Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

October 2020 – PROPER WAY OF USING CREDIT CARDS

By:Adam Aspilla
October 1, 2020

Almost all with good income and good credit scores have at least one credit card, because of its convenience. Carrying cash is cumbersome and also unsafe. 

Moreover, by utilizing credit cards we are given the privilege of using funds interest-free up to thirty days, when we pay in full the amount due on time.

However, there is a risk of having credit cards – it could lead us to financial ruin, if we do not know how to use them properly. Actually, many people experiencing financial problems are caused by improper used of their credit cards.

You have to use your credit cards properly to avoid financial crisis experienced by many. Here are some suggestions:

First, make a monthly family budget to include: food, clothing, shelter, transportation, children’s education, and insurance (life and car). In your budget, you have to set aside a portion for savings, ideally, 10% of your net income  for rainy day (possible time of need).

Second, pay balance due on time to avoid paying exorbitant interest rate up to 29.99% per annum.

Third, do not buy items not included in your budget like items on “Sale”, for it could ruin your budget and lead you to make cash advances from your credit card(s) to cover your budget deficit.

Fourth, If you cannot control buying items not on your budget, it is wise for you not to take with you, your credit card(s) when you go to shopping malls.

The consequence, for not properly using your credit cards would be default on your monthly payments. When it reached to that point, your account maybe assigned to a collection agency and your credit scores go down the drain. 

When you are on that situation, you cannot get approval on your applications for car loan, mortgage, should you buy a house or refinancing on your existing mortgage(s) from primary lenders like: Banks and Trust companies.

Your alternative is to get your loan, mortgage and other financial needs from secondary lenders like: finance companies. Pay Day Loans, and private lenders where interest rates are about twice as much as the interest rates offered by primary lenders. 

Moreover, when you damage your credit score it would be reflected in the credit bureau up to seven years. 

Using credit card is a privilege not a right. Appropriately, you have to use it properly that you can continue to benefit from it. Otherwise, it could ruin you financially and sometimes, the only solution is to file bankruptcy  – which is the last resort in solving financial problem.

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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