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We spend so much money on bills and other costs of our daily lives that we feel like Superman when we think about how we have managed to keep everything together!

Your credit score is likely the most significant grade you’ll ever earn in life. It affects the credit cards and loans you may have, and the interest rates on your loans and mortgages you may have. If you want the finest financial opportunities, you must maintain the highest possible score.

It takes time to build a good credit history, but one bad decision may demolish it in a single day. AAR Financial is giving you 5 credit mistakes you should never make and tips on how to help you save your credit score from dropping.

1. Make Late payments

When you delay a payment to a debtor, two things usually happen; your lender reports the delinquency to credit bureaus, and you are charged a late payment fee.

You may also lose access to a promotion or offer, such as a reduced interest rate, in the future.

If you don’t want to pay late fees or interest and your poor repayment history is reported on your credit bureau, AAR Financial will help you by offering you guidance on how to avoid late payments.

Make a list of all your accounts, including mobile phone bills, utility bills, credit cards, loan payments, mortgage payments, and so on. Write beside all your accounts the due date every month, and outline this on a calendar on your fridge or your email calendar with a reminder. This way, you will always be on top of when your due dates are and never be late on a payment in the future and ensure there are funds in your account.

2. Use Your Full Available Credit on Your Credit Card

The total amount of money that may be charged to a credit card, including purchases, interest charges, and fees, is referred to as the credit limit. Every credit card has its own credit limit, which is determined by borrowers based on credit scores and other signs of eligibility. your credit limit is, crossing it is almost always a bad decision that most people make.

Below are the most common results of exceeding your credit limit:

  • It is possible that your credit card will be declined.

  • You may be charged an over-limit fee.

  • Your interest rates may increase.

  • Your credit limit may be decreased.

  • Your credit score may suffer as a result.

Using credit cards and not paying them off monthly can be detrimental to your credit.

3. Miss Payments

The repercussions of a missing payment could be hard on your credit score. We suggest that you make a list of all your debtors that you have accounted for and outline them on your calendar or on a note. We encourage that you pay at least the minimum due soon as possible.

4. Apply for Lots of Credit Cards

It’s not a good idea to apply for lots of credit cards at once as well as hold so many cards. The damage to your credit score is most likely one of your main concerns about having multiple credit cards. This is a negative overall, as your credit is taking a hit every time you apply for one. Not to mention, having many cards can become difficult to manage and remember their due dates.

What we suggest is starting with one credit card and getting used to managing that one card. Once you can manage this and understand how it can affect your credit score, then we suggest looking into more options if you should choose. If you have many credit cards, we suggest paying off the cards with the highest interest rate and closing those accounts so that you can focus on one or two cards that are more manageable.

5. Monitor Your Credit Score

People with bad credit never monitor their accounts, so even if they pay the whole amount on their credit card, their credit score tends to be low. Being fiscally responsible means always monitoring your credit score and your accounts to ensure you are on top of your payments. Always being on top of your finances also keeps your ahead and on top of fraud should it occur. There are many companies that provide credit monitoring services including TransUnion, Equifax, and Credit Karma.

Our children will play an important role in society and its activities one day, so it is important that we provide education on leading healthy financial lives.

We must provide as much support to our children in preparing them for tomorrow and ensuring that they are equipped to face any future financial challenges. One area where they require guidance is financial management as adults.

It’s difficult to talk about money, we get it. Talking about money with your children might be even more difficult! Should allowance be conditional on household tasks?

How do you keep your child from being spoiled? How do you handle college debt? Whether your children are 5 or 25, it is never too early—or too late—to encourage them to develop financial confidence and responsibility.

AAR Financial will educate you on how to raise financially responsible children and provide them with the education they need to make good decisions as they get older

1. Have an open conversation about finances.

Talking openly about money is an important element in supporting children in establishing a healthy relationship with money. “Talking about money should not be limited to a one-time chat,” says AAR Financial.

 “It has to be part of your daily conversation.” When money issues arise and your children are there, discuss with them as freely and soon you will both feel more comfortable and at ease.”

Including your children in basic financial decisions is one method to do this. For example, before deciding what to prepare for dinner, you may go through the grocery list together and establish your budget, so you don’t spend outside of your budget.

You might also start a conversation about why certain items are more costly than others. Ask for help from your children in comparing prices at the grocery store and make a game out of it! Is the product almost the same but more expensive since it is a name brand? Or are there other benefits, such as a higher Item 1 or Item 2, that might justify a higher price?

