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Best Credit Cards for 2020

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Canadian issuers such as the Bank of Nova Scotia, Desjardins, and Bank of Montreal feature rewards, cashback, low annual fee, student, and other types of cards that are not to miss. Customers enjoy a number of added perks such as rewards schemes, concierge services, car rental discounts and insurance, and sign-up bonuses.

Best Travel Credit Cards

Scotiabank Gold American Express

Scotiabank features a travel card that offers rewards points on entertainment, dining, grocery shopping, gas, and other eligible purchases. Their Scotia Rewards Travel Service enables customers to book travel and enjoy a comprehensive insurance package. Other travel perks and incentives include special offers, Priority Pass membership and access to airport lounges, and concierge services. The card offers additional benefits such as access to fashion, music, film, and dining events.  Supplementary cards are also available.

  • Annual fee: $99
  • Interest rate: 19.99 percent
  • Balance transfers and cash advances: 22.99 percent
  • Limited time offer: Earn 20,000 bonus Scotia Rewards points with your first $1,000 in everyday purchases in first 3 months. Offer ends on March 1, 2020

Home Trust Preferred Visa

Home Trust offers a Visa card with travel benefits such as no foreign exchange conversion fees, auto rental collision insurance, and roadside assistance. Roadside assistance is offered free of charge and entitles customers to 4 service calls annually. Cardholders also earn 1 percent cash back on all items charged to the card, and there is no limit to the amount that can be earned.

  • Annual fee: none
  • Interest rate: 19.99 percent
  • Cash advance rate: 19.99 percent

Best Low Fee Credit Cards

MBNA Rewards Platinum Plus MasterCard

This rewards credit card by MBNA is a good deal in that it allows customers to earn points on a daily basis. Every dollar spent on eligible purchases earns 2 points, including dining, grocery items, and gas. A welcome bonus of 2,500 points is offered with the first purchase to customers who opt for e-statements. Cardholders are free to redeem points for gift cards, travel, merchandise, charity donations, etc. They also enjoy everyday and security services such as lost luggage assistance, emergency services, and ticket replacement.

  • Annual fee: none
  • Purchase rate: 19.99 percent
  • Balance transfer rate: 22.99 percent
  • Cash advance rate: 24.99 percent

Blue Sky Credit Card

This card by American Express also features multiple benefits such as free additional cards, access to special offers and reserved tickets, and travel coverage. Customers are offered the chance to make restaurant reservations and buy presale tickets for special events, including theatre performances and concerts. An added advantage is the fact that there are no travel and seat restrictions. The first $500 purchase earns 10,000 rewards points, and referring a friend earns additional $5,000 points. Each dollar in purchases is equal to 1.25 points.

  • Annual fee: none
  • Interest rate: 19.99 percent
  • Funds advance fee: 22.99 percent

Best Canadian Cashback Cards

Scotia Momentum® Visa Infinite Card

Offered by the Bank of Nova Scotia, this cashback card features a special offer so that customers earn 10 percent back on all purchases made during the first three months. Each dollar spent at grocery and drug stores earns 4 percent and at gas stations – 2 percent.  Other benefits worth mentioning include concierge services, access to dining experiences and premier events, wine purchase discounts, complimentary wine tastings, and more.

  • Annual fee:  $99
  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Credit limit: 5,000 or higher
  • Limited time offer: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, no annual fee in the first year, including on supplementary cards. A welcome offer value of $350*. Offer ends on April 30, 2020

Meridian Visa Infinite Cash Back Card

Also a great credit card to earn money on purchases, Meridian Visa Infinite features 10 percent cash back on items charged during the first 3 months. Utility bills and pharmacy purchases earn 2 percent, grocery and gas earn 4 percent, and all other purchases – 1 percent. Rewards can be redeemed in the form of gift cards, account credit, events tickets, and merchandise. The card also comes with a comprehensive insurance package, including travel assistance, baggage insurance, and emergency health care coverage.

  • Annual fee: $99
  • Purchase rate: 19.50 percent
  • Cash advance rate: 21.99 percent

Best Rewards Credit Cards

American Express Cobalt

Also a good choice to earn rewards points, this card by American Express comes with a low interest rate and a welcome bonus of 30,000 points for purchases worth $500 made on a monthly basis. Each dollar spent in cafes, bars, and restaurants earns 5 rewards points. Supplementary cards are offered at no additional cost. Customers enjoy multiple benefits, including shopping deals, weekend gateway experiences, advance movie screenings, reserved tickets, and presale tickets for major events.

