Adulting comes with so many fun freedoms, like having your own place, choosing to study a program you’re truly passionate about, ordering takeout when you’re having a cheat day, and buying your first car.
However, these are things you purposefully do, in pursuit of the lifestyle you desire. Big investments in your life such as going to university or buying your first car don’t come cheap, which is why most people opt for financial assistance. And when you take out a loan, you’re instantly in debt.
This isn’t a bad thing if it helps you work towards your goals. But failure to repay your debt is a totally different scenario which can lead to penalties, a poor credit rating, stress, and more not-so-fun things. To help avoid that, here are three strategies to help you pay off your debt.
Pay more than the minimum repayment
Biting the bullet and paying off more than the minimum amount on your loan or credit card is a good way to help get your debt on track. You’ll be charged less interest when you do, and it’s better for your credit score. If you can pay off your balance in full, even better. This means you have one less thing to worry about.
Write up a monthly budget
Managing your money effectively requires some planning. If you make a monthly budget in which you compile your upcoming expenses, you’ll be less likely to exceed your set spending amount and increase debt. Sometimes it helps to refer to a digital or physical budget to visually see your spending, as opposed to guesswork when you tap your cards.
Seek a debt restructuring service
If you have an overwhelming amount of debt, are confused about your options, intimidated to navigate the process alone, and know that you would feel more comfortable seeking assistance in dealing with your debt, you can consult a debt restructuring consultant.
Introducing: 4 Pillars, the largest independent full-service debt restructuring firm in Canada, which focuses on strategies to reduce and deal with overwhelming debt, financial education, and financial literacy. Every year, the service helps families restructure over $350 million dollars in debt.
With more than 60 offices across Canada, you can meet 4 Pillars’ experts face-to-face and access the most comprehensive range of industry related services, and learn about all your options to deal with debt, including budgeting, financial rehabilitation, and creating financial stability.
Experts at 4 Pillars ask the important questions and build a plan to put the burden of debt behind you. They walk you through a solution that would work for you and advocate for you and only you, without any conflicts. On average, 4 Pillars’ clients have been able to eliminate up to 80% of their debt.
One of 4 Pillars’ big beliefs is that financial literacy is key to Canadians making the right choices when it comes to dealing with their debt. They regularly publish educational resources on topics such as debt consolidation, alternatives to bankruptcy, consumer proposals, student loan debt, and dealing with spousal debt. On their website, you can sign up for an email Debt Bootcamp series, teaching you the fundamentals of debt reduction with short weekly lessons.
The organization helped to create a non-profit financial literacy program with United Way called Empower U. Through its support and ongoing education, 97% of families successfully complete the plans created by 4 Pillars to become debt-free. The goal of every 4 Pillars expert is to deal with the immediate financial crisis faced quickly and effectively and their aftercare program is to continue to educate their clients on budgeting and credit and reach a score of 650 or higher and qualify for a CMHC approved mortgage.
Find out more about the different solutions on offer at 4pillars.ca.