3 Pro Tips To Help Stamp Out Your Debt

2016-01-20   minute read

Ian Schofield

Debt Solutions

Debt is often caused by life circumstances such as a job loss or a divorce, or simply by spending beyond your means. And the more you spend, the deeper the hole you dig. That’s why reducing expenses and living within your means is crucial to eliminating debt or avoiding it altogether. Here are some steps you can take to better manage the health of your finances:

Set up a monthly budget: Keeping track of every transaction you make allows you to gain a clear understanding of your current spending, so you can effectively pinpoint where you can spend less (or potentially earn more). If this task seems daunting, there are many free expense tracking and budgeting templates to be found online or through mobile apps.

Build an emergency fund: After establishing your budget, it’s vital to set aside a certain amount each month for emergencies. Paying off debt is stressful enough, and you certainly don’t want to add to that debt should unforeseen circumstances arise.

Use credit cards wisely—or pay in cash: Although it may be tempting, it’s extremely important to avoid using credit to purchase things you wouldn’t normally be able to afford. You always want to have enough money to pay off your balance in full each month to avoid interest charges and other penalties. If the temptation is too strong, leave the credit card at home and only carry enough cash to pay for the things you need.

Following the above steps can help make a positive impact on your finances, but if you’re struggling with an overwhelming amount of debt, you may want to consider meeting with a trustee. The Licensed Trustees at MNP LTD. can provide the personalized guidance and non-judgmental advice you need to help regain control of your finances. Fill out our online form to arrange a free confidential consultation or find a local MNP LTD. office near you now.

Consultation icon