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How to Reduce Your Debt in Medicine Hat

By Darrell Pauls

How to Reduce Your Debt in Medicine Hat

Many people want to reduce their debt or have no debt at all, but have no idea how or where to start. If you wait too long to gain control of your financial situation you may have devastating results. Right now is the best time to start getting out of debt. If you need help with your debt then keep reading for some practical ways to reduce your debt and head towards the freedom of a debt free life.

Set a goal for each debt that is reasonable. Don’t set yourself up for failure. Make sure that your goal is something that is reasonable for your situation. Your goal may be a certain amount each month for 24 months, or your goal may be to have a debt paid off one year from now. Whatever your goal may be, keep track of how you are doing so that you can see your progress. If you can watch the amount of debt shrinking, then it gives more motivation to keep on going.

Keep track of where your money is going for one month. If you know exactly where you spend your money, it will help you determine where you can cut back your spending. Keep every receipt and make an account of every dollar spent in a notebook. At the end of the month add up what you spent and figure out what was spent on the things you wanted verses the things you needed. Then you can decide how much you can cut back in the “want” category and use that money to put towards paying down your debts. You will be surprised at how fast those little, everyday purchases can add up.

Freeze those credit cards!  In order to make your credit card balances go down, you need to stop spending on them! I have often heard of people freezing their credit cards in a block of ice. If you want to make a purchase, you will have to thaw out the block of ice. This gives a lot of time for you to decide whether the purchase is really necessary or not.

Create a Realistic Budget. Take a look at your last 3 months of bills and take an average amount for each bill or expense for running your home. Write these all down. These are the amounts that do not change each month. They are the necessities for your home such as your mortgage or rent, your electricity bill, your phone, your vehicle payment and so on. Then add in the average amounts you spend for everyday living such as food, clothing, diapers, fuel and entertainment. Make sure to add in an amount for debt repayment. Add up all of your expenses. Now add up the net income in your household to make sure that your income is more than your expenses. If your income is less than your expenses you have a problem. You either need to find a way to cut back on your spending, or find a way to make more money. It may be easier to cut back on your spending. Try cutting back on your satellite or cable channels. You could save money on groceries by using coupons or shopping the sales. If possible, walk to work instead of driving.

Make all of your purchases with cash. When you get paid, take out all of the cash that you need for the next 2 weeks. Make sure you stick to your budget. Keep your receipts and record every purchase so that you know where your cash is going. After the cash is gone, you have to wait until pay day to buy anything more.

Debt Settlement or a consolidation loan may be a good option. If you have a lot of consumer debt and it is too much to handle, then a consolidation loan might be an option for you. If you don’t have great credit and won’t qualify for a consolidation loan, debt settlement might be the way to go. We at 4 Pillars are specialists in debt settlement and debt help and would be happy to help you through the process.

If you would like to learn more or need help with your debt, contact Darrell at 4 Pillars Medicine Hat at 403-332-7361 for a free consultation. We will go over your current situation and discuss your options with you to help you get on the right track to becoming debt free.


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