How much total ‘credit’ should a couple have? + MORE Aug 1st

Q: I’m wondering how much total ‘credit’ I should have? My husband and I have a few credit cards and two Line of Credit (LOCs) between us totalling about $50,000. We don’t have a habit of maxing it out and we pay it off fairly regularly. I’m being offered another LOC from one of the banks for $15,000 for 5.35%. Although I don’t need it, I’m wondering if it makes sense to have it ‘just in case’? We don’t have a three-month emergency plan but our credit score is very good—750 for my husband and 776 for me. What are your thoughts? Pros? Cons?
—Krista
A: Good job—you both have excellent credit scores. The short answer to your question is there is no right amount of credit. Credit should only be necessary when you don’t have the cash on hand to pay the expense.
Do you have a plan to deal with unexpected emergencies such as job loss or illness, or infrequent but foreseeable expenses like home or car repairs? Either a credit product, your own savings, or sometimes an insurance product (long term disability or critical illness insurance) will help to pay for the cost…

Chris Upton
AGE: 42
PLACE: Toronto
TFSA TOTAL: $5,500
STRATEGY: Savings account

Me and my TFSA
Chris Upton is 42, married and the mom of two young teens. She and her husband have a combined household income of $147,000 annually, which includes part-time income from a summer construction business they run together. “We have very little savings in the corporation, or elsewhere,” she says.
Right now, she has a mere $5,500 in her TFSA account and little more in terms of liquid savings. To this point Upton’s has been focused on paying down her $260,000 mortgage on her Toronto home. She also has $38,000 on a line of credit to help grow their construction company, although revenue from the business is taking care of that.
Upton struggled to make ends meet over the past few years, but she’s getting back on a solid footing. She’s on track to make another TFSA contribution—$5,500—in January. While she’d like to use up more of her contribution room, she doesn’t think she can afford to save more than $5,500 a year at this point…

Genworth MI sees 81% drop in value of new insurance as sector grapples with tighter regulations