Take Control Of Your Finances! 5 Ways To Save In 2019
January 7, 2019
Happy New Year from Borrowell! The new year is the perfect time to start thinking about your financial goals for the year and to make a plan to attain them. Is “pay off debt” on your list of financial goals? You’re not alone.
According to a CIBC poll, 25% of those surveyed listed reducing debt as their top financial priority last year. The average Canadian has a debt load of $22,801, which means Canadians are still spending too much on high-interest debt. We’ve put together a list of 5 ways to save and pay off debt in 2019 to help make your financial resolutions a reality.
1. Pay off high-interest debt with a low-interest personal loan
Clearly, Canadians want to find a smarter way to pay off debt. One way to do so is to consolidate your high-interest debt with a low-interest loan. Did you know the typical credit card has an interest rate of 19.99%? If you get behind on payments, it’s easy to get caught up in compounding interest. The credit card issuer can also increase your interest rate by as much as 29.99% if you fall behind.
If you have a great credit score of 660 or above, you could qualify for a Borrowell low-interest personal loan to pay off your credit cards and save on interest.
2. Create a realistic budget
Yes, we often reference budgets a lot on The Well. But we do so because we know that budgets work! The first step to creating a budget is to take a cold hard look at your finances. Look at what is coming in and what is going out of your bank account and start to make changes accordingly.
This overall look will allow you to see the bigger picture. Take inventory of the extras. Do you really need to eat out that many times a week? Could you bring a coffee to work in the morning instead of buying one? These small changes in your everyday life can have a big impact when you look at a year of spending.
When you start to budget, you’ll start to keep an eye on yourself and be a little more mindful of your habits.
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 and credit report is one of the best ways to take control of your finances. Your credit score is an important indicator of your overall financial health and having a good credit score can help you save money. Here’s exactly what makes up a credit score:
Your credit score might be a deciding factor in whether you’ll be approved for a personal loan, car loan, or mortgage. Checking your credit score through Borrowell is a soft check that won’t affect your score.
5. Create an emergency fund
You’ve probably heard this advice before, but that’s because it’s really, really important to have an emergency fund. Life is uncertain and you just never know what could happen. An emergency fund can protect you from unforeseen circumstances, such as job loss or an emergency home repair. Once you feel a bit more secure with your finances, you can look into starting to save a bit for investing to grow your savings.
From us at Borrowell, we hope your New Year’s resolutions become a reality. Here’s to a happy and financially responsible 2019!
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.