We don’t like to think about debt because it can be intimidating. But ignoring debt doesn’t make it go away. LCTaylor’s Trustees developed this tip sheet to help you take the first steps toward debt rescue.
Check where you’re at financially
Use our Temperature Check to determine your financial health and the help you need.
Keep track of your money
It’s easy to lose track of spending, especially since little things add up so quickly.
Review your spending over the last month or two including your credit card statements.
Create a budget
Categorize the money you’ve spent and try to be as detailed with your categories as possible. For example, instead of “food,” segment by takeout, groceries, etc. This will help you budget for each category to ensure you’re not overspending.
Set financial goals
You need to know where you’re going to get there. Setting realistic goals can help guide your budget and make it easier to stick to it. Organize your financial goals into short term (within the next 12 months), mid-term (2 – 5 years) and long-term (more than 5 years).
Make small changes
Bad habits can be hard to break, but even small changes can have a big impact on your finances. Make coffee at home, avoid ordering take out or cancel a subscription you don’t use often.
Talk to a Licensed Insolvency Trustee
Wherever you’re at in your financial journey, a Licensed Insolvency Trustee can help guide you along the way. If you’re in too deep, a Consumer Proposal or bankruptcy may be the best option for you to get out of debt. LCTaylor offers free consultations to anyone struggling with debt.