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Back to Credit section Learning Centre - Credit
Giving yourself credit - Credit control tips

If you have more than one loan, pay off the ones with the higher interest rates first.
Ask the bank to consolidate the balances owing on credit cards and debt into a single loan that could reduce interest costs.
Credit can be useful but care must be taken to have it work for you, not against you.
Debt that is not tax deductible should by disposed of as soon as possible.
The longer you take to repay a loan, the more interest you will pay.
You might not use your credit card as much if you start believing that you have to pay off your entire balance at the end of each month.
Pay down debt effectively by starting with balances having the highest interest charges, such as credit cards.
A good way to help to reduce what you pay on your credit card is to search for a card with a lower interest rate. Many financial institutions now offer at least one of these types of cards. They offer a lower interest rate in place of perks such as an air miles type of plan that normally accompanies a card with a higher interest rate.
Try using cash instead of credit to pay for major purchases that cost less than $1,000.
When shopping for groceries, make a list of the items you need and attempt to stick to it. Also, refrain from paying for weekly groceries and meals at restaurants with credit.
Using the convenience of a credit card as a substitute for borrowing a fixed amount of money is a mistake that many people make. It is important to keep in mind that a credit card is not a financing vehicle. The difference in interest can be as high as 300% when comparing using a credit card to getting a loan.
Beware of the marketing professionals that wait outside of department stores in malls and try to entice shoppers to sign on for one of their credit accounts by offering free gifts. In most cases, the cards they offer come with an incredibly high interest rate which more than pays for any free gifts that they offer in their sign-up promotion. These high interest credit cards always end up costing much more than they are worth in the long run.
Remember that when you take a cash advance on your credit card, the interest starts accumulating immediately and not on the due date of your credit card bill. Use credit only when it fits into your long-range financial plans.
If your debt begins to increase beyond what you originally planned, stop using credit and begin a structured repayment plan.
It is sometimes to your advantage to consolidate two or more outstanding loans, as you may be able to negotiate a lower interest rate.
Consider consolidating debts into a repayment plan using a single payment vehicle by taking advantage of a low-interest line of credit or home equity loan. When repaying your educational loans, try to make as large a payment as possible.
Introduce the concept of saving to children at an early age. The younger a child is when they learn about the value of money, the better equipped they will be at handling it. Use your savings account as a temporary place for your money, not as an investment.
A shorter loan period will save you money in the long run by reducing the interest paid over the life of the loan.
Remember, your student loans will show up on your credit report. Defaulting on your student loans can have serious consequences for your ability to get credit for purchasing a home.
Only charge to your credit cards what you can pay off in full when the bill comes.
Use a no-fee credit card and save the annual fee that some companies charge.
Consider refinancing credit card debt with a lower interest rate home equity loan.

Notice:- Fiscal Agents Financial Services Group are not engaged in rendering tax, accounting or legal professional services or advice. The comments on this page are not intended, nor should they be relied upon, to replace specific professional advice. Before acting on material contained herein, readers should seek advice that is appropriate to their personal circumstances from a professional advisor.

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