Canadian Personal Finance Blog

Archive for June, 2006

It finally looks like someone will come and fix my roof in the next couple of weeks. It is interesting to see the WIDE range of quotes I have gotten for this job (the most expensive more than 100% more than the cheapest), for the same roof, and supposedly the same job! I cannot procrastinate this job any more, since my roof is leaking.

Important things to look for from your roofing contractor:

1. If he makes the comment, “Give me a couple of weeks head start so I can get a team together for the job”. Um, are you going down to “skid row” and finding bodies to work on the job? In Ottawa it is VERY hard to find people to work on roofs, due to the ridiculous amount of new house construction going on, but still, I hope there is at least someone who knows which end of the nail gun is UP.
2. How long has the company been in business? If they guarantee your roof for 5 years, are they going to be around in 5 years?
3. Are they insured? If not, if and when someone falls off your roof, it is YOUR house insurance that is going to cover them.
4. How long is the job going to take? One house I saw, the job took 5 days!
5. Watch them put your roof on, and make sure they don’t take short cuts. A lot of “slap and dash” jobs end up not doing the job correctly, or completely.

If you want to take a financial angle on this, if you are buying a house that is NEW, budget that it will need a new roof in 15 years, and if you put a little money away every year, it is not such a huge pain in the ass (as it is for me now).

–C8j

Again, an interesting article went by and I just needed to see the title to feel the need to say something about what you should do when you feel you need a Pay Day Loan:

1. Hit yourself in the head with a 2.5 lb sledge hammer above the left ear (not too hard, unless you think you can get workman’s compensation for it).
2. Go in and ask them, if you can work for them, and if they say yes, then ask for an advance on your first pay cheque, they might only charge you 1.7% a day, seeing as you are a new employee.
3. Drop by your parents house and hit them up for a loan, and tell them that for every $100 they loan you, you will pay back on pay day, and will cut their lawn, do their dishes and/or clean out their gutters. If your parents aren’t in town, try this on a friend, you never know.
4. Offer to never talk to a person who really dislikes you if they loan you the money you need. I know there are a bunch of people I wish would do this.

Yes, I am just pulling your leg here (or bashing you in the back of the head with a 2.5 lb. sledge as it were), my message is:

1. Don’t use these services
2. Don’t get yourself into a state where you need these services
3. Don’t use these services
4. All of the above

Sorry folks, these guys charge more than loan sharks, and in fact, loan sharks are buying into these businesses, because they make more money that way. –C8j

Another interesting headline that I saw floating by. Let’s dissect this topic and think about what this is saying. There are two ways to lower your monthly payments:

1) Get the interest rate on the debt lowered. This can happen if you are foolishly carrying your debt on a credit card and not using a loan or line of credit from your bank. Other than this big step, it is unlikely that you can lower your interest rate (maybe a little, if you like to kibitz with your banker).
2) Extend the period for the debt. This means it will take longer to pay the loan off.

If you are in (1) what the hell are you waiting for (unless you have no credit rating, then I think you might be screwed). Do not carry debt! If you are dumb like me and are carrying debt, for the love of Buddha, use a line of credit to control the amount of interest you have to pay. Now this does not give you free reign to then add MORE debt, your goal is to PAY this off!

The better question is why would you want to increase the period of the loan? If you are on the edge and cannot afford any more payments, then I guess this is an option, but putting off to tomorrow is never a safe plan when it comes to debt! I have done this FAR too many times and then have been hit by DEBT BOMBS that appear (e.g. car breakdown or worse car blow up), if you possibly can take the pain NOW, and you can have the pleasure later.

Now I sound like Ask A Ninja, Pain Now, pleasure after I kill you! –C8j

Yes indeed, another happy subject, but still an important one. Disability insurance will up your workmen’s compensation or the like up to a higher level (I believe in Canada long term disability is only 50% of your pay). I pay through the nose for this insurance (no this is not cheap), but I do because I am in the POWER ZONE for disability insurance (i.e. Male between 45 and 55). I am prime for a stroke, heart attack, or other nasty health problems, thus I PAY, but I view it as worthwhile.

This type of insurance is for your family, and can your family live on 50% of your pay, while you are recovering from whatever medical mishap you have? If the answer is YES then don’t worry about this insurance, if no, then get this insurance. If your answer is “I don’t know”, maybe figure that one out? As with all insurances you need to figure out WHY you want this insurance and who it is for.

I am recovering from a wicked flu that my kids brought home. I HATE being sick, I think even with insurance to help my family out they might go insane if I am bed ridden and at home for a long period (or my bed might end up in the back yard). I am one grumpy sick guy.

–C8j

Was reading an article on another finance site and they were talking about the most important features of a credit card. They espoused the importance of such factors as the interest rate when you don’t pay it back, and other odd things that had me kind of confused, since that is certainly not the most important parts of a credit card for me, so allow me to meander through my list of top features I look for in a Credit Card.

1. Does it have a flashy logo on it somewhere, so when I use it, I don’t look like some loser. I really do care what the 17 year old cashier at my local grocery store thinks about whether my credit card looks “hot” or not.
2. Does the company sell my personal information to telemarketers and people who knock on my door? If not, I am not interested, I love those calls about 6:45 PM when I think it’s time to eat my dinner with my family, but in fact it is time to discuss whether I should be changing my Natural Gas provider. This is an added important feature I look for in a Credit Card.
3. What kind of collection agency does this Credit Card use? Is this an “old school” collection agency who is going to threaten to break my knee caps if I don’t pay my bill, or are they going to go “high tech” and attempt to garnish my wages at the source? Really important to know this about the people who are going to charge you about 19% interest a month, because you really have no chance to pay this back at those rates.
4. How long are the waits when I call to report my card stolen or misused? If I get to talk to someone right away, I might get flustered or forget important details about where my credit card was lost or stolen, but if I have a 20 to 60 minute period on hold, I have plenty of time to collect my thoughts to be more helpful to the person at the other end of the line.
5. When I talk to someone on the phone are they on the same continent as me? If they are, what’s the point? I enjoy talking to people of other cultures, why would I want to talk to someone who has lived the same life experiences as me, when I am calling to complain about how the charges from “Big Al’s Porno Shop” are not mine? Explaining what “Big Al’s Porno Shop” is, allows me to embiggen the customer representatives life, as well as my own.
6. How much money has this credit card made for the bank or monetary institution it is associated with? I want people who make LOTS of money off other folks to put me into debt, as well! You don’t want to go with a bunch of amateurs in this area, go with the pros!
7. Is there an annual fee? I really like to pay as much as I can for the priviledge to buy things using a piece of plastic. I think that is a great status symbol, and I brag to my friends just how much I pay in fees yearly.

As you can see, I have some very different views on how to choose your credit card. My final suggestion is just don’t get one! If you really want to be unique in this world, don’t get a credit card, and see how pissed off the world gets that you don’t have one. Yes, your life will be awkward, but think how much you are annoying the rest of the world as well.

Yes, it’s a good day for sarcasm, isn’t it? –C8j