Much of the debt that Canadians carry is for their beloved automobiles. It is a legitimate expense, but it's not an investment. Buy the car that meets your basic needs. The rest is luxury - buy it only if you can afford it!
No document on tax savings would be complete without mentioning the Canadian classic - the RRSP.
Use an RRSP Loan to Reduce Your Taxes
The program allows you to invest before-tax dollars, as opposed to after-tax dollars, into your personal retirement fund. Therefore, if you are in a 40% tax bracket, this means Revenue Canada will give you a tax refund equal to 40% of your RRSP contribution. Other methods of tax savings should always be weighed against what you could save by contributing to your RRSP. This is especially true if building up that fund is a priority.
Tips To Turn Bad Debt Into Good Debt
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Convert Mortgage Debt into Tax Free Debt Using an Existing Asset
Convert Mortgage Debt into Tax-Free Debt Over Time
Transfer Mortgage Debt to a Business or Rental Property
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