One of the difficult issues to manage here is related to finance. This is a consumer society and as such encourages people to spend, sometimes disproportionately. According to an article in the press (which you can read here ) 3 in four Canadian households are highly indebted. For this reason I want to give some advice for especially newcomers and those yet to come that can help them better manage finances.
1. Credit card banks. This is very important to have credit cards. There are some transactions can only be made by credit card. Also a good use of credit card lets you do a credit history that can be used to ask you a loan then a bank, make a mortgage to buy a house, etc. But credit cards do not work as in other countries. In Colombia, for example, when a credit card purchase was asked few shares desired, and thus could better control the monthly fee was paid. Not here, all different in many contributions (I think 36, although I'm not quite sure) so that the minimum balances to pay end up being ridiculously low. If you pay only the minimum balance, you will need in some cases 10 years or more to pay off your balance. The recommendation is then always pay above the minimum balance. If you can buy things and pay the better next month, because this will generate a credit history without having to pay interest.
2. Number of credit cards. For the newcomer it is sometimes difficult give the first credit card, because it has no credit history here. However, banks that have moved and now have programs for newcomers. It is recommended to check with the banks on these programs, as they may be useful for those just arriving. The fact is that after getting the first credit card, you start to regularly get offers from other credit cards. The suggestion is not to accept many credit cards as if more will be completed using these cards and you could end up with a higher debt than you can afford.
3. Credit Cards stores. Most stores offer credit cards with which you can buy and collect points. However, these cards handle relatively high interest compared to credit cards from banks. For this reason, I recommend well informed before taking one of these cards.
4. Interest rates on credit cards. When a person is newly arrived and have no credit history and assign a credit card, we normally apply the highest rate (typically 26% per year). After a time (usually 6 months) and if you managed well the card, you can request lower interest rates and insurance (19.5% normally annually). It must then pay attention to this, as it is usually necessary to call for the reduction of the interest.
0 comments:
Post a Comment