Debt Free in 30

Is it possible to financially recover from the coronavirus pandemic of 2020? Yes, but it starts with $20. On today's podcast we discuss the pandemic, and then present a special rebroadcast of the fable of the 20 dollar bill, and explain how $20 can set you up for financial success.

A fable, as it were.

Enjoy!

Doug Hoyes explains why even with high debt and high pandemic-related unemployment bankruptcy filings continue to drop, and he gives his predictions for the next few months, and then, given the stress caused by the COVID-19 lock down, we rebroadcast our conversation with Shannon Lee Simmons, author of Living Debt-Free: The No-Shame, No-Blame Guide to Getting Rid of Your Debt about how negative feelings towards debt can create more debt and strategies that can put you in the right direction when dealing with your debt.

Doug Hoyes gives an update on how collection agents are dealing with the COVID shut down (spoiler alert: they've found a way to keep calling), and then we rebroadcast our discussion with Blair Demarco-Wettlaufer, a real-life collection agent, who explains how a collection agent gets paid, and how you can negotiate with a collection agent.

Enjoy!

Are you a success because of your superior brain power, and skill, and hard work?

Or was it all luck?

If you are having a rough time, is it because you screwed up, or was it bad luck?

On today's show Doug Hoyes days that most of what happens to you and me, good or bad, is luck.

We've all just endured the great coronavirus lock down of 2020, many businesses have failed, millions of people lost their jobs, some permanently.

That was all bad luck.

None of us caused the big bad virus, but we are all suffering the effects.

That's one example of bad luck; we've got lots more on today's show.

And no, we are not saying you shouldn't work hard. Of course you should. It's just that sometimes stuff happens, and we need to recognize what we control, and what we don't.

Tune in to the luck episode, this week on Debt Free in 30.

Links:

The Long-Term Labor Market Consequences of Graduating From College in a Bad Economy by Lisa B. Kahn https://www.sciencedirect.com/science/article/abs/pii/S0927537109001018#!

Outliers: The Story of Success by Malcolm Gladwell Book on Amazon: https://www.amazon.ca/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017930

Podcast 300: Can You Create Your Own Reality? https://www.youtube.com/watch?v=PuiP9I6_cMg

As a new parent on maternity leave, you'll have a lot to do. The last thing you want is to worry about how you will make ends meet. On today's podcast, we have first-time guest and Hoyes Michalos Licensed Insolvency Trustee, Julie Wildman. Julie is a mother of two young children and recently returned from her second maternity leave. She outlines how expecting parents can prepare financially for the income drop that happens during mat leave, how to navigate the different benefits available in Canada such as EI and parental benefits, and how to budget for increased spending on childcare. Julie also discusses the importance of paying off debt before going on leave. There's lots of practical advice in this episode so be sure to tune in!

Related Links:

Maternity Benefits Overview Canada: https://www.canada.ca/en/services/benefits/ei/ei-maternity-parental.html

The Secret to Budgeting Part 1: https://www.hoyes.com/blog/the-secret-to-budgeting-part-1-video/

The Secret to Budgeting Part 2: https://www.hoyes.com/blog/the-secret-to-budgeting-part-2-video/

Straight Talk on Your Money on Amazon, Kindle Edition: https://www.amazon.ca/Straight-Talk-Your-Money-Financial-ebook/dp/B074QWL3XG/

When this podcast was recorded on the morning of July 8, 2020 the Canadian government was projected to run a deficit for the year of $250 billion. By the end of the day, after this podcast was recorded, the Finance Minister was projecting a deficit of $343 billion. That's a lot of debt, and it leads many to wonder how we'll ever pay it back. But a prominent economist, Dr. Stephanie Kelton, says the government shouldn't be concerned with massive deficits as long as they control the printing of their currency. In fact, she argues that the government should spend even more money so that more jobs are created until unemployment is no longer an issue, based on Modern Monetary Theory (MMT). On today's podcast, Doug Hoyes challenges this economic theory by explaining its unintended consequences and real life implications. Yes, we need to help those in need, but MMT may cause more problems than it solves. You be the judge. He also outlines what our current deflationary environment means for individuals carrying debt. Tune in to this insightful episode!

