Happy New Year!

A new year is a new start. If you’ve faced some financial challenges last year, now is a good time to take some steps to rebuild your credit score and manage your debt.

A series of small changes are all you need to bring your credit back on track! Here are some suggested actions you can take:

1. Get an updated credit report to get a better understanding of your current financial standing.
2. Create a budget for your expenses and ensure that you’re keeping a close track of your expenditures. This will help you trim down unnecessary spending and identify opportunities for savings.
3. Always make more than the minimum monthly payments on your credit cards.
4. In case you have multiple credit cards, try to keep your cards at only 50% of their credit limits or try to pay off and cancel some of these cards.
5. Settle collection debts and send credit reporting agencies proof of any major developments like paying off a major account or a settlement to ensure that your report is up-to-date.
6. Lastly, try to avoid taking on additional debt.

The key to improving your credit score is keeping a close eye on your overall debt and ensuring that you’re paying down each creditor one by one.

However, if your debt is unmanageable and you’re not able to make these payments, you don’t have to be stressed out. There are other alternatives that you can consider. For instance:

• If you have equity in your home, you can leverage it to deal with your debt. As interest rates are quite low at the moment, it is worth considering refinancing options.
• You can also look into a second mortgage. These mortgages are provided on the basis of equity and not your credit and income. So, if your credit is bruised or you are self-employed, this may be a good option for you.
• Even if there isn’t enough equity to refinance, you can always rely on government-approved debt settlement programs, such as a consumer proposal. It is a proposal made to your creditors, where your creditors agree to accept a single payment representing a percentage of your overall debt, that you repay monthly, normally over a term of 5 years.

No matter what your financial situation is, you can count on us for credit advice and debt consolidation solutions. Contact us today for a free consultation and start your journey to becoming debt-free! Call or text 1-888-890-0888 or visit www.debtcare.ca.