Reducing your debt might be quicker than you think
(NC) As the level of debt continues to rise across Canada, there are a number of tips, tricks and services that can help us tackle debt and have a full understanding of how to keep tabs on controlling it.
“Online tools and calculators can help anyone understand their level of debt comfort, and more importantly, put a plan in place to pay it off,” says Kim Taylor, the director of personal finance at Royal Bank of Canada. “These tools will give you a great idea of the options that are available to help with debt reduction. However, everyone's finances are different, and a financial planner will always be the most helpful tool to customize a solution that is right for you.”
Before you sit down with an account manager, it is a good idea to get a clear picture of the debt you're carrying, anticipated expenses and income, and what options are available. Online, you will find a debt reduction plan, and a debt consolidation calculator along with alternate products to help you pay down your debt successfully. Other options such as loans with lower interest rates can help you maximize your monthly payments.
“Debt repayment is very much a personal matter as well as an individual experience – and we understand that,” says Taylor. “When you're meeting with your financial planner, ask about lower-interest lines of credit or loans that you can use to pay off the higher-interest debt. It is one of the easiest ways to get a leg up on debt –and get on your way to responsible debt and finances.”
Taylor's steps to financial freedom are as follows:
• Get to know your debt: Credit cards, loans, lines of credit – how much do you owe?
• Look at your options: What do you think makes the most sense for you to eliminate or to manage your debt?
• Schedule an appointment to speak with a financial planner.
• Make a debt reduction/management plan and stick to it.
Word count: 315
Articles are provided free of charge. Articles appearing on web sites, must credit www.newscanada.com. Articles appearing in Print, must credit News Canada with (NC) at beginning of an article or – News Canada at the end. Any source/sponsor of the information quoted in the text must also be identified as presented. Images are only to be used with corresponding editorial copy. Usage of News Canada articles constitutes your acceptance of these terms and an agreement between you and News Canada.