Using credit wisely is a critical component of overall financial health. These simple tips can help you better manage your credit and lower your debt, improving your personal finances.

1. 5 Tips for Using Credit Wisely

2. Developing good habits when using credit
is essential from the moment you’re
approved for your first card.
Use your credit wisely by following these
simple tips:
LCTaylor: 1.800.463.8371 lct@lctaylor.net

3. Maintain a low Debt to Income Ratio
Don’t take on more than you can handle.
A Debt to Income Ratio of about 36% is
considered safe by most experts.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

4. Calculating Your Debt to Income Ratio
Table A: Monthly Payments Amount Table B: Monthly Income Amount
Due
Mortgage Income from wages
Credit Card Payments Rental Income
Car Loans Wages from Alimony
Student Loans Overtime
Other Payments
Total Total
To Calculate Your Debt to Income Ratio: =
Divide Total From Table A by Table B and multiply by 100

5. Pay off your cards in full every month.
By paying off your monthly balance you
will:
•Avoid expensive interest and late fees
•Maintain a low debt to income ratio
•Keep your outstanding credit balances to
a minimum
LCTaylor: 1.800.463.8371 lct@lctaylor.net

6. Make payments on time.
Every time.
Late payments wreak havoc on
credit scores and result in costly fees.
Paying your bill on time will:
•Save you expensive late fees
•Avoid harassing collection attempts by creditors
•Build Credit
LCTaylor: 1.800.463.8371 lct@lctaylor.net

7. Pay more than the minimum payment.
Even if it’s just five dollars.
By design, making only the minimum
payment will keep you in debt as long as
possible.
Even a few extra dollars a month will help
you save money and get out of debt faster.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

8. Be Selective.
Don’t sign up for every credit offer
or promotion that comes along.
Having too many cards can put you
at risk for accumulating too much
debt and will also have a negative
affect on your credit score.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

9. Using credit wisely is a critical
component of any financial plan.
By using your cards wisely, you will be ✔
able to:
•Save money
•Maintain a good credit score
•Enjoy better financial health overall.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

10. If you are experiencing
financial difficulties in Manitoba or Ontario visit
LCTaylor.com
Trustees are available to answer your questions at our
Winnipeg and Kenora locations.
Call us now to schedule your free consultation.
LCTaylor: 1.800.463.8371 lct@lctaylor.net