If you are having financial difficulty or are on the verge of personal bankruptcy in Toronto, the GTA or in Southern Ontario, debt help is available for you at Harris & Partners Inc. Licensed Insolvency Trustee. We recommend the following steps to help you reduce your debt.
Debt Solution Starts with Creating and Living Within a Budget
Calculate your monthly spending and find a way to reduce your expenses so you will save at least 10 percent of your income every month that you can keep aside in case of emergencies or apply towards paying off your debts.
Live within your budget and plan for unexpected expenses so that your debt can get smaller and more manageable. You will be further ahead in achieving your financial goals if you can live below your means for a period.
Pay Down Debts With the Highest Interest Rate First
While you should always pay at least the minimum amount on any debt you incur, it’s best to focus extra efforts on debts that have the highest interest rate.
Shift Your Debt From High to Low Interest Rates
Since a line of credit is always at a much lower interest rate than other debit, if you have a line of credit, try to pay off your credit card debt with the line of credit. Ask your bank if they will increase your line of credit limit, if needed, to make it possible to pay off your credit card debt.
If you own a house or condominium unit, you can inquire about refinancing your mortgage or getting a second mortgage to paying off your higher interest debt. These strategies essentially entail consolidating your debt to a lower interest rate.
Try To Increase Your Income
If you can take on extra hours at work or manage a second job, the added income will help make your debt repayment easier. If you can take on a roommate, boarder or renter, the extra income will reduce your debt more quickly.
Barter For Services Where Possible
Instead of spending money on certain expenses, see if you can trade services to keep your expenses down. For example, if you can offer professional services in one area (e.g., child care, elder care, hair cutting, cooking, bookkeeping, dog walking, personal training, lawn care, snow removal), you may be able to barter with other service providers instead of paying from your income.
Focus on Paying Your Debt
Set goals for reducing your debts. If you think you might learn something from undertaking credit counselling services, give it a try. You may learn something about your spending that you weren’t previously aware of.
Implement your debt reduction strategy by setting up a payment calendar with due date and the payment amounts you expect to make. Sign up for overdraft protection and set up automatic bill payments through your bank or register for online payments.
Contact Trustees Serving Toronto (and all of Ontario) at Harris & Partners
If you need help from those who specialize in solving debt problems, contact us at Harris & Partners Inc. Licensed Insolvency Trustee. In Toronto, North York, Brampton, St. Catharines, Pickering, Oshawa, Hamilton, Brantford, Barrie and Markham, our federally Licensed Insolvency Trustees can help you achieve long lasting financial solutions. Call us today for your free consultation at 1-800-268-8093.
Do you have any questions that you would like to discuss with our professional trustees? Fill out this form with as much information about your situation as possible. Or you can call Harris & Partners at 1-800-268-8093.