  • Monthly fee: $10
  • Interest rate: 19.99 percent
  • Funds advance rate: 22.99 percent

BMO World Elite MasterCard

The Bank of Montreal also offers a rewards card with shopping and travel benefits, an annual fee waiver during the first year, and a welcome bonus of 35,000 points. One dollar spent on everyday purchases earns 2 points, and $1 on entertainment, restaurant, and travel purchases earns 3 points. Customers also benefit from access to vacation packages, cruises, car rentals, and other travel benefits.

  • Annual fee: $150
  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual income requirement: $150,000 for households; $80,000 for individuals

Best Credit Cards with Travel Insurance Coverage

Scotiabank Platinum American Express

Customers who need a card with comprehensive travel coverage may check this card by Scotiabank, which also features an attractive rewards scheme. Travel coverage includes travel accident, travel emergency medical, flight delay, lost and delayed baggage, and other types of insurance. Cardholders also earn 1 point per dollar on everyday purchases and 4 points per dollar on entertainment, gas, dining, and grocery purchases. The list of added benefits includes concierge services, access to special offers, experiential tours, culinary experiences, and Hertz #1 Club Gold membership.

  • Annual fee: $399
  • Cash advance rate: 22.99
  • Interest rate: 19.99 percent
  • Minimum credit limit: $10,000

Desjardins Odyssey Visa Infinite Privilege

This Visa card also comes with a comprehensive insurance package, including travel, common carrier accident, emergency health care, trip interruption or cancellation, and baggage insurance. The card also offers 2 percent cash back on purchases and features wine and food experiences, concierge services, and hotel and travel benefits. Customers enjoy exclusive travel benefits such as airport parking discounts, security fast track lanes, and Priority Pass membership. Hotel benefits include beverage and food credit, complimentary daily breakfast, and automatic room upgrades based on availability.

  • Annual fee: $295 for members; $395 for non-members
  • Interest rate: 9 percent
  • Minimum annual combined or individual income: $200,000

Best Student Credit Cards

BMO SPC® CashBack® Student MasterCard®

This credit card by the Bank of Montreal is especially designed for students and features discounts on food, dining, clothing, beauty, and other items. Cardholders are offered 5 percent cash back on purchases during the first three months and 1 percent after the promotional period. Students also benefit from access to sports events, premiers, and concerts, exclusive deals, and add-ons such as BMO Roadside Assistance and Credit Alert. A signature or reference letter from parents is not required.

  • Annual fee: none
  • Standard interest rate: 19.99 percent
  • Cash advances: 22.99 percent

Scotiabank Scene Visa Card

Scotiabank also offers a student card that is suitable for young people with no credit history. The card features a rewards program that offers customers the chance to earn 5 points per dollar on Cineplex purchases and 1 point on everyday purchases. Scotiabank offers multiple benefits such as discounts on car rentals, supplementary cards, and optional protection in case of critical illness, lockout or strike, job loss, disability, etc.

  • Annual fee: none
  • Cash advance rate: 22.99 percent
  • Standard rate: 19.99 percent
  • Minimum credit limit: $500

Best Secured Credit Cards and Credit Cards for Bad Credit

Home Trust Secured No Annual Fee Visa

This card is a good option for borrowers with tarnished credit and requires a security deposit as a guarantee of repayment. The minimum deposit is $500 and the maximum deposit – $10,000. Customers can use the card to book vacations and make online or in-store purchases. Cash can be accessed at ATMs with the Plus and Visa logo. The approval rate is quite high (over 95 percent), which makes this secured card a good choice for customers who seek to reestablish credit.

  • Annual fee: none
  • Purchase interest rate: 19.99 percent

OR

  • Annual fee: $59
  • Purchase interest rate: 14.99 percent

Refresh Secured Visa

Apply Now for Quick ApprovalThis secured card from Refresh helps customers build credit and comes with beneficial features such as low security deposit, easy approval, and free financial resources and education. Cardholders are offered free courses on different topics, including finances, money, how to set financial goals, and how to improve credit.

  • Annual fee: $48.95
  • Interest rate: 17.99 percent

Apply Now

Scotiabank Value® No-Fee Visa Card

This card is a good choice for newcomers to Canada and persons with no credit history. Scotiabank offers the option to transfer balances, and customers benefit from a low 3.99 percent introductory rate during the first 6 months. Additional benefits for cardholders include car rental discounts and Visa Checkout.

