Four ways to take control of your debt

Tips for managing what you owe

There are financial challenges at every lifestage, but they are particularly acute at certain points. Whether you’re young and just starting out, if you’ve lost a job, or you’ve had a big life change that’s thrown you for a loop, it can sometimes cause extraordinary stress on your finances, and lead you into too much debt.

From credit cards and cell phone bills to student loans, rent cheques, and car loans, it’s all too easy to accumulate debt. And it can be overwhelming as you try to figure out how to rein this in when you may lack confidence about your financial knowledge or financial security.

Money management red flags

Take a minute to do a quick self-assessment. If any of these “red flags” sound familiar to you, they could be warning signs that you could use some extra help in managing your money and taking control of your finances:

• You’re sometimes late paying your rent, mortgage, or utility bills
• You use your credit card regularly but don’t pay the balance in full each month
• You don’t save a portion of your income every time you are paid
• You don’t have an emergency fund for unexpected expenses
• You don’t have a working budget and haven’t set any financial goals

Taking charge

Getting control of your finances takes time and effort, but it’s well worth it to reduce your stress and increase your peace of mind.

1. Get a clear picture of where you stand financially – your monthly income, expenses, debt payments, overall debt balance.
2. Review your expenses to see where changes might be made; generally this lies in really taking stock of your discretionary “entertainment” costs.
3. Get current on any missed payments; they are credit score killers and can hurt your applications for loans in the future.
4. Pay off your “bad debt” – in particular, any credit card balances. One way to start is to contact us about applying for a line of credit; your interest costs will be dramatically reduced.

Debt can affect anyone, whether you’re just starting out or getting ready to retire. We’re here to help. If need some help and advice on getting your finances on track, contact us for free money management advice from our financial experts.