Debt is a very common problem, affecting thousands of people throughout Canada.
While a small amount of debt is usually manageable, larger debts can start to become problematic, causing people severe financial stress.
If you’re worried about debt, no matter how big or small, here are some tips to help you effectively eliminate it for good.
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How to effectively eliminate debt – five things to consider
Assess your situation
A lot of financial problems stem from poor financial planning.
It’s all too easy to hide your head in the sand when it comes to debt and your spending, but if you want to begin eliminating your debts then it’s important to be honest with yourself about how far you have to go.
Start by sitting down and assessing your income and expenses, including how much debt you already owe.
If you are struggling to do this then you may benefit from using the help of a debt advisor.
Adjust your budget accordingly
Most people have at least one area of their budget that they can cut back on to free up more money to pay off their debts.
Having assessed your financial situation, take a look at where your money tends to go and make the necessary cut-backs needed to meet your repayments.
Don’t add any more debt
It can be tempting to take out a new credit card to pay off the balance of an old one or to take out a loan to appease your existing creditors.
Adding debt to pay for debt is never a wise move unless you have multiple debts that could benefit from consolidation.
You can find out more about debt consolidation and how it works here.
Come up with a strategy
Not all debts are created equal and some benefit from being paid off more quickly than others.
If you have multiple credit cards, then try to pay off the one with the highest interest rate first, this will save you money in the long run and will provide you with the motivation you need to keep going and to clear your remaining debts.
If you’re unsure how to create a strategy for eliminating your debt, then you could benefit from a credit counselling service.
Make use of debt-relief services
Lastly, if your debts feel too overwhelming for you to handle alone or you have already tried the above tips without success, then it’s time to get expert help by considering debt-relief services.
Let us help
Whether you wish to speak with a debt advisor, are interested in credit counselling or think you need further help with your debts, then let us assist you.
Here at Bankruptcy Canada, we specialize in helping people to achieve a new financial start and can put you in contact with one of more than 430 Local Licensed Trustees across Canada.
By contacting a Licensed Trustee, you can gain access to a full spectrum of debt relief services that are designed to help you effectively eliminate your debts.
To find out more you can fill out our confidential form, or alternatively, give us a call on (877) 879-4770.
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