How to Survive Without Credit Cards – Part 2

Flight Without Credit Card Booking a Flight without a Credit Card

Filing for a Consumer Proposal or Bankruptcy can be a very intimidating process.  There are a lot of questions and concerns about managing without having Credit Cards.  Our previous blog discussed two questions that often arise regarding this, “How do I book a flight without a credit card?” and “How can I reserve a hotel without a credit card?”  The key to both situations is always plan ahead.  Reserving a flight can often times be easier than reserving a hotel without a credit card.  Here are a few keys to get you started.

Do Your Homework

West Jet Airlines

Although many airlines and websites require you to pay by credit card for a flight reservation there are still many other airlines that accommodate patrons who wish to pay by cash or debit.  Be sure to call around and do your research the same way you do when you are looking for a cheap flight.  For instance, in Toronto, one Canadian airline that is good to start with is West Jet.  Here is a look at their policy regarding booking from their website.

  1. When do I have to pay for my flight?
    WestJet requires payment at the time of booking. If you do not have a payment card, you can book your flight at one of our airport locations or at a travel agency.
  2. How can I pay for my flight?
    We accept American Express®, Discover® and Diners Club International® cards, MasterCard®, Visa®, Visa Debit®, and Universal Air Travel Plan (UATP). WestJet gift certificates purchased prior to October 1, 2009, may be redeemed* by calling 1-800-581-9499 or at a WestJet ticket counter. We also accept debit and Canadian cash at our Canadian airport locations, and U.S. cash at U.S. airport locations. For international airport locations, the accepted forms of payment vary. Please call us for information on a specific location.

As you can see the one significant detail regarding booking a flight with cash or debit is the need for you to do so at either an airport or travel agency.  Keep this in mind and again make sure you plan ahead.  It may mean a trip to the airport a few weeks prior to your trip in order to make sure you get the flight you desire.

Visit a Local Travel Agency

If getting to the airport is not an option because of distance or time restraints you can also look into booking a flight through a local travel agency.  For example, Flight Centre in Barrie offers a wide variety of options when booking a flight or travel package.  Some options include paying by cash or debit for the flight or buying gift cards to use towards flights in the future.  Also they offer an option of starting an account that you set aside money in to help with saving up for a vacation or flight that you can redeem when you have saved the needed funds.

No matter the situation you are facing, getting a handle on your debt is an important step and whether you are filing for bankruptcy or a consumer proposal, with proper budgeting and some planning ahead you can still enjoy vacations and travel without out the need of credit cards.

How to Survive Without Credit Cards – Part 1

Hotel without Credit Card Booking a Hotel without a Credit Card

Often when entering into a Bankruptcy or Consumer Proposal many people are concerned with how they can manage without the use of Credit Cards.  Two of the most common questions people face are, “How do I book a flight without a credit card?” and “How can I reserve a hotel without a credit card?” Although the process can sometimes be more complicated, it still is possible.  Here are some simple tips to keep in mind when facing this situation.

Plan ahead

When booking a hotel you will want to make sure you call ahead to the city or destination and see what hotels allow for debit or cash reservations.  When searching places to stay look for local, non-chain hotels or even bed and breakfasts as well as more common hotel franchises.

Prepare For Security Deposits

Make sure you also state that you will be paying by cash or debit and that you won’t have a credit card for a security deposit.  Some hotels will allow you to stay if you authorize a security withdrawal to cover incidentals, damage, or amenities like mini bar and pay-per-view.  This money will be refunded to you at check out, but be sure to check if there are any delays for refund as some hotels can hold deposits for several days.

Pay Upfront

Debit Credit Card Logos By paying for the stay upfront you ensure to the hotel manager that they will get the appropriate funds for the stay.  This is often a guarantee for hotels with credit cards.  An upfront payment on your room limits the risk and conveys a certain sense of responsibility and liability for the room. As well many debit cards now come with Visa and MasterCard logos making it easier to use debit as an alternative to credit.

Finally, remember to budget accordingly.  Make sure you set aside the appropriate amounts needed for the stay and still have extra finances and cash to cover your meals, gas and other travel expenses like souvenirs and attractions.  Preparation is the key to a great vacation.

Battling The Unexpected Personal Finance Problems

Battling Personal Finance Issues We’ve all been down this road before: something unexpected happens – maybe your car breaks down, or you need some special kind of medication – your insurance isn’t covering it all, and you’ve got to pay out of pocket. You’ve already smashed the piggy bank, and checked between the cushions but you’re just coming up empty. So how are you supposed to battle the unexpected? Until you find a way to predict the future, there’s a couple ways to get some quick money.

If you’ve ever walked around your city, chances are you’ve seen a Money Mart, or something similar that offers what seems to be an insane amount of money the moment you walk through the door. This option is called a payday loan, and your eyes don’t deceive you. Money Mart’s website notes that 99% of people who apply for a payday loan are almost instantly approved, and receive their money shortly following. All you need to apply: a pay stub, bank statement and blank cheque. Almost seems too good to be true, right? That’s because it is.

Before you even consider this option, research, research and then research some more. Where they get you with their enticing calls to action are the charges and interest rates.

Let’s put this in perspective: in Ontario, a loan amount can range from $120 to $1500, and you are charged around 20% for every $100 you borrow. So if you want to borrow $300 for a car repair, you’ll end up having to pay $363 at the end of your loan term – an ambiguous amount of time that is due on your next payday and can range anywhere from one week and 42 days.

