The Right Advice

The Right Advice

The Right Advice

KNOW AND RESPECT YOUR DEBT!

Debt comes in “different packaging” and can also be categorized as good or bad. Examples of good debt or money owed is the cost of an asset like a mortgage or loan debts that are tackled by staying on track with the re-payment structure.

Conversely, bad debt can be incurred by mishandling credit extended to you, taking on payday loans (demonstrates living outside allowed debt service ratio), which starts to erode one’s credit score.

Secured Debt

This refers to any form of debt subsidized through collateral, this means that if the debt isn't always paid, the asset used as collateral may be forfeited. Various forms used as collateral, and accepted by lenders extending credit would be vehicles, properties, stocks, and bonds.

Auto financing is likely the most “used” form of secured debt as it is a costly investment that is made more affordable by extended payment terms.

Unsecured Debt

Here’s where repayment history plays a major role as lenders rely on credit checks to assess the viability of the borrower. Depending on your credit score, extension of credit and how much will be determined as there is no collateral to fall back on – verification of the borrowers’ capability to pay on the loan is critical. Student loans are a typical unsecured debt, and factored into this is the type of education, and future income that will allow the repayment of the loan.

Revolving Debt

This is the kind of debt that may be used for nearly anything. Typically, a credit card is an example of this debt with the pre-determined “borrowing” limit based on the credit score and paid month to month.

This is the kind of debt that may be used for nearly anything. Typically, a credit card is an example of this debt with the pre-determined “borrowing” limit based on the credit score and paid month to month.

Debt is a massive problem, according to government statistics household/family debt represents approximately 177% of available disposable income. Any kind of credit extended should be treated with great respect – once abused it is hard to earn back.

At RightRide, we take great pride in our “fresh-start initiative” that will help individuals and families work on building back that trust from lenders. For information on how to get decent vehicle financing, contact us now!

Anne Kolodynski – Personal Finance Consultant
RightRide / Auto Canada

Time to hit the “Reset Button?”

Credit is more important than cash! Yup, sad but true and if you are short on both it’s hard to navigate life on a daily basis.

Have you taken a hard look at your personal, or family financial picture – money in, money out – your income and financial commitments often don’t align. No judgement here, doesn’t matter if you are a retail worker, or high-paid business executive. Life is the real equalizer, and every one of us is one or two personal or financial setbacks away from dealing with the stress of debt!

The hard questions to ask yourself:

  • Am I only paying interest on my credit cards? It’s scary to read the small print on the statement that advises, paying the minimum payment only your debt is cleared in 40 years!
  • Am I late paying on any bills? Even if you are one or two days late this will report internally on your credit bureau.
  • Am I borrowing from “Peter to pay Paul” – using one credit card advance to make a payment on another? Resorting to payday loans is a slippery slope!

Finding solutions to navigate the burden of debt can be overwhelming. Burying your head in the sand - well, you pop up and find the debt still there! Unfortunately, time will NEVER build credit so ignoring what may be on your credit bureau and expecting in a year or so, it’s going to be better is not the reality. It follows you and continues to limit what financing you might be looking for.

Other than car financing, have you been declined on any other credit applications, or have any other issues that are a result of your current credit standing?

ONLY CREDIT BUILDS CREDIT – but if you can’t get approved for it, where do you go from here?

Turning life around from a debt crisis can be one of the hardest things to experience – and harder yet if you are looking to finance a vehicle that you NEED to get to work and pay your bills! It might be time to consider "hitting the reset button" for a fresh start!

If we could introduce you to a credit resource, on a scale of 1-10 with 10 being very serious, what interest would you have in learning how to get at least half of your debt forgiven and solutions that can set you up for a better life?

You are answering YES, then ask me how to connect with professionals about your personal situation and get some HONEST advice.

Anne Kolodynski – Personal Finance Consultant
RightRide Edmonton / Auto Canada

Simple Steps To Improve Your Credit!

Just because something is simple, doesn’t mean it’s easy! It’s not easy creating new habits when the old ones seem to be just fine. But when it comes to your credit it may just be those OLD habits that have you tossing and turning in your sleep because of the stress you are under.

