How to prevent credit card debt (+ how to get out of it)
May 14, 2018
Credit cards can be a helpful tool, and are extremely important for maintaining good financial health. They also come with many benefits too! Just take the Sunova Cash Back Mastercard® for instance. For every $1 spent you earn 1 point, which you can then use to get cool rewards¹ (like gift cards… or cruises!) With that being said, it’s easy to fall into credit card debt if you aren’t paying attention. Luckily, we’ve outlined a few helpful tips that will aid you in avoiding unnecessary debt.
Only charge what you can afford
Remember, a credit card does not equal free money, and should only be used if you know you have the money to pay off the bill later. The simple answer is: if you don’t have the money in your account then you probably shouldn’t be using your credit card.
Don’t miss payments
Everyone gets busy (and we all forget important things sometimes) but missing a couple credit card payments can really add up. Not only may your payments and interest rates rise, but you could also damage your credit report. Having a negative credit score can affect your ability to get a loan, buy a house, or even get a cellphone. (The horror!)
Budget / track your spending
Create a budget month to month and only allocate your credit card to specific things in that budget. This will help keep your payments on track and ensure you are able to pay off your bill, so you can avoid the anxiety and fear that naturally comes with credit card debt.
Avoid frivolous purchases
Trust us, you do not need to buy the gossip magazines at the checkout counter, nor do you need to buy that $200 pair of shoes you saw online last week. If you have the money, and it’s something you enjoy, then spend your hard earned cash, but it never hurts to cut back on unnecessary spending, especially when your credit card is involved.
Unfortunately, credit card debt is a very real situation for many people in Canada. Luckily, there are some things you can do to help you get out of it. For example, with a consolidation loan through Sunova, you can combine your various credit card debts and structure one easy payment. By talking to one our advisors today, you’ll be able to get debt free sooner than you thought! (Oh, and if you see us from now until May 31, you could win $1000, no strings attached.)
1Read the Rewards Terms & Conditions for complete details.
The Sunova Mastercard is issued by Collabria Financial Services Inc. in a joint partnership with Sunova Credit Union Limited pursuant to a license from Mastercard International Incorporated. Mastercard and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated.