Gain Financial Control

The key to managing your credit is control – control of how much you spend on credit, how quickly you pay it back and the types of items you purchase. Credit is not a financial cure-all. Used the right way, however, it can help you build a powerful credit rating and afford certain purchases.

If any of these apply to you, your financial situation may be in distress:

• You don’t know how much you owe until the bills arrive
• You often pay your bills late
• You’re often unable to make a minimum credit card payment
• You pay bills in 60 to 90 days that you used to pay in 30
• You frequently approach or exceed your available credit limit
• You use your chequing account overdraft protection or cash advances to pay bills
• You work overtime or a second job to keep up with dept payments
• You’re spending your savings to cover everyday expenses

Here are some ways to help regain control of your finances:

• Always pay bills on time and make at least the minimum payment
• Set aside a portion of your available credit for emergencies like car repairs or unplanned medical costs
• Make note of your spending habits to identify patterns and then create a budget, making adjustments when necessary and tightening your expenditures wherever possible
• Drastically reduce your card usage. Leave your card at home or put it in a different place in your wallet as a reminder not to use it
• Revise your current budget and make credit payments a higher priority. Cut down on other expenses. Make at least the minimum payment each month and set up a firm timetable to pay off your debt
• Contact your creditors. They’ll want to work with you and together you should be able to figure out a realistic payment schedule

No related posts.