Like everything in life, the better the plan the more favorable the result. Some people diligently plan their RRSPs, retirement income, investments and real-estate purchases. Few, much fewer, plan their credit strategies.

Why?

My sense is that many like life insurance, planning your credit decisions is about as much fun as going to the dentist. Additionally, many don’t understand the options available. There are many opportunities that exist to take advantage of the best credit facilities on the market. Mortgages are a great example of this. The wealthy in particular understand the benefits of levering and using equity to build wealth. As well, applying simple strategies like:

• paying your mortgage weekly
• making annual payments
• shopping your mortgage to different lenders to get the best rate
• and adding lines of credit to your mortgage for investment purposes are all great strategies to take advantage of this low interest rate credit facility.

As far as other credit facilities go, these tried and true strategies can save you thousands:

• Pay off your credit monthly
• Pay on time to avoid interest
• Consolidate your high interest loans into a low interest mortgage if possible
• Pay off your highest interest credit facilities first
• Add your credit spending into your budget
• Use credit wisely and always consult an accountant when leveraging credit for such things as investments

Credit planning is also made easier with a professional that knows and understands the products and intricacies of their industry. Whether it’s a mortgage broker, a financial planner or an accountant. Be sure to use the services of these professionals trained to help you make the best decisions.