Whether you’re getting ready to launch your own business or just wanting to better your financial situation, seeking credit counselling is always a good idea. However, we know that when it comes to talking about your money, it can be a bit of a sensitive topic. We chatted with Linda Mak—a credit counsellor from Money Mentors—to learn about the importance of credit counselling and financial literacy. When asked who should be receiving credit counselling and why she urges that “everyone should go through it to find out how your finances are doing.” She believes there is value in seeking help even before you think you need it, rather than when it’s too late. Linda explains that obtaining advice early in the game allows you to spot any issues. You can then decide if there’s an easy fix or whether you need to make changes.
Here are some tips on why you need to get a “financial check-up” done ASAP.
Your Credit History Tells a Story About You
Essentially, credit counselling allows you to have your needs and credit situation assessed. You’ll also get suggestions on how you can change your spending habits. Linda explains that while Equifax and TransUnion are the main organizations that track your credit rating in Canada, what they are really tracking is your behaviour—your ability to manage your debt in a timely manner. It’s important to remember that every financial decision you make has real repercussions, so don’t be afraid to reach out to an expert for a little consultation.
Educate Yourself and Share Your Experiences
Receiving credit counselling and spending time improving your financial literacy is what Linda hopes for every entrepreneur. Sharing your challenges and learnings about your money habits with people you trust creates a healthy environment to discuss financial literacy. Linda also comments that “parents need to talk to their kids about money; there are often generational issues of financial illiteracy when it isn’t learned.” Understanding your finances and learning how to budget at an early age increases your chances of being not only a successful entrepreneur but a financially healthy person overall. She states that financial literacy “gives confidence to making smart financial decisions.”
Who Can Help?
Money Mentors is a non-profit organization in Alberta with unique packages teaching financial literacy from elementary school to post-secondary. They pride themselves for being the exclusive provider of the Orderly Payment of Debts Program in Alberta, helping you pay back all unsecured debts with a reduced rate of 5%. There is a definite peace of mind that comes with knowing your credit is in the green, and that feeling is priceless. Want to learn more about how credit counselling can improve your business and your overall life? Give Money Mentors a call at 1-888-294-0076 to get the guidance you need.