When you’re struggling with debt, it can be difficult to gain perspective and see further than just the next day of making payments. Debt is one of the most difficult challenges you can face in your life, especially if you’re insolvent and facing bankruptcy or going through the Consumer Proposal Process.
If you’re under financial duress and need help doing a Consumer Proposal in Toronto or the GTA, visit one of our offices near you. With locations in North York, Scarborough, Mississauga, Brampton, Pickering, and mid-town Toronto, the help of our Licensed Insolvency Trustees is never far away.
For those of you who need some encouragement along the way, these are 10 things you can do with your life when you become debt free.
#1 Work Less
Sick of working overtime or taking on extra work so that you can pay down your debt? When you’re debt-free, you’re only paying for the money you spend now, not the money you spent a year ago. That means you can take more time off and work a more relaxed schedule.
#2 Find Your Passions Again
One of the biggest stresses our clients at David Sklar & Associates go through when they’re in debt is time constraints. Debt doesn’t just mean you’re tight financially, it means you’re tight with time as you cut down expenses and try to work extra hours. That doesn’t leave a lot of time for your passions, whether it’s a hobby, a musical instrument, or a sport. Having more money won’t necessarily make you happier, but more free time will.
#3 Start A Real Savings Account
When you’re in debt, paying it off is always your priority over saving. With your debt eliminated, you’re free to start saving your money. Start an RRSP, a back-to-school fund, a mortgage fund, or start thinking about a way to reward yourself for becoming debt-free.
#4 Go On Vacation
One of the most toxic things you can do for your financial situation is going into debt you can’t pay back to cover luxuries like holiday gifts or vacations. When your money is your own, you can save and pay for your own vacations to whatever destination you desire.
#5 Make Choices With Your Money
This may seem surprising, but making choices with your money is often the hardest part of going debt free. After spending years paying down your debt, it can be overwhelming to have options.
#6 Borrow Money for Less
Just because you’re debt free now doesn’t mean you’re never going to borrow again (though many do put extra credit cards to rest). When you have a better credit score, you qualify for lower interest rates, which saves you money on car loans, mortgages, and more.
#7 Stop Feeling Anxious
When you’re debt free, you have more room to breathe. You’re not anxious about missing a payment or staying up all night wondering what will happen if your income shrinks. You have more room to make mistakes and recover.
If you’re ready to start living debt free and enjoy these perks, contact us. As Licensed Insolvency Trustees, we can reduce the debt you have to pay, stop collection calls, and help you on the path to financial freedom.