The Credit Crutch

The Credit Crutch

Many Canadians think that increasing their income will solve all of their financial problems, however this couldn’t be further from the truth. The use of Credit and Credit Scores are over looked aspects in financial life but in reality Credit is one the pillars of financial security. 

In our payment driven society, getting credit is extremely easy, and spending it is even easier, and as a result spending unnecessarily is the financial anchor holding many back from financial freedom.   The problem is when spending is based on payment amounts, people often feel they can afford things they can’t.  The solution is simple – live within or below your means.

Credit however, is not all bad.  It can actually be very good when used correctly.  If you have high Credit scores , you pay less interest rates which means more money in your pocket.  So I’m going to break down two good uses for credit to help build your scores and deter you from unnecessary debt.


Using credit for buying a house is good because the payments are affordable  and more importantly necessary.  We need shelter and it is unlikely that you will have enough money to pay for a house in full, so interests rates are affordable.  The better your credit score the lower your interest.


Using credit for your education can be great if your degree will increase your earning potential so you can make a return on your investment.  Using School Loans to buy clothes, shop, go on a vacation does not count as a good use of education debt.

It is important to remember these tips when you find yourself wanting to purchase something that is above your means.  Ask yourself , is this really a necessity,  and remember not to credit sparingly, your financial future depends on it. 

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