3 Tips for Reducing Personal Debt

Debt affects millions of Canadians; therefore, it is important to provide real-world solutions to people so that they can get back to enjoying life. Here are three tips for reducing debt.

Contemplate a Consolidation Loan

Consolidation loans are designed to assist individuals that need help paying back several different loans. Essentially, consolidation loans are used to transfer the costs of multiple loans into a single plan with low-interest rates. Now, consolidation loans may not be for everyone, but they can especially assist individuals that are no longer accumulating debt. If you are sure that you will be able to pay them back in the installments outlined by your lender, it is something worth considering.

Monitor Your Spending / Put A Hold on Your Credit Card

Debt can, unfortunately, escalate to the point where an individual is left without expendable cash. Although you will need to continually spend money on living needs such as groceries, home heating, cooling and electricity, being more frugal with your spending habits will go a long way in ensuring you have the funds needed for immediate necessities.

One other thing you should try doing is putting a hold on your credit card spending. It’s very easy to put a purchase on your credit card, knowing payment won’t be due immediately. Too much of this activity can be detrimental to your financial standing and put you in a difficult spot to get out of.

Work on A Cash Diet

One way to monitor your spending and prevent yourself from going beyond your weekly limit is to take out just as much cash as you’ll need from Monday-Sunday and then try to stay within the parameters of your spending limit. This may require some sacrifice, especially if you eat out frequently or enjoy going to the movies a couple of times a week. Having only the exact amount of cash you need will force you to make good decisions about what is an important purchase and what is just splurging. It may help if you list the things you know you pay for each week and then list additional purchases as you buy them. At the end of the week, review your list and identify any purchases that you could’ve gone without.

Debt can be troublesome, which is why we are here to offer comprehensive support and advice for those struggling financially. Andrea Orr is an experienced financial advisor that is highly prepared to assess your economic situation and offer immediate solutions to ensure money troubles don’t control your life. For more information, contact Andrea Orr today!