2. Open a bank account for them.

Choose the bank that offers the most exciting savings account offers. Bring your children to the bank and explain the difference between a chequing account and a savings account.

Tell them that when they receive a large amount of money as a gift or for a birthday, they should deposit it in a savings account that you don’t use for a long time. If you need money to spend, transfer it out of your savings account into your chequing account. You can also explain to your children how the money from their piggy bank if they have one can also be put into the bank.

3. Take them shopping.

Take your children with you while you go shopping. Show them what they need to buy first and avoid perching on unnecessary products. Spend your money wisely. This is the most important aspect of growing their financial responsibility.

4. Encourage part-time work.

Allowing your children to work part-time is a fantastic lesson in training them to stand on their own feet and the value of money. The summer is a great starting point, especially since there is no school.

McDonald’s and Tim Horton’s are great places to start for children to strengthen their communication skills, learn how to interact with others as well as learn the value of money.

5. Motivate entrepreneurship.

Entrepreneurship turns children into leaders capable of leading independent and successful lives. Make sure your children understand the importance of entrepreneurship and that it is a choice for them so that they can create their own chances when the time comes.

Start small, with enjoyable activities like assisting them in running their own juice stall at home or cookie sale on your street, which will help kids develop stronger financial management skills, and encourage creativity.

Encourage collaboration while stressing the importance of goal setting and preparation. Teach children that failing is okay and that errors simply create additional opportunities to learn and discover new methods to achieve goals. We appreciate you reading our blog and hope it will be helpful in educating and raising financially responsible children!


To manage your household budget, you simply need to be wise about your spending patterns, not necessarily brilliant at math!

Contrary to popular belief, keeping a household budget involves more than just getting by.

Additionally, a portion of your gross income should be set aside for an emergency fund and debt repayment (if you have any).

AAR Financial offers the most comprehensive guidance for handling household budgets.

1. Build up a spending plan.

Let’s start with groceries. When people go to buy groceries, they frequently purchase necessary items but also unnecessary items.

This is not entirely our fault, as multinational corporations have marketing tactics that convince us we NEED other items.

Avoid getting into this trap and stick to a grocery list, so that you don’t spend too much money. Start with making a list of your weekly spending and analyze it.

Only spend money on items that are necessary for your daily routine with you and your family.

Additionally, there are many flyers that are available online and are also sent out in the mail which you can usually use towards your weekly shop.

If you have a big family, do your homework, and make some comparisons between buying at a regular grocery store or buying in bulk from Costco.

It may be cheaper, but also note there is a yearly fee so ensure you take that into account.

Now, this can be applied to other facets of your life as well to stay on track and organized. A spending plan and a quick chart and list can assist you with other household expenses such as tv and internet, cell phones, hydro, etc.

Staying organized is the key to staying on track and excel is also a great tool for organizing your expenses.

Make it an activity to work on with your partner and spend an evening organizing your expenses so that you both are on the same page.

2. Continue tracking your expenses.

A cost tracker can help you with budget planning if you’ve tried other alternatives before and found they did not work for you.

Keeping track of your expenses doesn’t just mean keeping all your receipts or keeping a permanent record of every dollar you spend.

It’s a lot easier than that if you have a cost tracker or a list.

The difference between developing a budget that succeeds and one that fails is tracking costs.

Knowing where your money goes is the only thing that will ensure that your budget works, regardless of whether you are about to begin budgeting or have been doing so for years.

You may keep tabs on your expenditure using a variety of tools, such as apps, computerized Excel tracker spreadsheets, printed expense diaries, and journals.

It’s up to you how you want to keep track of your expenditures, but ensure you adopt the method that works best for you.

3. Review your progress.

You’ll feel different once you start living within your means and have some expense lists to refer to.

You’ll feel lighter, sleep better, and experience less financial stress from this organization.

Consider the differences between how you feel about managing your money today and how you felt when you first started.

Set up check-ins with yourself to see how your financial strategy is progressing. Consider the things that have and haven’t been operating well recently.

What changes can you make to make your life simpler?

Consider a few unforeseen costs that have occurred over the last several months. What did you do about those? Is there anything you could do differently to handle them better in the future?

Reviewing your development is a worthwhile experience when you have the time. Start by setting aside 10 minutes once a week, and over time you’ll be able to extend your check-ins to once per quarter.