  • Annual fee: none
  • Purchase rate: 16.99 percent
  • Balance transfers and cash advances: 16.99 percent
  • Minimum credit limit: $500

Best Balance Transfer Credit Cards

MBNA True Line MasterCard

This MasterCard by MNBA comes with a zero promotional rate on balance transfers during the first 10 months, allowing customers to transfer high-interest balances. There are many benefits for cardholders, among which legal assistance, pre-trip information, and lost ticket and lost card replacement. Up to nine authorized users can be added free of charge.

  • Annual fee: none
  • Cash advance rate: 24.99 percent
  • Purchase rate: 12.99 percent

President’s Choice Financial® MasterCard®

Another option by President’s Choice Financial, this card comes with a very low balance transfer rate of 0.97 percent during the first 6 months. Customers also earn 3 cents per litre at Mobil and Esso gas stations, 25 points per dollar at Shoppers Drug Mart, 20 points per dollar at PC Travel, and 10 points on all other purchases. Added benefits for cardholders are emergency cash advances, free extended warranty, and the option to request up to 4 additional cards at no added cost.

  • Annual fee: none
  • Purchase rate: 19.97 percent
  • Cash advances: 22.97 percent

Best Store Credit Cards

Triangle™ World Elite MasterCard®

This card by Canadian Tire allows holders to earn 3 percent on grocery purchases, 5 – 7 cent per litre at Husky and Gas+ stations, and 4 percent in CT money.  Customers also enjoy perks such as concierge services, personalized offers, roadside assistance, and access to exclusive events.

  • Annual fee: none
  • Purchase rate: 19.99 percent
  • Cash advances: 22.99 percent
  • Minimum annual income: $80,000

Capital One® MasterCard

This card is offered to Costco members and features 1 percent cash back on regular purchases, 2 percent on gas, and 3 percent on dining. The array of everyday and travel benefits includes travel assistance, baggage delay and common carrier travel accident insurance, and price protection.

  • Annual fee: none
  • Interest rate: 19.75 percent

There are plenty of great credit cards that offer money back, rewards points, comprehensive insurance coverage, low interest rate balance transfers, and other incentives. Financial institutions offer cards to customers with different credit scores, including secured cards to help build credit and take advantage of a wealth of attractive offers.

 

Is Being Debt-Free Possible?

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It is possible to live debt-free if you set a budget and realistic goals and stick to them, live within your means, avoid high interest rate loans, and pay off outstanding balances.

Set Budget and Goals

The first step to being debt-free is to set a monthly household budget and weigh your income and expenses. Make a list of essential expenses such as property taxes, rent or mortgage, gas, water, and electricity bills, and groceries. Think of other expenses such as coffee, restaurants, baby sitting or daycare, alimony, child support, credit card balances, etc. Make note of expenses that you can cut if the total amount exceeds your income. Then you should list all sources of income in your household. These can be salaried income, wages, real estate investments, unemployment compensation, or business net income. Other sources of income include high-yield savings, compensatory damages, cash rebates, and sick pay benefits. Add up your expenses and your income sources and see whether you will have any money left by the end of the month. If your expenses exceed your income, this is a red flag which- shows that you are financially vulnerable and should adjust your budget accordingly.

Live within Your Means

Whether you are in the low- or high-income bracket, living from paycheck to paycheck is simply making ends meet. But it can be worse. Many people make impulse purchases that they later regret or buy things that they rarely or never use. Some people tend to stock up on food and products that are on sale and spend a lot of money. Instead of buying items on their shopping list, they end up purchasing 10 cans of kidney beans and 50 whole-grain cereal bars. Buying complementary items is also a mistake when you try to stick to a budget.

Do Not Use Payday Loans

Many payday lenders in Canada offer short-term loans with unfavorable terms and extremely high interest rates. This is a last resort for people who face unexpected expenses and emergencies and cannot access better solutions such as low interest rate cards and lines of credit. The problem with payday loans is that charges can be as high as 30 percent of the total amount borrowed. The interest rate is much higher than that of standard solutions such as personal loans and lines of credit. The focus should be on building savings for rough times and unexpected expenses. People who often resort to payday loans are usually advised to try to build a healthy score so that they have access to different borrowing solutions.

