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Power Spending – Getting More For Less

by Doug Hoyes

In addition to our articles bankruptcy in Canada, we occasionally review books that may be of interest to our readers. You can see all book reviews in our book review section.

Today we review Power Spending: Getting More For Less by Carolyn Johnston, Eric Poulin and Robin Poulin. I was consulted for the section of the book on debt, and bankruptcy, and in fact the Bankruptcy-Canada.ca website is referenced to describe how a consumer proposal works.

With that said, the highest compliment I can give this book is that it’s full of practical financial advice. Lot’s of book talk about theories, and explain complicated budgeting systems that no-one could ever implement in real life. That’s not a problem with this book; everyone who reads it will find dozens of practical tips they can implement in real life, immediately.

That doesn’t surprise me, because two of the authors, Eric and Robin Poulin, are the Co-Founders Calendar Budget - sign up for a free trial of CalendarBudget, the online personal finance tracking and planning tool that makes managing money easy. You simply open the program and you will see a calendar. Enter what you spent today in the calendar. That’s it! The program will then summarize where you spend your money, and help you produce easy to use graphs and charts so you can easily see where your money is going. (You can even get a free, one-month trial of Calendar Budget; after that, there is a very small cost each month).

Knowing that CalendarBudget is easy to use but also very powerful, I knew that Power Spending: Getting More For Less would also be powerful, but easy to apply and understand.

The first section starts with basic economic survival, and discusses household budgeting, emergency planning, credit and debt, and how to save money.

The second section is on Advanced Power Spending, and includes chapters on how to save money on your food bill (and since everyone eats, this should help everyone), and chapters on saving money on entertainment, travel, and even partying!

All chapters contain practical advice. Let me prove it. I opened the book randomly on five different pages; here’s a practical, easy to implement tip from each page I opened to:

  • put money aside at the beginning of the month (because if you wait until the end of the month, it won’t be there) (page 57);
  • on page 75 they have a nine step sidebar to answer the question “should I lease or buy a vehicle”; (the advice is practical, but you’ll have to buy the buy the book for the actual tips!;
  • don’t buy life insurance for your baby; the only members of your family who need life insurance coverage are those whose death would create a financial hardship (page 93);
  • on page 120 they have 19 ideas for an inexpensive date, including test driving cars, going on a picnic, and playing with animals at a pet shop;
  • on page 166 the book has six tips for how to sell stuff you no longer need by selling on-line.

As you can see, all of the tips are practical and easy to implement.

I suggest you start with the table of contents, and open the book at whatever section most appeals to you; you don’t have to, and probably won’t, read the book from cover to cover. Start where you want, use the tips, and return often for a refresher. That’s what makes Power Spending: Getting More For Less a powerful, practical book.

Posted on Monday, February 7th, 2011
Filed under: Book Reviews
posted by Doug Hoyes @ 5:31 am No Comments

The Wolf at the Door: What to Do When Collection Agencies Come Calling

by Doug Hoyes

Earlier this month we broke the story about Draft Statements of Claim – Collection Agency Dirty Trick Number One. Then, last week, we followed up with Draft Statements of Claim – More on This Questionable Collection Agency Tactic. In both articles we referred to the work of Mark Silverthorn, a former collection agency lawyer who is now working for debtors. Mr. Silverthorn is also a crusader against questionable collection lawyer tactics.

Mr. Silverthorn is the author of The Wolf at the Door: What to Do when Collection Agencies Come Calling, a new book that describes collection agency tricks and tactics, and how you can deal with collection agencies. In our on-going series of Book Reviews, today we review his new book.

I have interviewed Mr. Silverthorn (see the video in the upper right hand corner of this page), and he interviewed me for the chapters on Consumer Proposals and Personal Bankruptcy, so I am familiar with Mr. Silverthorn’s work. In our conversations he did make one comment that surprised me: He said that borrowers in Canada are often victimized three times.

First, borrowers often get caught in predatory lending practices, paying excessive rates of interest, or signing contracts they don’t understand. Interest rates in Canada are at historic lows, but interest rates on credit cards and finance company loans are as high as ever.

Second, if a borrower can’t pay, they are often victimized by abusive collection agency practices, such as the Draft Statement of Claim issue we discussed last week. In addition, collectors call at all hours of the day and night, and often make threats, and if you don’t know the rules, they can intimidate you, which is often unsettling.

Finally, borrowers are often victimized by “consultants”; people who earn their living by “helping” people, even though they really aren’t helping them at all. You have probably seen their advertisements: “We will reduce your debts by 70% without bankruptcy; call us today!” Unfortunately most of these ads are nothing more than Debt Management Scams. These unlicensed “helpers” take your money, but they have no legal ability to actually reduce your debt. They might be able to convince your creditors to accept a deal, but more often than not the only person who profits is the helper.

