4 Steps That Can Help Canadians To Be Debt Free
Being in debt is most often the cause of depression and anxiety, it makes one’s life miserable. However, in Canada, Canadians are fortunate that help is accessible to every individual. There are several debt relief options available such as credit counselling, debt settlement, and other debt solutions. In fact, if you can no longer bear the burden of making any payments to your debts, you may qualify to file for bankruptcy.
In This Guide...
4 Steps to Get Out of Debt
Moreover, before getting into this situation, there are still things that you can do to get back on track and restore our finances. Following these steps will prevent you from seeking refuge in any of the debt relief options such as a consumer proposal which can drastically damage your credit for a period.
Determine Your Debt Levels
To begin with, you may need to determine your total debt especially your credit card debt. You can do this by compiling your statements and adding the total amount. Though this may sound simple, it is not easy for someone who has been struggling to get out of debt. However, if you already make certain progress, it is a feeling of fulfillment and satisfaction that you have made improvements in managing your finances. Thus, the more you will be compelled to and motivated to continue and move forward.
Organize Your Debt
You can arrange your debt from the highest to the least amount. By doing so, you can get a clear picture of how much you owe and what debts bear the highest interest rates. Most debt specialists would recommend you pay the debts that carry the highest interest charges. This way, you can prevent accumulating huge interest and late fees on this debt.
Analyze Your Spending and Cut Cost
Carefully determining and analyzing where your money is spent can help you realize and track if your spending it wisely. In fact, you’ll be amazed that most of your spending goes to unnecessary things which you can cut costs. It is beneficial that you write down your expenses and your budget for the month so that you can keep track of where you can minimize your spending and what cost can you eradicate.
Seek advice from a Credit Counsellor
If you are confused about how to manage your finances after taking each step mentioned, you can consult a credit counsellor to help you decide which debt relief approach will suit your situation. Through a good credit counselling service, you can effectively design a feasible budget and a plan for repayments.
Is Credit Counselling Service Right For You?
Moreover, with the aid of a credit counsellor, you can possibly lower your interest rates, which will reduce your monthly payments. However, the consequences of getting a credit counselling service are its impact on your credit. The reason why most Canadians favor a debt settlement wherein they can get the chance to improve their credit standing for as long as they comply with the settlement program.
