Debt control to-do list

Find out your credit rating by obtaining your credit report. If you find any errors, correct them. You can obtain a copy of your own credit report for a small fee by contacting Equifax Canada (www.equifax.com or 1-800-465-7166) or TransUnion Canada (www.tuc.ca or 1-800-663-9980).

2. Use your credit cards as charge cards — that is, use them for convenience, but pay them off in full every month without carrying a balance.

3. No matter how much you owe on credit cards, apply for a line of credit to consolidate your debts, get a lower interest rate and pay off this high-cost debt first.

4. Credit cards charge varying rates of interest. Find the ones that charge lower rates – it makes a difference.

5. If you own a home, opt for a home equity line of credit, which generally offers a lower interest rate than an unsecured line of credit.

6. Refrain from borrowing money in situations where there is no payback, such as going on an expensive holiday.

7. Be very cautious about using one credit card to pay off another.

8. Pay off “bad” debt (such as high-interest credit card debt) before “good” debt (such as tax-deductible or lower interest debt).

9. Be cautious of “no down payment” deals. You must usually pay the full amount owing by a certain date, and if you can’t, you’ll find yourself paying a lot of interest.