Mr. Silverthorn believes that an informed consumer has the knowledge to understand all options, and that’s the point of his book: education. He covers many topics, including:

  • how to stop, avoid, or discourage collection calls
  • why you might not even have to pay your debt
  • options to deal with your debts that might save you thousands of dollars
  • your legal rights and how to handle collection agency misconduct
  • the truth about credit counselling and debt settlement firms

As a bankruptcy trustee in Canada I am familiar with the various methods for dealing with debts, and I have heard every collection agency story imaginable. However, even I was able to learn many things from this book, and that’s why I recommend it for anyone looking to more fully understand how collection agents operate.

Some final advice from Mr. Silverthorn : if you meet with a debt management professional, ask them to explain all of your options, not just the option they are selling. I agree fully with that approach.

There are many debt management options. If you have access to a lump sum of money, a lawyer like Mark Silverthorn may be able to negotiate a debt settlement directly with your creditors. If you don’t have a lump sum of money, but you have an income and can make monthly payments, a consumer proposal may be your best option. In some cases personal bankruptcy is your best option. The key is that you understand all of your options, so that you can make an informed decision. The Wolf at the Door: What to Do when Collection Agencies Come Calling can help you understand your options, as can all of the information on our Bankruptcy Canada website. Or, to arrange for a no-charge initial consultation, contact a Canadian bankruptcy trustee.

Posted on Monday, November 29th, 2010
Filed under: Book Reviews andDebt Options
posted by Doug Hoyes @ 5:33 am No Comments

Debt-Free Forever: A No-Nonsense Book Review

by Doug Hoyes

In addition to our usual commentary on bankruptcy in Canada, we occasionally review books that may be of interest to our readers. You can see all book reviews in our book review section.

Today we review Debt Free Forever: Take Control Of Your Money And Your Life by Gail Vaz-Oxlade, the host of TV’s Til Debt Do Us Part.

Gail Vaz-Oxlade's Debt Free Forever: Take Control Of Your Money And Your Life

I must confess that I am biased, because I have appeared twice on Till Debt Do Us Part as an “expert”. My first appearance was back on Episode #36, that first aired in 2007, called Single Mom Shake Up. My job was to explain the bankruptcy option to Tammy, the person featured on that episode. She was able to cut her expenses, and with the support of her family she avoided bankruptcy.

I also appeared in Season 8, on episode number 103; you can watch the entire episode on the Till Debt Do Us Part section of the Slice web site. (Warning: This is a very emotional episode; I had to give some difficult advice, as did Ms. Vaz-Oxlade; sometimes our advice is not taken, and that’s a difficult reality when you are a professional advisor).

As anyone who was watched Till Debt Do Us Part will know, Gail Vaz-Oxlade has a very “no nonsense” approach to money problems. She strongly believes that ultimately you are responsible for your behavior, so only you can change your behavior to eliminate money problems. I like that approach.

That no-nonsense approach is easy to see in Debt Free Forever: Take Control Of Your Money And Your Life as Gail Vaz-Oxlade starts at the same place I start in every meeting I have with someone in financial trouble: Figure Out Where You Stand. She gives practical tips on how to analyze your spending, and, most importantly, how to face up to your debt.

In my experience facing up to your debt is the hardest step to take in your journey to financial freedom. It’s hard to make a list of all of the money you owe, but it’s absolutely essential if you want to go on the next step, which is Part Two of the book: Make a Plan.

Doug Hoyes, Bankruptcy Trustee, Appearing on 'Til Debt Do Us Part

Her advice is always practical; you don’t need a math degree to follow her advice. She keeps it simple, using her trademark “jar” method of saving, where you put cash in your food jar, gas money jar, and so on to keep budgeting simple.

Speaking of budgeting, that’s Chapter 4, Create a Budget That Balances. Again, Gail gives practical advice on how to create a household budget, and how to cut expenses to make your budget balance. She illustrates the concept with what she calls the “Life Pie”, where money is allocated to life’s expenses, and you have to learn to divide the pie up to keep your spending in check.

While Debt Free Forever: Take Control Of Your Money And Your Life focuses on budgeting, spending control, and setting goals, Chapter 11 does deal with subject matter near and dear to my heart: Cope When the Caca Hits the Fan. She starts the chapter off by telling it like it is:

One of life’s hard truths is that it doesn’t matter how carefully you plan, how hard you work, or how diligent you are in taking care of the details, crap happens!….It’s nice to think that life is predictable, but it’s not ………Having made a budget, made a debt repayment plan, made up your mind to live your life consciously and take care of your money, you may dream that it’ll be smooth sailing from here on in, but it is only a dream. Sometimes life sucks.

