Debt-Free Life – Essential Advice for Getting Out of Debt

Debt can be overwhelming, especially when facing mounting bills and loans. Fortunately, there are steps a person can take to get back on the right side of debt and start regaining control of finances. Let’s look at a few tips to help put the power back and bring one closer to financial peace of mind.

• Lower Overall Debt

The first step in getting a grip on debt is to lower overall debt. This will help reduce the amount of interest to be paid and free up more money for other areas of one’s budget.

Start by making a list of all of the debts and their interest rates. The next step is to prioritize the debts with the highest interest rate and pay them off first. Once a few debts have been paid off, tackle the rest.

• Take Advantage of Balance Transfers and Consolidation Loans

If there is a high-interest credit card balance, consider transferring the balance to a lower-rate credit card with a promotional APR. This can be a great way to reduce the amount of interest paid and make it easier to pay down debt.

Alternatively, consider taking out a debt consolidation loan. This type of loan combines all of the existing debts into one sum, making it easier to manage payments, reducing the amount of interest to pay, and ultimately saving money in the long run. 

• Create a Debt Repayment Plan

It’s a good idea to create a debt repayment plan. This will help a person stay organized and on track to pay off debt.

Start by listing all of the debts from highest balance to lowest. Next, create a monthly budget to stay on track and make more informed decisions about handling money. Finally, make sure to include a timeline of when a person would like to be out of debt, with estimated payments and interest rates.

• Set Up Automatic Payments

Setting up automatic payments is another way to get on the right side of debt. Automating payments will ensure payments are made on time, which helps one avoid late fees and penalties. In addition, having automatic payments helps a person stick to a budget since there is no need to worry about manually making each payment.

• Avoid Taking On Additional Debt

Undoubtedly, one of the best things one can do to come out on top of debt is to avoid taking on additional debt. That means abstaining from more purchases until the debts are paid off. This will help prevent a person from going into debt and free up more money for repayment.

• Seek Financial Counseling from Debt Consultants

It’s important to seek out professional help when dealing with complicated financial issues. Debt consultants have the knowledge and experience to help a person develop a workable plan to pay off debts. Debt consultants may also have access to services that can provide additional help, such as debt consolidation and debt counselling.

Conclusion

Getting out of debt can seem complicated and daunting, but it’s possible with the right plan and dedication. One can start by lowering overall debt and taking advantage of balance transfers and consolidation loans. Create a debt repayment plan, set up automatic payments, and avoid taking on additional debt. Finally, don’t forget to reach out for help from debt consultants if needed. With these tips in mind, one can be on the path back to financial freedom.

Debt Helpers can help Canadians looking for debt consultants in Canada. DebtHelpers.ca offer a range of consulting services and debt solutions designed to help one become debt free. Set an appointment today!