and doesn’t make you “house poor” is good debt. You have looked at your city, and purchased in an area that is on the rise. By and large real estate is almost always a good investment, but you need to not buy over your head. A property that is not properly maintained will end up becoming much more of a financial drain should you eventually wish to resell or rent that property out. But, just with the example of buying a car you can afford, buying a home within your budget is definitely smart investing and falls under the category of Good Debt.

Borrowing to purchase a new set of clothes for job interviews is an example of good debt and investing in your future. Designer labels or clothes that are priced way beyond your budget aren’t necessary and the return on that investment is questionable.

Borrowing to take classes which would increase the likelihood of being considered for a job is definitely another example of forward thinking good debt. But have a plan in place. Choose classes that will make you a more sought after candidate; classes that all weave together as a program that says you have an area of expertise which can be used in the marketplace.

Good debt is common sense debt.
We all know, deep down, whether a purchase is frivolous or a logical place to spend your money. Anytime you can borrow at a lower interest rate to pay off higher rate debt, it’s considered good debt. Any purchase requiring debt that can help improve your financial situation should definitely be considered good debt.

Often a loan will free up money that can be used to make a good debt purchase. The equity you have in your car or truck could pave the way to a brighter future.

If you are looking to get approved for a loan with bad credit, Prudent Financial can help. We provide funding to those in consumer proposals and even undischarged bankrupts.
Call about a BorrowWithYourCar loan or a consultation on your debt situation today at 1-888-852-7647.

Control Credit Card Spending During the Holidays

Avoid Using Your Credit Cards During the Holidays


Yes, the holiday season is almost here. That means it’s nearly time for the excitement, stress, rush and busyness of the season. It also means that it’s nearing the time of year where a lot of people spend a lot of money on parties, gifts, décor and much, much more.

Unfortunately, it’s easy to wind up in debt trouble during the holiday season. It’s even easier when you’re using your credit card.

credit card

Holiday Spending & Credit Card Debt

One major reason that people wind up in debt when using their credit card during the holidays is that they lose track of how much they’ve spent. You likely only receive your credit card statement once a month so, unless you’re very good at keeping tabs of your spending or you’re checking your balance online on a regular basis, it’s very easy to forget about how much you’ve spent. You will likely make many more purchases over the holidays than usual so it can become even harder to keep track of them all. Even a series of small purchases can quickly add up to a lot of money.

Since the purchases made on your credit card don’t come out of your bank account until after you’ve paid the bill, it’s often difficult to budget as well. This can result in being unable to pay your credit card bill in full when you receive it. This means you’ll end up carrying a balance and carrying a balance on a credit card can be very costly.

Most credit cards have very high interest rates. Even if you only carry a balance for a few months after your holiday spending is done, you’re still going to end up spending a lot of money on interest. This is money that you don’t need to spend and that you can avoid spending if you’re careful.

Another reason to avoid credit card usage over the holidays is that it can lead to impulse spending. Since the money isn’t coming directly out of your bank when you spend it, some people are less concerned with how much they’re spending. This can get you into trouble.

Avoiding Holiday Debt

Rather than placing all of your holiday spending on a credit card, make a plan earlier in the year to put some money aside each month for holiday spending. Then you’ll be able to spend cash rather than charging all of your purchases. It’s also very important that you set a spending budget before you head out on a holiday shopping spree and that you stick to this budget. Making an itemized list of what you need and how much it will cost before you start shopping is incredibly helpful and it can keep you from turning to your credit cards when you need to make a purchase.

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How a Driver’s Training Course Saves Your Money on Car Insurance

A Driver’s Training Course can Save your Money on Car Insurance

Car insurance can be expensive, especially for new drivers. So it makes sense that many people look for ways to reduce these costs. One way that many consider is enrolling in a driver’s training course.

Taking a driver’s training course can help you reduce the costs of your car insurance. Here’s how.

Image courtesy of stockimages at

Image courtesy of stockimages at

The Advantages of a Driver’s Training Course

Insurance companies charge higher rates to drivers that they feel are at a greater risk of having a collision or making a claim. They charge lower rates to drivers that have lower risk. When a young person takes a driver’s training course, insurance companies see this person as someone who is more qualified and more likely to drive safely. For this reason, they often charge a reduced rate for insurance.

If you have taken a driver’s training course in the last three years, your insurance rates will likely be lower. How much lower? That depends on a number of factors including where you live, the type of car you drive and which insurance company you choose. However, in almost every situation a person will pay less for insurance if they have received driver’s training, if all other factors remain the same.

Approved Driver’s Training Courses

It’s very important that you receive your driver’s training from an approved school. The Ministry of Transportation in each province approves only some schools. Insurance companies generally only offer discounted rates to people who have completed training at one of these approved schools.