Your wallet may suffer as we approach the holiday season. The spending doesn’t end with presents, though. Other costs associated with the holidays include those for eating, entertaining & much more.

When you add it all up, it’s easy to spend thousands of dollars on holiday happiness and begin the new year with crippling credit card debt.

AAR Financial  has some holiday spending tips to help get you through the season with your wallet intact.

1. Make a Budget – Making a budget that covers all costs, from gift-giving to cooking a meal for all your family and friends, is the key to having a budget-friendly Christmas season.

2. List Expenses – Many people only aim for an approximate amount or estimate their expenditure based on recollection. Instead, make a few budgetary calculations based on your monthly outlays to come up with a more precise estimate for your holiday expenditures.

-> Gifts – Make a list of everyone you want to buy gifts for this year. Include all the tiny items you need to purchase for social gatherings, such as host and hostess gifts or a secret Santa gift exchange at work, in addition to the large gifts you need to buy for friends and family. 

-> Mailings and cards – Include a line in your budget for the expense of purchasing or printing Christmas cards, photos, letters, calendars, and postage if you send them out. 

-> Food – This area contains the food and beverages you’ll serve at your holiday parties, your family meal, and any potlucks you’ll be attending.

-> Decorations – Your list should have a line for any holiday decorations you intend to purchase. That includes things like a Christmas tree, any inside and outdoor lights that need to be replaced, and candles.

-> Clothing – Most of the time, you can wear clothes from your closet to dress for a holiday party. But you should also add anything specific you might need, like an ugly sweater for a theme party, if you don’t already have one.

-> Travel costs – Travel expenses are a huge additional expense that you must plan for if you are traveling for the holidays. Gas and tolls fall under this category if you drive. If you’re traveling, it also covers the price of your tickets, baggage fees, and any parking or shuttle expenses incurred at the airport.

3. Set Priorities – If your list of Christmas expenses seems a bit lengthy, don’t get alarmed. If there’s no way you can afford to pay for everything with the budget you have, you simply need to establish some priorities. As you go through your list, assign a number to each item based on its importance to you. Give your biggest priority the number “1,” your next-highest priority the number “2,” and so forth.

4. Shop Smart – If you are unable to reduce your gift list, purchase wisely to stretch your money. Think about purchasing some holiday gifts online. In addition to the convenience, it is simpler to compare costs and use discount codes. You’re also less likely to overspend because you’re avoiding the busy Christmas environment at the store.

5. Keep Track – Once you begin the holiday season, keep track of all your purchases. Bring your gift list, along with your budget sheet, with you on every shopping trip. Additionally, be sure to keep track of the cost of your holiday-related outings and other expenses so you will be able to more accurately budget next year. 

There are also several tools to help you keep track of your spending within specific budget categories. One of the simplest is an old-fashioned envelope system, in which you create a physical envelope for each category – like gifts and decorations – and load it up with the appropriate amount of cash.

6. Look for more affordable alternatives – For most people, gift-giving isn’t the special thing about the holidays – it’s a unique holiday tradition that they share with their loved ones each year. Affordable holiday activities can help you create amazing memories such as: –

-> Watching a movie at home with some hot chocolate

-> Decorating the house together

-> Baking together as a family

-> Reading favorite holiday stories

-> Seeing a high school production, such as a play or choir performance

Once the holidays are over, recheck your budget and see how well you managed to stick to it. If you went over budget in some categories but stayed within your total spending limit, that’s a sign you need to tweak your budget next year, allocating more money to those categories.

New Year budgeting strategy Blog
Things to Learn about Debt Consolidation

As we begin a new year, we set new goals and make plans for the future. We have all experienced the frustration of increased prices at the grocery store and at the gas pumps after two hard years of surviving in a pandemic, many of us enduring layoffs at work.

Here are some suggestions to keep your finances on track in 2023.

A budget is a useful tool for planning costs and staying within one’s means of support. It establishes clear parameters for spending decisions and aids in bringing order to your finances.

When budget-based decisions are made often and consistently over time, they will result in increased savings without causing you to cut back on spending on the things you enjoy.

Looking for a good starting point? AAR Financial has some great budget-conscious tips and strategies.

1. Set Realistic Financial Goals: Setting short-term financial goals, as well as midterm and long-term, is an important step toward becoming financially secure.

We suggest taking the 50/30/20 budgeting approach. That means allocating

  • 50% of your income toward needs,
  • 30% toward wants and
  • 20% toward savings and debt repayment.

