8 ways to manage debt
The holiday season is fast approaching, and holiday credit card bills won't be far behind. Here are some tips to manage debt you can use all year.
In recent months, headlines have been peppered with concerns about Canadian debt loads. The focus seems to be primarily on mortgage debt, as a mortgage is typically the largest debt most Canadians will take on. But what about credit card debt, with interest rates hovering around 19%? By only paying the minimum monthly payment, it can take years to pay off a credit card fully, and the average Canadian owes a balance on more than one card. This article from Moneyville shows easy ways for anyone to keep their high-interest debt under control.
First, examine your spending. Making a detailed budget of what you spend each month is an easy way to see what can be cut out. Small changes can add up to big savings over the long term. Contacting your credit card company is also worth looking into. Some companies will negotiate lower interest rates or more convenient repayment schedules for loyal clients.
Always remember the impact that credit cards have on your individual credit rating. Credit ratings are becoming even more important when applying for larger credit, such as a mortgage, so it is vitally important to keep your credit report clean. If you are unable to pay the full balance on your credit card, ensure you are at least paying the minimum payment, and making the payment by the due date. Late and missed payments have a negative impact on your credit rating. Last, but not least, if you have a card with no outstanding balance that you do not intend to use, contact the card company and close it. An active card with no balance still has an impact on your credit report. For more helpful information on keeping your credit rating under control, talk to an Ottawa Mortgage Broker.