Debt – quite possibly the most hated word in the English language, but unfortunately it’s also a reality for many people today. But do you want to know another fact about debt? It’s escapable if you follow the right strategy and game plan.
Wait, how do you become debt free?
There is light at the end of the tunnel, and you can get out of it by doing the following:
List all of your debts
I know, this can be painful, but like they say in fitness – no pain, no gain! Identify your:
- Credit card and line of credit balances
- “Buy now and pay later” purchases
- Unpaid bills
- Car and student loan balances
- Current outstanding loans
- Salary advances
- Alimony and child support
Pay back your debts in one of three ways
- Start with the smallest amounts
- Start with the highest interest rates
- Consolidate your debts
One thing to also keep in mind when it comes to debt is your credit card. Before removing that tempting piece of plastic from your wallet, ask yourself the following questions:
- Do I really need this?
- Would I buy it if I had to pay cash?
- Am I sure I can pay off my balance in full at the end of the month?
Whether you’re in debt or not, be careful with your credit card use. As tempting as the plastic is, it’s an unsuspecting thing that can lead you astray.
And finally, reduce your mortgage fees
Buying a home can be so exciting. But keep in mind that some house-buying decisions can substantially reduce your interest fees and help you stay on top of your debt. Here are some things that could have a big impact on how much money is left in your pocket:
- Make the largest down payment you can
- Reduce the repayment term
- Increase the amount of your payments
- Make a substantial prepayment when you renew your loan
- Accelerate your payments
To find out more about this subjet, please visit the “Financial wellness Centre” in the secured section of the website via My account