Ashamed of your debt?
4 steps to get your life back on track!
One of the most frequent comments I hear from people who come into my office is how embarrassed they are that they ever got into their debt situation. That no matter how hard they tried to make their payments their balances never seemed to lower. Or how they frequently make an effort to pay their credit cards but end up having to use their cards again for purchases they didn’t plan for. They say it stresses them out, and often times they avoid their credit card statements because of how fearful they are of the balance.
In my experience, it is rarely because the person was bad with their money, spent it unwisely, or blew it on a night out on the town. Often times it is because they had to take care of a loved one who was ill, got laid off work, or went through a separation – and that’s only naming a few. Unfortunately life happens and it can take us for a rollercoaster ride. In many cases we are able to guide ourselves back to the norm, but in some instances special help will be required.
Debt problems can always be solved but the stress will never go away until you get on a plan to deal with your debt. Follow these simple steps to get your life back in order.
Step 1: Review your financial situation
Take an evening and truly dive deep in to your family’s financial situation. Often times we have debts and expenses that we do not even think about that drain our accounts each month. Did you purchase furniture through a payment plan? Did you forget to plan for your prescription medication? The piano lessons for your child? The cost of lunches? Add all of these up based upon your current situation – these are your current expenses. Calculate how much money you make per month. If your expenses are larger than your income then you are spending more than you make you must take action.
Tip: Do this as a family – you may be the head of the household but other members of your family may see things you do not!
Step 2: Take control of your spending
If your expenses exceed your income then you need to take a look at your spending habits. Although you may be in a position where you truly do live on an extremely tight budget already, I would hazard to guess that you have never planned out your spending. Or if you have you may have given up as soon as your plan did not work. The wonderful thing about a budget is that it doesn’t restrict what you do, but instead allows you to do what you want.
Prioritize your needs and your wants. Needs are things such as housing, food, and child expenses to name a few. Wants are things like eating out and going to the movies. I wish I could tell people what their needs and their wants are but I cannot. Only YOU can determine that. Make a plan, dedicate funds to your needs, and if you can to certain wants. Although it is much easier said than done – if you still spend more than you make you must take away some of those wants.
Tip: Make sure to budget for your debt payments!
Step 3: Take action!
So at this point you have reviewed your financial situation & developed a budget. Stick to it and be honest! The only person that will be hurt by not following your budget is you. Your budget will evolve and grow with you and your family as time progresses. This is normal. Be happy that you can choose to do the things you want and can afford!
Tip: Sit down at the end of every day and calculate what you spent. Does it match up with your plan?
Step 4: But wait! No matter how I try to balance I do not have enough!
What happens if even after you have made a budget you cannot even afford your needs when you take into account your debt payments? At this point you must talk to a Halifax debt restructuring specialist.
In Halifax your Debt Relief Specialist is Shawn Frank. 4 Pillars will help you put together a debt relief plan that is customized to your personal situation. Depending on your situation it may be debt consolidation, structuring and representing you through a consumer proposal, or some other form of debt restructuring. He will help you free up cash flow and get you back on track for success, for good this time! He will look at reducing your debt by up to 80%, have you debt free within 5 years and then work with you to rebuild your credit back to what it should be! Call Shawn Frank today at 902-706-1120/strong>.
