We've seen significant turbulence in the last week in the markets and most of us have had to make changes to our day to day life and could be now facing concerns over how we pay our bills. We chat about how this could affect your own finances, what we've been doing, and how we could have set up our society to be more resilient to these kinds of shocks. We record about a week before posting, so some of the information is behind in terms of closures and travel. This is a great primer for our conversation with Michelle from the Native Calgarian podcast next week. We're all in this together and there's no better time than a pandemic to check your privilege.
There is a staggering number of Canadians living paycheque to paycheque and without the resources to use savings for an unexpected expense. We chat about our own experiences and the emotions we went through while living off of savings and earning variable pay as well as some emotions we might feel when making choices between different basic needs when times are tough. Janine came up with a few ideas to help get out of the paycheque to paycheque cycle and drops a few hints about basic income and minimum wage. We’re looking forward to hearing your suggestions for a system that ensures all Canadians can meet their basic needs and feel secure as well as your personal stories about living paycheque to paycheque or becoming politically active.
Pink Tax Rebate: If you’re living paycheque to paycheque, you’re not alone. We recommend seeking professional advice, leaning on your support system and getting politically active.
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The practical side of the Pink Tax podcast. This week we tackle the financial literacy topic of credit and credit cards. Have you learned how to game you credit use and optimize your spending and repayment plan? Tune in for credit facts and tips to take control of your credit use.
How does building a good credit history impact marginalized groups and those who don't have an ability to save? Good credit health is so important for individuals without a savings safety net or a support network that can financial support them through tough times. Knowing how to use your credit now, can help you get lower interest credit in the future if you need to use it through tough times. Setting up credit safety nets before you need them can be something to look at too. While this will look different for each person, a good credit history can help anyone access credit when or before they need it.
Things we reference in this podcast episode are the credit utilization ratio. This only matters for credit cards, lines of credit, or anything else that you pay down and have access to the limit again. A percentage 30% to 70% in each item is what you're looking for, just take your balance due and divide by the limit and there you go. This only works if do not pay more than the balance due on or before the due date. We talk about how scores are calculated, 35% repayment history, 30% credit utilization, 15% history, 10% different types of credit, 10% times your credit has been pulled. You can get all this info from Equifax or TransUnion, too.
Our thoughts on co-signing and adding authorized users on your credit cards and loans. We share our personal experiences and a few things to think about before you allow someone to impact your credit history. For couples, we think it's important to have individual credit options rather than only joint options. If you don't feel comfortable talking about money with someone, it's probably best to not give them access to your credit history.
Pink Tax Rebate: Take a look at your credit history, get rid of any cards that aren't working for you. If you are using more than 70% of your limit either increase your limit or decrease your spending.
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