So we have just come off another Christmas and New Year’s break and by all accounts it seems everyone is happy last year is behind us. Now we start with the New Year’s Resolutions; losing weight, quit smoking, stop drinking, make more money and get out of debt. All good intentions yet we seem to fail at most of our resolutions.
Why?
Depending on who you believe or which news outlet you favor there always seems to be an answer. I recently read in the local paper: “Canadians insatiable appetite for cheap credit”. SERIOUSLY!! We all know the only “cheap credit” is mortgage lending but if you live in the GTA and Vancouver and now the surrounding areas the high cost of homes quickly erodes the joy of cheap money once you buy a home which are experiencing enormous value gains year over year. Couple that with stagnant income and the gap between the two diminishes and the amount of disposable income quickly becomes limited. The ability to pay off high interest debt like credit cards and unsecured lines of credit becomes an ever tightening noose around the necks of families and their futures.
How can you change the future? The first step is to rid yourself of DEBT. I know what you must be thinking, that all sounds good but we just can’t do it. We always have a very simple answer for clients who give us that answer and it is simple, if you do nothing then nothing will change.
Here are the 4 simple steps to eliminate your debt:
Get started!
That’s right the number one reason people fail is the inability to get started. Get a plan together and start. You have 365 days and if you fail to start today you will miss the best chance you have to change your financial future. As the Chinese Proverb goes “The best time to plant a tree was 20 years ago, the second best time is NOW”
Plan Your Journey!
If you are on step two then you have already accomplished the hardest step of the process. This is a DIY plan for you and your family.
Getting started:
- Write down all your debts, with interest rates, mortgage, credit cards and any other loans or obligations you may have.
- Create a family budget and cut out everything you can. Bring it back to the bare bones. You have a new goal and that is paying off your debts.
- Where can you find money to pay off debts? Remember this is a process, look at it as a marathon and not a sprint. Most people get depressed at this point and just want to quit. If you quit now–they win! The people and organizations that want you to pay high interest for the rest of your life. Get it!
Find Your Hidden Cash!
- How can you increase your income to help pay off the debts quicker?
Negotiate, negotiate, and negotiate more!
It is amazing how much you can save if you just negotiate down your interest rates or move to a lower cost of borrowing product. Negotiating will deliver the best ROI for time spent on this project.
Good luck with your New Year’s project and if you need help please feel free to contact our team to help you with a plan.
