Pay your bills on time

There are many ways to pay your bills each month: at your bank, by cheque, online or on a credit card. Choose a payment method you can maintain and manage.

	Open bills when you receive them and know your credit limit and due date for each account.
	Paying bills on time each month will help you maintain a good credit rating.
	If you have automatic bill payments coming off your credit card each month, make sure you consider those amounts when paying your monthly credit card bill.
	If you can’t pay your bills on time, contact your creditors and explain your situation, and then work out a payment schedule with them.

Use credit wisely

Many a times it is not possible for every Indian family to purchase everything they need– much less everything they want – without borrowing from time to time. Whether you borrow through a personal loan, a line of credit or a credit card, credit should be used to enhance your personal financial management, not become an extension of your income.

	Only make purchases you can afford to carry. A good rule of thumb is to ensure your total debt carrying costs on lines of credit, personal loans and credit cards (excluding mortgages) do not exceed 15 per cent of your net income. Say NO to any purchases beyond that amount.
	Pay as much debt as you can on any outstanding balances each month and always pay more than the minimum payment due. Be sure to pay down high interest debt first.
	Choose the right credit card for your needs. Match the features you need (e.g. a low annual fee or a low interest rate) against the features you want (e.g. points toward travel, groceries or gas) and see which card is the best fit.
	Do not borrow from one creditor to pay another.