6 Tips to Help You Reduce Your Debt in Winnipeg
Imagine the freedom of being debt free! No financial stress, no loan payments, no mortgage. But how do people get to that point? It is not an easy road to becoming debt free, but sometimes making small changes can help you get you to your destination a lot quicker. Today I want to give you 6 tips on how you can help reduce your debt, and be closer to living debt free.
1. You can save by changing your mortgage payments from monthly to bi-weekly.
Making bi-weekly payments means you end up paying a little more each year, but you pay down your mortgage a little more than you would have and therefore reduce the number of years left on your mortgage.
2. Pay extra onto your mortgage.
The extra payments that you make on your mortgage will go directly to the principle amount instead of towards interest. If you are able to make extra payments you can significantly decrease the number of months or even years you have left on your mortgage. Remember that there is a fixed amount that you can pay above your regular payments each month and/or year. Talk to your bank or lending institution to find out more information.
3. Stop spending on your credit cards!
Carrying a balance of just $1000 on a credit card that charges 18% making a minimum payment of only $20 per month will take you 150 months or 12 years and 6 months to pay it off! That would bring the total amount paid to nearly more than double what you owed! If your payment is increased to $100/month you reduce the number of payments to 32 months and the total paid would be $1163. That small amount makes a big difference! Try to pay off those credit cards as fast as you can. You will save a lot of interest. Better yet, pay off your balance in full every month and skip all the interest payments!
4. Sell your items that you have kicking around the house
There are worth money so sell them and apply your profits towards your debt. That pretty much explains it. If you have items that are worth something, that you never use anymore, why not sell them and apply the money you made toward your debts.
5. Find a way to increase your income. With more cash flow, there is more available to pay down your debt.
Ask for a few extra shifts at work, start a snow shoveling business on the side, get a paper route. There are many things that you can do to earn a little extra.
6. Make sure that you pay your bills on time.
Many companies charge a penalty for making late payments. You can avoid this extra charge by paying on time. If you normally make your payments late and often pay the late fee, try paying on time and use the money you would have spent on the late fee to pay down a little extra on one of your debts. Set yourself a reminder if you need to so that those bills are paid on the right date.
It can sometimes be difficult to make changes to your finances, but it is well worth the hard work. If you have too much debt to handle and need debt help, give 4 Pillars Winnipeg a call at (204) 201-2100.
We can sit down with you for a free one hour consultation, take a look at your financial situation and then present to you the best options for you to get out of debt. Whether it is debt settlement, debt consolidation or even as a last resort bankruptcy, our experts will give you sound advice and present you with the best options for you.
