Credit cards – Prosper Canada Learning Hub

Consumer debt and household vulnerability among low and moderate- income households in Canada

November 20, 2020/0 Comments/in Prosper Canada Credit & Debt COVID-19, Credit cards, Debt, Household debt, Student loans Prosper Canada Prosper Canada Webinars Webinar Canada Credit and debt Auto finance, Canada, Research /by Glenna Harris

Household debt levels in Canada have been rising since the 1990s, which poses increasing risks for Canada’s economy and Canadians’ financial health. However, the debt ‘picture’ for an average low- or moderate-income household is likely to be quite different from higher income households, both in terms of amount of debt and type of debt they take on.

Join Alex Bucik and Vivian Odu, from Prosper Canada in this one-hour webinar where theywe will present findings from recent Prosper Canada’s recent research on consumer debt in Canada, Roadblock to Recovery: Consumer debt of low- and moderate-income Canadians in the time of COVID-19. Alex and Vivian will explore what types of debt are more common in low- or moderate-income households, and some of the drivers of this debt load.

This webinar is intended to equip financial educators and frontline practitioners supporting low-income clients, with recent knowledge on the types of debt Canadians living on low income may be dealing with, and things to know about the pitfalls of different types of debt.

Click 'Get it' below to access the video link, and scroll down to access handouts, slides, and video timestamps for this webinar.

Handouts, slides, and time-stamps

Read the presentation slides for this webinar.

Handouts for this webinar:
Report: Roadblock to recovery: Consumer debt of low- and moderate-income Canadian households in the time of COVID-19 (Prosper Canada)
Survey results: Canadians with incomes under $40K bearing the financial brunt of COVID-19 (Leger and Prosper Canada)

Time-stamps for the video recording:
4:42 – Agenda and introductions
7:52 – Audience polls
10:55 – Researching consumer debt (Speaker: Alex Bucik)
18:55 – How much does debt cost? (Speaker: Alex Bucik)
23:17 – How do different kinds of debt work? (Speaker: Alex Bucik)
29:17 – What are people using their credit for? (Speaker: Vivian Odu)
40:49 – What help is available to Canadian borrowers? (Speaker: Alex Bucik)
45:22 – Q&A

The Early Effects of the COVID-19 Pandemic on Credit Applications

November 11, 2020/0 Comments/in CFPB - Consumer Financial Protection Bureau Credit & Debt Credit, Credit cards, Debt Christa Gibbs, Éva Nagypál, Scott Fulford Research Report United States COVID-19, Insurance, Mortgage, Unemployment /by Carrie Wong

This report documents the early effects of the COVID-19 pandemic on credit applications, which are among the very first credit market measures to change in credit report data in response to changes in economic activity. Using the Bureau’s Consumer Credit Panel, how applications for auto loans, mortgages, credit cards, and other loans changed week-by-week during the month of March, compared to the same time in previous years was studied.

Report on Income and Canadian Financial Consumer Complaints

October 29, 2020/0 Comments/in Ombudsman for Banking Services and Investments Consumer protection, Financial inclusion Banking, Canada, Complaint reporting, Consumer protection, Credit cards, Financial inclusion, Fraud, Gender/sex, Lone adults, Low income, Mainstream financial services Ombudsman for Banking Services and Investments Miscellaneous Report Canada /by Glenna Harris

This report explores the financial services complaint experiences of Canadians at various income levels who used the Ombudsman for Banking Services and Investments (OBSI)’s service. The national, not-for-profit organization collected demographic and case data for almost 1,000 closed cases resolved between 2017 to 2019 to create the report. These cases were grouped into three categories:

lower-income households (under $60,000);
middle-income households ($60,000 to $100,000); and
higher-income households (over $100,000).

Key findings include:

Lower-income households represent almost 40% of OBSI cases. Lower-income consumers of financial services need and make use of OBSI as an accessible alternative to the legal system.
Nearly one-third (30%) of employed complainants live in lower- or middle-income households. Canadians experience economic barriers to accessing legal services regardless of their employment status.
Most lower-income complainants are over 60, while most higher-income complainants are under 50. Older Canadians have a particular need for accessible dispute resolution.

Consumer Insights on Managing Spending

April 30, 2019/0 Comments/in CFPB - Consumer Financial Protection Bureau Credit & Debt, Financial literacy Budgeting, Consumer behaviour, Credit cards, Debt, Financial behaviour, Research, United States CFPB - Consumer Financial Protection Bureau Research Report United States /by Glenna Harris

The CFPB conducted research on consumer challenges in tracking spending and keeping to a budget. The research found that consumers aspire to manage their spending but for many reasons, many consumers spend more than intended and sometimes have\ difficulty in staying within their budgets. In addition, we found that although most people would like to use budgets and plans, they often don’t use them to guide spending decisions in the moment.

Budgeting and tracking spending are often considered to be overwhelming or too much of a hassle, and even those consumers who have a budget generally do not benchmark their spending to their budget frequently or regularly.

Credit Card Payment Calculator

February 14, 2019/0 Comments/in FCAC - Financial Consumer Agency of Canada Credit & Debt Canada, Credit, Credit cards, Financial literacy, Online tool FCAC - Financial Consumer Agency of Canada Tools Online tool Canada /by Glenna Harris

This tool from the Financial Consumer Agency of Canada will help you compare different payment options to pay off your credit card balance.

statement. If you can't, you can still reduce the amount of interest you will have to pay. The credit card payment calculator compares 3 different payment options to pay off your credit card balance.