By following the 50-20-30 rule, individuals have a plan for how they should manage their after-tax income. If they discover that they spend more than 20% of their income on wants, they can identify strategies to lower those costs so that money can be allocated to more crucial areas, such as retirement and emergency funds.

Although it is not advised to live like a Spartan, life should be enjoyed, having a plan and following it will enable you to pay for your expenditures and save for retirement, while also engaging in the activities that bring you joy.            

2. Eliminate Bad Spending Habits:

Humans have a tendency to spend more money than we earn which will create problems in the future. It’s normal to follow your intuition and spend too much money. But it’s also crucial to maintain strict control over your costs.

For that, the first and foremost step is creating a budget. This means writing out your income and expenses and knowing exactly what you spend and where. All right, here are some areas which we need to focus on:-

  • Know what you’re spending money on.
  • Shop with a goal in mind.
  • Think about big purchases.
  • Do your grocery shopping online.

3. Be Disciplined: Discipline is the bridge between goals and accomplishment. Yes, maintaining your monthly budget objectives requires discipline.

However, only spending with control will enable your budget to pay off. You can establish weekly financial restrictions and regular reminders to better manage your spending.

Make a strategy, for instance, that your weekly expenditure won’t be more than 10% of your pay. Here are some of the best ways to achieve being more disciplined with your money:-

  • Savings first – Save money first. You should save aside 10–20% of your salary for the future. Your retirement is the future, not next week or next year. If you receive a government pension, this is automatically done for you; otherwise, you are the only one who is making retirement savings.
  • Set aside money for emergencies – Take $100/pay and set it aside in a savings account you don’t touch except for real emergencies.  A real emergency is not dinner out or regular bills – it is losing your job, a roof collapsing, or someone in your family getting sick.  It is important to be strict with yourself.  If you cannot afford dinner out – don’t dine out.

4. Understand Your Spending Triggers: Finding the emotional and psychological factors that lead us to spend is frequently the key to learning how to quit spending. You’ll eliminate the temptation and opportunity to overspend if you take away those triggers.

• Environment: Craft fairs, shopping centers, home exhibits, and even holidays are good examples of situations where you’re more inclined to spend impulsively. These situations might either make you want to spend or make you feel forced to spend simply because you’re there. So, eliminate the temptation by either avoiding such settings or traveling with a small amount of money.

•  Peer Pressure: Do you spend more money when you’re out with your friends than you normally would? If you can’t afford to eat, shop, or vacation like your friends, it’s okay to decline their invitations.

Instead, suggest plans that won’t cost you a lot of money. Meeting for coffee instead of brunch, exploring new hiking trails instead of going to the latest concert, or hosting a potluck dinner at home. You won’t be able to afford expensive vacations or fine dining, but you can still enjoy yourself.

Don’t be hesitant to tell your friends that you’re trying to save money; perhaps they’ll assist you on your journey, and some may even join you! What matters is that you surround yourself with friends who will encourage you as you work toward your financial objectives.

5. Keep a Track: To stay on budget, be sure you can track your plan, which is perhaps the most important step. Make certain that your expenses can be revisited at any time if necessary. We all have hectic schedules, and it can be difficult to remember every transaction detail.

Keeping a tracker can help you keep track of your expenses and analyze where your money is going the most. Tracking your expenses is essential for budgeting success because it holds you accountable for every dollar you spend. When you know where your money is going, you’ll be able to make better spending decisions and identify areas where you can cut back.

Budgeting is, in some ways, a state of mind that must be developed through constant practice. Focusing on what you want and knowing that small daily steps can help you get there can help you make budgeting a way of life.

For many people, the term “Debt Consolidation” might be confusing because of it’s variety of Debt management choices. However, today we’re exploring the subject of Debt Consolidation to clear up any confusion.

Debt Consolidation is a great strategy that combines outstanding, unsecured debts into one monthly payment. It often comes with a lower interest rate than what you were paying out while also giving your credit score a nice boost. Some effective ways to consolidate your debt include taking out a personal loan, a home equity loan, or even a 401 (k) loan.

AAR FINANCIAL specializes in debt consolidation solutions, offering the best credit counselling as well as personal loans and home equity loans. Find out more about the many debt consolidation alternatives you have by contacting one of our representatives at any one of our branches. If you need assistance with debt consolidation, we are pleased to go over your options in greater detail and assist you in making the right choice.