Pay off Your Credit Card Debt and Use Only Cash or Interac

If you have multiple cards and excessive debt like many Canadians do, it is high time to start paying off your outstanding balances. One way to go about this is to focus on one card at a time. Compare interest rates and start with the card that goes with the highest rate. Another option is to pay the smallest balance first and then focus on the next smallest balance. If you carry large balances, you should always try to pay more than the minimum. This is also a good way to save on interest charges, especially if you have high interest credit cards. Once you have paid your card balances, you should try to use cash or Interac only to avoid accumulating debt. People usually spend less because they physically hand over their hard-earned money. Using cash also makes it easier to budget by allocating money to different spending categories. With credit cards, it is much easier to lose track of spending and overspend. Of course, whether you use cash or credit depends on the particular situation and your finances. If you only make small, occasional purchases, then you can use your credit card. If you are not organized and are usually late on bill and credit card payments, then you may want to use debit or cash. And if you have excessive debt, it is best to use cash only.

Another option is to use Interac to pay for products and services. Your card will be linked to your savings or checking account to make payments. This allows you to keep track of your purchases and spending. One of the major benefits is that you use your own cash instead of credit. Another benefit is that you can use your card to make purchases online and from different retailers. An added benefit is the fact that many financial institutions in Canada feature Interac Debit, among which CIBC, ATB Financial, West Credit Union, Unity Credit Union.

Never Get a Cash Advance

It is best to avoid cash advances to stay away from financial trouble. The problem here is that this is a type of loan that adds to your card debt. If the fee is 5 percent or $5, whichever is greater, you will pay $15 on a $300 advance. Another problem is that the interest rate is typically higher than the balance transfer and purchase rates, and borrowers also pay ATM fees. An added problem is the fact that there is no interest-free or grace period meaning that charges begin to accrue at the date of the transaction. So, instead of getting a cash advance, it is better to look into alternatives such as a peer to peer or personal loan, salary advance from your company, or loan from family members or friends.

Use Debt Consolidation to Get Your Finances in Order

Using consolidation is one way to get control of your finances if you have multiple debts. In this case, you take out a single loan and combine multiple payments. Many banks in Canada offer this financial solution, including RBC, CIBC, TD Bank. Banks allow customers to combine different types of debt such as personal loans, lines of credit, and card balances. There are multiple benefits for borrowers, and one is that they save a lot on interest charges. If you have two or more credit cards with high interest rates, for example, debt consolidation is definitely an option to explore. The fact that you have a single payment to make, instead of multiple payments, makes it easier to avoid being late. Obviously, you will also feel relief knowing that your accounts will not be turned over to a collection agency. There are downsides as well, one being that financial institutions usually require good credit. If your score is less-than-perfect, you may not qualify. Another downside is that consolidation loans usually go with higher monthly payments because the terms are shorter than standard loans.

Whether consolidation is the best solution depends on different factors such as amounts due, types of debt, income and assets, etc. There are alternatives to consider, including credit counseling, personal bankruptcy, debt settlement, cash-out refinance, HELOCs, and home equity loans. All solutions have pros and cons. Debt settlement, for example, allows borrowers to get lower interest rates but they cannot access credit when they are in the program.

Guaranteed, Easy to Get Credit Cards with Instant Approval in Canada

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There are finance companies and establishments that feature easy to get cards with no credit checks and instant approval. They are ideal for Canadians with a history of late and missed payments, excessive borrowing, and delinquencies. Such customers are considered high risk by traditional providers.

Credit Cards Canada Instant Approval

Some companies and financial institutions feature products with instant approval, including Canadian Tire and Home Trust.

Home Trust features a Secured Visa card that allows customers to book a vacation and make in-store and online purchases. The best part is that anyone gets approved. The limit is equal to the deposit made, which can be as high as $10,000 and as low as just $500.

  • Interest rate: 14.99 percent
  • Annual fee: $59

Canadian Tire also advertises instant decision for customers who fill in the application for approval. The Triangle MasterCard® allows customers to earn rewards that can be redeemed at Atmosphere, Mark’s/L’Équipeur, Sport Chek, and Canadian Tire. There is a host of benefits for holders, including access to exclusive events and offers, no-receipt returns, and 5 – 7 ¢ per litre in cash back in CT Money when making debit or cash purchases. Weekly flyer bonuses are also available. Like other instant approval credit cards, customers who are retired or employed, are of legal age, and are Canadian citizens are eligible to apply. Applicants are asked to provide details such as address and name of current employer, annual income, and previous address. (*Note that customers have reported that approval process may take 2 weeks.)

