Debt – it’s crushing the average Canadian today. From mortgage loans and personal loans to auto loans and credit card debt, we’re up to our necks and it can seem like there is little relief in sight. However, things are not quite as bleak as that. There are ways you can dig yourself out of that financial hole, and 4 Pillars Victoria can help. Let’s walk through some of the most important tips for rebuilding your financial life.
- Set Up a Budget
If you do not already have one, you must set up a budget. This should account for all of your unavoidable expenses, as well as all of your monthly income. Subtract your monthly income from your expenses and you have the amount left over for discretionary spending – groceries, fuel, etc.
2. Consider a Credit Builder Loan
Some banks and credit unions offer what are called credit builder loans. These are small loans, usually no more than $1,000, and they help you to rebuild your credit score. At 4 Pillars Victoria, we recommend that if you go this route, simply take out the loan, put the money into a separate account, and then use the loan proceeds to repay the lender rather than spending any of it.
3. Create Better Spending Habits
While your daily spending is not likely responsible for your debt, it does affect your ability to repay your creditors. One vital step is to create better spending habits. For instance, rather than getting your morning coffee from an expensive coffee shop, brew a pot at home. Carry your lunch to work. Limit your non-essential driving. Avoid impulse purchases – ask yourself, “Do I really need this?” before you buy anything.
4. Have Patience
Rebuilding your financial standing can take time, even when you follow the steps we’ve outlined above. You’ll need to make payments on time, every time. You’ll need to prove to potential lenders that you are a good credit risk, and the only way to do that is to establish positive credit history.
5. Work with a Debt Consultant
At 4 Pillars Victoria, we specialise in working with consumers in just your situation. Our consultants work for you, not your creditors and not the courts, to reduce your debt load and help you find the relief that you need.
Ready to learn more? Get in touch with 4 Pillars today to schedule a no-cost consultation. Call us at (866) 690-DEBT (3328).
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