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BDO Yellowknife

106 - 5102 50th Avenue,
Yellowknife, Northwest Territories
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How to Get Debt Relief this December by creating a Debt Plan

This December, commit to making an attainable change. Rather than leaving your debt relief goals for January 2016, why not aim to get help with your credit card debt now and enjoy a debt free December? While you might find it difficult to believe that you can get through the season of giving without adding to your personal debt load, it’s more doable than you think. There are a multitude of resources to assist you with controlling your spending and creating a debt plan.

An important part of creating a debt plan is to ensure that it’s realistic and relevant to your personal financial situation. To do this, organize your finances by first answering the question – how much do I earn annually? From there, determine how much of that goes to bills, rent, mortgage, etc. and then from the remaining funds, see how much you can afford to set aside on a monthly basis. If you find that you are limited in funds to put towards debt repayment, consider contacting a Credit Counsellor. He or she can help you review your spending and may suggest restructuring by consolidating debt. Debt consolidation will make it easier to manage payment because it lumps multiple debts into one. It may also save you from paying a lot on interest and you can then put that money towards saving.

In addition, to help with your credit card debt, consider using cash instead of credit. Why? Well, as Gail Vax-Oxlade puts it, “It’s harder to part with cash than to slide your credit card through a machine.” Making the switch to cash will give you a more explicit picture of how much you’re spending. This can make a significant difference in your spending habits. In addition, if you have debt on multiple credit cards, use this credit and debt calculator, which will show you how long it will take to pay off a loan on a single card based on how much you can afford to set aside each month towards repayment. The key to paying off your loans is to start by focusing on just one. So, if you have multiple credit card debts, make a realistic change this month by resolving to take control of just one loan first while maintaining minimum payments on the remaining loans.

As already mentioned, since it is the holiday season, it is also a prime spending season. To take control of your holiday shopping, try this holiday budget calculator, which will give you an exact total of how much to spend this year on gifts, entertainment, food, and travel based on your income. Following the recommended total can further ensure that you are ahead of your debt this month and don’t add to it.

If you feel you need more help with your debt plan, consider contacting a Trustee in Yellowknife. He or she will show you all of your debt relief options so that you can strive towards a debt free December and ensure a strong start to 2016.

What attainable change will you implement to your spending habits this month? Share your ideas with BDO Yellowknife on Twitter by using #SmallChangeBigDifference, #LetsTalkDebt, and #DebtFreeDecember.

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