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Start 2021 as you mean to go on by rebuilding your credit in Hamilton part 1

Start 2021 as you mean to go on by rebuilding your credit in Hamilton part 1

If like most of us, you’re glad to see the end of 2020 and are looking forward to a happier, healthier new year, you might want to include your financial health in that.

If there was ever a time to rebuild and renew, it’s the new year. So let us all start on a positive note with a plan to rebuild our credit.

This is a two-part post with the first today and the second part on Thursday.

Rebuild your credit in 2021

Rebuilding credit takes time and discipline and isn’t achieved overnight. While you might begin right away, you won’t see the fruits of your labour for a few months. However, the sooner you begin, the sooner you begin seeing those benefits.

Take a long hard look

First thing’s first. Take a good look at your present situation, current spending habits and credit report. Get to know your current situation as much as possible so you can fully understand where you are and where you need to be.

Check your credit report to make sure it is completely accurate. Make a note of your credit score somewhere so you can begin tracking its improvement over time.

Budget

Now you understand your position, look further at your spending habits and make a budget. Create a spreadsheet of your income and your outgoings and mark them against each other so you know how much you have coming in each month and how much is going out.

Be as accurate as you can with this spreadsheet and include as many outgoings as you can. We will be using this as the launchpad for your financial revolution so it needs to be good!

It may not the most interesting way to spend an afternoon but when you see in black and white exactly what’s going on, it is much easier to understand and take action.

Arrange your debt

Now you have a spreadsheet that shows clearly how much debt you have and how much you owe, you can begin prioritizing. Make another column in the spreadsheet outlining all your current borrowing.

Find out the interest rate for each and set them in order with the most expensive debt at the top. Your goal is to pay off the most expensive debt first, working your way down the list until everything is paid.

This could save hundreds, if not thousands of dollars in interest which is better off in your pocket than the lender.

Join us Thursday when we continue our journey to financial wellbeing!

If you need help with any aspect of car loans or financing a new vehicle, Car Nation Canada can help. Contact us via the web, email or phone and we'll be happy to help!

 

Read Part Two Here

 

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