Do you stress about never having a credit card again if you file a consumer proposal?
Many people think it’s impossible to rebuild their credit score, or that they’ll have “bad credit” forever. But millions of Canadians have come out on the other side.
You can, too.
Of course, your debt won’t magically disappear without taking action. Asking for help from a Licensed Insolvency Trustee (LIT) and having an honest look at your finances, is a step in the right direction.
The key is taking action sooner than later. Mapping out the habit changes that will make the greatest impact on your financial health will have you rebuilding your credit in no time.
And there are many strategies your LIT can help you utilize, including:
- Setting up payment reminders. This will help you make your payments consistently, no matter what it takes.
- Getting familiar with your credit report. Learning why your score is (or isn’t) increasing can help you target your efforts.
- Building an emergency savings fund. Stash some money away for unexpected expenses like car repairs. This will help you avoid future debt from accumulating.
- Creating a budget and sticking to it. Without a budget, you run the risk of falling back on your old spending habits.
- Being patient. Your credit score won’t rebound overnight, but if you stick with your new habits, you will get there.