I love how Canadians are being smart about their debt and trying to lower the amount of interest they’re paying, but it’s still rather concerning that so many of us have debt. A recent survey from Manulife Bank found that more than half of Canadians (54%) have at least some non-mortgage-related debt. Do you also feel like you’re drowning debt in Calgary? If so you’re not alone. In this post we will talk about how to get out of the debt disaster and get to financial freedom. We will look at the debt solutions available to you in Calgary and how a debt professional can guide you to a healthy financial future

Get to know your Debt Situation

Knowing your debt is the first step to financial freedom. Take a look at your debt and gather all your financial statements and credit card bills. Add up your total debt, including credit cards, personal loans, and lines of credit. Note the interest rates, minimum payments, and due dates for each. Get all your income resources. Once you have all your debt and assets in front of you then you can start exploring solutions.

Find a Debt Solution

There are many debt solutions in Calgary and each solution depends on your financial situation, here are some of the most common ones:

Credit Counselling:

Non-profit credit counselling agencies offer personalized advice and budgeting tools to help you manage your debt. They can also negotiate with creditors on your behalf to lower interest rates and fees. You can find a credit counselling agency near you through the Credit Counselling Society.

Debt Consolidation:

Debt consolidation means combining all your debts into one loan with a lower interest rate. This can simplify your payments and make them more manageable. However, it’s important to be careful do not take more debt than you can afford.

Consumer Proposal:

A consumer proposal is a legally binding agreement with your creditors to repay a portion of your debt over a set period. This option can help you only if you have a big amount of debt and cannot afford to repay it whole.

Bankruptcy:

Bankruptcy is a last option that should only be considered if you are completely drawn into debt and cannot see a way out. It involves surrendering some or all of your assets to pay off your creditors.

After come out from your debt it’s not over, you have to be updated for your money and for that you have to follow saving strategies and start to educate yourself for financial future.

Save an Emergency Fund

An emergency fund can prevent you from falling back into debt when unexpected expenses come up. Aim to save at least three to six months’ worth of living expenses in a separate, easily accessible account. Follow this three-thumb rule:

• Spend less than you make.
• Pay yourself first (Make sure you’re putting aside money for things like vacations, retirement savings and any long-term savings goals you may have).
• If someone gives you free money, take it! (As for free money, what I’m referring to is pension plans or RRSP matching that your company may offer. This is becoming increasingly rare, so if you do have this as an employee benefit, make sure you take advantage of it).

Educate yourself with Financial Literacy

Educating yourself about personal finance can empower you to make better financial decisions. There are many resources available, but as per my opinion this are the best:

• Books: “The Total Money Makeover” by Dave Ramsey, “Your Money or Your Life” by Vicki Robin.
• Websites: Investopedia, NerdWallet.
• Courses: Online courses from platforms like Credit Counseling Society.

Get Debt Assistance Help

Debt solutions can be complicated and overwhelming. Here’s where a qualified debt assistance in Calgary can be a lifesaver. They can evaluate your financial situation and recommend the best debt solution for you, and also create a customized budget and repayment plan according to your financial situation. They can take matter in their hand and negotiate with creditors on your behalf, Offers ongoing support and guidance throughout your debt repayment process.

The Licensed Insolvency Trustees Association of Canada (LIT) is a great resource to find qualified debt assistance professionals in Calgary: Licensed Insolvency Trustee Association of Canada.

Note

Moving from debt disaster to financial freedom is a process, but with the right strategies and support, it’s doable. By understanding your debt, considering consolidation, seeking professional help, saving an emergency fund, and getting financially educated, you can take control of your finances and achieve lasting financial stability.

To find a solution, get your credit assistant today. In Calgary Credit720.ca is always ready to help you.  Take the first step today and start your journey towards financial freedom.