So what if life gets in the way once more? What if you are unable to pay that $363 back on time? Like any other loan, you will be charged annual interest. So what is the annual interest on a payday loan in Ontario? 547.50%. No – you didn’t read that wrong…it is actually 547.50%! What if you miss your due date by two months? That’s 91.25% interest. That $300 you needed for your car payment is now almost $700! Many people fall into massive debt when it comes to payday loans, and this is mostly due to simply not knowing the interest rates or charges that come with the loan.

Unless you are incredibly diligent with your money, or are at your wits end and have exhausted all your options, it is always a good idea to avoid a payday loan. So how else can you get some money?

Budget: Do you really need a case of soda this week? Maybe you could skip on the new shirt for now. Ask yourself “do I really need this now?” before you make a purchase – at least until you’ve remedied your situation. Check out our Personal Budget Tool

Odd Jobs: Ask around for jobs you could do in your spare time, even if it’s just shovelling driveways or carrying boxes. Money is money at this point.

Borrow from family and friends: The people closest in your life are, more often than not, willing to help you. Swallow your pride and explain the situation. They’ll most likely be willing to help, so long as you pay them back.

Sell Things you don’t need: You know that old guitar you don’t play with anymore? That pile of video games you beat already? Sell them online! Use websites like eBay, Kijiji or Craigslist to make some money. Don’t sell yourself short, but keep in mind: the more reasonable the price, the faster someone is to buy it.

Secrets of Plastic Debt: Finance Infographic

We came across a very interesting article that shed a lot of much needed light on a very dark section of our wallet, the Plastic Debt! We were stirred up by many of the points and wanted to share some with you in a unique way. Hope you enjoy some of our favourite points!

  • The host of Til Debt Do Us Part, Gail Vaz-Oxlade tells the couples that she counsels to try and live on only cash for one whole month, create a budget and record all purchases.
  • When someone pays with cash, our first thought is “They were not approved for credit.” We couple the fact that someone uses cash to poverty. As if they are scrounging to get enough money together to pay their bills.
  • When someone pays with credit, we assume they have all their financial ducks in a row. When in reality, they either are well educated on how to use credit properly, or they are driving themselves further into debt.
  • Now a days, our issue is that most of us don’t really know what our income is. Our credit gives us the illusion of a bloated income, although reality is we are sinking in debt.
  • In order to put together a manageable and accurate budget, it’s necessary to do a spending analysis. In order to complete this analysis and come up with an honest review, you will need to consult both your credit and banking statements to get a full picture of your spending. For instance, your actual grocery list might average a total of $200 a week, but you are spending additional funds on lunches while you’re out and a coffee every day on your way to work. By examining every spending habit, your able to give yourself a better idea as to how much you are spending and where is feasible to cut your spending if needed.
  • Many financial experts say the best way to tackle a manageable budget is to seriously consider your needs vs. your wants, and to continually pay off as much debt as possible. These experts include Ms. Vaz-Oxlade of Til Debt Do Us Part, Don Allen, trustee and owner of Don Allen & Associates, and Jeffery Schwartz, executive director of Consolidated Credit Counseling Services of Canada Inc.
  • Ms. Vaz Oxlade separates these into three categories, one being your “essentials needs”: debt repayment, savings, rent, transportation etc. The second being “nice to have needs” : clothing, addition food allowance. All extras fall into the third category. Although your income may be minimal or inconsistent, it is best to plan each budget a month in advance, to guarantee that  this month’s income will cover next month’s budget needs.
  • We know what you’re thinking, what about all those unexpected expenses that bust our budgets out of the water. It’s best to setup a fund for these expenses. This way when you need that new set of glasses, or a new part for your car, you can refer back to this fund. It may take awhile to build up this fund, but deposit whatever you can into it, whenever you can. Every penny adds up and every dollar counts. A good way to keep up with this, is to give yourself a challenge. Add a dollar every day to your emergency jar, or every time you come home, empty your pockets into the jar. Remember, this is your EMERGENCY fund, not your chocolate emergency fund.

 

How To Save Money On Gas : Money Infographic

Barrie Personal Finances : Gas

In today’s day, many are doing their best to pinch their pennies, and avoid personal bankruptcy. There are some things that take from our wallet more than others. In this blog post I want to touch on a subject that steals from most of us on a regular basis – GAS. Here are a few small and simple ways to make the most of your gasoline, and save money in the long run!

Plan Ahead

  • Look into the gas providers in your area and try to find the best rates that fall on your regular routes. This way you are not driving around town to find the best prices.
  • Plan your trips before you leave. If you have several errands or stops to make, choose to complete them in one go. Plan out the best order and route to take before even leaving the house or office.

While Driving

  • Use Cruise Control
  • Avoid using brakes to slow down. Rather let off the gas well in advance and keep your distance to the vehicles in front of you. Especially on the highway.
  • Accelerate slowly and avoid revving your engine too high and try to keep in a habit of allowing your vehicle to switch gears at a lower RPM.
  • Use air conditioning wisely. If you are on the highway, roll the windows up and use the air conditioning. This helps with air resistance, although when you are in town driving, choose to roll down the windows instead of using the air conditioning.

Avoid Evaporation

  • Keep your gas cap tightly fastened
  • Do not park your vehicle in the hot sun, rather park it in the shade

General Maintenance

  • Continue to keep up the general maintenance on your vehicle. Making sure all of the fuel efficiency factors are in good working condition.
  • Make sure your tires are always pumped up fully with air.
  • Change your air filters on a regular basis
  • Keep a clean vehicle. At all times, try to avoid any extra weight. This means cleaning out the trunk and backseats on a regular basis.

While there are many tips that can help us save money on gas, and other areas, our personal finances can really get the best of us. Don Allen & Associates deal with debt assistance in Barrie, Collingwood, Toronto and Owen Sound. They can help with budgeting and personal finances including personal bankruptcy.