10 Ways to Decrease Your Debt Every Day
Debt is a common financial burden for many Canadians with Statistics Canada reporting that almost three-quarters of the population carries some form of debt. This can lead to a significant amount of stress for many individuals and families. Many people seek the ‘big solution’ to eliminate their debt in one fell swoop, but it’s often the small, consistent changes that can make a real difference. Here are ten daily strategies that can help pave your path to financial freedom.
1. Stop Increasing Your Total Debt
One of the simplest strategies to reduce your debt is to stop adding to it. It might sound straightforward, but if you continue to accumulate debt while you’re trying to pay it off, you’ll just be spinning your wheels without making any progress.
2. Boost Your Income
An effective way to reduce your monthly credit expenditure is to increase the amount of money coming in each month. Consider selling items you no longer need online, working extra hours, or even getting a second job. Any additional income should be directed towards paying off your debts.
3. Maintain a List
Lists are an excellent tool for managing information. When it comes to shopping, a list can help you stay focused and disciplined, ensuring you only purchase what you need.
4. Revamp Your Shopping Strategy
If your goal is to save money, then altering your shopping habits can help. Consider buying non-perishable items in bulk, avoiding well-known brands, and never go shopping when you’re hungry! These small changes may seem insignificant, but they can add up over time.
5. Analyze Your Expenses
Alongside your shopping list, create an overall expenses list and examine it closely. Determine which monthly expenses are essential and which ones you can cut back or eliminate. Do you really need multiple streaming services?
6. Track Your Spending
It’s crucial to keep a record of all your spending. By doing this for at least a month, you’ll uncover where most of your money is going and may find that you’re spending money on things you weren’t even aware of.
7. Change Your Focus
If you’re only making the minimum payments on your debt each month, consider altering your strategy. Focus on completely paying off the smallest debt. Continue making regular monthly payments on the rest of them and put as much as possible towards the smallest one until it’s paid off. Then move onto the next smallest debt and repeat the process.
8. Negotiate Better Terms
If you consistently make at least your minimum payment each month, consider asking your creditors to lower your interest rates. If you have a good payment history with them, they may be willing to help, which could get you to your financial goals faster.
9. Remain Consistent
Consistency is key to staying on track with your debt management plan. Keeping your focus on the end goal and tracking your progress can be a great motivator while making these small changes.
10. Seek Assistance
Remember, you’re not alone. Sometimes, a little bit of help is all you need to make everything work. Consider reaching out to a not-for-profit credit counselling agency for guidance.
At BankruptcyCanada.com, there are many resources available to help plan for a successful financial future. Contact us today for a free consultation. Our personalized credit counselling, budget mentoring, and financial education programs are designed to help you solve your debts and be proud of your accomplishment.
