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The difference between Credit and Debt.

Tuesday, November 13, 2012

I've got too much DEBT!!!

Too many people have problems with debt and that's a fact. How do I know this? Well, I look at a minimum of 10 credit bureaus each day and get to see first hand the debt Canadians carry, not to mention the weekly stats posted regarding Canadian consumer debt.

Some of you may wonder how people have such problems with debt, when you can't even get approved for a $500 credit card. A regular question to me is;

How do people get so much credit?

Being granted credit depends on so many factors and is usually easier at a young age. If you've waited too long to establish your credit, that means it's going to be more difficult. Honestly, if you're 25 or older and trying to establish credit... it's going to be hard. 

There are many ways to establish credit, the most obvious would be to go to your bank (this means the bank that has your bank account) and apply for a credit card. I know for a fact that BMO will grant a $2000 credit limit to a young 18 or 19 year old looking to get started.... if you bank with them.

Why do I need credit?

Isn't debt a bad thing?

Credit vs Debt....

Okay, having credit is extremely important now-a-days, but carrying debt is not. Lets face the facts, unless you're financially independent, you need credit for important things in life like owning a house or buying a car. If you are financially independent and can pay cash for all these thing, good for you, that's a phenomenal accomplishment, but this article is not for you.

Do I believe in carrying debt? Absolutely not, but I do believe in having good established credit so when you need to borrow money for whatever reason, you have the power to do so. 

I personally feel, that one of the biggest problems with Canadians is that we do not know how to differentiate between the two, nor are we disciplined to manage our credit and in turn, turns into debt. The real reason for this, is a lack of understanding when it comes to credit. In our society we have never been taught to manage our credit/debt. 9 times out of 10, we're learning to develop credit and debt from our friends and family. Not to be rude but that's usually the blind leading the blind. Before you seek advice regarding this subject or any subject for that matter, ask that person about their current situtation and then ask where they seek advice from regarding the subject. What you'll find is one person shoveling "BS" which got shoveled on them from another person.

Here are the facts about me....

I'm 29 years old and live a debt free lifestyle. I don't carry a mortgage, credit card debt, student loans or a car loan. I do not live paycheque to paycheque, I believe in saving money and also believe in having a good credit rating. When I was 27 I was in well over $500 000 in debt and did live paycheque to paycheque. I also believe you can't teach what you've never done, this is why I am so passionate about credit and debt.

People need guidance and have nowhere to turn, I'd like to help. Please feel free to contact me or continue to follow my blog.

I Have Bad Credit! But It's Not My Fault

Tuesday, November 6, 2012


 but it's not my fault!

That is a statement I hear on a daily basis. More times than not, it's never the persons fault who has bad credit. However once in a while I get to speak with a person who is not only honest with me, but honest with themselves. Let's go ahead and treat this like a 12 step program and guess what the first step is.... admitting you have a problem.

If you're truly serious about fixing and rebuilding your credit, you have accept blame whether it's truly your fault or not and start on the right path to rebuilding.

Despite what has happened with your credit, there is always a way to fix it. You have to remember that everyone's situation is different and their journey to rebuild will look different than their friend who they work with. My first piece of advice would be to STOP taking advice from your friends who also have bad credit. I promise you they have no idea what they're talking about. Without me going on a rant about this, in short.... be careful who you take advice from. Do not be convinced by the height of their logic only by the fruit on their tree.

Depending on what kind of issues you've had with your credit you can be back on your feet with traditional lending institutions getting prime rate loans within 6 months to 3 years. Sometimes its quick and painless and takes some minor adjustments, others have to dig down deep and spend some more time and money fixing the problem, but if you do it the wrong way it can and will take forever and you may never have good credit again.

Having bad credit is nothing to be ashamed of, it happens to all kinds of people. Doctors, Lawyers, Teachers, Police Officers... the list goes on and on. I have helped people repair their credit in almost every  profession you can think of.

Don't be afraid of it either, it's not that bad or that hard you just need some guidance and understanding. Continue to follow my blog or Contact Me if you have a certain question regarding credit.