When was the last time you put a purchase on your credit card? For most people making purchases on their credit cards is a daily, if not weekly, occurrence. So when was the last time you looked at the interest rate on your credit card? Or calculated how long it would take for you to pay off that purchase?
We often ask what makes a person choose when to call a Trustee for help with their debt. As Angela Lock, CIRP a Trustee in our Calgary office mentioned, “People tell me they are seeing these notes on their credit card statements of how long it will take them to pay the balance, and for most its shocking”.
Can you imagine buying an iPhone and having it take 2 years to pay it off? Assuming you put this purchase on your credit card, at 17% interest, that $859.00 iPhone would cost you an additional $300.
Most of us don’t think of these things when we are making purchases. Here are some tips to help keep you paying less in interest fees and keeping more in your pocket:
- Do your homework. Find the best possible deals and make a list of the items you intend to purchase. Don’t purchase anything outside of this list.
- Determine your budget before embarking on a shopping trip. Once you spend your budgeted amount, do not purchase anything else.
- Whenever possible, spend using debit or cash – or if shopping online, set up a PayPal account where offered and make purchases using that instead of your credit card.
We have become a generation less accustomed to making purchases with cash and feeling the transaction of money leaving our hands, we have become reliant on the ease of ‘paying with plastic’ so being aware of our finances can get away from our immediate attention.
Putting off dealing with debt – missing payments, living paycheck to paycheck, transferring money around to deal with debts – can lead the problem to get worse and worse and get out of control. Taking the first step to seek out help can be the hardest step towards a fresh financial start. But by calling a licensed trustee you can get free financial advice or help with filing a consumer proposal which can reduce consumer debt by up to 75 percent.
Contact us to talk to a Trustee in Canada.
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