When it comes to tackling debt, most of us know what to do: Spend less, save more. But if it were really that simple, Canadians wouldn't be so mired in red ink. Stephanie Holmes is a Nova Scotia-based financial advisor and author of Diffusing the Debt Bomb and $pent, who recognizes that there is no easy answer to any debt problem.

Holmes offers small tweaks that will help you speed up your repayment and get out of debt faster.

Ways to get out of debt:

1. Pay bills every pay day
Most debt statements are due monthly, but most salaries are paid every two weeks. So pay part of every bill, every time you get paid. Benefit: smaller amounts feel more manageable and the chance of missing a payment (and incurring a penalty and more interest) is reduced.

Automate bill payments so that you pay your creditors without having to write a cheque or log on to an online account.

Ratchet it up a notch: Let's say your credit card minimum payment is $100. Pay $60 every two weeks and you'll make more headway with over payments you barely notice.

2. Change your debt structure
When it comes to debt vehicles and the lending institutions that have extended them, "the fewest number possible means the least amount of effort and stress," says Holmes.

If you want to get out of debt, get rid of the retail credit cards, since they have onerous interest rates compared to those from major lenders. Two credit cards should be enough; close the rest. You'll pay less in annual fees.

3. Start a debt 'snowball' plan
Make a list of your debts (excluding your mortgage), starting with the smallest balance and ending with the highest. Make the minimum payments on all your debts, but make an extra payment on the one with the smallest balance. When that debt is paid off, divert the payment you were making on it to the next debt on the list. By the time you get to the second and third debts, you'll be making significant payments to the principal, which is the only way to actually eliminate a debt.

Holmes recommends the website WhatsTheCost.com. "I love it," she says. "It's a neat little calculator that when you press 'solve', it gives you a table so you can literally see how fast you could pay off that debt." When a debt is paid off, close the account associated with it.

The success of snowballing is based on the assumption that you can afford the minimum payments on all your debts. (If you can't, consider credit counseling.)

4. Start a debt 'stacking' plan
Make a list of your debts (excluding your mortgage), starting with the one that has the highest interest rate. Make the minimum payments on all your debts, but make an extra payment on the one with the highest interest rate. When that first debt is paid off, divert the payment you were making on it to the next debt on the list.

Since most credit card interest is compounded, you will save money focusing on interest rates. If, however, you need quick gratification, the encouragement of small successes (a credit card statement that finally reads "balance: $0"), to commit, 'snowballing' might be more lucrative for you.

Bottom line: pick the plan you can stick to. That's the one that will help you get out of debt fastest.

5. Sign up for an 'all-in-one' account
All-in-one accounts replace the traditional scenario of a mortgage and separate checking and/or savings accounts with a single account that includes your mortgage and into which your salary is deposited.

"It's a giant line of credit with checking and savings accounts attached," says Holmes. The advantage is that deposits earn interest every day. These small amounts add up and are automatically applied to your debt.

You do have to be disciplined though, because "you're walking around with a debit card attached to your house," says Holmes. Here's what she does to protect herself: "Every week, I move a certain amount automatically to my checking account held at a different institution," she says. That is the money she spends -- no more -- leaving the rest in the all-in-one.

"It creates a vicious cycle in the right direction," says Holmes. "Every penny of interest is going toward debt repayment."

6. Rent things
"Let go of the idea that owning is better," says Holmes. This is especially true for depreciating assets, the largest of which is probably your car. It's unrealistic to think people will go from commuting to taking public transit, but in larger cities, long-term car rentals or car co-ops can be cheaper than owning.

If you can find a monthly rental for the same price as your lease payment, and use insurance attached to one of your credit cards (many include this coverage as a standard feature; car co-ops include insurance in their rates), you'll save money that can be diverted to paying down debt.

This also applies to tools that pile up at home. How often do you use that drill, reciprocating saw and palm sander? You'll clear out square footage by off loading these items on CraigsList. You'll also make a dent in your debt (by putting the money you get on the principal) and free up enough cash to rent the items if you need them again. (You won't need them again.)

STOP CYBER BULLYING!!
THIS WEEK WE ARE PROMOTING STOP CYBER BULLYING AS A PART OF GIVING BACK TO THE SOCIETY!

