4 foolproof tips to get your debts in order this year

4 foolproof tips to get your debts in order this year

That is: You have decided that in 2023, you will put your personal finances in order.

With inflation soaring and interest rates showing no signs of slowing, you may view your debt as an insurmountable hurdle. Fortunately, it is still possible to take control of your situation and get out of it with your head held high.

Follow these tips from Jane Fortin’s personal finance advisor to see things a little clearer. They will allow you to create a solid plan that will help you reduce your debt level… and increase your well-being!

1. Arrange your debts


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It’s possible that you’ve lost track of your debt because you’re worried about your situation – and that’s totally normal.

However, to get your money back, you’ll need to take some time to assess your debts: student loans, credit cards, “buy now, pay later” type purchases as well as your personal and auto loans. Specify the amount due, interest rate, and required monthly payment to keep it up to date.

are you the owner Check if your mortgage is fixed or variable, your payment is fixed or variable, and the due date.

Finally, check and review your Equifax or TransUnion credit report for errors.

2. Measure your debt level


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There are free online tools to do this, like Jean Fortin’s Debt Ratio Calculator. This is also the best way to find out if your debt level is acceptable to creditors.

Additionally, since this number has a direct impact on your ability and cost to borrow, it’s a good assessment for avoiding being over-indebted.

3. Set a realistic budget


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This tip comes up often, since a budget is an ideal tool for keeping your personal finances on track. Using an online budget will help you avoid miscalculations and omissions in expense items.

This account grid should include your fixed expenses (rent, electricity, heat), your variable expenses (groceries, outings, clothes, etc.) and your income.

By doing the budgeting exercise, you will be able to see exactly where you are spending your money and then decide where to save. Don’t try to cut your expenses too much and be honest about your situation: after all, a realistic budget is more likely to hold up than an ideal one!

4. Have a debt reduction plan


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Once you have a good idea of ​​your financial situation and budget, you can make a plan to pay off your debt at your own pace.

  • First, if possible, convert your credit card balances to a line of credit with a lower interest rate.
  • Did you manage to find a surplus in your budget? Use this amount to reduce your debt, starting with the one with the highest interest rate.
  • Prioritize the smallest debt over the big debt to motivate yourself.
  • Contact an expert to support you through all these steps, if necessary.

If the task seems insurmountable, know that Jean Fortin Personal Finance Adviser can offer you free, confidential and non-binding advice.

Don’t let your debts take over! Contact Jan Fortin Personal Finance Adviser To quickly treat your condition. In less than 24 hours, you will have all the answers to your questions and have a plan to get out of them.

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