Debt delinquencies are up, what you can do
Today, Equifax announced that delinquency rates in Alberta have climbed, mainly due to the economic impact of the dropping oil price.
Equifax Canada said Thursday the delinquency rate for Alberta stood at 1.4 per cent, up 40.3 per cent compared with a year ago. For the most part, older Canadians have always demonstrated an ability to handle their spending and what they owe. Millennials should be reminded to practice good budget and money management habits. [Global News]
So what can you do to better manage your debt? Here’s some ideas:
- Understand credit: understand what makes up your credit score and what will affect it. Here’s a free guide on understanding your credit.
- Don’t rush into credit cards: don’t start with multiple credit cards, start with one (with a low limit) and master the management, then move onto two.
- Shop around: shop around for the best credit card rates and deals, and never be afraid to ask for advice when it comes to your finances.
- Read the fine print: always read your credit card agreements closely, and make sure you understand it before you sign.
- Keep cards paid off: try to pay off your credit card balance each month, not just the minimum payment.
- Pay your payments on time: just one late payment can affect your credit in a negative way, and will also raise your interest rate in the future.
- Budget: simple advice, but set a budget and make sure you stick to it.
- Update accounts: make sure your credit card companies are always kept aware of any changes in your address, etc.
- Be proactive: if you know a payment will be late, call your credit card company right away and setup a payment schedule. In most cases, being proactive won’t hurt you, and most companies are willing to work with you.
- Control spending: at the first sign of overspending on your card(s), stop using them. If you really can’t control yourself, give your credit cards to a friend for safekeeping until you get them under control again.
To learn more about credit card smarts and information you need to know, here’s my free guide: 11 Credit Card Secrets. As always, feel free to contact me anytime, or tweet me.
