May 012010
 

An increasing number of Canadians today spend more than they can afford to. The bills keep piling up and they just can’t seem to pay back the personal loan they took out to finance their kitchen’s redecoration. Eventually, they end up with a mountain of personal debt and a bad credit rating. Anxiety and desperation overwhelms them because they see no way of getting out of their predicament.

Does this sound like you? If you are one of the many Canadians that just can’t seem to keep up with their debts, you’ll love what comes next. The truth is, you can get out of your debt and it doesn’t have to be as torturous as you imagine. But first, you have to take a step back and make it a point to change some of your habits and be more proactive. You can start catching up with your debts by sticking to some of these simple techniques:

Get rid of your credit cards. Credit cards and store cards create the temptation for you to spend money on unnecessary things at ridiculously high interest rates. Get rid of your credit and store cards immediately by cutting them up. Of course, you need to keep the credit card that charges you the lowest rate of interest for emergency situations, but the rest of them have to go.

Setting up a direct debit. You can set up a direct debit system that automatically charges your bank account in such a way that your debt payments are settled on the same day you receive your monthly salary. It is a great way to discipline yourself and stops you from spending money you don’t have.

Visit your lenders personally. Too many debtors make the mistake of avoiding their lenders and the discussion of their default. That is the wrong approach. If you owe your bank money, visit your account manager personally and let him or her know that you are aware of your mistakes. Also communicate your intention to repay the loan. Lenders appreciate this much more than you think and they may even help you in setting up a more lenient repayment plan.

Try to get promoted. Did you know that one out of every two Canadians who ask their bosses for a promotion actually get one? Put in a little more effort at work and find the right opportunity to discuss the possibility of promotion with your boss. What do you have to lose? The worst that can happen is you’ll get a negative answer.

Save on Utilities. There are many Canadian utility companies that will perform a home energy audit for you free of charge or for a very low fee. This can save you hundreds of dollars in energy bills per year. Also, try to find utility suppliers that charge the best rates and switch suppliers if you have to. It helps immensely to do some research on the internet to compare prices.

These techniques are very simple and easy to implement. If you put in the effort and time needed, things should get better for you in no time at all. Remember, there is always hope for those who choose to take action.

Monty Loree is the founder of http://www.canadian-money-advisor.ca which helps Canadians better understand their money, credit and the financial industry in Canada. In our financial podcasts, we are interviewing industry experts who give our visitors the truth about the financial industry. Canadian Money Advisor is an important source for Canadians to learn more about their money.

Author: Monty Loree
Article Source: EzineArticles.com
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Monty Loree

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