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Keep credit card debt under control
According to Statistics Canada, Canadians have an average $4,300 in credit card debt. How can that be? I checked our last credit card statement and the interest rate on the unpaid balance was 20.99 per cent per annum.
“The estimated time to pay your new balance of $1,700 in full if you pay the minimum payment of $10 each month is 14 years and 11 months.” Do the math and you’re paying $240 in interest.
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I have some free advice to share with you. Make a list before you go shopping and prioritize needs over wants. Ask yourself why before you buy.
Check out the 50/30/20 budget: 50 per cent of after-tax income to cover your needs, such as household, utilities and groceries; 20 per cent for savings; and 30 per cent for discretionary spending.
Paying with cash can be painful, while simply tapping your card, then waiting for your statement leads us to a buy now, pay later credit card psychology. Pay me later is always more expensive.
If you are going to use your credit card, make sure you pay off the balance at the end of each month. If you let the balance ride, you will pay compound interest on the amount owing.
Our mortgage when we purchased our farm was 10.25 per cent, and at year end, we ended up owing more money than we started with. We paid off the balance in two years by scrimping and saving.
Len Lesser, Dorchester
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My own personal tipping point
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Regarding the story Tipping point: Canadians push back on gratuities (Oct. 11).
I just want to say, tipping expectations have gotten so bad that you can’t go to a golf course without being expected to tip when you’re paying for your nine holes and cart. They have done nothing for you except take your money. What should we tip them? $1, $2, $3 or FOUR?
Outrageous.
Bill Reidhead, London
Anti-municipal golf hard to understand
Residential taxes are estimated at 64 per cent of the city of London’s total tax revenue, 2,500 municipal golfers are estimated to contribute in excess of $11 million in annual taxes and both are expected to increase as the population grows to 650,000 by 2051.
In contrast, Municipal Golf Network as a sports and recreation facility remains at its 1993 level of 3 1/2 courses or 116,640 rounds per year, while the population will increase 64 per cent (396,000 to 650,000) from 1993 to 2051.
With limited access due to London parks and recreation’s “no new future facilities required” policy, municipal golfers can join a private members-only club in London, look for a private regional club somewhere in Southwestern Ontario or sell their sticks and take up pickleball – the privatization of municipal golf.
Considering municipal golf was built without tax subsidies, the bias against municipal golf is difficult to comprehend.
Andy McGuigan, London
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