Most of us have debt, whether it’s a mortgage, car loan, student loans, or a credit card or two. But too much debt can cause serious financial problems if for some reason you start to fall behind on the payments. In Winnipeg, high levels of personal debt is one of the main reasons for bankruptcy.
Luckily, there are plenty of ways you can take control of your finances. Here are ways to overcome your debt in Winnipeg:
1) Find out exactly where you stand. When debt starts to pile up, it’s very easy to lose track of how much you really owe or even ignore your debt altogether. If you’re going to overcome it, you need to know how much you actually have. Make a list of all your creditors, balances, interest rates, and due dates.
2) Stick to a plan. Once you know how much you owe, you can start to make a plan to pay it off. There are different ways to do this. Some people pay off the smallest balances first, while others pay off high interest cards and lines of credit first. Find a plan that works for you, then stick to it.
3) Make and keep a budget. If there doesn’t seem to be enough money to pay down your debt, make a budget that lists all of your expenses. Then, look for places you can cut and apply towards debt reduction. The easiest expenses to cut are extras like memberships, pricey subscriptions and dining out.
4) Put extra money towards debt reduction. When money is hard to come by or there is little left over each month, it can be difficult to pay down debt. For that reason, unexpected windfalls like gifts, tax returns, overtime pay, or bonuses from work can all be put towards paying down debt. You can also take on a temporary part-time job or sell items around the house to make a little extra money for debt reduction.
5) Seek professional help. If your debts are overwhelming or you have tried unsuccessfully to pay it down, you may want to visit a bankruptcy trustee. These licensed professionals do more than just bankruptcies. They can provide financial counseling or suggest alternatives to help you get back on track.
In Winnipeg, debt problems don’t have to mean bankruptcy. While financial struggles can be overwhelming, these tips can help you overcome your debt and get back on your feet.