3 Effective Tips to Get out of Debt Faster

Getting caught up in a huge amount of debt is easy. After all, it is easy to be attracted to the thought of buying any item without thinking about how to pay it. However, within a few months, you’ll see yourself in thousands of dollars of debt and getting out of it will be difficult. Struggling to reach financial freedom is a common issue for many people because paying off debts may take decades, and it can greatly affect credit ratings.

In Canada, household debt is on an average of $1.79 for every dollar of disposable income, with 14.9 percent of those incomes used to meet debt obligations. Even if Canadians are pulling back on borrowing, their existing debt is still eating up the bulk of their disposable income. 

If you consistently pay off your debts each month, but your balance still looking grim, you might need to employ various payment strategies to get your financial status back to a manageable level.

In this article, we will share with you three tips on how to get out of debt faster:.

1. Consolidate your debts

It is common for an individual to have multiple debts. If you are struggling with one, you may want to consider consolidating your debts or combining them all into one single payment. DebtHelpers.ca can help consolidate your payments and stop additional interest charges.

2. Increase your monthly payments

Many people who have debts usually pay only the minimum amount required. This becomes challenging because paying off your debt will take a very long time when you only pay the minimum each month. Check with your bank on a debt-repayment strategy that lets you make higher payments on your debts. In doing so, although your budget may become slimmer each month due to the increase in payments, you’ll be able to pay off your debts faster.

3. Negotiate with your creditors

One reason many people are still caught up in debts is because of higher interest rates. Such high-interest rates tend to keep you in debt much longer than anticipated since the majority of your payment actually goes to paying off the interest rates and not the actual balance itself. 

For this reason, negotiate with creditors or ask your bank to lower the interest rates. If you have a good credit standing and reliable payment history, you might be considered for approval. Your bank or creditor may also offer a hardship payment plan that will significantly lower your interest rates or monthly payments for some period.

This is another advantage of using DebtHelpers. We act as your agent and will negotiate a debt settlement plan with your creditors, saving you time and money.

Wrapping up 

No matter what kind of debt you are in, know that there is still hope and a way out for you. While achieving financial freedom will not happen overnight, when you create a plan and be diligent enough to follow through, your debt-free future will be easier to attain. 

If you are still struggling in your debt and need financial consultation, contact DebtHelpers.ca today to find out how we can help you! Financial struggles don’t have to last forever, especially when you have the right tips in mind, and have people who will help you get through each stage of your situation.