Here are examples of simple adjustments you can make, even today that will start to improve your credit, and work well for individuals who want to secure an auto loan:

** Yikes… it’s time to budget!

When you actually take the time to list your monthly expenses against monthly income, it really makes any excessive spending outside of your budget jump out at you! Stop, think, do I really need this … is it in my budget … You will be surprised how this little exercise will create a bit more money than month left.

** Pay your bills first!

Far too often, paycheque comes in and off we go buying things we don’t need, then ouch! It’s time for your cell phone debit payment and you are overdrawn. Deal with monthly expenses first on pay day, then allot yourself some “free” money.

** Knock, knock … creditors calling!

If you have outstanding bills, they don’t disappear if you ignore them … darn it. It’s better to deal with debt pro-actively and call creditors to set up a payment plan. They will work with you more so when you take control, then when you have to start screening phone calls from them.

** Now is not the time to be late!

It’s critical that you pay bills on time, don’t let anything start reporting on your credit bureau as late payment – those affect any future credit just as much as missed payments!

** Organize, organize, organize … yes worth repeating!

Try using an online calendar reminder, or app to keep you from missing payments. Even putting payment reminders as an appointment on your cell is a way to not forget – it’s time to pay, not play!

** Know where your credit sits!

There are free apps to use to check your credit score, and you should try to do so quarterly. This will help you to stay on top of any changes, and if you are actively working on improving your credit, it’s a great feeling to see the results!

** Yes, you are back to an allowance!

It’s time to say bye-bye to most of your credit cards, keep one for emergencies and try as much as possible to use your debit card - hint here have the debit card attached to only ONE account that you add a budgeted amount to monthly!! If the debit won’t go through – YOU ARE OVER YOUR ALLOWANCE!

Over time you will see your credit improve just by making simple adjustments … simple yes, easy no. It takes discipline just like anything worth having!

We can help you with your auto loan too – we want to ensure the vehicle financing will FIT YOUR BUDGET, while meeting your needs. Remember, it’s just a tool that can help you rebuild credit. When you are in a better position to do so, your budget will allow you to spoil yourself with a dream vehicle.

We would love to be part of this transition …. Give us a call.

Anne Kolodynski – Personal Finance Consultant
RightRide Edmonton / Auto Canada

Will bad credit continue to haunt you?

Well, for the most part it can remain on your credit bureau for six to seven years, and how the credit reporting agency files delinquent or bad debts. Equifax Canada submits from day one when a file is submitted to a collection agency.

So maybe your next question is, what amount of time is required to correct and/or improve your credit score?

We can honestly say, no amount of time will really impact great credit – only new credit made available to you can do that!If credit issues like poor repayment history, exceeding credit balance continuously, debts written off by creditor or placed into collections are not physically addressed in some way, they remain on your credit report.

How lenders assess you for new credit is so much like your report card from school; That end of year reporting will indicate whether someone is advancing to the next grade. Does that mean being held back for another year to improve upon grades? You bet it does!

Has holding back being granted credit become a burden on you, causing stress, or holding you back from achieving more in your life?Do you remember when you started applying for your first job, only to be told “well if you had experience, we would love to hire you.” Ok, well if you hire me then I can get the experience! That also applies to credit – any lender is looking at “your report card” and assessing your credit worthiness.Where does this leave you with auto loans – are you destined to be declined constantly, or offered financing at extremely high interest rates?Be careful of guarantees made by salespeople that using this high interest loan for a few months is your ticket to the best financing rate on your next loan? You know, if it sounds unrealistic or far too promising, it likely is!

So, on the off chance you’re thinking can I apply for auto financing, and still be treated fairly - Totally! We support applying for a vehicle loan even if you have sub-prime credit.

Everything is about “new beginnings” and we have our “Fresh Start Initiative” with experts to guide, and give you a chance to connect with an improved credit status.

Anne Kolodynski – Personal Finance Consultant
RightRide Edmonton / Auto Canada

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    Book a consultation with Anne

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