  • Interest rate on cash transactions: 22.99 percent
  • Purchase interest rate: 19.99 percent
  • Annual fee: none
  • Grace period: 21 days or longer
  • Grace period for residents of Quebec: 26 days or longer

Cards with No Credit Checks

The Bank of Nova Scotia and Refresh Financial feature products that target customers with bad or no credit.

Scotiabank offers the Scotia Momentum® No-Fee VISA which is a great option for newcomers to Canada –  no credit history is needed for newcomers to Canada. This card goes with perks such as discounts on car rentals, optional protection, and the option to add a family member or а friend as a supplementary holder. Customers earn 1 percent cash back on recurring bill payments, drug store and grocery store purchases, and at gas stations. All other purchases earn 0.5 percent money back.  As an added benefit, the bank offers a low promotional rate of just 7.99 percent during the first 6 months. (*Note that customers have reported credit checks being done.)

  • Minimum credit limit: $500
  • Cash advance rate: 22.99 percent
  • Standard rate: 19.99 percent
  • Annual fee: none
  • Grace period: 21 days or longer

If looking for no credit checks credit cards, the Refresh Secured Visa is a great option for borrowers with blemished scores because no credit check is required. Applicants are asked to make a security deposit but there are benefits such as free financial education, easy approval, and the opportunity to rebuild credit. The Financial Intelligence Training program by Refresh Financial offers customers the chance to learn how to create a personal brand, set financial goals, build personal wealth, save money, and more. Customers are offered free short videos on a wealth of different topics. Refresh Financial also features useful guides and tools such as advice on building credit after bankruptcy or consumer proposal , ways to improve one’s financial literacy.

  • Interest rate: 17.99 percent
  • Annual fee: $48.95

Apply Now

Guaranteed Credit Card Canada

Some issuers advertise guaranteed credit card approval , among which Capital One and Home Trust. Capital One features three such products – Low Rate Guaranteed, Guaranteed Secured, and Guaranteed MasterCard.

Low Rate Guaranteed MasterCard® requires a security deposit and goes with added incentives such as travel assistance, baggage delay insurance, and common carrier travel accident insurance. Other perks include emergency cash advances and card replacement and extended warranty. All applicants qualify provided that they do not have an account at the bank which was not in good standing and are of legal age.

  • Cash advance interest rate: 19.8 percent
  • Balance transfer and purchase rate: 14.9 percent
  • Annual fee: $79
  • Credit limit: $300 to $7,000

The Guaranteed MasterCard® is another option for customers who are looking for a guaranteed credit card. This product comes with travel and everyday benefits such as car rental collision waiver, extended warranty, and others. Customers benefit from legal referrals, lost luggage assistance, lost ticket and documents replacements, medical referrals, and others.

  • Interest rate: 19.8 percent
  • Annual fee: $59

In general to get approved for a guaranteed credit card Canada based customers must make a security deposit which serves as a guarantee of repayment.

Unsecured Credit Cards for Bad Credit Canada

Getting an unsecured card is a great idea provided that security deposit is not required. Scotiabank and Capital One offer products that are designed for customers with tarnished scores.

The Scotiabank Value® Visa is one product to look into, which also targets newcomers to Canada. There is an option to transfer and consolidate high-interest balances to make payments more affordable. Additional perks include optional protection, discounts on car rentals at Budget and Avis locations in the USA and Canada, Visa payWave.

  • Interest rate: 11.99 percent
  • Annual fee: $29
  • Credit limit: $500 or higher

Capital One also offers an unsecured bad credit card that is ideal for customers who are considered high risk. The Secured MasterCard® is easy to get and features benefits such as price protection, 24/7 roadside assistance, travel assistance, travel accident and auto rental insurance, and more. Identity theft resolution services are also available. Customers are free to choose a preferred payment method and monthly due date and are offered three security deposit options ($200, $99, and $49).

  • Interest rate: 24.99 percent
  • Cash advance rate: 24.99 percent
  • Annual fee: none

Easy to Get Credit Cards

Different financial institutions feature cards that target borrowers with fair and average scores, including BMO, Home Trust and Scotiabank.

The Preferred Rate MasterCard® by BMO® is one option to look into, which comes with a low intro rate of 3.99 percent. This rate applies to balance transfers during a 9-month promotional period. There are add-ons such as balance protection and roadside assistance.  BMO also advertises security features such as MasterCard SecureCode, zero liability, and chip technology. Customers are eligible to apply provided that they did not file for bankruptcy during the past seven years and are of the age of majority in their territory or province of residence. They are asked to bring photo identification such as their territorial or provincial health insurance card, certificate of Canadian citizenship, Permanent Resident Card, driver’s license, Immigration Canada Documents, etc. When applying for a card, customers are asked about their housing status, address, monthly payment, years of employment and employment information, income details, and more.