When a driver has completed an approved training course, insurance companies see this individual as a person who is focused on being a safe and educated driver. This lessens the risk to the insurance company and reduces the rate that the driver pays.

If you’re looking to get driver’s training in hopes of reducing your insurance rate, it’s important that you choose a school that appears on this list of approved schools. You can find these lists on the website of your province’s Ministry of Transportation. For drivers in Ontario, the list can be found here.

Driver’s training isn’t just about learning what you need to pass your road test. Most driver’s training courses include both in-class and in-car training and are geared towards providing you with the attitudes and skills needed to ensure that drivers are safe and confident while driving. Insurance companies recognize this and offer lower car insurance rates to drivers who have taken such a course.


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How to Choose a Lender for Bad Credit Vehicle Title Loan in Ontario

Choosing a Lender for Bad Credit Vehicle Title Loan in Ontario

Much like with just about anything, not all vehicle title loan companies are created equal. Each company has its own policies and its own way of doing things. You have to be careful not to assume that all bad credit vehicle title loan companies operate in the same way. They do not.

So how do you choose the right bad credit car loan company? Here are a few tips to help you out.

Reporting to Credit Bureaus

One of the most important aspects to consider is whether or not the lender reports to the major credit bureaus. Successfully paying off a vehicle title loan can help improve your credit rating. Credit agencies want to see that you are able to borrow money and pay it back on time. However, you’ll only receive this benefit if the lender reports your activity to the major credit bureaus. If they don’t, the credit bureaus won’t find out about the payments that you make and you won’t be able to improve your credit rating by getting a car title loan. Not all lenders report to all of the major credit bureaus, do so don’t assume that this is the case. Always ask.

Interest Rates, Charges, Fees & Terms

You will also want to pay attention to the interest rate that you are being charged. Obviously, a lower interest rate is generally preferable. However, you will also need to focus on the other terms of the loan. Again, don’t assume that all car title loan companies offer the same terms. Read the interest rate documents and the terms closely. Pay attention to any upfront fees and other charges that may be listed in the documents as well.

Is there any Payment Flexibility or Additional Payment Options?

What happens if you are unable to make a payment? What happens if you have some extra money and want to make a larger payment or an early payment? Different companies have different policies regarding these situations. It’s important that you find out this information before you accept the loan.

The Reputation of the Company

It’s also important to consider the reputation of the lender. How long has the company been in business? How many loans do they offer? Are they a trustworthy company to deal with? All of these considerations are important when choosing a bad credit vehicle title loan company. You’ll want to deal with a company that is stable, straightforward and a company that you can trust.

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What are the Requirements for an Auto Title Loan?

Looking to get an auto title loan? Here’s what you need to know before getting that car title loan.

What You’ll Need to Get an Auto Title Loan

auto title loanA car title loan often makes sense for people who have bad credit. It allows you to get a loan without paying the high interest rates that typically come with other types of loans. It’s certainly cheaper to a pay day loan, which will cost you a very large amount of money if it’s not paid back quickly.

But what do you need to get a car title loan? Here are the general requirements.

One of the most important requirements is that you need to have the title of the car. This means that you will need to own the car outright. If you still owe money on your car, the bank or the lender associated with the loan will still have the title. This means that you won’t be able to get an auto title loan. The same is true if there is more than one person on the car title. You’ll need to own the vehicle outright on its own in order to get an auto title loan.

The vehicle can also not have any other loans against it if you hope to get a car title loan. If the car was recently under lien from another lender, but that debt has since been paid off, you will need to show documentation that proves this. These documents can usually be acquired from the other lender.

You will also be expected to provide some sort of financial documents. While you usually don’t need to have full time employment to get a car title loan, you will need to show that you have the ability to pay back the loan. There typically is no credit check with an auto title loan since you are putting the vehicle up as collateral.

Identification is also required. You need to show proof of ID as well as proof of residence in order to get a car title loan. You will need to show proof of insurance as well.

A car title loan is generally an easier loan to get than many other loans. This is because you are putting your vehicle up as collateral. However, there are still requirements that you will need to keep in mind if you hope to get an auto title loan.

The faster you are able to provide the documents needed, the faster you will be able to get your loan, so it makes sense for you to know what the requirements are. This will allow you to have everything ready when you go in to apply for the auto title loan.

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How to Save Money when your Partner is a Big Spender

Dealing with a Spender Spouse

Dealing with a spouse who spends a lot of money can be tough. Financial issues are one of the major reasons that couples fight. Here are a few tips.

How to Save Money when your Partner is a Big Spender

Having a spender in the family brings financial stress to everyone. It can be very difficult to budget properly or save any money when one spouse is a big spender. But that’s not the only downside to having a spender as a partner.

