With more companies downsizing and outsourcing their workforce, and the economy struggling to get back on its feet, many Canadians are struggling to pay their bills on time. financial professionals estimate that three of every four Canadians have an ever-increasing debt load and will retire in poverty. The Ontario debt rate is even higher and there are no signs of things getting better any time soon.
The simple truth is, your credit rating is reflected in the amount of money you owe. The more debt you accumulate, the harder it will become to pay all of your monthly payments, even if it’s just the minimum. This will cause your bank to refuse to renew your mortgage or your loan when they come due.
It is imperative for you to take control and monitor your credit rating on a regular basis. pay all of your bills on time, even if it is just a minimum payment. Keep your spending in check and work with your creditors to develop a prepayment plan. You’ll find that many of them are quite willing to cooperate, as long as you show an honest desire to pay them.
It is also a good idea to get your credit report on a regular basis. In Ontario, the actual report is free, but you will have to pay to get your credit score. There are two credit reporting agencies: TransUnion and Equifax. You may have a different score for each agency, so get one from both. This way, you can report inaccuracies and be alerted with any identify theft issues.
If you have gotten into too much debt and cannot make the minimum payments, there is another way out, instead of bankruptcy; bankruptcy should only be used as a last resort. You can consolidate all of your credit cards and loans into one easy payment, with the help of the many consolidation companies that exist today.
There is a catch, though, to this kind of arrangement. You won’t be able to use your credit cards while you are in consolidation, and it will affect your credit rating even further. It is, however, a good alternative to bankruptcy, if you have too many credit cards or loans to take pay back. It can save you thousands of dollars in interest charges.
Many homeowners have been affected by Ontario debt and the unemployment rate continues to rise. You can protect your credit rating by paying your monthly bills on time and keep your expenses at a minimum. You’ll come out of the recession unscathed.
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