Debt can have a significant impact on a person’s lifestyle and stress levels. It can become a cloud that prevents them from achieving their dreams and reaching their long-term objectives. But for those currently struggling with debt problems, there are multiple fast debt relief options available. In this latest post, our team highlights four tips to pay off your debt faster.
- Pay More on High Interest Debt
- Evaluate Your Vehicle Choices
- Become a Part of the 5-to-9 Generation
- Track Spending
Tackling the debt with the highest interest rates is the best way to make significant progress in relieving debt. This means that those debts to multiple institutions should review the debt with the highest accumulating interest rate and place their available capital into this debt first and foremost. Because the highest interest rate accumulates the fastest, focusing on this accruing debt first will help prevent further financial issues.
One of the leading reasons Canadians take on debt is to pay for vehicles and vehicle repair. These two expensive items in the average family’s annual expenditures can lead to significant debt levels. Families with multiple cars should consider their public transit options. Is there a bus route for traveling to the office? Is the extra vehicle costing more in insurance that its true value on a weekly basis? By reviewing their vehicle choices carefully, families can cut their expenditures significantly.
The 5-to-9 trend has seen a growing number of people take additional part time work between the hours of 5pm and 9pm. Whether they use the time to work at a local retail location or to pursue a paid position within their field, it’s a great way to alleviate debt problems. By simply earning a few hundred dollars a month outside of regular working hours, those in financial strife can use the money to cut down on their long-term debt.
Tracking spending is vital when attempting to enhance the family’s financial position. It’s important that each meal out is catalogued, grocery lists are analyzed and amended, utilities and cable bills reviewed carefully. Many people are astounded at the amount of money they’ve been spending when they look at their expenditures more closely. By simply tracking spending and using money only for the essentials, debt can be quickly eliminated.
Eliminating debt is not a short-term, one step process. It’s a process that requires a long-term commitment and a clear-headed approach. By following the tips in this article, families can quickly begin to reduce the debt levels and start on the road to assured financial freedom. To learn more, speak with our experts!