Helping Canadians Get Out of Debt
Starting a plan to get out of debt and keeping that plan are often two different things. It’s a lot like starting a diet when the New Year starts. You start off good, but then a week or two into it, you quickly fizzle and go back to your old habits.
So how do you stop this from happening when you’re trying to get out of debt?
Here are many ways to stay motivated to get out of debt.
Continue reading “How to Stay Motivated when Getting out of Debt“
If you’re sitting on a lot of debt right now, first know that you aren’t alone. The pandemic wreaked havoc on most people’s finances. Now that we’re seeing life get back to somewhat normal, you may wonder what you should do with your debt or if it will just hound you the rest of your life.
The good news is there are ways to conquer it. Here’s what you can do.
Continue reading “You can Conquer your Debt”
There can be advantages to having more than one credit card. However, there are just as many disadvantages. Understanding the pros and cons of having more than one credit card is important to help you decide what’s right for your personal financial situation.
It might seem simple. Having multiple credit cards means you can charge more and maybe even earn more rewards. While that’s true, consider these factors.
Continue reading “How Many Credit Cards Should I Have?”
If you’re trying to improve your credit, you need to pay off your debts. High debts can hurt your credit score tremendously, especially if you have a lot of revolving debt (credit cards).
To improve your credit score, focus first on credit card debt and then installment debt, which includes your mortgage, car payments, student loans, and personal loans. Before you jump in to pay off your credit card debt, though, you’ll need a strategy.
Continue reading “Which Debts Should I Pay Off First to Improve My Credit?”
You’ve likely heard how COVID-19 affected millions of household incomes, but what about debt levels? Household debt has reached extraordinary levels, but not for everyone. Its largest stronghold is on the middle-income earners – the households that lost their jobs during the pandemic and who didn’t benefit enough from CERB payments.
Here’s what happened.
Continue reading “How COVID-19 Affected Household Debt” 
Your relationship is going well, and you take the big step to move in together. However, reality soon comes crashing down. Before you know it, the honeymoon is over, and you’re disagreeing about every little aspect of your lives together.
One of the biggest sticking points for couples is finances. You may find that you each hold completely different views about the importance of budgeting, or when you do budget, you disagree on what is or is not a priority. These are the times that will try your relationship, but the good news is, you can get through it and reach an accord.
First of all, there is no way around it – you need to be honest with each other. Discuss all your assets and debts, so there are no unpleasant surprises. You then need to decide whether to share financial responsibilities and to what degree. One person may be bringing a lot more debt to the relationship, which is why it is important to have this conversation early in the relationship.
Make sure to discuss your individual credit history, too. Your ability to borrow as a couple will be greatly impacted by your past spending. Don’t panic if your partner has taken out a lot of credit in the past; this is your opportunity as a couple to explore options for getting to a place of financial stability. Talk about setting a budget and goals for clearing debt, and decide on a ratio of responsibility for that debt.
While it is important that both of you contribute financially to your budget and the paying off of debts, you should also play to your strengths. The person who is better at managing monthly bills should take care of that side of your finances; however, it is important that both people in the relationship share the overall responsibility of maintaining the budget.
Compromise and communication are key to a strong financial relationship so make sure you discuss and come to an agreement on where your money is going and when. A relationship takes work, but by having this honest conversation early on and staying on track with budgeting and spending, you may find that your relationship is stronger for it.
A New Year’s resolution is often about learning from the mistakes you made in the previous year. This is especially true when it comes to budgeting. You can really get ahead of the game; setting yourself up for a debt free year. For a long-term budget, we have some great tips to include in your New Year’s resolution.
Planning Ahead
Don’t get taken by surprise when it comes to your finances. Remember last year when your car broke down, and you had to break into your budget to pay for the emergency repair? Well, to truth is, this coming year isn’t going to be any kinder to you. There will always be some emergency to deal with, so having a safety net is important. Saving a little extra for a rainy day will help you avoid having to pay for emergencies with your credit card!
Think About Your Small Purchases Too
Everyone has their little pleasures in life, but indulging in them doesn’t have to break your budget. If want to splurge on treats, make sure to keep the costs reasonable. If you like to drink coffee in cafés, try finding one that offers a loyalty card or rates. Most businesses today offer discounts, so try to reserve your splurges for occasions when you can get a deal.
Set Goals
Give yourself something to look forward to by setting budgeting or having saving goals. Don’t set your sights unrealistically high; instead take one goal that is achievable within a fixed time scale, and then focus on that. You can save for a car, new furniture, a clear credit card bill, or anything else that will give you a sense of achievement. When you reach your goal, remember to give yourself a pat on the back!
Are you afraid to check the mail for fear of seeing your credit card bills? Especially during this time of the year, we understand how credit card balances can be overwhelming. Give us a call and we will help you, every step of the way to becoming debt free.
Did you know that the month of November is Financial Literacy Month?
This initiative is a nationwide campaign aimed at helping Canadians increase their financial knowledge so that they can make more informed decisions when it comes to their personal finances. Understanding basic financial principles and practices is an essential ingredient to every household’s financial stability.
At Creditaid, one of our highest priorities is helping families understand how the credit system works and how to manage their finances wisely. Many people fall into financial crisis without being fully aware of how they got there in the first place. We believe a clear understanding of the credit system and available financial tools can help people turn their situations around before they find themselves too far in debt. Financial management is key and we are happy to provide you with the tools and information you need to get there.
Creditaid is committed to helping Canadians and we’re here to help. With the Creditaid Budget Bootcamp, we have taken this commitment one step further. Our Budget Bootcamp will take you step by step through a comprehensive budgeting plan, aided by many of the tools we use to help our clients on a daily basis.
How well do you know the credit counselling agents that you deal with? Are you looking for a more personal experience with a high level of discretion? At Creditaid, we offer you a different kind of experience. Personal finances can get very complicated. Budgets and bills are not just numbers on a piece of paper – they have real life
implications.
How well do you know the credit counselling agents that you deal with? Are you looking for a more personal experience with a high level of discretion? At Creditaid, we offer you a different kind of experience. Personal finances can get very complicated. Budgets and bills are not just numbers on a piece of paper – they have real lifeimplications.