Using Credit? Be Careful!

Avoid having a lot of outstanding loans, especially ones you have secured with your home. If you can't repay the loans you risk losing your home.
Only spending less than five per cent of your net (after deductions) household income on servicing your debts, not including your mortgage, car loan and your home equity loan. For example, if your take-home pay is $2,000 a month you should not be paying any more than $100 per month on your credit card and other consumer debts.
You should be able to repay your debt within 12 to 18 months. If you can't then you owe too much. For example, if the combined outstanding balance on your two credit cards is $5,000 with an interest rate of 18 per cent and you are paying $150 per month on that debt, it will take you more than 3 years and 11 months to repay. In this case, you would need to increase your monthly payments substantially to pay the debt off within 12 to 18 months.

Get Help

Having issues with your unsecured debt?

Click Here to find out your options to get back on track by filling out a budget analysis or by calling (888) 213-8678 and speaking to a Trained Credit Counsellor.

Ask an Expert

Do you have any questions about your personal finances? We have experts waiting to help you.

Click here to submit your question, or call (888) 213-8678 to speak live with one of our trained credit counsellors.