Let’s take a closer look at what debt consolidation can do for you.

How Debt Consolidation Works:

Debt consolidation is the process of combining multiple debts into one simple repayment loan. If you have multiple types of debt, you can apply for a loan to combine them into a single payment and pay them in one payment to keep your household and finances organized.  

Finally, some people consolidate debt to simplify their bills by paying only one lender rather than multiple lenders. You can roll old debt into new debt in a variety of ways, including with a new personal loan, credit card, or home equity loan. Then you use the new loan to pay off your smaller loans.

Some Key Takeaways:

  • Debt consolidation is the act of taking out a single loan to pay off multiple debts.
  • You can use a secured or unsecured loan for debt consolidation.
  • New loans can include debt consolidation loans, lower-interest credit cards, and home equity loans.
  • Benefits of debt consolidation include a potentially lower interest rate and manageable monthly payment.

Strategies for Consolidating Debt:

You can consolidate debt by using different types of loans. The type of debt consolidation that will be best for you will depend on your current loans and financial situation.

There are two broad types of debt consolidation loans: secured and unsecured loans. Secured loans are backed by an asset like your house, which works as collateral for the loan. Unsecured loans, on the other hand, are not backed by assets and can be more difficult to get. With either type of loan, interest rates are still typically lower than the rates charged on credit cards. And in most cases, the rates are fixed, so they do not vary over the repayment period.

Here are some common ways to consolidate debt.

Personal Loan:

A personal loan is an unsecured loan from a bank or credit union that provides a lump sum payment to use for any purpose. What’s great about these loans is that they often offer flexible terms (typically 12 to 72 months) and establish a consistent month-to-month payment due, which assists in budgeting. As a bonus, financial institutions will make a payment directly to the creditors, saving you the hassle.

Home Equity Loan:

If you are a homeowner who has equity, a home equity loan or home equity line of credit (HELOC) can be a useful way to consolidate debt. These secured loans use your equity as collateral. Since there is an underlying asset for these loans, the rate is often lower than what you would get with a personal loan, making either the monthly payments smaller or avoiding higher interest rates from other lenders. The lower interest rate may give you the ability to pay down the balance more quickly. There could be additional mortgage-related expenses when taking this route, so a direct inquiry with your lender is a must.

Making Debt Consolidation Work for You:

Debt consolidation can be a good way to pay off high-interest debt while also saving money. However, it is not for everyone. Before taking out a debt consolidation loan, make sure you understand exactly what you’re getting into. Consolidating your debt is just the beginning of a long process. Here are key components to making it work.

  • Make a realistic budget.
  • Compare consolidation products and enable support for your goal.
  • Shop around for the lowest interest rate.
  • Read all the fine print and understand what will happen if you fail to make a payment or default on your loan.
  • Pay more than the minimum payment. 
  • Make sure you are aware of any fees.

Debt Consolidation and Credit Scores:

Your credit may be impacted by several lenders if you are not able to keep up with your payments to them. Debt consolidation can be a useful strategy for paying down debt more quickly and reducing your overall costs in interest. You can consolidate debt in many ways, such as through a personal loan, new credit card, or home equity loan. Consider consulting with a professional financial advisor or with a reliable adult or friend for guidance on the options that may best fit your personal situation. There is one thing you can do to improve your credit score over time i.e., improve your payment history. 

The bottom line:

There is no one-size-fits-all solution to debt management. As previously stated, debt consolidation can be a useful strategy for paying off debt more quickly in a variety of ways, such as with a personal loan, a new credit card, or a home equity loan. Before you take the advice of a single creditor, consider all your options so that you can make an informed decision. There are debt consolidation options as well as payment consolidation options. Some options require you to borrow more money, while others require you to restructure your budget.

Some options have a greater impact on your credit rating than others, and there are even options with interest relief to help you get back on track. “The right option will help you improve your money skills and provide you and your family with a financially stable future”.

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Saving money is kind of like eating a healthy diet.

You know you should do more of it, but it’s hard to resist making spur-of-the-moment choices that make you happier now but worse off later. A tax refund marks a great chance to set yourself in a better position for the future. As tax season approaches, many people begin to anticipate receiving their tax return. For some, it may be a small windfall, while for others, it may represent a significant amount of money. 

Word to the wise: Don’t wait until tax time to educate yourself.

