Debt Consolidation

Debt Consolidation

Debt consolidation……does it work?  I would equate debt consolidation to taking the weight loss pill, or that strange diet where all you eat is cabbage.  You know those crazy approaches all of us have tried at some time - did they work?  Most likely they did not.  One of the systems that works is eating right and exercising.   You can keep this up for a lifetime, and thus keep the weight off.

It is the same for debt.  If it goes away in one stroke of a pen, we have not learned the new behaviours or attitudes required to maintain a lifestyle of no debt.  We will gain it all back in the long run.

If you’re freaking out right now wondering how you are going to continue to pay the bills and the debt, it is time to make some changes to your spending patterns.  Look at some of the previous blogs for some tips.  If the wolf is at the door, you may need to consolidate.  Remember, for long term success; work with someone to change your spending patterns.

If you want some assistance to make the changes required, contact Susan at smkbusinessservies@live.ca

All maxed out- some dramatic action to take

 You need to stop carrying the cards with you. You may choose to carry one card for emergencies (like paying the tow truck when your car breaks down), but only if you will not use it for other expenses. Simply not having the option to use your cards will help you to stop using them. Once you have paid them off you may want to close your credit cards. You do not need a credit card because most things can be paid by debit card or cash, even on line.

Make your credit cards hard to access. Freezing them in a big block of ice is really not that bad an idea, but don’t forget to delete the numbers from your on line stores memories, which will make it harder to shop there as well. Save money for an emergency fund, so that you do not need to use your credit cards during an emergency. Until you are out of debt an emergency fund of about $1000.00 should cover most emergencies, and after you are out of debt, an emergency fund of three to six months of expenses should be enough.

Make a plan to get out of debt and stay out of debt. Getting out of debt will free up money so that you can cover your needs, and have money left over for your wants. This is a huge step in getting ahead financially, and you will be amazed at the freedom it affords you.

You will feel better about the future and the opportunity it can have for you. The decreased stress will be great for your personal health and well-being.

You can contact Susan and she will help you put a plan in motion.

smkbusinessservices@live.ca