Save Your Failing Financial Planning With 7 Simple Credit Tips
by Abdul Aziz Mondal Financial Planning Published on: 25 October 2022 Last Updated on: 26 September 2024
When you hear the word credit card, your mind is filled with overspending, unpaid bills, and credit card debts. Why? Because it’s easy to spend the money you don’t have!
Of course, you have to repay the amount, but at least you don’t have to fret about it when you need urgent money. So, can credit cards be your ultimate financial partner?
Why not! Using secured credit cards in Canada, you can deal with the rising inflation as you can benefit from endless promotions and discounts on groceries, gas, healthcare, etc.
So, can you use your credit card to save your failing financial planning? Of course!
Here’s how to do it:
7 Simple Credit Tips For Financial Planning
1. Budget With Your Credit Card
Financial planning can be easy if you know how to do it. Just like you plan your life, career, and what you want to be at a certain age. Similarly, you should make financial goals depending on your income.
Yes, budgeting with credit cards is definitely possible. Here read some helpful tips:
- Follow a budgeting rule (categories, 50-30-20, envelope),
- Choose your credit cards depending on the budgeting rule (serving savings, spending, and emergency card purposes).
Consider your credit card a tool for financial planning rather than a constant source of cash that you may draw from any time you want.
2. Plan Your Debt
The goal is to stabilize your failing financial plan. And that’s only possible if you really think through everything to come up with a debt plan. Even a $50 payment every month can make a huge difference in reducing your interest rate over a $3000 debt.
You can use a debt calculator to find the exact amount and percentage you need to reduce your debts.
3. Find Your Card Purpose
If you are serious about fixing your messy financial life, this step can literally be the game changer. Using just any credit card in Canada won’t do you good if it’s not serving the purpose you need it for.
- For instance, you love to travel and have racked up insane credit debt on your card.
- Now, you want to reduce the debt without paying a hefty interest rate.
- What are you thinking of? Buying a new card? Transferring your balance to a new card?
Okay, that’s a good approach. Yes, transfer cards can be of great help. But first, you have to understand how balance transfer works. Only then can you choose a card to help you repay the debt or even offer you a great debt-reducing package.
So, choose a credit card that serves the purpose you bought it for.
4. Prefer Credit Cards Over Debit Cards
You are here to find out what can change your financial planning for the best. Of course! So, let us give you a top tip. A credit card can help your long-term financial planning as you know you need to pay back the money you used.
However, if you choose a debit card and believe it can add money to your account, that’s false. Eventually, you’ll end up using everything you had and will have to find a new source for the money.
- Danielle Harrison agrees that choosing a credit card for debt is better than using a debit card.
- For instance, most credit cards come with fraud liability, so if, unfortunately, you were scammed in the name of “Clear all your debt,” you can always benefit from the service.
In fact, you might also be able to score a good deal with your credit card company in terms of reduced interest rates and additional discounts. You can also utilize the welcome bonus, grace period, introductory APRs, and other services.
5. Consider Co-branded Cards
The world was hit by a sudden outbreak causing the prices of daily necessities to skyrocket. Yes, it’s not only you who’s suffering from failing financial planning but so many others. Protection from inflation has become a dire need for Canadians.
- The best way to avoid incorporating any more debt is by looking for a credit card that has co-branding.
- A co-brand card might help you in building your investment profile.
- It will also support your retirement account as the cashback can be transferred in the form of points.
So, do your research well or ask for recommendations to find the top card.
6. Don’t Take Your Card For Granted
Yes, if you think buying one credit card can magically solve all your financial planning problems, that’s not going to happen. Yes, we said it! And that’s an absolute truth.
Of course, it can help you minimize the damage, but you really have to keep using the card to see the difference. Moreover, the credit reporting system can help your profile as the company will report your consistent on-time payments to the bureaus.
| Note: You should not take your card for granted and use it however you want because that will only make your financial journey even harder. |
7. Understand The Promotions
Some cards will offer insurance benefits, while others may give you discounted rates on groceries. Moreover, after doing the research, you might be able to find enough data to negotiate with the lender about your credit card terms.
The key is to do everything you can to utilize your credit card the best to save your failing financial planning.
| Bonus: You can easily compare interests and insurance rates using the Group Enroll platform. |
Bottom Line
Credit cards over cash: a standard decided by the top financial experts.
And there are many reasons for it. Using a credit card, you can benefit from the miles, points, referrals, low-interest programs, debt relief offers, and so much more.
Yes, using cash might seem convenient and hassle-free, but you can’t get discounts on groceries, gas, and bills from it. Moreover, it can’t help you create a strong credit profile that can help you in alternative lending or scoring loans from the banks.
Want to know how your credit cards are better for your financial planning? Read the complete guide!
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