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to help you climb out from under
With holiday shopping bills piling up, tax season ahead and RRSP contributions
to consider, debt is on the minds of most people.
Financial experts agree that when debt starts to loom ahead,
it’s important to make an itemized list of your personal
income and expenses, your assets and your debts. Be sure to
include each debt balance, monthly payment amount and interest
rate.
The first step is to start saving on interest by paying down those
debts with the highest interest rates first. Then you should pay off
the bills with the smallest outstanding balances to help reduce financial
clutter.
Also, keep in mind that while you may feel uncomfortable and embarrassed
about facing your debt situation head-on, it’s really best to
get help sooner than later.
Debt control options
Here are a few more options:
Change your bill payment due dates. This simple step can be a big
help because it may better align your income with your payments.
Change your payment frequency. Monthly payments, instead of
weekly or biweekly payments, may make it easier to meet your
obligations until you are back on your feet again.
Request a loan extension. Defer your payment for one month by paying
the interest only on the loan, thus extending the loan’s maturity
date.
Ask if you can pay just the interest. Rather than paying the prearranged
percentage of the revolving balance, you may be able to pay just the
interest portion of your payment not the principal.
Negotiate a reduced or partial payment plan. You may be able to make
a reduced payment or a portion of the regularly school payment.
Rewrite your loan. Discuss the possibility of rescheduling your payments
for a lower dollar amount, over a longer period of time, to better
match your ability to pay.
Consolidation loan. Consolidating multiple credit cards and various
loans into one convenient monthly payment can help you save on interest
and make payments easier to budget.
-News Canada |
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