Your Money Seniors

June 4, 2018/0 Comments/in Canadian Bankers Association Curriculum & Training Abuse, Banking, Canada, Credit cards, Financial literacy, Fraud, Seniors Canadian Bankers Association, FCAC - Financial Consumer Agency of Canada Training/Toolkits Presentation /by Jenni Bolton

Your Money Seniors is a financial literacy program for seniors. Modelled on the CBA’s highly successful Your Money Students program, this seminar program is offered in French and English, free of charge, to seniors’ groups across the country.

Your Money Seniors is presented by bankers in the community volunteering their time and expertise and covers how seniors can:

protect against financial abuse
spot the signs of financial fraud
make the most of their money in retirement

Handout 6-3: The cost of credit

February 23, 2018/0 Comments/in Prosper Canada Curriculum & Training, Financial literacy Canada, Credit, Credit cards, Curriculum, Financial literacy, Training, Training handout Prosper Canada Training/Toolkits Curriculum Canada /by Prosper Manager

This handout is from Module 6 of the Financial Literacy facilitator curriculum. The cost of credit for different payment methods.

Handout 6-2: Credit card features

February 23, 2018/0 Comments/in Prosper Canada Curriculum & Training, Financial literacy Canada, Credit, Credit cards, Curriculum, Financial literacy, Training, Training handout Prosper Canada Training/Toolkits Curriculum Canada /by Prosper Manager

This handout is from Module 6 of the Financial Literacy Facilitator Resources. The features of credit cards and what they mean.

To view full Financial Literacy Facilitator Resources, click here.

Handout 6-1: Types of credit

February 23, 2018/0 Comments/in Prosper Canada Curriculum & Training, Financial literacy Canada, Credit, Credit cards, Curriculum, Financial literacy, Training, Training handout Prosper Canada Training/Toolkits Curriculum Canada /by Prosper Manager

This handout is from Module 6 of the Financial Literacy Facilitator Resources. The different types of credit and their lending conditions.

To view full Financial Literacy Facilitator Resources, click here.

The Monthly Stress-Test on Family Finances

November 29, 2017/0 Comments/in J.P. Morgan Chase Institute Financial well-being Assets, Credit cards, Debt, Emergency savings, Families, Financial shock, Generation, Health care, Household wealth, Income volatility, Low income, Moderate income, Seniors, Unemployment, United States Diana Farrell, Fiona Grieg Research Brief United States /by John Smith

Helpful shortcuts for credit card use: Ideas for financial educators

November 29, 2017/0 Comments/in CFPB - Consumer Financial Protection Bureau Credit & Debt, Financial literacy Behavioral economics, Consumer behaviour, Credit, Credit cards, Debt, Debt management, Financial behaviour, Financial education, Financial literacy, United States CFPB - Consumer Financial Protection Bureau Research Report United States /by John Smith

To test out the impact of rules of thumb in helping consumers decrease their credit card debt, the CFPB
commissioned a rigorous study of two financial rules of thumb on consumers with revolving credit card debt. We created two new guidelines aimed at aiding consumers to decrease their revolving credit card debt: Don’t swipe the small stuff – Use cash when it’s under $20; Credit keeps charging – It adds approximately 20% to the total.

Minimum Payments and Debt Paydown in Consumer Credit Cards

November 29, 2017/0 Comments/in The Wharton School Credit & Debt Consumer behaviour, Credit cards, Debt, Household debt, Lending, Outcomes, Research, United States Benjamin Keys, Jialan Wang Research Report United States /by John Smith

Do What You Love: Financial Planning for Artists & Designers

November 29, 2017/0 Comments/in OCAD - Ontario College of Art and Design Curriculum & Training Budgeting, Canada, Consumer behaviour, Credit cards, Curriculum, Debt, Education, Financial aid, Financial literacy, Youth OCAD - Ontario College of Art and Design Miscellaneous Curriculum Canada /by John Smith

Tips to save money while you’re in school

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Financial literacy Budgeting, Canada, Credit cards, Education, Financial literacy, Lending, Post-secondary education, Saving, Tax credits, Youth FCAC - Financial Consumer Agency of Canada Tools Guide Canada /by John Smith

Understanding Credit Card Fees (Financial Literacy Series)

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Financial literacy Canada, Consumer behaviour, Credit, Credit cards, Lending FCAC - Financial Consumer Agency of Canada Tools Curriculum Canada /by John Smith

Understanding your Credit Report and Credit Score

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Credit & Debt Canada, Consumer protection, Credit, Credit cards, Credit scores, Financial literacy, Fraud, Identity theft FCAC - Financial Consumer Agency of Canada Tools Guide Canada /by John Smith

Be Smart with Your Credit Card: Tips to Help You Use Your Credit Card Wisely

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Credit & Debt Canada, Consumer behaviour, Credit, Credit cards, Financial literacy, Mainstream financial services FCAC - Financial Consumer Agency of Canada Tools Guide Canada /by John Smith

Credit Cards: Understanding Your Rights and Your Responsibilities

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Credit & Debt Canada, Complaint reporting, Consumer protection, Credit, Credit cards FCAC - Financial Consumer Agency of Canada Tools Guide Canada /by John Smith

Protecting Your Credit Report: How to Correct Errors and Check for Fraud

November 29, 2017/0 Comments/in FCAC - Financial Consumer Agency of Canada Credit & Debt Canada, Consumer protection, Credit, Credit cards, Credit reporting, Financial literacy, Fraud, Identity theft FCAC - Financial Consumer Agency of Canada Miscellaneous Guide Canada /by John Smith

Your credit report is important for your financial health. It can help you get approved for credit cards and other loans. It can also affect your ability to rent housing or get hired for a job.
Protect your credit report by checking carefully for errors and signs of identity theft. You have the right to dispute any information in your credit report that you believe is wrong. You can ask the credit reporting agencies to correct errors. It’s free.