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Tag: debt reduction plan

  • Prepare for the Coming Holidays with a Debt Reduction Plan that Works!

    Debt ReductionWith the holidays quickly approaching, the dollar signs may quickly begin to add up – this time of year never fails to leave the wallet feeling just a tad lighter. When you are in debt, the excitement brought on by this time of year can rapidly be overshadowed by the stress that comes with having to spend when sometimes spending isn’t the best idea for your bank account. In the spirit of giving, here are some pre-holiday debt reduction tips that may just help you ease that stress and allow you to enjoy the season.

    1. Stop avoiding. Just because you ignore that fact that you have debt doesn’t mean it isn’t there – and avoiding it is not going to make it magically disappear – if anything this will just tempt you to continue spending. Be proactive and admit that you need to get on top of your debt reduction plan.
    2. Establish a debt reduction plan. Yes, you need to sit down and think about your financial goals for the next year, 2 years and 5 years. Getting rid of debt in a month is not feasible for most individuals, so don’t be unrealistic. However, jumping in head first without a plan may just leave you worse off than when you started.
    3. Set a budget – for both monthly spending and holiday spending. Monthly – again, be realistic, but starting a budget may mean cutting out some luxuries that are not really necessary. For example, you may not need to eat out or order in dinner once a week, but be realistic – don’t cut it out altogether. With holiday spending, set maximums. Maybe it means doing a gift exchange by drawing names, rather than buying something for everyone.
    4. Stop using the cards. This may be difficult, but remember, if you can’t pay cash you really can’t afford it. Stop purchasing on credit if you can avoid it. Since it is likely this spending that got you into trouble to begin with, quit it.
    5. Seek out debt help. You don’t have to do it alone. One of the best ways to get your finances back on track is to seek out the assistance of a professional, someone who can work through all of the roadblocks and speed-bumps and help you on a path to becoming financially fit. The solutions may include things like credit counselling, consolidation, or a consumer proposal or bankruptcy – it will depend on your own unique financial situation.

    When you are in debt and feel like there is no light at the end of the tunnel, just remember: getting out of debt may take time, but it is possible. Use these tips to help ease the stress caused by debt and take back control of your money.

    For more tips on developing a debt reduction plan before the holidays get underway please contact DebtCare Canada at 1-888-890-0888 or visit www.debtcare.ca.

  • Canada Day: Are You Sticking to Your Debt Reduction Strategies?

    debt reductionHappy Canada Day everyone! July 1st marks the half-way point of the year, and it is time to look back at the last six months and see how well you have managed thus far to stick to your New Year’s resolution. If you, like so many other Canadians, made a resolution involving your personal debt reduction but seem to be falling behind, you may not actually like this glance back. But don’t worry, according to a recent survey done by PricewaterhouseCoopers, you are not alone.

    An article on this survey released by CBC News reports that 63% of survey respondents said that their financial goals for 2013 included significant debt reduction. However, less than 25% of those had actually managed to achieve this goal, while 26% said that they had been completely unsuccessful.  Economists continue to report on the status of Canadian debt levels, trying to hammer home the importance of personal debt reduction and adopting debt reduction strategies, but it seems as though Canadians across the nation are having a much harder time actually making these strategies work for them.

    If you are reading this and find yourself in the 26% range, having had no significant victory over your current debt load over the first half of 2013, it might be time to think about an alternative debt reduction plan that will actually work.

    A debt reduction company likely isn’t the answer. Debt reduction companies will often have you made a monthly payment to them over an extended period of time with a promise that when enough money is received they will settle your debts. One problem though – what happens if they go out of business? What security do you have that your money is secure? Also, a debt reduction company that offers a service will be motivated to push their product.

    A financial consulting company, hired by you to represent you, can present you with all of your financial options. This could include debt reduction through settlements or through a consumer proposal. It could also mean a debt consolidation – your debt reduction solution will largely depend on your personal circumstances. Pay attention to marketing by debt reduction companies. A debt reduction company that says they ‘will’ reduce your debt by 80% for example is different from a financial consulting company who says that they ‘may’ be able to reduce your debt. No company can make a guarantee without knowing your individual circumstances.

    What types of strategies exist? Well, as we mentioned, one is a consumer proposal. This is by no means the only approach. However, if you are drowning in debt and are only able to make your minimum monthly payments, or worse, not even these, this solution might be the best choice. Debt consolidation might be another solution to reduce your monthly payments by consolidating debt into a single monthly payment. Whatever your situation, exploring all of your options is the best way to reach a positive outcome.

    If you want to actually achieve your New Year’s resolution and take control of your debt, you don’t have to do it alone. A good financial consultant can provide you with the help you need to get control of your finances.

    For more information about debt reduction strategies that will actually help you reduce your debt, please contact DebtCare Canada by calling 1-800-890-0888 or visit www.debtcare.ca.