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Available credit borrows people into bankruptcy With bank loans in hand and credit cards waving, hundreds of con- sumers have borrowed themselves into bankruptcy. Although buying goods '"'on plastic' is a 'widespread practice to- day, many people don't understand how to obtain credit or handle it wisely. The most important consideration when seek- ing or using credit is whether it is affordable. Signing a loan or credit card contract costs nothing at the time, but it is a promise to pay tomorrow and probably the day after as well. If monthly payments use up more than 20 per cent of a person's net in- come, not including mor- tgage costs, it's time to be wary of incurring any further debts, say ex- perts with the Ministry of Consumer and Commer- cial Relations (MCCR). Failure to pay can bring debt collectors to the door, lead to repossession of mer- chandise and ruin per- sonal credit ratings. Wisely handled, credit is a convenient and useful tool. It can help meet expenses in emergencies by allowing consumers to borrow against future income. When applying for credit, shop around for the best deal. Service charges, interest rates and many other costs can differ from one len- ding institution to the other. This is particuar- ly true today with grow- ing competition in the in-, dustry. More than half a percentage difference in rates can rdise or lower monthly payments significantly. To calculate credit ratings for potential customers, loan officers look at a variety of characteristics including occupation, stability of employment, assets and how debts have been handled in the past. Financial firms obtain reports on applicants from agencies that keep detailed records of past credit transactions. By making payments on time and fulfilling all contract obligations, bor- rowers can maintain good credit records that will be of benefit in future applications for - loans. Under the Con- sumer Reporting Act, Ontario residents have the right to review their own credit records and have any proven errors corrected. 'If a request for a loan is turned down by one firm, ask elswhere. Com- panies often use different methods of assessing customers. Frequent job changes, heavy debts and lack of assets or disposable in- come can all be reasons Elgin & AnneMarie Knopp PLEASE NOTE: Rent & Save and The Trailer Place will be closed from December 24 until January 1, 1985. Re-Opening on January 2, 1985. for being refused credit. It can also be difficult for part-time or seasonal workers to get substan- tial loans: - Get an explanation for the refusal: it may pro- vide hints on how to im- prove future chances of getting credit. Don't be afraid to go back to a - firm that previously turned down a loarv. Len- ding practices can vary with the state of the economy and applica- tions rejected one month, may later be approved. The individual's finan- cial circumstances may also have improved. Access to credit is a privilege that must be earned, but everyone has the right to be judged by the same standards, regardless of sex or marital status. If discrimination is -~suspected, talk to the senior credit officer of the agency involved. Contact a local Con- sumer Advisory Service Bureau of MCCR if a satisfactory explanation is still not given. Although financial in- stitutions do refuse credit to some applicants, they are in the business of len- ding money. Under cer- tain economic condi- tions, they may even try to "sell" more credit. Don't be pressured into borrowing more money than is absolutely necessary or than you can comfortably afford. Once a contract is drawn up, be sure to read and understand every section. All costs of bor- rowing must be set out fully in writing. A blank contract, like a blank cheque, should never be signed. Pay bills promptly. If difficulties arise, contact the lender to arrange special terms before the payment is due. Interest charges can be avoided for purchases made on many credit cards if payments are submitted within a specified time. The consumer ministry has published three brochures contain- ing information on credit, including The Consumer Reporting Act, The Facts About Credit and You and The Consumer Protection Act. To obtain copies, call the Consumer Infor- mation Centre, 555 Yonge Street, Toronto at 416-963-1111 or toll free at 1-800-268-1142, or call your local Consumer Ad- visory Services office. Chesterfield Suites Love Seats Sectionals & Mattresses - A Large Selection - McKEEN FURNITURE 624 Simcoe $1.3, Oshawa 72%5181 See no evil... These three choir members reminded Christmas concert at R.H. 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