One of the main reasons for divorce or separation is financial unhappiness and financial stress within the family.

Financial issues are also one of the main things that couples fight about. However, having a partner who is a spender doesn’t mean that your relationship is doomed. Here are a few tips for living with a spender. Spender

First of all, it’s important to remember that we all have different ideas when it comes to saving and spending.

Just because your spouse or partner spends more money than you do, that doesn’t necessarily mean that he or she is overspending.

However, if you’re not able to save any money for emergencies or retirement or if your partner’s spending is putting you into debt, you’ll need to do something.

You’ll also need to speak to your partner if his or her spending is upsetting you. Suffering in silence is a bad idea.

One of the first things that you can do is sit down with your partner and discuss your financial situation. Let him or her know what your financial goals are.

For example, if you want to put a certain amount of money aside every month for retirement or if you are saving up for a vacation, remind your partner of that goal.

The two of you can then work out ways to make changes so that you can meet the goal.

If you’re in debt, work out a plan for how you will pay your debt down. In many cases, this will involve spending less money.

Then, If you’re going to spend less money, you’ll need to know which of your expenses are necessary and which are not.

List all of the things that you absolutely need to spend money on (rent, mortgage, car payments, debt repayment, work clothing, etc.) and then list all of your “wants” (entertainment, extra clothing, electronics, jewellery, etc.)

You can then come up with a plan to reduce spending on wants.

The best way to do this is to set a monthly budget and stick to it. You may need to spend some time working with your partner to determine what “wants” can be cut and which ones should remain in the budget.

Involving your partner in the budgeting process and the bill paying process can make him or her understand the consequences of overspending. Simply saying “Don’t buy this, we don’t have the money” can sound like an attack, especially if your partner isn’t aware of the details of your financial situation.

Once he or she becomes more involved in managing the family finances, it will be easier for him or her to see why certain purchases can’t be made.

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Why Getting a Car Title Loan is better than a Payday Loan

car title loansIf you are looking for fast cash, you may be tempted to get a payday loan. After all, you’ve likely seen these services advertised in the past and the general idea sounds like a good one. However, if you need money quickly, you may want to consider borrowing against your vehicle instead.

Why? There are a number of reasons.

Advantages of a Car Title Loan over a Payday Loan

One of the main reasons to avoid payday loans is that these loans cost you a very large amount of money.

For example, many payday loan companies charge around $20 to borrow $100 for a two-week period. This may not seem like much at first, but it adds up to over 500% interest over the course of a year.

As you can see, if you’re not able to pay one of these loans back quickly, you’re going to end up paying a very large amount of money. Sure, you’ll be able to get cash quickly, but it will certainly cost you.

 Watch Video: What’s the real costs of a Payday loan?

Another option for fast cash is a car title loan. A car title loan is a loan where you borrow against the value of your car. To get a car title loan, you need to own your car outright.

A car title loan is a secured loan, which means that you usually don’t need a credit check to get one. It also means that you’ll be able to get the cash you need quite quickly. In most cases, you’ll only need to wait a day or two before you receive the money from a car title loan.

A big advantage to a car title loan is that the interest rate that you will pay will be significantly lower than the interest charged on a payday loan.

The actual rate that you will be charged will depend on your particular situation and the lender that you are working with, but it will certainly be lower than the incredibly high rates that are charged on payday loans.

Car Title Loan Tips

If you are looking for a car title loan, it’s important that you work with a reputable company. Not only will a reputable company be easier to deal with, but it will also be more likely to offer you a lower interest rate.

You’ll also want to ensure that the company you are working with reports to the major credit bureaus. Getting a car title loan and paying it back on time can help you improve your credit rating. However, in order to do so, it’s very important that you don’t miss any payments.

Finally, you don’t have to worry about losing access to your car when you get a car title loan. As long as you make your payments, you can use your vehicle in the same manner that you always have. You don’t have to worry about changing your lifestyle just to get an affordable loan.

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How Can You Estimate the Value of your Used Car?

If you’re looking to buy a new car, moving to an area where you no longer need a car or if you want to get rid of your car in exchange for some extra cash, you can sell your car used. One of the things that many people worry about when they’re planning to sell their used car is not knowing how much to ask for the vehicle.

Estimating the Value of a Used Car

When you’re selling your used car, it’s important to know its value. This way you can ensure that you’re not ripping yourself off and that you’re getting the right amount of money for your used car.

Family inside Prudent Value Car

Here are a few tips for estimating the value of a used car.

Use Resources Online

There are resources online that you can use to help you estimate the value of your car. Two reputable websites are Kelly Blue Book and Edmunds. These two sites are slightly different from one another, but they offer the same basic service. You visit the site, enter in some information about your vehicle (year, make, model, mileage, options, condition, etc.) and the website will provide you with an evaluation of the vehicle.  You can use this evaluation to price your car when you’re selling it.

