The Well

Rachel Surman | Personal Finance,Blog

Take Control Of Your Finances! 4 Ways To Save In 2018

January 2, 2018

Happy New Year from Borrowell! Is your New Year’s resolution to take control of your finances and pay off debt? You’re not alone. According to a new CIBC poll – 25% of those surveyed listed reducing debt as their top financial priority for 2018.

The average Canadian is over $22,000 in debt  – which means Canadians are spending too much on high-interest debt! We’ve put together a list of 4 ways to save in 2018 to help make your financial resolutions a reality.

1. Pay off high-interest debt with a low interest personal loan

Clearly, paying off debt is important to Canadians! A smart way to do this is to pay off your high-interest debt with a lower interest loan.

For example, a typical credit card has an interest rate of 19.99%. If you get behind on payments, your interest will compound: meaning, you’ll be paying interest on your interest!

Borrowell offers low interest loans to Canadians with good credit, with our annual percentage rate starting at 5.6% 1. Check your credit score for free and find out what you qualify for! (Checking your rate won’t affect your credit score).

2. Create a realistic budget

Yes, we often reference budgets in our blogs. But we do this because they are super important and we care about our customers.

The first step is to take a cold hard look at your finances. Look at what is coming in and what is going out of your bank accounts and start to make changes accordingly.

You’ll be surprised at how much you can save by packing a lunch and limiting your nights out!

3. Get a cash-back credit card

Cash-back credit cards are a great way to earn money on purchases you’re already making (think gas, food, etc.). Credit cards, when used responsibly, are a great way to access and manage credit.

Cash-back credit cards are also useful because you earn money on your purchases, so you won’t get confused by the various rewards programs.

However, many cards have a different rate of return for different spending categories, so it’s best to weigh your options and choose a card that matches your spending habits.

4. Monitor and understand your credit score

Knowing, monitoring and understanding your credit score is one of the best ways to take control of your finances in 2018!

We’re big believers in the power of the credit score. Your credit score is an important indicator of your overall financial health and having a good credit score can help you save money.

Your credit score might be a deciding factor in whether you’ll be approved for a personal loan, car loan, or mortgage. Having a good score makes it easier to do these things.

Check your credit score for free through Borrowell! Checking your credit score through Borrowell is a soft check that won’t affect your score.

From us at Borrowell, we hope all of your New Year’s resolutions become a reality. Here’s to a happy and financially responsible 2018!

 1Please note that final approval of your application for a Borrowell loan is conditional on completion of the steps set out in your application (including identity, income, and bank account verification) as well any further underwriting review deemed necessary. Additional documents may be required. Borrowell retains the right to adjust any loan options presented to you or to decline your application at any time prior to final approval.