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News & Education
Welcome to our WealthStyles segment –
your online access to approachable ideas about financial planning with
a lifestyle and life event approach.
Managing debt - Cornerstone of a solid financial plan
Wise Debt Management
Two years ago, David moved to a new city and put quite a few purchases on his credit card as he furnished a new home. Then, unexpectedly, his car needed expensive repairs and David was forced to put those on his credit card also. Now, the cost of living in the city and his high credit card bill has David feeling like he's being controlled by debt and wonders how he'll ever get ahead financially.
A couple of useful guidelines for using credit cards:
- First, only spend what you can afford.
- Second, pay off your balance in full each month
This approach should be considered each time you find yourself reaching for your credit card. A credit card can be useful tool because it allows you to keep your chequing account while you defer payment until the end of the month, as long as you pay the balance before any interest charges are applied.
For the full article, click here (PDF format) |
