Finding a way to stretch your earnings to go beyond just making ends meet is a challenge for most Canadians. Whether you’re saving for a down payment on a home, trying to buy a car, or meeting the demands of your day-to-day expenses, it’s easy to find yourself drowning in debt when you should be squirrelling away the savings you need for a rainy day. In fact, proper personal debt management our qualified counsellor offer should include enough savings to cover your expenses for at least two months if at all possible. Knowing you’re not alone in your financial struggle provides little comfort. Just remember that even the tightest budgets can find some wiggle room. Here, we offer a few tips to help you improve your financial situation so you can avoid debt, improve your credit rating, and maybe even manage to add to your savings.

Always Understand Your Expenses

The first step to improving your financial situation is to look at all of your monthly expenses, including a review of all your monthly debit transactions. This will allow you to see how much money you not only have to spend on expenses, but also a realistic view of how much you’re actually spending on extras.

You then subtract that total from your monthly earnings. If you’re lucky, you’ll have cash left over and can put that towards your savings. If you find yourself breaking even, this is not as good a situation, but you can still find ways to save money by setting a new budget. If you depend on credit to meet your monthly financial obligations each month, then it’s time for a serious overhaul of your spending!

Set a Budget

It’s surprising how many people run their households without a budget. Often, this is because people think budgets are for people with financial issues. However, if you start a budget before you have issues, you’re much less likely to find yourself in financial distress. So, how is a budget set? It’s pretty simple.

Once you understand your monthly spending habits, you can then look for opportunities to save. If you have a surplus of cash, you should automatically put this money into a savings account. It’s okay to be saving with a large purchase in mind. This could be a trip, a down payment for a house, or a car. However, it can also go towards retirement or an emergency fund.

If you are just breaking even, it’s time to look for savings opportunities. This is very important if you’re also carrying debt. First, stop using credit cards. If you can’t pay cash, you can’t afford it. Then, cut out all non-essentials such as work lunches, expensive coffees, and entertainment. All of the money saved can go into savings, or if you have debt, used to pay down your credit balances.

Consider Debt Consolidation

If you’re not breaking even and depending on credit more and more, then you’re headed down a dangerous path. First, look for every area where you can make cuts, based on the same things mentioned above. In this case, you have to be far more brutal with cuts.

Debt consolidation is also an excellent option if your credit rating is still good. It allows you to take out one large loan to pay off all your debt. You then pay one lump sum each month. You can easily make your payments and often have a reduced interest rate, which allows you to pay off your new loan more quickly. You’ll keep a good credit rating and also improve your ability to save.

Speak to Your Creditors

If things with your creditors have already started to go south, instead of avoiding them, choose to speak to them. You would be surprised at how forgiving some creditors can be if you show that you are willing to make payments, but are having difficulty based on your current financial situation. As experts in personal debt management that Ontario consumers depend on, we can help with this process and negotiate on your behalf. Even large institutions like banks are flexible if they feel you are a risk for bankruptcy.May consider switching to a lower interest credit card.

Build Your Credit Rating

If your credit rating is suffering because of late or missed payments, it is possible to build your credit rating. For example, you can establish your credit history by making regular monthly payments in time. Low interest offers with balance credit card and use might be helpful.

Helpful tools often shared during counselling sessions in our office by our Qualified insolvency counsellors. This will help you improve your credit over time.

Keep Track of Your Credit Rating

Many people have terrible credit ratings and don’t even realize it. In fact, with the growing threat of identity theft, your credit rating could be affected by someone using your credit cards, and you won’t even know it. Tracking your credit rating and history is more important than ever. You don’t want to have inaccuracies in your credit history that will continue to impact your credit rating negatively. If you find discrepancies, you have the right to bring them to the attention of the credit bureaus. They are obligated to fix them. You will, of course, need proof, but it is worth the effort to keep your credit score looking good!

At Charles Advisory Services, we have the experience and know-how to manage your credit management solutions with optimum benefits. We can help you find the best option to consolidate your debts. We will help you pay off debt and have a single payment plan that allows you to take your financial situation to the next level. Give us a call to set up your free professional consultation appointment at (416) 486-9660 or contact us here.