Strategies to Eliminate Your Debt
You are not alone, many Canadians today find themselves burdened with loans and credit cards they can’t afford. With Personal debt at record levels in Canada, many are afraid of losing their car, home or other possessions.
Don't be discouraged.
The most important thing is the commitment to make a change.
The only way to break the debt cycle is to gain a thorough understanding of your financial situation and your options. A detailed, long-range personal budget will show exactly where your money is going, how it could be better utilised and how to best pay off your debt.
Budgeting is the ultimate financial tool.
The only way to pay off your debt while working towards sustainable financial goals .
A budget is a plan of all your expected incomes and expenses. Most budgets are structured in a way that you have expected expenses versus actual expense. Creating and sticking to a budget is the best way of predicting how much money you will have at any given point in time. A budget enables you to prepare for big expenses prior to getting the bill in the mail and also allows you to set limits on how much you can spend on certain things, like birthday presents and entertainment.
Set Goals - Financial Goals can set the tone for you when it comes to establishing your future financial direction. You may be planning to buy a house, start a family or looking to retirement - setting financial goals can help you achieve whateve you want to attain.
Your financial goals should be SMART:
Write your goals down and put them in a place you will see regularily. If you don't complete goals as expected, review them, learn from them, and see how you could do better in the future.
- Specific - What do I want to accomplish? Target a specific area for improvement.
- Measurable - How will I know when it is accomplished? Quantify or at least suggest an indicator of progress.
- Attainable - How can the goal be accomplished?
- Realistic - State what results can realistically be achieved, given available resources.
- Timely - When? Set a definitive date when the result(s) can be achieved.
Staying motivated and sticking to your goals can be exceedingly difficult so be sure to track your progress - There is nothing like seeing how well you are going to keep you motivated.