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As the Bills Roll In:
Debt Strategies
This is the time of year where the bills from the holidays and extra costs of winter energy consumption seem to build up. For many it appears that there is more month than money. .
Here are some ideas that might help.
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| Stop using credit. |
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As simple as it sounds using credit only increases your debt and most people spend more on credit than if they used cash.
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| Make a spending plan. |
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Figure out how much money comes in each month and where it must go. Make a budget and stick to it.
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| Trim back the extras. |
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Track your spending. See if there are things you do that can be given up or reduced to help you pay off your debt.
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| Earn extra money. |
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Do you have something you can list on a site like Kijiji and sell? Perhaps to help with debt and your health you could deliver flyers in your neighbourhood.
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| Use unclaimed benefits. |
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Are you using all your benefits at work? Do you have outstanding money that can be claimed?
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| Cash in points. |
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Are there reward points you can cash in to use on everyday items to save money that can be used to pay down debt? Perhaps a month's worth of groceries is sitting on that card in your wallet.
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| Make a debt repayment plan. |
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List your current debts, amount owed, interest rate and minimum payment.
Always make your minimum payment and any extra money you can put down should go against the debt with the higher interest rate. Once that debt is paid that money should be used to go against the next highest interest rate debt. Follow this through until debt free.
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| Do your taxes early. |
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If you are expecting a refund then use that money to pay down debt. Use netfile or efile services to receive your refund sooner.
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| Talk to your creditors. |
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If you are struggling, check with your creditors- do they have programs that may help?
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| Still struggling? Here are some Do's and Don'ts: |
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DON'Ts
- Beware of high interest loans (including second mortgages) as they often do not help; do your research. Caution should be taken with anyone who states they can fix your credit rating.
- Do your research on credit counselling agencies before signing anything; the following site may be helpful:
DOs
- A visit to an accredited not for profit credit counselling agency may be very helpful.
- Contact your Employee Assistance Program. One of our most popular services is a financial assessment to review your situation to help you find the best solution/strategy for your situation.
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