In part three of our series on helping you get out of debt, we look at ways to gain extra money per month, knowing when not to spend, and refinancing.
Overtime or Second Job
When money is tight, and your debts are not getting paid off fast enough, consider working extra overtime (if this option is available) or look at getting a second part time job. Using this extra income and focusing it towards paying down the debt will go a long way. Find some options where you can make some extra money per week/month. See what hobbies you can use to your advantage and start a side business. Check with http://www.servicecanada.gc.ca/eng/lifeevents/business.shtml regarding starting a business for some helpful tips.
Knowing when and when not to spend
Tracking all of your expenses each month, to see where all of your money is going is extremely important. This is an important task for you and your partner. When looking back at your expenses and spending patterns for the past few months, this can give you some extra insight into where your money has been going.
See our articles on Follow the money and breaking bad spending habits . If getting a second job was not a possible option, then going over your spending habits can work towards freeing up enough money that can go towards your debt, and being debt free.
Refinancing
Mortgage refinancing is the procedure of changing your mortgage with a new mortgage, usually with altered terms than your first mortgage. Refinancing your mortgage can be an option for consideration. First you would need to see the penalties involved and calculate if refinancing is a suitable option for your family or not. If refinancing is an option for you, then this can help free up some money, and help you pay down your debts faster.
If the interest rate on the new mortgage is considerably less than the first mortgage, then the homeowner can save substantial money, and thus have a lower monthly payment. You will need to review this option in detail before considering this, including all the advantages and disadvantages.
Talk to Us!
Having overwhelming debt can be crushing at times, and not knowing what to do is common for some. You may be wondering is bankruptcy, a consumer proposal or debt repayment the answer. If you have questions and need professional advice, speak with a qualified Trustee at David Sklar & Associates. Every case is different, and knowing the full facts can help you make a better informed decision for yourself and your family. Call us today to book a free consultation.
Budgeting and Spending Plan
The best way to be in control of your finances is to have a budgeting plan. Know how much money is coming in, and where the money is going.
Not everyone will like making a budget, but it is something that is highly advised to do. Tracking all of your expenses can be very eye opening, and will help you to spot any expenses that can be reduced or cut all together. See our budgeting series for more information on setting up your budget and getting control of your finances.
How to Get More Help
If you have too much debt, dealing with it in a timely manner is advised. The sooner you can be on a path to financial success, the better off you and your family will be in the long run. Along the way you will learn more about managing your money and work towards being debt free.
Getting in touch with us is easy. Just call or use our secure online form and we can set up a free initial consultation.