Compare with Other Vehicles

You can come up with an estimate for the value of your car on your own with a little work. Check various resources in your area to find comparable used vehicles for sale.

Try looking in newspapers, magazines and online for private sales of used cars that are the same age, make and model as your own. The more comparisons you can find, the better. You’ll then want to take an average of all of the selling prices of these cars. This will help you come up with an estimate for the value of your own used car.

Talk to a Dealer

Many car dealerships will give you a trade-in value for your car. This is the amount that they would give you to put towards the purchase of a new vehicle from them if you traded in your used car. While this price will probably be different from the amount that you could get if you were to sell the vehicle privately, it will still give you a good idea of what you should expect.

In general, you can probably get between $1000 and $1200 more by selling your car privately than if you were to trade in your car to a dealer. Keep this in mind and price your car accordingly.

Watch Video: Avoiding Curbsiders when buying a vehicle

How Car Title Loans Can Help You Repair Bad Credit

thinking to buy a carIf you have bad credit, you might be wondering about how you can repair your credit rating. Having a good credit rating is important as it allows you access to better loans and lower interest rates. But how do you repair your credit rating once you have bad credit?

One good way to do this is with a car title loan.

How Can a Car Title Loan Help You Repair Your Credit Rating?

A car title loan is a good loan to get, since it is a secured loan. Since the loan uses your vehicle as collateral, a credit check usually isn’t required. This means that, even if you have bad credit, you should be able to get a car title loan, as long as you own a vehicle.

Before you get a car title loan, make sure to find out if the lender reports to the major credit bureaus. This is important.

Once you’ve received the loan, all you need to do is make your payments on time and get your loan discharged once you’ve paid it off. Since the lender reports to the credit bureaus, they’ll find out that you were able to handle the loan and pay it back on time.

This allows you to establish a history of successful loan repayment, which will improve your credit rating.

Lenders like to see that you have been able to pay back loans in the past. Doing so increases the likelihood of you being able to pay back your next loan and it decreases the risk for the lender. This improves your credit rating.

Important Points to Remember

It’s important that you do not miss any payments during the term of the loan. The only way that you will be able to improve your credit history with a car title loan is by making all of your payments on time. If you miss a payment, you could end up hurting your credit rating even more.

You will also want to check and make sure that the property description status has been discharged once the loan is done. This will show that you are actually done paying the loan and that the vehicle is once again in your name.

Having an official document that states that you have paid off your loan in full will also help improve your credit rating.

Remember, it can often take time to repair a damaged credit rating. You will need to prove that you are able to handle paying back a loan and rebuilding this trust can’t be done overnight. Getting a car title loan is a good start.



Applying for a Car Title Loan?

What do you Need to Know when Applying for a Car Title Loan?

thinking to buy a car

A car title loan is a secured loan where a person can use his or her vehicle as collateral against the loan. A car title loan can be a good loan option for someone who has bad credit or bankrupt or in a consumer proposal. Car title loans are also good options for those who do not have a steady income, such as people who are self-employed, those who work on commission and people who are on pension or disability.

However, there are a few things that you need to know before you apply for a car title loan.

Your Car Must be Paid Off in Full

A car title loan uses your car title as collateral. Therefore, you must own your car title. If you still have payments to make on your vehicle, then the car’s title is still held by the bank or financing company and you won’t be able to use it to get a car title loan.

You Must have Car Insurance

In order to get a car title loan, your vehicle must be insured.

Car Equity May Depend on the Wholesale Value of the Vehicle

In many cases, the amount of the loan that you will be able to get will be based on the wholesale value of your vehicle. This means that higher value vehicles and vehicles that are in better condition will likely be able to get you a larger loan amount.

The Loan Not Only Depends on the Car’s Value

However, the value of the vehicle is not the only aspect that is used to determine the amount of the loan. Several other factors are considered as well. These factors include the cost of monthly insurance, the debt-to-income ratio of the person applying for the loan and the monthly cash flow of the applicant. All of these factors will be considered by the lender and used to figure out what size of a loan you will be able to get.

Your Car Must be in Good Standing

Your car cannot have any other loans taken out against it or any other money owing on it for any other reason.

Ownership must be under the Borrower’s Name

The car title needs to be in your name in order for you to use it as collateral for a loan. You are not able to use a vehicle that is under someone else’s name for a car title loan, even if you are the primary driver of the vehicle. It has to be your car.

Once the loan has been repaid, the car title is returned to the owner. You are able to continue driving the vehicle while you are paying for the loan and you do not lose access to the car as long as you keep up your loan payments.