According to a recent study initiated by Sun Life, 65% of 1299 people surveyed in Canada, weren’t happy with the way they were handling their personal finances in the year 2012. Among them, 25% wished to do something about it and rest had adopted a strongly pessimistic approach towards their debts. With the gaining momentum of the firms that helped people negotiate their multiple liabilities and the prospects of gaining a fresh financial life through bankruptcy, the Canadians have become too lackadaisical about their soaring debt obligations. Ignoring such problems will gradually affect your mental and personal health and you might even lose your peace of mind. If you’re already scared by the shocking statistics on the soaring Canadian debt, you should read on the concerns of this article in order to know the ways in which you can tackle your debt load head on.
Sun Life Financial (Photo credit: Wikipedia)
Warnings from the Bank of Canada is finally being paid heed to
Yes, according to reports, Canadians are finally paying enough heed to the warnings issued by the Bank of Canada to lower their personal debt ceiling. The number of Canadians with monthly loan payments that were delinquent for 3 months dropped to 2%, a record low level in the last quarter of 2012. The median credit balance dropped by 3.47% compared to the same time during the last quarter. If you’re getting dunning notices from your creditors who are warning you about the rising credit card debt defaults, here are some steps that you can take.
Figure out the debt load and the net worth: The first thing that you need to figure out is how deep the debt hole is. You can create a monthly budget through which you can see where your money is going and what kind of adjustments you can make. See the amount that you’re presently paying on your debt and the payments with which you can get out of debt sooner.
Set a financial goal: Although it might be intimidating to figure out the total debt load, you should then set up a financial goal step by step. You can either set up the debt snowball or the debt avalanche method in order to tackle the amount with the high interest rate. Whichever method you choose, you can easily come up with a better repayment plan that can facilitate debt repayment.
Stop taking on more debt: The Canadians love the habit of taking on more and more debt when they’re already drowning in a sea of debt. If you don’t want to go through the hassles of bragging with the debt negotiation companies about settling their debt obligations. You should lock in your credit cards at home so that you can easily be able to use cash instead of credit when you’re out for shopping.
Negotiate with your creditors: You should negotiate with your creditors when you’re in doubt about getting out of debt through the DIY steps. The creditors often help you with the exact steps through which you can repay your debt obligations. They can even put you on a hardship plan through which you can repay without having to fall back on other debt obligations.
Therefore, keeping in mind the strength of Canada’s economy, you can easily be able to determine the amount of consumer spending that is required for business investment. Choose to take the above mentioned steps so that you can easily get back on the right financial track.
In recent years, the Canada Revenue Agency (CRA) has been expanding the methods available for you to file your income taxes. As the digital revolution continues, the agency has focused much of its energy on developing online filing methods. However, traditional means are still available to facilitate your Canada income tax filing.
Accountants’ Office (Photo credit: RobW_)
The CRA has established NETFILE as an online option for filing your Canadian tax return. The CRA has certified the commercial software and the Web application of the program. Also, there exists a number of free software applications for use with NETFILE.
Digital Service Provider
You may employ a service provider to submit your taxes online with the EFILE program to prepare you return. After completing your return, take your forms to a digital service provider to file online for free. This digital platform traditionally results in your return being processed quickly.
Regardless of the nature of your return, every tax filer in Canada has the option of submitting his or her return by post. Simply complete the required forms, and place them in the mail for the cost of a stamp.
If your taxes are complex, if you own a business, or you just don’t feel confident about completing your income tax returns on your own, you may hire an accountant to prepare your taxes.
Whether you are a small business owner who doesn’t have the time to complete your returns or you like the convenience of the Internet, there is an option for you to successfully file your Canadian tax return.
There are several fundamental principles that need to be considered while filing for Canada’s income tax. Does your Canadian income tax package contains complete information and all the relevant documents that are required to file for income taxes in Canada? Significantly, the tax payee must keep in mind the deadlines for filing a Canadian tax return. In case, if you are obliged to pay taxes on your income and you file a Canadian tax return after the deadline then you will be penalized as per the Canada Revenue Agency rules.
English: Northwest corner of the Connaught Building located at 525 MacKenzie Avenue in Ottawa, Canada. The building is now the headquarters of the Canada Revenue Agency. Français : L’angle nord-ouest du Connaught Building, situé au 525 MacKenzie Avenue à Ottawa, Canada. Le bâtiment est le siège de la Canada Revenue Agency. (Photo credit: Wikipedia)
Points to be considered while filing your Canadian tax return
• You must provide your Social Insurance Number when you file your Canadian tax.
• You must provide your tax information slips to give the information to the Canada Revenue Agency about your earnings and the amount of deducted tax.
• Also you must have tax deduction receipts to provide relevant information about the tax deducted from your income.
These are the key points that will help you to file a Canadian tax return with no shortcomings.
Moreover you can file your Canada income tax online. Though the Canadian income tax filing procedure via phone has been ceased, you can still file your taxes via mail or by employing someone. Besides, if you file online then you have the option to make alterations too. If you owe your taxes to the CRA then it is advisable as well as crucial to arrive at a tax services office as soon as possible for better assistance.