You Can Conquer Your Debt
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By Bromwich+Smith Staff | 1073 words | Reading Time: 5 minutes, 14 Seconds | Date: 2022/01/18
It has been a challenging few years dealing with this global pandemic. The stress of continuous change has had large impacts on all of us. It’s difficult to know what is around the corner, and how to manage the unexpectedness of daily life. You may also feel high anxiety when it comes to dealing with your finances in these unpredictable times. Especially since our cost of living is going to be impacted by spikes in rents, grocery prices and expected increases in payroll taxes.
We want you to know that you are not alone especially when it comes to financial strategies to conquer your debt. Reach out, because no one needs to suffer in silence and by themselves when dealing with financial struggles. The moment you seek out the facts and professional advice you get to be back in control to start rebuilding your worth as soon as possible.
Here are a few helpful tips to help you feel less alone that you can implement immediately.
- Talk to your creditors about your situation.
- Sit down with your family/spouse/partner and review your finances to determine a plan together.
- Do not pay anything upfront to deal with debt.
- Avoid cashing in investments or RRSPs.
- Avoid borrowing from one credit card to pay another.
- Get in touch with one of our compassionate Licensed Insolvency Trustees to get expert advice.
- Register for a free financial webinar brought to you by our partner Cacheflo.
When getting out of debt is a priority, there are also several longer-term solutions that can set you on the path to a debt-free life:
1. Bump up your debt repayment percentage
Putting at least 15 per cent of your paycheck towards credit card debt and loans can help you pay down those commitments much more quickly. As paying off large amounts of your debt over a few months, can save you a significant amount of money on interest payments alone.
2. Negotiate for a lower interest rate
Call your creditors to negotiate a lower interest rate. You'll be surprised how many creditors are willing to reduce your interest rate.
3. Use your tax refund check to pay down debt
It will feel so good to reduce your monthly payments with a single lump sum debt payoff. You can enjoy the benefits of a lighter debt load over the entire year and for years to come.
4. Sell items for cash
Put together a list of items that you could sell on eBay, Craigslist, or at a garage sale. This extra cash can go towards paying down your debt. As well as getting rid of any clutter you may have accumulated.
5. Do a credit card balance transfer.
By transferring high rate debt to a zero per cent deal — one that lasts for 12 months or so — you can eliminate all credit-card interest. Freeing up your cash flow, giving you additional money to get rid of those credit card bills. Make sure to read the fine print before signing up though, so that you really get the lower rate that is being promised.
6. Consider a consumer proposal to manage your debts.
A consumer proposal is a renegotiation of what you owe to your creditors, handled by Bromwich+Smith on your behalf. You pay what you can afford, instead of what your creditors are demanding. (Usually eliminating debt for only a percentage of original amount owed). Think of it as a settlement with those you owe on terms you both agree with.
Regardless of all of this advice, it's critical to remember to not make any quick decisions and go to a professional, like a Licensed Insolvency Trustee. They will review your financial situation with you and come up with the best solution that fits your needs. Look at a Licensed Insolvency Trustee as an authorized trusted ally that is here to help you conquer your debt and rebuild your worth.
Remember, we’re here for you. At Bromwich+Smith, we offer an initial free, no obligation, confidential consultation by phone 1-855-884-9243 or video. You can also request a call back at our contact us page. Feeling safe and secure financially ensures that you sustain your personal prosperity and self-confidence. We want to see you flourish.