1. Pay Bills on Time
Avoid Bad Credit from Late Payments
Pay all of your bills on time. Don’t underestimate how important it is to pay your regular bills, like hydro, gas, cable, internet, etc. on time every month.
If you find that you’re forgetting to pay sometimes, set up auto-pay through your online banking or put a reminder on your calendar.
If you don’t have enough money when bills are due, put money for your bills into a separate bank account as soon as you get paid. If possible, set this up so that it automatically happens with every pay cheque.
While paying bills on time won’t fix your credit directly, it will signal to lenders that you’re managing your money effectively.
5. Live Within a Realistic Budget
Save for Unexpected Expenses
Have a monthly budget that lets you live within your means. Look at how much money you have coming in every month and how much money on average you spend. If you’re spending more money than you make, then look at what exactly you’re spending on and where you can cut costs. Alternatively, you can look for ways to make more money. The key is to balance your budget so that you don’t rely on credit to make ends meet.
You will definitely need to set some savings aside for unexpected expenses. They tend to happen when we least want them to! Make regular deposits to your savings account and manage your normal monthly expenses carefully. More than anything else, sticking to a good budget is the best way to keep financially healthy.
7. Avoid Credit You Can’t Afford
Never Take Out Loans You Can’t Repay
Avoid using payday loans to make ends meet. They won’t help improve your credit rating.
If you find that your pay cheques aren’t enough to make it to the end of the month, consider other options to help avoid ending up in financial difficulty again. If you feel like you’re out of options, contact us and we’ll be happy to help you find solutions that will work for you.
After going through bankruptcy, you know the consequences of having debts you can’t repay build up. Keep it from happening again by staying away from credit and loans you know you can’t afford.
Getting Rid of Debt
We’re happy to help you figure out your options. There are more than you might think.
Canada has 2 insolvency options, a consumer proposal or bankruptcy. Find out how they stack up.
Are you curious about what credit counselling is or how it works? Here’s what you need to know.