5 Essential Methods For Canadians To Reduce Debt

By: barakharosh0 comments

“Pay off your debt first. Freedom from debt is worth more than any amount you can earn”

Mark Cuban

1. Pay off loan/credit card containing the highest interest rate

This is a common strategy recommended by most industry experts.

Begin by making minimum payments to all other debts, now with your remaining allowance attempt to pay off your highest interest debt with an amount more than the minimum payment, and as quickly as possible.

By incorporating this strategy and focusing on your most challenging debt endeavors, a sense of accomplishment is present every time you overcome the difficulty of making a payment over the minimum, this is followed by an immense feeling of relief after each payment date, where it becomes easier and easier to complete your loan/debt payment.

2. Manage your Food Expenses

A common issue we find with low credit score applicants is their money management when it comes to groceries and dining out.

Food is one of the few necessities of life, however when it comes to this topic there is a difference between smart/reasonable spending habits and reckless/unnecessary spending habits.

Reckless spending includes; numerous dine outs, purchasing unhealthy snacks, spending over budget.

Smart spending includes; 0-1 dine outs per month, purchasing affordable staples, spending within budget.

A common strategy we share with our clients is to incorporate is to stockpile on sales. When a food item is on sale you can always purchase in bulk and deep freeze the remaining. This strategy will benefit you in the long run!

3. Earn more income

By either picking up more hours at your workplace or even finding a second job is considered the best and most common method in reducing your overall debt.

It is recommended, that with this additional income you aggressively contribute it towards your interest payments and lowering the principal balance.

This method isn’t the easiest and can be overwhelming for some, but it is important to remember that once you’re comfortable with your debt payments, you may revert back to your prior income situation.

4. Focus on debt payments rather than saving

Although it is helpful owning a set amount of funds set aside for a potential emergency, this likely ends up negatively affecting you more in the long run.

It is more than likely than likely that the savings rate you are earning is less than the APR of interest you owe.

By applying all of your excess capital towards your debt, you will be rewarded financially in the long run, think of this as an investment.

5. Speak with a professional credit Councillor (For Free)

If you are reading this article it is more than likely that debt is something you may be struggling with, and you are searching for the best method of eliminating it.

Luckily for you, this is an issue our company handles on a regular basis with a high percentage success rate, our credit specialists are able to eliminate up to 80% of your total debts, including government loans, credit cards, and any private lenders you have a loan with.

We highly recommend you visit our partner company www.xdebts.ca

Xdebts provides a free consolidation call with a specialist, and is one of Ontario’s leading credit consolidation companies.

If you have any questions or inquiries feel free to email xdebts.ca@gmail.com

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