Why You Need to Make September “Debt Resolution Month”Aug 29, 2018
Summer days are over and it’s time to renew your vows…to your debt. September brings the return to school and that familiar routine. It also means that the holidays are only three short months away. What better time to get re-acquainted with your money goals?
How to find your motivation
Canadians owe $1.68 for each dollar of disposable income earned and the majority of it comes from credit card debt and HELOCs. So, this September, while you’re refreshing your fitness resolutions take some time to go over your financial goals too.
Here’s a preview of some of the tips our Licensed Insolvency Trustees (LITs) share in our recent podcast episode:
- Evaluate your current debts. Calculate your debts along with interest charges using this online debt calculator. How much progress have you made so far this year? If you’re not satisfied, now is the time to ramp up your efforts before the new year arrives.
- Find a debt relief plan that works. There are the debt snowball, avalanche and snowflake methods, but for a more dedicated approach, check out this debt repayment calculator.
- Make it visual. Some people need constant visual reminders to get tasks done. Create a financial vision board with pictures of your goals and inspirational quotes to keep you motivated. Or simply laminate your budget and use dry-erase markers to add in your numbers each month.
- Know when to find help. If you’re having trouble making sense of your debt or feel like you’re making little to no progress, time to call for help. An LIT can go over all your debt relief options and set you up with a plan you can stick to.
- Stick to a budget, always. Once you’ve sorted out which debt plan works for you, make sure you’re staying within your monthly budget so you don’t undo your efforts. Living at or below your means is optimal.
Check out personal finance writer Kerry Taylor’s blog and use one of her free budget spreadsheets to keep your debt reduction efforts on track.