Robert would rather walk his dog in the rain than manage his credit.
Robert looks on as his dog scampers about in the rain. With only a few days left until he goes on holiday, his car has broken down. The expense is unexpected and comes just after he managed to finally pay off his credit card. It took forever to get the balance down, and he doesn’t want to ever be in that situation again!
Robert is considering using his credit card to get his car repaired faster, telling himself he’ll deal with the consequences later. It’s the kind of thing he used to do without much thought. He decides to review his budget so he can make an informed decision. He wonders whether he can pay some of the repair costs out of pocket. However, Robert has to face facts: he will have to use his credit, regardless. He takes some time to find out what impact the unexpected expense will have on his budget and credit report. He uses a calculator to determine his credit charge 
This link will open in a new window and the actual cost of the repairs.
After reviewing his situation, Robert chooses to get his car repaired. To limit the financial impact, he decides to make moderate use of his credit for his other current expenses, and to estimate the time it will take to pay off the borrowed amount.
His goal is clear: avoid falling back into the vicious cycle of debt.
To pay off his car repairs faster, Robert decides to cut down on non-essential expenses and adjust his budget.
When Robert gets back from vacation, he adopts a routine: each month, he will deposit a fixed amount in an account for unexpected costs. He also plans to invest in a savings vehicle suited to his needs. To stay focused on his goal, he sets up a monthly reminder to review his budget and adjust it if and as needed.
Taking care of your finances
With a few adjustments and a clear plan, Robert was able to manage an unexpected expense while keeping his personal finances in balance. Which goes to show that, if you’re someone like Robert, who would rather walk his dog in the rain than manage his credit, looking after your finances is less complicated than you think.
Managing your credit better is in your best interest!
You can help improve or maintain the quality of your credit report and credit score by adopting healthy habits, such as:
- Paying the balance owing on time and in full;
- Ideally, keeping your credit use to less than 35% of the total credit available to you;
- Limiting the number of times you apply for credit;
- Paying off what you owe as quickly as possible;
- Keeping your old paid-up credit card accounts open, as they can positively affect your credit score.
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