Childcare expenses and family benefits:

You need to file your taxes every year to continue receiving family benefits like the GST/HST Credit and the Canada Child Benefit (CCB). If you’re a family with a low to a modest income, the GST/HST credit can offset a portion or all the sales tax you pay, including the tax paid on a new or used car.  

The CCB is a tax-free monthly payment that helps cover the costs of raising children under the age of 18. It currently offers up to $569 per month for each child under age 6 and up to $480 per month for each child between the ages of 6 to 17. Payment amounts are based on the number of children you have and your adjusted family net income.

Registered Retirement Savings Plan (RRSP) contributions:

Contributing to your RRSP is an excellent way to lower your tax bill and get a larger tax return. Your contribution limit is 18% of your earned income from the last tax year, plus any unused amounts from previous years. You can find your contribution limit in your CRA My Account or on your last notice of assessment.  

A good rule of thumb is to maximize your RRSP if you make over $50,000, so you can benefit from the highest amount of tax savings. If you make below $50,000, it makes more sense to contribute to a Tax-Free Savings Account (TFSA) since you probably won’t owe much income tax.

Interest paid on student loans:

If you or your child is studying at a post-secondary institution, you can deduct the interest paid on a student loan if you received the loan under the Canada Student Loans Act, Canada Student Financial Assistance Act, Apprentice Loans Act, or similar laws in your province or territory. This deduction does not apply to something like a personal loan or line of credit. Apply this deduction if you owe taxes. Otherwise, it’s better to carry it forward. Interest can be carried forward and applied to any tax return for the next five year.

Your student loan interest claim is a non-refundable tax credit. It can only be used to lower your tax bill and cannot be used to receive a tax refund. Since you can carry forward student loan interest for up to five years, it might be wise to save your claim for a year when you owe a lot of tax.

Medical expenses:

The CRA permits you to deduct a range of medical expenses as non-refundable tax credits, including the cost of orthopaedic shoes, laser eye surgery, dental cleanings, and private insurance premiums. Keep all of your medicines, receipts, and any supporting papers in case the CRA asks to view them later.

Union/professional dues:

Most professional association fees and union fees can reduce your taxable income. Examples of eligible expenses include trade union membership fees, professional board dues required under provincial or territorial law, and insurance premiums related to your profession.

Vehicle expenses:

You might be eligible to deduct some vehicle costs if you use your car for work. You could be able to deduct vehicle-related costs like gas, insurance, license and registration fees, maintenance and repairs, leasing charges, and interest on loans used to buy a car if you’re self-employed.

Depending on whether you lease or buy your car, there are various deductions. Capital cost allowance (CCA), a deduction used over a number of years based on the depreciation percentage, is available if you purchase (until the car gets old and has no more value). The amount of CCA you can claim for business use is capped at certain vehicle prices. For passenger cars, the cap is $30,000, but for zero-emission cars, it is $55,000.

Under certain conditions, salaried employees may also be eligible for automobile expenditure deductions. The complete eligibility requirements are available here. Remember that travel time between your home and place of employment is not deductible.

Here are some smart financial moves you can make to get the most out of your tax return.

 Pay off high-interest debt.

Using your tax return to pay off high-interest debt, such as credit card debt or personal loans, might be a wise financial decision. Your finances might soon become burdened by high-interest debt accumulation. You can save a lot of money in interest payments over time and free up your finances to concentrate on other financial goals by paying off this debt with your tax return.

Build an emergency fund.

Now is a perfect moment to build an emergency fund if you don’t already have one. A safety net called an emergency fund can assist you in paying for unforeseen costs like car repairs, medical bills, or lost income. Three to six months’ worth of living expenses should be saved in an emergency fund, according to experts. A wise financial decision that can provide you peace of mind and prevent you from getting on debt in the event of an unforeseen need is using your tax refund to kickstart your emergency fund.

Make a large purchase or investment.

In conclusion, using the information on your tax return might help you make the most of your financial condition. Think about utilizing money to make a significant purchase or investment, pay off debt, create an emergency fund, invest in your retirement, or donate to a good cause. Make the most of your tax refund whatever you decide to spend it by making a strategy for it.

Debt Management: Tips to pay Your Loan on Time

Taking out a loan can be a great way to achieve your goals and fund your dreams.

 However, with any loan comes the responsibility of repaying the borrowed amount on time. Repaying your loan on time is essential for maintaining a good credit score and avoiding late fees and penalties. 

AAR Financial giving you some tips for managing debt and repaying your loan on time.

