3. Cut Your Debt Down to Size
Saving and paying down debt are not mutually exclusive; they should both be part of a balanced approach to how you manage your money. Whether you need an aggressive debt reduction plan or want to explore debt consolidation options, put pencil to paper and outline a plan.
If you feel overwhelmed, keep your plan simple. Maybe you need to call your bank or credit union and make an appointment to see a lender. If you don’t know where you stand, get free copies of your credit reports or login to your online banking to get your balances.
If you don’t know how you’re spending your money, your plan needs to start with tracking your spending for the next two to four weeks. This will identify habits and areas where you could save to come up with the money you need to pay your debts more quickly.
If you would like help to create a pay cheque plan so that you can see how best to allocate your income, contact us and we’d be happy to help. Our credit counsellors are experts at helping clients build budgets that work. They even have free tools and resources that they’d be happy to share with you.
Becoming debt free within the year might be unrealistic, but a plan for the next 12 months will get you on track to improve your financial stability for the long term.
How to Stop Living Pay Cheque to Pay Cheque