Many of the people we work with never imagined that they would be needing the services of a Licensed Insolvency Trustee. In this article, we will discuss eight steps to becoming debt free.
Our clients come from all incomes and walks of life. What do they have in common? Most of them experienced a major life crisis such as illness, divorce, or loss of income – that pushed them over the edge and into financial chaos.
There is little that can be done to avoid most of life’s painful events. However, by keeping your finances away from the ‘edge’, you will be in a better position to cope with the hardships that come your way.
Get out of debt as soon as you can. The longer you stay in debt, the greater your risk.
Eight Steps to Become Debt-Free:
- Be aggressive in your efforts to get rid of debt.
- Set up a plan/budget for getting out of debt. Stick to it and track it to monitor and encourage your success.
- Set up an initial emergency fund and only use it for real emergencies. When you are battling with debt, having money for emergencies will help you avoid using credit.
- Switch to a cash-only money management plan. It will help you to stay on top of your finances – and encourage you to think more carefully about your purchases.
- Constantly be on the outlook for ways to cut your expenses and increase your income.
- Once you are out of debt – increase your emergency fund to cover at least 6 months of expenses.
- Stay out of debt – live below your means, save as much as you can, and avoid using credit.
David Sklar & Associates
Residents of Ontario have had their lives turned upside-down by the pandemic of COVID-19. Here at David Sklar & Associates, we understand that many residents have been thrown into financial instability because of this health crisis and are concerned about what to do next. If you need financial help, we are still here for you. We offer over-the-phone consultations and electronic document signing so that you can access our services from the safety of your home. We want to encourage our clients to prioritize their health as best as they can during these uncertain times.