IT COULD BE ANY FORM AND IN ANY AGE AND IS RELATED TO BULLYING.

11 tips for Social Media Safety


Social networking websites like MySpace, Facebook, Twitter, and Windows Live Spaces are services people can use to connect with others to share information like photos, videos, and personal messages.

As the popularity of these social sites grows, so do the risks of using them. Hackers, spammers, virus writers, identity thieves, and other criminals follow the traffic.

Read these tips to help protect yourself when you use social networks.

• Use caution when you click links that you receive in messages from your friends on your social website. Treat links in messages on these sites as you would links in email messages. (For more information, see Approach links in email with caution and Click Fraud: Cybercriminals want you to 'like' it.)
  
  
• Know what you've posted about yourself. A common way that hackers break into financial or other accounts is by clicking the "Forgot your password?" link on the account login page. To break into your account, they search for the answers to your security questions, such as your birthday, home town, high school class, or mother's middle name. If the site allows, make up your own password questions, and don't draw them from material anyone could find with a quick search. For more information, see:
  
  
  • What was the name of your first pet?
    
    
  • What is screen scraping?
    
    
  • Take charge of your online reputation
    
    
• Don't trust that a message is really from who it says it's from. Hackers can break into accounts and send messages that look like they're from your friends, but aren't. If you suspect that a message is fraudulent, use an alternate method to contact your friend to find out. This includes invitations to join new social networks. For more information, see Scammers exploit Facebook friendships.
  
  
• To avoid giving away email addresses of your friends, do not allow social networking services to scan your email address book. When you join a new social network, you might receive an offer to enter your email address and password to find out if your contacts are on the network. The site might use this information to send email messages to everyone in your contact list or even everyone you've ever sent an email message to with that email address. Social networking sites should explain that they're going to do this, but some do not.
  
  
• Type the address of your social networking site directly into your browser or use your personal bookmarks. If you click a link to your site through email or another website, you might be entering your account name and password into a fake site where your personal information could be stolen. For more tips about how to avoid phishing scams, see Email and web scams: How to help protect yourself.
  
  
• Be selective about who you accept as a friend on a social network. Identity thieves might create fake profiles in order to get information from you.
  
  
• Choose your social network carefully. Evaluate the site that you plan to use and make sure you understand the privacy policy. Find out if the site monitors content that people post. You will be providing personal information to this website, so use the same criteria that you would to select a site where you enter your credit card.
  
  
• Assume that everything you put on a social networking site is permanent. Even if you can delete your account, anyone on the Internet can easily print photos or text or save images and videos to a computer.
  
  
• Be careful about installing extras on your site. Many social networking sites allow you to download third-party applications that let you do more with your personal page. Criminals sometimes use these applications to steal your personal information. To download and use third-party applications safely, take the same safety precautions that you take with any other program or file you download from the web.
  
  
• Think twice before you use social networking sites at work. For more information, see Be careful with social networking sites, especially at work.
  
  
• Talk to your kids about social networking. If you're a parent of children who use social networking sites, see How to help your kids use social websites more safely.
  
  

How to budget in three steps:

Step One: Figure out your income
Income comes from many sources - your monthly or weekly paycheque when you work at a job. The amount you get from parents, allowance, birthday monetary gifts, interest from savings account, if you can add up all these sources on a monthly basis that will be your total income.

Step Two: Figure out your expenses
Expenses are the opposite of income. An expense is anything you spend your money on. For ex: Bus Tickets, Your cell phone bill, meals, groceries, rent for an apartment are all examples of expenses.

As in Step one, you can figure out your expenses by adding up these sources. Save your receipts, use bank or credit card statements and look at bills and other documents to find the sum of what you spend monthly or yearly.

Step Three: Evaluate your budget
Simple Math can help you find your total income. Subtract your expenses from your total income to see what money you have left.

If your expenses exceed income you will get a negative number which means you are in trouble. Reduce your spending in some areas to keep your bank in positive.

If you have money left over end of the month or year GOOD JOB! Now, you can put this money in a savings account to get 1% interest each month or INVEST and get a return of upto 5-10%. (ASK US HOW)

By following these three steps you can save up to meet your goals, like attending college or university, buying a new video game console or that purse you've had your eye on for way too long. Keep your budget up to date as your income and goals change.

But trust me this simple MATH WORKS!