Why not resolve to become debt free?
(NC) Improved physical fitness is an honorable resolution as the New Year rolls in – but considering that personal debt continues to rise across the country, so is the commitment towards financial fitness, say advisors in this field.
According to the 2013 RBC Debt Poll, the average Canadian is carrying $15,920 in non-mortgage debt, up $2,779 from last year, and while many Canadians are shedding some unwanted debt weight, there are a number of different ways that others can start as well.
“Before you begin any new routine, it is always best if you have a plan to follow,” says Kim Taylor, the director of personal finance at RBC. “Much like you start marathon training with a 5K race, a financial plan is key to your financial fitness success. “There are a number of ways to get in shape with your money, from online tools to a financial planner. It's never too late to find out what your options are and what works best for you.”
There is no right or wrong way to pay down your debt, but there are some ways that are easier than you might think. Online, you will find a debt reduction plan, and a debt consolidation calculator that can help you identify ways to manage your money successfully. Sitting down with an account manager, however, is still the best way to get the guidance that is right for you.
“Speaking face-to-face with someone is always the best advice I can give to anyone who is trying to make a decision about finances,” Taylor continued. “An account manager can provide so many different options that you might have overlooked, and they can customize a solution for you based on your needs. Whether your goal is to pay down your debt quicker or increase your cash flow, we can identify what your options are to help manage your financial fitness.”
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 to a financial planner.
• Make a debt reduction plan and stick to it.
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