  • Cash advance rate: 11.9 percent
  • Interest rate: 11.9 percent
  • Annual fee: $20
  • Grace period: 21 days or longer

The Vancity enviro Secured Visa is also a good choice for customers with fair and tarnished scores, those with past financial problems, and recent immigrants. Those who deposit $500 or more in their TFSA, Jumpstart High Interest Savings Account or Vancity Term Deposit are offered an enviro Visa. The amount deposited determines the limit. The card goes with multiple benefits such as Visa payWave and Checkout, stolen and lost card protection, recurring payments, lost and delayed baggage insurance, travel accident insurance, and more. Optional coverage includes trip interruption, trip cancellation, and travel medical insurance as well as critical illness, life, and accidental dismemberment insurance. An added benefit is the option to set up automatic payments to avoid late and missed payments. Customers also have access to their online account information, including statement data, transactions, and current balance. Customers can apply by visiting a local branch.

  • Low interest rate: 11.25 percent
  • Regular interest rate: 19.5 percent
  • Annual fee: none

Toronto Dominion features the TD Cash Secured Credit Card which requires a deposit made into a TD Simple Savings Account. The deposit serves as collateral and can be as low as $500. On the good side, this card allows holders to earn money back on regular purchases, purchases at grocery stores, and dining. Holders earn 1 percent back on regular purchases, 2 percent on groceries, and 3 percent on fine and casual dining. Additional benefits include instant card replacement, chip technology protection, and digital wallet that allows customers to add their card to their phone. *Please note that this card is no longer available.

  • Balance transfer APR: 24.74 percent
  • Variable purchase APR: 24.74 percent
  • Cash advance APR: 26.99 percent
  • Foreign transaction fee: $0
  • Annual fee: $29
  • Credit limit: $500 – $5,000

The Canadian Imperial Bank of Commerce also offers secured cards to newcomers, Canadians trying to rebuild or build credit, and international students. Applicants are asked to make a security deposit which is held in an interest-bearing investment instrument. Newcomers to Canada can choose a card that is tailored to their requirements provided that they have another borrowing or banking product in good standing, including a mortgage, line of credit, loan, or savings or chequing account. A security deposit is not required, and customers with no credit history qualify provided that they meet the criteria.

There are plenty of options for customers who are looking for guaranteed and secured credit cards but in most cases, finance companies and banks require that borrowers provide proof of employment and income and make a security deposit. The reason is that customers with tarnished scores may have poor credit and money management skills, which often results in having delinquent accounts. The good news is that by making regular and timely payments on secured cards, customers manage to rebuild credit over time and are offered a wealth of borrowing options.

Should You Go on Vacation if You’re in Debt?

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Summer is already here, and you probably wonder if it is a good idea to go on vacation if you are in debt. Well, this depends on how much you owe, your monthly payment amounts, and whether you plan a short trip to the countryside or a long summer vacation overseas. This also depends on your income and expenses, the number of family members, and other factors.

When Vacation Is Not an Option

In some cases, vacation is not an option, and you may want to think of other ways to have a good time. This is the case when you have:

  • High-interest debts
  • Multiple debts with large outstanding balances
  • Seasonal or part-time job
  • Unstable income

If you have to add more debt to go on vacation, then it may be better to change your summer plans and put off your trip. If you have paid vacation days, on the other hand, this is definitely a plus. In any case, if going on vacation is a source of stress and you are in a precarious financial situation, it may be better to put off your trip. There are other questions to ask yourself before you make a decision, and one is how quickly you want to get rid of your debts. If you want to repay your debts within a short period, then going on a short vacation or putting off your trip makes more sense. If you have a 25-year mortgage with affordable payments, you don’t have to wait for 25 years to go on vacation. If, on the other hand, you have a payday loan with a short term of 1 – 2 months and a very high interest rate, then it is best to pay it off first. If money is in short supply and you go on vacation, you may incur an extremely high interest rate. This will only make things worse.

