Reduce your debt this year so that you don’t end up in Bankruptcy
It is 2017! It is a brand new year and a fresh financial start for many people. If you have been struggling with your finances, then this year can be the year that you begin your journey to become debt free! If you feel like your debt is out of control and you need to reduce your debt before you end up claiming bankruptcy, then keep reading for some tips to reduce your debt in 2017.
Set a realistic goal for each debt that you have. Make sure that it is a goal that you will be able to achieve so that you are not setting yourself up for failure. Keep track of how you are doing by writing down your goals and then marking down when and how much you have paid. It is important to be able to see your progress in front of you to motivate yourself to keep moving forward.
Track every penny you spend for one month. Seeing exactly where your money is being spent helps you to see just how quickly your purchases can add up. Keep your receipts and record every dollar spent in a spending journal. At the end of the month add up what you spent on the things you wanted and the things you needed. Then decide where you can cut back in your want category and use that money to put towards paying down your debts. You will be amazed at how much that morning latte will add up over the course of a month. By making your coffee at home and taking it in a to-go mug instead of hitting the drive thru, you can save yourself over $1200/year!
Try a spending freeze. In order to lower your credit card balances, you need to stop making purchases on them that you cannot afford. A popular way to stop yourself from using your credit cards is to freeze them into a block of ice. This way you will have to thaw out the ice block before you can use the credit card, giving you time to consider whether or not the purchase is actually necessary.
Create a Reasonable Budget. Take a look at your last 3 months of expenses and take a median amount for each bill or expense for running your home. Don’t forget your mortgage or rent, insurance, electricity, hydro, vehicle expenses, fuel, food and personal items. Make sure that you take all of your expenses into account so that you do not run short before pay day. Find ways to shrink your budget such as clipping coupons to save on food and walking to work if possible to save on fuel.
Make all of your purchases with cash. After the cash is gone, you have to wait until pay day to buy anything more. The key is making it to the end of your pay period before you spend all of your cash. At pay day take out all of the cash you need at the bank and keep it in separate titled envelopes for each expense. Once the envelope is empty, you don’t buy anything more in that category until pay day. If you really need something and there is money leftover in another envelope, feel free to move it around to make it work until month end.
After your free consultation Darrell will put together a debt restructuring strategy that’s right for you. To learn more call Darrell Pauls of 4 Pillars Lethbridge, Ab , 403-332-7361. Your community, your family, your LIFE are waiting , and without debt just imagine all the ways you can Pay It Forward.
4 Pillars Debt Solutions. Details at 4Pillars.ca
