Latest statistics indicate that Canadians are currently carrying over $450 BILLION in consumer debt!
Mortgage Brokers are often called in to help refinance someone’s home in order to repay credit card debts. With current low mortgage rates, it certainly is advantageous to pay off high interest unsecured debts in order to lower monthly carrying costs.
Credit as a lifestyle.
If we could describe one of the biggest changes in our society in the last 40 years is our blasé attitude towards the use of credit. Baby boomers as a group have set the pace and trend on a number of development when they became consumers. One of the main one is the use of credit to finance a lifestyle some say would make our pre depression era generation squirm.
Modern society has brought consumerism to a whole new level. Big box stores, island getaways, niche products and services all contribute and fuel a never ending demand.
A lot of these trends are fuelled by easy credit and lenders as well as credit card issuers have stepped up to the plate by offering access to funds to anyone who wants and qualifies for it.
But with “great powers comes great responsibilities” to quote Spiderman’s Uncle Ben!
We teach our kids to read and write but not how to budget.
So it is no surprise that many consumers get caught in the credit card quagmire with often a one way ticket to bankruptcy.
So it is important as a consumer to stop and take a good look at your buying habits and how you use credit.
Ask yourself these questions:
Do you carry balances on numerous cards or just one or two?
Do you know the exact balance owing on your credit card/s without looking at your statement?
Do you only make the minimum payments or try to pay off balances as much as possible?
Do you worry if you will have enough money left over at the end of the month?
Those are some of the questions you should be asking yourself if you haven’t already. For this is the first step to financial control.
If you find yourself in a financial jam you can certainly apply measures to get out of it.
If it is to overwhelming make a point to consult a professional that deals with these situations and can offer credit counseling.
You can start by putting in place measures that won’t put you in financial trouble again. That is where scissors come in handy. Cut up merchant credit cards that charge high interest.
Snip your way to financial freedom and make a point to pay off your full balance at the end of the month. This way you won’t pay any interest.
Make a point to use only one credit card. This allows easier debt management.
Bottom line is this; don’t get caught in the financial roller coaster. You owe it to yourself and your family to set in place financial stability in your household. It is important that you teach your children proper budgeting techniques.
If you lack the knowledge, then this is a great opportunity to educate yourself and acquire a crucial life skill. Contact your local Dominion Lending Centres mortgage professional today!
Courtesy of Danel Girard, AMP – DLC Service First Mortgages