Obviously, to go on vacation, you should save enough money for plane tickets, accommodation, travel, leisure activities, dining, car rentals, and anything else. By charging purchases on your card you will spend a lot on interest charges. Interest charges add up if you only pay the minimum and you will end up paying dearly. This is especially true if you hold a high-interest credit card, whether a specialty or standard card. At the same time, if you have a travel credit card, you may want to redeem your points for airfare and accommodation to save money. Many travel credit cards feature complimentary welcome bonuses, rewards points to redeem for travel expenses, affordable travel packages, discounts, room upgrades, and a lot more.

Budget Travel

Hostels

If your monthly payments are reasonable, travelling on a budget is one option to consider. If you don’t mind staying in hostels, this will save you a lot of money. Hostels are inexpensive compared to other accommodation options such as cottages, rental homes, resorts, family hotels, etc. What is more, you can choose from different types of hostels such as boutique or luxury hostels, eco and design hostels, party and surf hostels, and others. It all depends on your budget, preferences, and destination. Some hostels even offer free food such as BBQ, baked goods, instant coffee, milk, a choice of cereals, and a lot more. If you choose a hostel that offers free breakfast, you will save more. If breakfast is not offered, then you can have a big meal at lunch. Many budget restaurants offer lunch specials for cheap. Another idea is to shop at food courts, stores, and markets near closing time which is when you will find deeply discounted food items.

Check short-term rental homes as well. Some rental homes are quite affordable, especially those that are away from busy locations. Many short-term vacation homes have a fully equipped kitchen as well. Plus if you travel with a friend or companion, you can split the costs.

Camping

If you have camping gear or you can borrow from a friend or relative, this is also an option to consider. You may also buy used camping gear and equipment. You will need camping equipment and essentials such as:

  • Pillows
  • Sheets
  • Sleeping bags
  • Tent
  • Thrash bags
  • Aluminum foil
  • Campfire grill
  • Dish pan
  • Cutting board
  • Can opener
  • Folding table
  • Folding chairs

Don’t forget to bring your first aid kit with you. Pack things such as your sunscreen, bug repellant, bee sting kit, cotton swabs, roll bandages, splinting materials, antiseptic wipes, personal medications, and anything else you can think of.

Book in Advance to Save Money

Book air travel, bus travel, hostel or hotel accommodation, and train journeys well in advance. This will save you a lot of money. It is best to book at least 1 month in advance because prices tend to go up. Usually prices go up the closer you get to your departure date or trip. To save even more, you may want to consider going on vacation during low season and off-peak season when hotels and flights are cheaper compared to peak season.

Choose a Budget Destination

If you have outstanding balances, it is best to choose a budget destination such as India, Vietnam, Cambodia, Sri Lanka, or Honduras. Check low-cost airlines which serve major hubs and airports. The main benefit is obviously the low price of tickets. On the downside, low-cost carriers offer fewer amenities compared to standard airlines. Budget destinations such as Sri Lanka, Cambodia, and others have plenty to offer – affordable accommodation and food, breathtaking nature, beaches and palm trees, tea and coffee plantations, waterfalls, lakes, mountains, temples, and more. An air-conditioned room equipped with amenities, Wi-Fi, dining facilities, spa and a swimming pool can cost you as little as $50 – $60. In fact, some hotels feature rooms with a view of the garden or beach and a private hot tub and sauna for as little as $50, with superb breakfast included in the price. Other budget destinations include the Dominican Republic, Argentina, Greece, Bulgaria, and Hungary.

Opt for a Cruise Vacation

One alternative is to choose an inexpensive cruise. The price of a cruise usually includes different dining options for snacks, dinner, lunch, brunch, and breakfast, your stateroom, amenities, waterslides, pools, and evening shows. The price also includes room service, youth and kids’ programs, a fitness center, lounges, entertainment and live music. Non-alcoholic and alcoholic beverages are usually not included in the price and so are specialty restaurants, photos, shore excursions, and video games. The same goes for tips and service gratuities, laundry services, beauty salon services, and spa treatments. If you have children, check whether kids under the age of 18 sail free.

Saving Money While on Vacation

There are other ways to save money while on vacation to avoid overextending yourself and adding more debt. If you plan a vacation at home, you may want to shorten it. Why not pick a desired location to spend a few days with family, friends, and loved ones? Just choose an affordable location and make it a weekend-long trip to visit places of interest, attractions, and nature wonders. Choose a location nearby or within a 3 – 4-hour drive to save on gas. This way, you will also have more time for leisure and fun activities. Instead of doing local trips, you can visit friends or family to spend time with them. If they are willing to host you, you will save on accommodation as well.

