Ways to Avoid Debt in Barrie, ON

July 24, 2018 | Posted by: Della Dwyer - Your Trusted Barrie and Surrounding areas Mortgage Broker

Being in debt in Barrie, ON and unable to pay your monthly bills or set money aside for emergencies is worrying. You can't always control how much money is coming in, but you can organize your income to avoid having too much month left at the end of the money. Here are some ideas to help.

Work out a budget

A monthly budget will help you control where your money is spent and stay within the limits of your income. Factor some money for savings and an emergency fund into your calculations. Many people find themselves in debt because they don't have enough cash to cover unforeseen circumstances. 

Reduce your spending

Once you have a budget in place, you can identify where you spend most of your income. Try to reduce your spending wherever possible. The obvious area is to reduce spending on entertainment and leisure activities. However, all work and no play makes for a very dull life so don't cut down too much.

Increase your income 

If you can increase your income, you can pay down any existing debt and raise your standard of living. Take a part-time job or monetize some of your assets. There are part-time jobs working online from home if it's inconvenient to go out to work due to family commitments. Rent out part of your house, or sell some items online or in the local paper.

Refinance your loans 

If you have a mortgage or other loans, consider refinancing to reduce your monthly payments and free up some cash. If you have several small loans, consider consolidating them into one easy to manage payment. Whatever you decide, it is a good idea to talk your mortgage broker to see what options are available to you.

Credit cards

If you are serious about avoiding debt, keep your credit card spending to a minimum. Choose a card that suits your spending pattern. If you are a frequent flyer, go for a credit card that gives discounts on hotels and car rentals. Pay your credit card bill in full when you receive the statement to avoid paying interest.

Being in debt is not a pleasant experience. However, with planning and willpower, you can manage your financial affairs effectively. Work out a budget, reduce your expenditure, refinance loans, and keep a close eye on your credit card spending. That way, you can avoid debt and enjoy life.

If you want to consolidate your debt in Barrie, ON, contact Della today!

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