Learning to be Debt Free
There are 4 Essential Steps you may want to consider when venturing down the path to become debt free all on your own. Read below and feel free to ask us any questions if you need to get debt help!
- Take A Snapshot Of Where You Are
This is the most important part, you need to write it all down! You must figure out how much you owe everyone. I mean everyone. Do you owe $50 to your older brother or $5 to your cousin? It’s important to outline exactly what you owe people, the big and the small. Credit card companies, mortgages, car loans, payday loans, everything. Find and write down the interest rate, who you owe and how much the monthly amount is along with the total balance.
2. Discover Your Disposable Income
The next step to getting debt help in ontario as part of the debt management solutions process is to look at how much your monthly costs are. So, how much do you make in a month? How much do you spend on groceries, rent, everything. Write all that down to find out. Then look at your debts. What’s the minimum monthly payment on all of them, add that to the monthly amount. Then you can find out how much extra you have left over to pay that amount towards debts. Now if you’re wondering about savings, don’t! Get those debts down first.
3. Set Goals & Timelines
You need to be realistic. This is key. You can’t leave 0 wiggle room for you to live, things come up, expenses come up. Chances are that’s why you’re in debt in the first place. Set a goal for how much you think you can realistically put towards debt.
4. Choose What Comes First
It is also important to think about where you want to put your debts first.What’s the most expensive? Logically, you want to pay off debts that are costing you the most in interest.
If you’re stuck there are many other debt management solutions you can use to help with your problems.