Ontario Minimum Wage Increase – Bad for Business and Bad for Employment

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According to finance experts, the minimum wage increase in Ontario will hurt the local economy and result in more unemployment over a period of 2 years. Wynne, on the other hand, believes that the proposed reform is good for the local economy because low wage workers spend their money in Ontario which helps improve the economic climate in the province. With the new minimum wage increase they will have more money to spend on goods and services. In his view, low wage workers are particularly vulnerable, and the wage increase is great news for them. Businesses in Ontario are doing well and the economy is actually booming. But is this really the case?

The New Legislation and Key Points

The liberal government introduced new legislation to gradually increase the minimum wage from $11.40 to $11.60 in 2017 and $14 and $15 as effective in 2018 and 2019. The new legislation also introduces equal pay for seasonal, casual, temporary, and part-time workers with the same job responsibilities as full-time employees. The same goes for temporary help agency employees. The proposed legislation also calls for better opportunities to join unions, opportunities to care for family members over a longer period, 10 emergency leave days, as well as a 3-week paid vacation after a period of 5 years with the same employer. Fair scheduling rules have been proposed as well for on call and shift workers.

The Impact of the Proposed Legislation

Unemployment Levels

Experts warn that the minimum wage increase in Ontario will cause more unemployment, especially among low skilled workers and younger people as well as workers outside large cities such as Toronto. The wage increase will affect regions with considerably lower average wages, including Kingston-Pembroke, the Niagara Peninsula, the Stratford-Bruce Peninsula, Windsor-Sarnia, London, and others. Towns and areas that are economically weaker will be the most affected by the proposed reform. The reason is that unemployment levels tend to spike when the minimum wage reaches 45 percent of the average wage. In Ontario, however, the minimum wage will go over the 45 percent threshold to 55 percent. The pool of employment opportunities would shrink for young people, teenagers, and low skilled workers after three consecutive increases over a period of just 18 months. This is a 32 percent increase, which makes it the biggest, most significant, and steepest in the history of Ontario. In fact, during the last 50 years, the biggest increase has been less than 1 percent (0.75 percent).

As mentioned, low wage workers would be the most affected, including those working in the food, accommodation, and retail trade services. Other categories include people with less than a post-secondary diploma, those working two or more jobs, students, and persons under the age of 30. The same goes for casual, contract, temporary, and seasonal workers and those working for small businesses. Surprisingly, workers in large companies would be affected as well because of the introduction of new technologies that replace low cost labor.

Businesses and New Job Openings

The Liberal government is spending other people’s money by pushing to pass the new legislation, and the proposed measures would hurt Ontario’s economy. Former aviation executive at the John C Munro Hamilton International Airport Richard Koroscil, for example, explains that the wage increase would make it harder for businesses to expand and create more jobs. The Canadian Federation of Independent Businesses made a similar statement, warning that it will be more difficult for Businesses in Ontario to “shoulder additional financial burdens”.

While the reform proposal is still under discussion, the key points remain unchanged, one being the minimum wage increase. Businesses oppose the reform, especially those in the food service industry and independent owners. In their opinion, the new wage increase will slow job growth by reducing profit margins. Many argue that the reform would kill small businesses, which is also the view of Restaurants Canada. The new reform will cost restaurants an extra $47,000 a year, which means that some establishments would be forced to close down. Others, including the Canadian Federation of Independent Businesses, warn that the reform will result in significant job losses. Some establishments will cut hours while others will cut jobs. These are tough decisions to make. The problem is that a higher minimum wage is associated with higher costs, which many small businesses cannot afford. Businesses that can afford it may need time to adjust as well.

The Ontario Chamber of Commerce, which represents more than 60,000 businesses, opposes the reform as well. In the words of Richard Koroscil, the new measures will curb business growth and job creation. What is more, representatives of the Ontario Chamber of Commerce warn that the minimum wage increase will result in more than 180,000 jobs being lost over a 2-year period. Ontario’s Financial Accountability Office confirms this by pointing to the fact that a $15-wage would result in about 50,000 jobs being lost.

Women would be the most affected if the proposed increase passes this year. The reason is that the majority of low wage workers are actually women. Policy Director of the Chamber of Commerce Ashley Challinor explains that the new reform is not only going to make it more difficult to expand and employ people, but many businesses would be forced to rely on automation and speed up the deployment of robots. This means that jobs will be lost to robots and new technologies.

To add to this, businesses that pay more than the minimum worry that employees would expect significant pay increases. Many small businesses simply can’t afford it.