Tackling Debt!

Tackling That Debt Resolution!

With 2018 coming to an end, knocking down debt levels leads the list of New Years resolutions for maxed-out Canadians. But where do you start?
Make BILL PAYMENTS on EVERY PAY DAY:

Most bills have a monthly due date but if you get paid every two weeks, pay 1/2 your bill payments every two weeks! Your payments will feel more reasonable, chances of missing a payment will be reduced, and youll pay off your bigger ticket items (ie: vehicle(s), mortgage, etc) faster. 

AND the faster you pay off debt, the less interest you pay, so win, win!

To make this step even easier, set up automatic bill payments. Im a big fan of the Set It & Forget It philosophy.

Try DEBT STACKING:

Make a list of all your debts (excluding your mortgage);

Sort them according to interest rate with the higher interest on top;

Make minimum payments on all your debts but make an extra payment on the one with the highest interest rate;
THEN, when that first debt is paid off, add the payment you were making on it to the next debt down the list!

If you think you might need the encouragement of seeing small successes faster to keep you motivated, try SNOWBALLING YOUR DEBT:

Make a list of all your debts (excluding your mortgage);

Sort them according to balance with the smallest balance on top;

Make minimum payments on all your debts but make an extra payment on the one with the smallest balance;

THEN, when that first debt is paid off, add the payment you were making on it to the next debt down the list!

CHANGE your DEBT STRUCTURE Lower the total interest you pay on existing revolving credit accounts and high interest loans by either refinancing your mortgage OR getting a lower interest loan and paying off all your high interest debt! If you have the room with equity on your home, we can chat about adding it to your mortgage and relieving some of your debt and reducing your required minimum payments.

Most of todays credit cards and private loans come with high interest rates, unless you pay more than the minimum monthly payment required, the amount paid in interest can be significant.

A great way to combat this is by refinancing your mortgage to include your credit card debts and any other high interest loans. Another great option is by obtaining a low interest loan, paying off all your high interest credit card debts, and focusing on paying down the new loan with its lower interest payments.

AND to help make the start of 2019 a little easier, for all loans approved in January, I’ll even send you a $100 gift card to Winners/Homesense or Home Depot.

Keeping New Years Resolutions are hard but the best way to start is just “TO START”! If you want to further discuss your debt resolution options, contact Eva Neufeld (Mortgage Tailors) at 780-244-0505.