Set up a Budget:

The first step towards managing your debt is to create a budget. Start by reviewing your monthly expenses and income and determine how much you can afford to put towards your loan repayment each month.

By having a clear understanding of your budget, you can plan and make sure that you’re not taking on too much debt. It’s essential to prioritize your loan repayment in your budget and ensure that you have enough money to cover your payments each month.

Prioritize your Payments:

 If you have multiple loans or debts, it’s important to prioritize your payments based on interest rates and the amount owed. Focus on paying off high-interest debts first, as they can accumulate quickly and become difficult to manage.

Make sure to also meet your minimum monthly payments on all your loans to avoid late fees and penalties. Prioritizing your payments can help you manage your debt more effectively and reduce your overall interest payments.

Create a Monthly Bill Payment Calendar

Use a bill payment calendar to help you figure out which bills to pay with which paycheck. On your calendar, write each bill’s payment amount next to the due date. Then, fill in the date of each paycheck. 

For Instance, If you get paid on the same days every month—the 1st and 15th—you can use the same calendar from month to month. But, if your paychecks fall on different days of the month, you’ll need to create a calendar every month.

Consider Automatic Payments:

Setting up automatic payments is a great way to ensure that you don’t miss a payment. This can help you avoid late fees and protect your credit score. 

Many lenders offer this option, so be sure to check with your loan provider to see if it’s available. Automatic payments can help you manage your debt more effectively and ensure that you don’t fall behind on your loan repayment.

Build an Emergency Fund to Fall Back On

Without access to savings, you’d have to go into debt to cover an emergency expense. Even a small emergency fund will cover little expenses that come up every once in a while.

First, work toward creating a small emergency fund—$1,000 is a good place to start. Once you have that, make it your goal to create a bigger fund, like $2,000. Eventually, you want to build up a reserve of three to six months of living expenses.

Make Extra Payments:

If you have some extra cash, consider making additional payments towards your loan. This can help you reduce your overall interest payments and pay off your loan faster. 

Make sure to check with your lender to see if there are any prepayment penalties before making extra payments. By making extra payments, you can reduce your debt and save money on interest payments.


Communicate with Your Lender:

If you’re having trouble making your payments, it’s important to communicate with your lender. They may be able to offer you a repayment plan that suits your budget or help you find other options to manage your debt. 

Ignoring your loan payments can lead to late fees and penalties and damage your credit score. If you’re struggling to make your payments, contact your lender as soon as possible to discuss your options.

Reduce Your Expenses:

If you’re finding it difficult to make your loan payments, consider reducing your expenses. This can help you free up some cash to put towards your loan repayment. Look for ways to cut back on unnecessary expenses, such as eating out less, canceling subscriptions you don’t use, or switching to a cheaper cell phone plan. 

By reducing your expenses, you can free up some money to put towards your loan repayment.

Repaying your loan on time is essential for maintaining a good credit score and avoiding late fees and penalties. By following the tips above, you can create a solid repayment plan and ensure that you repay your loan on time. 

Remember, borrowing money is a serious responsibility, and it’s important to take it seriously and manage your debt effectively. If you’re having trouble making your payments, don’t hesitate to contact your lender to discuss your options. With careful planning and discipline, you can manage your debt effectively and achieve your financial goals.



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Frequently Asked Questions?

  • We are a private lending institution based out of Winnipeg, Manitoba and we serve all surrounding regions. At AAR Financial, we offer personal loans up to $50,000 and home equity loans up to $100,000 in Manitoba, Saskatchewan, Alberta, Ontario & BC.
  • By getting a loan from AAR Financial, we can pay off your other creditors or accounts with other companies and you will have just one manageable payment with us.
  • Although your credit score is a factor in our decision, many other factors play into our decision of whether to advance cash to you. Having excellent credit is not a pre-requisite. Apply now and see how much you qualify for!

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823 Regent Avenue West, Winnipeg Manitoba. R2C 3A7
Call Today – (204) 224 3271
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–  Loan terms range from 2 years to 10 years APR: 14.9% – 46.7%  Financial Example –  $1,000 borrowed for 12 months at 46.67% APR. Biweekly payment = $ 48.47, total repayment with Interest is $1,260.22. Total Cost of the loan = $ 260.22. Finance Example includes optional loan protection coverage. For more detail, please contact us at (204) 224- 3271.

– License Number #84231 (BC) , #349447 (AB)

– Copyright © 2022 AAR Financial Incorporated all rights reserved.