Canadians seem to be turning things around in terms of debt management. In the past, we noticed a worldwide trend of overspending and many credit card holders were forced to make difficult financial decisions in order to dig themselves out of that credit hole. Today, according the TransUnion's credit monitoring reports, this is gradually changing.
Their latest report indicates a decrease in the number of debt payments that are overdue by 90 days or more. This despite the fact that the average outstanding balance continues to increase. The overall delinquency rate on non-mortgage consumer debts has gradually decreased over the past couple of years but can still improve significantly.
The average consumer debt was calculated at the end of June this year as $21,028 which is almost $150 more than it was over the second quarter of last year. This is a clear indication that those credit card balances aren't being paid off quite as soon as they should be.
While some provinces are showing signs of better money management, others are not. Canada, as a whole, has a long way to go before its residents can breathe a sigh of relief but the important lesson learned from it all is that credit needs to be approached with a level head and responsible attitude. Failing to do so will only result in financial troubles later on and, once you're weighed down by debt, it's tough to get back up again.
For those who are already struggling with their financial situation, it might be time to take a step back and rethink your monthly budget as well as your quarterly and annual goals. The first key to avoiding paying too much is to make regular payments on time and always pay the minimum amount due at least. Anything less will result in additional fees due to penalties.
Secondly, it's all about controlling what you spend so take a long, hard look at your lifestyle and make some cuts if and where possible. In some cases, drastic measures are necessary so be prepared to do whatever it takes to pay your debt off sooner rather than later. In some cases, you might find it beneficial to consolidate some of your debt in order to enjoy a lower interest rate and a more manageable payment plan.
Remember, credit cards aren't all bad! Provided you choose the right cards to suit your needs and you manage them correctly, they can work wonders for your credit score while making life that much easier. At Wallet Savvy, we encourage everyone to take the time to compare various cards using our free tool to make it that much easier to select the right one.