Are there too many days left before the next paycheque? Are you nervous about opening the mail or checking online to see how much is due on your accounts?
Gillian Slade
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Are there too many days left before the next paycheque? Are you nervous about opening the mail or checking online to see how much is due on your accounts?
It’s the season for realizing how much money was spent on credit cards and the awful realization of having spent more than you can afford.
“If you are unable to pay the balance in full on your credit card statement, you have overspent,” said Jami Rommelaere, branch manager of TD Canada Trust at Southland Crossing. “Put the cards away until you have paid the entire balance.”
Some people may not even realize what interest rate they are paying on a credit card, suggests Les Erickson, branch manager of Canadian Western Bank.
“There is no sense in paying a ridiculous interest rate on a balance that you can’t pay off immediately,” said Erickson. “Make an appointment to discuss the situation with your financial planner.”
“Debt consolidation is one option. This allows for a lower interest rate than that of credit cards and it helps to pay off the principle debt more quickly,” said Rommelaere.
A sense of freedom comes from knowing how to meet your financial goals. This is a really good time of year to take stock of where your money has gone over the past year and establish some new goals, said Scotia-bank manager Don Milne.
“If you have a huge debt on a credit card it is your after-tax money being paid at a high interest rate. The debt has to be paid down and you have to have the discipline to not use the card until the debt has been paid,” said Milne.
For those who are already feeling the crunch or realize they have a problem, it's wise to acknowledge the gravity of the situation immediately, said Valerie Norrish, of Norrish & Associates Inc., which provide a credit management service.
"If you are not able to determine a plan of action yourself, seek professional help immediately. Most credit counselors offer at least an initial consultation free of charge," said Norrish. |
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