To many people, you are what you drive. In our culture, your vehicle is much more than a means for getting from A to B. Just watch any car commercial and you get the message that if you are not driving the latest model from any given car company, you are missing out. As a result, we often purchase bigger more luxurious vehicles than we need and that habit doesn't help Canadians pay off their debts. We tend to ignore the hidden costs of driving a vehicle such as depreciation, maintenance or real gas mileage.
-
Regularly maintain your vehicle. Start by learning the various components and monitoring how often they need maintenance. Understanding basic car maintenance schedules can help you budget for repairs and avoid unnecessary repairs.
-
Do minor maintenance yourself: If you are somewhat handy, by checking tire pressure, changing your oil, replacing your own windshield wipers and air filters you are more likely to keep up with maintenance.
-
Find a mechanic you can trust. A good mechanic can make a vehicle last many years. Use your network of friends to select a good mechanic.
-
Buy and hold your car; don’t trade for new vehicles unless you have money to burn.
-
Avoid new car payment periods longer than 5 years.
-
Drive a car you like...you are more likely to look after it.
-
Drop unnecessary vehicle insurance coverage on older vehicles. Check with your broker to see if you really require all the coverages to replace an older vehicle.
-
Research the vehicle you plan to buy: there is such a thing as a lemon. Some models of cars can put you in the poor house. Watch for broken down cars or newer cars with rust problems that are currently on the road.
-
Reduce your use of your vehicle; carpooling can be a chance to connect with peers.
Frequently Asked Questions
Have a question? We are here to help.
What is a Debt Consolidation Program?
A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!
Can I enter a Debt Consolidation Program with bad credit?
Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.
Do I have to give up my credit cards in a Debt Consolidation Program?
Will Debt Consolidation hurt my credit score?
Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.
Can you get out of a Debt Consolidation Program?
Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.