Yes, I couldn’t agree more. Every day I meet with Canadians who were doing well, but then they got sick, lost their job, got divorced, or had some other tragedy derail their dream of financial independence. Sometimes, stuff happens. Fortunately, Gail Vaz-Oxlade carries her “no-nonsense” approach to the discussion of bankruptcy in Canada as well. Here’s what she has to say:

Bankruptcy isn’t the worst thing in the world. Living in the hell you’ve created is….

For many people, the decision to go bankrupt isn’t an easy one to make. It’s a thorny path. But if that’s what it’ll take to get you out of hell, then do it.

Wow. No-one will ever accuse Ms. Vaz-Oxlade of “sugar coating” her opinions. She’s right: in my experience it takes the average person six months of soul-searching before deciding to file bankruptcy. Bankruptcy is a last resort for dealing with your debts, but sometimes it is necessary.

If you are looking for a book that contains practical, easy to understand advice, Debt Free Forever: Take Control Of Your Money And Your Life is just what you are looking for. The advice is easy to understand, but it’s not easy to implement. Making change is hard, and it takes sacrifice, but if you are up the challenge, this book can help.

Posted on Monday, August 9th, 2010
Filed under: bankruptcy Canada andBook Reviews
posted by Doug Hoyes @ 2:05 am No Comments

Pat Foran: The Smart Canadian’s Guide to Saving Money

by Doug Hoyes

On this web site we provide many tips for dealing with your debt. We have an interactive debt options calculator that tells you what it will cost to deal with your debts, and we have an on-line support group so you can discuss your alternatives anonymously with others in your situation. These tools are great, but sometimes you want advice from an old-fashioned source: a book.

Books are great. You can carry them with you, and if you drop them, you don’t need to re-boot! So, occasionally over the the next few months, we will provide you with some book reviews of books that can help you deal with your debts, and save money.

Today we review The Smart Canadian’s Guide to Saving Money, Second Edition, written by Pat Foran of CTV’s Consumer Alert. I was first interviewed by Pat Foran for the first edition of the book a few years ago, and he interviewed me again prior to the release of this second edition. He also interviewed me for a story that ran on Canada AM back in 2008 about how to financially survive the holidays.

When I was interviewed on Canada AM I was very impressed by Pat Foran’s preparation and professionalism. We all think of television as very glamorous, but it isn’t. On the day of the interview is was Pat himself who met me at the reception desk at the CTV studio in Toronto, and he walked me back to the studio. While we walked we chatted about some of the questions he wanted to ask me. He had already done his research, so he knew what he wanted to ask. We got to the studio and the camera operator was ready. Pat showed me where to sit (he wanted a shot with a Christmas tree in the background), and he helped me put on my microphone. He then glanced at his notes, and then asked my seven or eight questions in rapid succession, with barely a glance down at his notes again.

The final interview was brief and concise, no doubt due to his skill as an editor, taking the five minutes of my answers and editing them down to a few brief comments. He used graphics to give viewers a very concise “to do” list of how to avoid money problems. I thought is was a great piece.

Mr. Foran’s greatest skill, in my view, is his ability to take difficult concepts and “boil them down” to simple, easy to understand tips that everyone can use in their every day life.

The first version of this book was called The Smart Canadian’s Guide to Building Wealth, and it was a good book. The Second Edition, in my view, is much better, because it focuses on Saving Money, which of course is the first step to building wealth.

Pat Foran's The Smart Canadian's Guide to Saving Money

Part 2 of this book is about saving money, and covers topics like a Tax Free Savings Account, understanding interest rates, and trimming the grocery bill.

Readers of this blog will be most interested in Part 1, where Pat Foran discusses Reducing Debt. He gives a great summary of all debt management options, including chapters on:

Of course I am most proud of Chapter 24, Declaring Bankruptcy, because that’s the chapter where I was interviewed. I gave Mr. Foran some details on our study of “Joe Debtor”, the average person who declares bankruptcy in Canada. It turns out that Joe Debtor is very similar to many Canadians, carrying over $50,000 in unsecured debt, and earning about $2,100 per month after taxes. We also discussed the causes of bankruptcy in Canada, including unemployment, marriage break up, and many other causes.

I appreciated the fact that Mr. Foran gave a very balanced view of the process, both good and bad, and he also took time to discuss alternatives to bankruptcy, including a consumer proposal.

Of course the book only has a few pages on bankruptcy; most of the book discusses ways to increase your wealth, so I recommend it as a book for both Canadians in financial trouble, and for those who have finished the bankruptcy process and are looking to start building their wealth.

Bankruptcy is supposed to give you a fresh start, and Pat Foran’s book The Smart Canadian’s Guide to Saving Money, Second Edition, written by Pat Foran is a great first step in that process.

Posted on Monday, July 26th, 2010
Filed under: Book Reviews andDebt Options
posted by Doug Hoyes @ 5:05 am No Comments