6 Expert Strategies to Manage Your Debt
When you’re deeply immersed in debt, declaring bankruptcy may seem inevitable. However, there are other solutions. For starters, individuals in Kingston, Trenton, Belleville, and Cobourg can get credit counselling with F. J. Zielski & Associates Inc. Our insolvency trustees are qualified to offer you financial counselling that allows you to find the ladder leading to your financial freedom. Here is some of the debt management advice we offer folks like you every day.
1. Pay your bills on time
The problem with paying bills late is that you’ll wind up needing to forfeit higher amounts of cash in the end. Fees and eventually interest are always tagged on to late payments. The last thing you need when you’re in debt is more debt to worry about. If forgetfulness is the underlying issue behind late payments, use a calendar to help you keep track of when bills are due.
2. Always make the minimum payment on credit cards
Not only will not making minimum payments on credit cards hurt your credit score, but it will also lead to needing to pay further financial penalties on the amounts you owe. While paying more than the minimum is what needs to happen in order to shrink your debt, making the minimum payment prevents the debt from expanding.
3. Pay off highest interest debts firstThe debts with the highest interest rates are usually—but not always—credit card debts. Prioritize your debts and pay those with the highest interest rates off first.
4. Investigate debt consolidation as an option
Either getting a home-equity loan or opening a personal line of credit can be good strategies for climbing out of debt. This tactic pools all your debt into one manageable chunk. However, there are two caveats: the interest rate on the new loan must be lower than that of your other debts and you must not accrue new debt.
5. Determine a budget
One of the most important debt-shrinking strategies is to live within your means. This involves carefully monitoring your expenses and avoiding overspending. It’s important to determine a monthly budget that covers all your needs. Any money left over after paying basic expenses should go towards paying off your debt.
6. Reach out for help
No matter how deeply entrenched in debt you find yourself, you don’t have to go it alone. Reach out to F. J. Zielski & Associates Inc. and we’ll help you climb your way out step-by-step. Our insolvency trustees can help you determine the right strategy for your unique circumstances, whether that be debt consolidation, consumer proposal or declaring bankruptcy. We have offices throughout south-eastern Ontario including Belleville, Trenton, Kingston and Cobourg.
Financial freedom is only a phone call away. Contact the nearest office to schedule a free consultation.