Easy Ways to Reduce your Debt
Are you struggling with debt? Does it feel like the debts you owe will never be paid back? Payday loans and credit card debt can be so expensive!
Listed below are some things you can do on your own, or at no cost with the help of a Licensed Insolvency Trustee, like Reynolds and Associates Inc:
Make a Budget:
Reviewing your historical budget would be a great place to start.
If it looks like your costs match your income, with no extra room, this is a signal to downsize.
Prioritize your spending and cut down on the excesses such as excessive cell phone bills, meals out, subscription costs, and other non-essential expenditures.
Calculate Interest Payable Monthly:
You need to know how much interest you pay each month. This is the amount that you “pitch into the fire” each month to stay even with the total amount you owe.
The goal is to pay the interest amount PLUS as much principle as possible each month so the debt gets paid back as fast as possible. A good payment plan takes the principal owed divided by 60 months. So if you owe $30,000, the monthly principle payment is $500, plus the interest payable each month.
If its not possible to repay the debt within 5 years, consider help from an LIT, such as Reynolds and Associates Inc. You may be a candidate for a Consumer Proposal to stop the interest entirely and reduce the total owing.