Related Links:

Canada Emergency Response Benefit Statistics: https://www.canada.ca/en/services/benefits/ei/claims-report.html

Federal Finance Minister, Bill Morneau, in his Debt Management Report to Parliament: https://www.canada.ca/en/department-finance/services/publications/debt-management-report/2018-2019.html#s1

President Obama's Remarks on the Deficit and Economy: https://www.nytimes.com/2012/11/09/us/politics/transcript-of-president-obamas-remarks-on-the-deficit-and-economy.html

The Deficit Myth by Stephanie Kelton on Amazon https://amzn.to/2DaT54e

Can You Create Your Own Reality? Podcast #300: https://www.youtube.com/watch?v=PuiP9I6_cMg

Canadian Dollar Chart: https://yhoo.it/2AtXluG

Statistics Canada Consumer Price Index: https://www.statcan.gc.ca/eng/subjects-start/prices_and_price_indexes/consumer_price_indexes

Life's milestones like going to college or university, buying a house, or getting married cost money. And often the pressure to achieve these milestones at a young age leads to hasty decisions that come with a big debt load. But what if you took time off before making a major financial move? Would life turn out so differently if we didn't follow conventional wisdom? On today's podcast, Scott Terrio and Doug Hoyes explore the idea of delayed gratification and discuss why pausing before big decisions can lead to a more fulfilling future. While you may not be able to delay or avoid all of life's major milestones, you can take your time with at least one major financial decision to avoid being overwhelmed. Tune in to the show for lots of thought-provoking discussion!

Links:

Why You Want to Avoid Debt at Every Age: https://www.hoyes.com/blog/why-you-want-to-avoid-debt-at-every-age/

Should You Get a Wedding Loan? https://www.hoyes.com/blog/should-you-get-a-wedding-loan/

Student Debt Crisis - A Generation Buried in Student Debt: https://www.hoyes.com/press/joe-debtor/the-student-debtor/​

A lot has changed as a result of COVID-19. There are obvious reasons for pessimism, but there are a lot of reasons to be optimistic. For example, more people have made meaningful changes to their financial habits. Canadians are saving more and some are even able to pay off more of their debt. Many of us have also used the time to learn a new skill. With every major life transition comes positive and negative change and we are forced to adjust to a new reality. On today's podcast, Doug and Ted share social and economics reasons for why we should be optimistic about the future and explain how we can use this new reality to our advantage. Lots of great thought-provoking commentary on this episode, so tune in!

Related Links:

Dealing with the Consequences of Loan Deferrals: https://www.hoyes.com/blog/dealing-with-the-consequences-of-loan-deferrals-when-the-deferral-period-ends/

Savings, Debt & Modern Monetary Theory with Hilliard MacBeth: https://www.youtube.com/watch?v=Wx_7T6YWT8w​

Episode 290, our first COVID-19 show https://youtu.be/lWmZDLaJ63o

Canadian unemployment rate https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410028703

Canadians applying for CERB https://www.canada.ca/en/services/benefits/ei/claims-report.html

We have record unemployment and millions of Canadians are relying on CERB payments to make ends meet, and yet our savings rate is increasing. How is that possible? On today's podcast, our guest is author and financial analyst, Hilliard MacBeth, who provides insight on how the savings rate is calculated, and whether increased savings mean Canadians are curbing their appetite for debt. We also discuss what to expect with the real estate market and deflation, and we talk about Modern Monetary Theory and whether we should really worry about national deficits. There's lots to learn from this episode, so tune in!

Related Links:

​How Banks and Faulty Economics Contribute to the Consumer Debt Binge: https://www.youtube.com/watch?v=0d7CLXsk7N0

Hilliard MacBeth's book, When The Bubble Bursts: https://amzn.to/2YMigRT

Hilliard's Client Notes - The Return of the Saver: https://web.richardsongmp.com/MacBeth.MacLeod/blog/1724032-The-return-of-the-saver

Hilliard MacBeth on Twitter: https://twitter.com/hmacbe

Statistics Canada Savings Rate: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610011201

Stephanie Kelton's book, The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy: https://amzn.to/2UX6BOY

CERB Claims Report: https://www.canada.ca/en/services/benefits/ei/claims-report.html

If you're thinking of buying a small business, this podcast is for you. Over the years, we've had a lot of clients who decided to buy a business either because they were frustrated with working for someone else and they wanted to go out on their own, or maybe the owner of their company wanted to retire. While there are benefits to small business ownership, how do you avoid the debt traps? How can you make the most of your purchase and avoid undervaluing your own contributions? And what does owning or selling a small business look like now in COVID-19? On today's show David Barnett, a business broker and adviser, shares practical advice to help you think through the costs of purchasing a business and provides insight into how transactions are doing amid the pandemic.

Related Links:

David Barnett's Website: www.davidcbarnett.com

David Barnett on Twitter: https://twitter.com/DBarnettMoncton