2025-05-26
How to exercise caution when investing in digital currencies
Lifestyle Debt
While digital currencies offer many opportunities, they also carry risks. How can you mitigate those risks before diving into the digital currency market?
Credit cards are a popular and convenient form of credit that can be a very useful tool. Often one of the first forms of credit used by a new borrower to establish a credit history, credit cards can protect purchases, help users earn points and cash back, and give access to the world of online retail.
But convenience can come with a cost. Responsible credit card usage doesn’t come standard and understanding the implications of borrowing is key to establishing and maintaining good credit and building a successful financial future.
Today, credit cards are a necessity – whether they’re used for building credit or for big purchases you need more time to pay down, the convenience and flexibility they offer is unmatched. However, high interest rates and growing debt can create an uncomfortable and difficult situation if left unchecked.
To better understand how to be a responsible credit card user, there are a few things to know.
When it comes to credit card balances, there are two main components to the cost of borrowing: principal amount and interest.
Additional fees and costs can vary depending on the institution and type of card you have. Some to educate yourself on include:
Different credit cards have different interest rates, fees, and benefits. Comparing credit cards is key to finding the right fit for you based on your needs and ability to repay your balance and interest.
This free credit card comparison tool from the Financial Consumer Agency of Canada can be helpful in finding the right fit for you.
Your credit history
Intentions for using the card
If someone steals your credit card, or gains access to your personal information, they may incur charges on your account without your knowledge. Monitoring your banking statements and credit report regularly is the best way to ensure no unauthorized transactions or fraud are taking place. If you see unusual or unauthorized activity on your credit statement or report, immediately notify the Canada Anti-Fraud Centre.
Here are some tips for protecting yourself from credit card fraud:
Making your payments on time and in full is key to avoiding unnecessary interest charges.
If you pay by phone, online, or by pre-authorized debit, your card issuer may not process the payment on the same day as you make the payment.
If you cannot pay your balance in full, it’s best to pay at least the minimum amount to cut down on the interest charges you’ll incur.
Consequences for late payments or for not making the minimum payment may include:
If your credit card payment is due on a weekend or statutory holiday, you can typically pay it the following business day and it will be counted as paid on time.
It’s important to note that by only paying the minimum balance on your card, it will take you longer to pay off your balance and you will end up paying more interest.
If you’ve taken any cash advances on your credit card, you will pay a higher interest rate on cash advance transactions. Review your statement carefully so you understand the minimum payment required.
Additionally, review the cardholder agreement to find out when your card issuer processes different payment methods to avoid any unnecessary interest or late fees.
If you are struggling to pay your credit card balance in full each month, it’s a good idea to revisit your budget and spending habits. Try making payments more frequently, on every payday, rather than once a month and reduce spending on the card until you’ve paid the balance down.
If your credit card debt is unmanageable, consider taking to a Licensed Insolvency Trustee about your options to help you say goodbye to overwhelming debt and hello to financial freedom.
2025-05-26
Lifestyle Debt
While digital currencies offer many opportunities, they also carry risks. How can you mitigate those risks before diving into the digital currency market?
2025-05-14
If your phone rings with relentless calls from creditors, you’re not alone — and you’re not without options. Creditor harassment can take a serious toll on your well-being, but you have rights, and there are clear steps you can take to stop the calls and regain control.
2025-04-25
Debt collection can be a daunting experience for many Canadians. Navigating the process alongside MNP’s team of experts can help you better understand how it will impact your credit score and gain the knowledge needed to maintain your financial health well into the future.