7 Effective Tips on How You Can Get Ahead of Your Debt

Staying on top of your debt is essential for financial freedom. If you want to get ahead of your debt, you will need a solid plan set in place so that you can leave your financial burdens behind. In your process, know that there are practices that will help you achieve your financial goals.

In this article, we will share with you seven tips on how you can effectively get ahead of your debt:

1. Gather information about your finances

The first step is to gather the most recent bill statements for loans, credit cards, and utilities––bills that are paid regularly. This will provide a clearer idea of the amount of money needed to spend on regular bills each month. Also, check credit reports to identify any recorded debts and to determine their accuracy. 

2. Create a list of your debts and income

List down your monthly income and the amount of debt you need to pay off. This will give you a clearer picture of how much needs to be taken out from your regular income to pay off the debts or at least a portion of it. Consider this as a baseline to work with as you aim for debt relief.

3. Request for lower interest rates

Interest rates from debts may be overwhelming at times. The good news, DebtHelpers.ca talk to the lender and request for lower interest rates. A lender may be more than willing to assist in coming up with the best repayment plans that will suit a client’s current finances. Keep in mind also that not all lenders may willingly accept your request, so be sure to work with a lender that has your best interest in mind. 

4. Consolidate your debts

Debt consolidation means that you will take out a loan to pay off all your debts so that you can focus on one debt only. It could also help lower interest rates, plus you’ll be able to know exactly how much you need to pay every month to clear your debt. 

5. Treat yourself once a month

When it comes to getting ahead of debt, it doesn’t mean that you need to skip on treating yourself. Nevertheless, while you’re in debt, you will need to lessen its frequency. At the same time, don’t neglect yourself, but allow yourself to splurge a little at least once a month. When you’re debt-free, you can increase the frequency of your self-treats. If you are thinking about going on vacation, check out this article on how to save money while vacationing.

6. Pay more if you can

Whenever you receive your debt bill, it’s always best to pay more than you have to, especially if you have more money to spare. There’s no rule on making monthly minimum payments. Paying off debts early helps you clear out your debts faster. However, it’s best to check first as some loans may have a pre-payment penalty. 

7. Look for ways to earn extra income

There are plenty of ways to earn money. If time permits, a side job or hustle would be a great way to get extra money to pay off your debts. Take a side gig or apply a new payment strategy that will help you earn more money to and live a debt-free life. 

Final words

Debts are undoubtedly stressful. For this reason, thinking of ways to get ahead of debts can help relieve that stress and help you become free from financial burdens. At this point, you now know several tips on how you can get ahead of your debt effectively. 

If you need professional personal debt relief assistance in Canada, contact DebtHelpers.ca today! We will help you create a customized debt solution that will help you gain financial freedom in the long run.