Credit Canada

Canadians continue to sink deeper in debt. A recent Statistics Canada report stated that Canadian consumer debt surpassed disposable income in 2002 and household debt soared to $916 billion in 2005. By 2005, Canadians owed $1.16 for each dollar of disposable income they have in their pocket.

To hammer the point home, the median debt-load for families rose 38% from $32,300 in 2002 to $44,500 in 2005 and lines of credit more than doubled -- to 9% of total debt -- during the same period.

That's why Credit Canada and Capital One Canada are presenting the first ever Credit Education Week from Nov. 13-16.

"There is no doubt that many Canadians need more information and education about financial management and using credit wisely," says Laurie Campbell, Credit Canada's executive director. "It is becoming more evident that many Canadians simply do not know, or don't follow, the golden rule of financial management -- do not spend more than you earn."

The goal of Credit Education Week is to empower Canadians, regardless of age and income level, to make better financial decisions.

A recent Credit Canada study shows that more than half of all Canadians (55%) admit to having more expenses than income at least one month a year.

And 14% say that their expenses are greater than their income for six months, and 6% say this is the case all year.

Free tools, resources and information on dealing with debt can be found at www.crediteducationweekcanada.com.

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MONEY MANAGEMENT TIPS:

Develop a budget and stick to it. A budget is an important first step to successful financial management. It will help you to organize your finances and set parameters on your spending.

Keep track of your daily purchases. Knowing what you spend every day will help you stay within your budget limits.

Know your credit score and review it at least once a year. This score is used by lenders, landlords and potential employers to assess your financial integrity. Obtain a copy of your credit score for a minimal fee by contacting TransUnion (www.transunion.ca) or Equifax (www.econsumer.equifax.ca)

Pay it off. Try to pay more than the minimum balance due on your credit card bill every month.

Make payments on time. A history of late payments will affect your credit score.

Shop around. If you need a credit card, find the one that best meets your financial needs. Comparison shopping can save you money and may even provide you with valuable rewards. For a comparison chart, go to the Financial Consumer Agency of Canada's website at: www.fcac-acfc.gc.ca

SOURCE: Capital One Canada and Credit Canada

*Reproduced with permission - Sun Media Corp."