4 Debt and Financial Resolutions to Make Right NowAug 29, 2018
After enjoying a beautiful (and hot!) summer, September always feels like a fresh start. Whether you are headed back to school or back to work after the summer holiday season, it’s time to say good-bye to the lazy days of summer and get focused. It’s also a great time to focus on your finances and tackle your consumer debt.
Financial resolutions and tackling your debt load was the focus of our recent podcast episode in which our Licensed Insolvency Trustees (LIT) explained why September is the perfect time to do just that. Here are four financial resolutions that our LIT’s suggest you should make now:
- Tackle that consumer debt
First on the list is tackling that consumer debt. As our LIT’s pointed out, Canadians now owe $1.68 in consumer debt for every dollar of disposable income and most of this debt is high-interest credit card debt or Home Equity Lines of Credit (HELOC).
Tackling your debt can start with something simple, like promising to stick to your family budget every month and cutting back extra expenses like going to the movies or out for dinner. If you’re feeling overwhelmed by the debt you carry, tackling your debt could also involve investigating your debt options and talking with a debt relief professional, such as a credit counsellor or an LIT.
- Make a savings goal
Once you’ve made a plan to your tackle debt, our LIT’s recommend also setting a savings goal this September. Whether it’s putting money aside for retirement, saving for your child’s education or putting money away for an emergency, determine which is the top priority for you and commit to this goal.
- Learn something new
With so many kids and young adults heading back to school, September always feels like the perfect time to learn something new. Why not learn something new about your finances and your debt? Not only will it help you in the short-term, it’s also good for your long-term financial health.
For example, if you’re saving for your first home, it’s a great time to learn the ins and outs of mortgage debt and the real cost of owning a home. Likewise, if you are focused on reducing your credit card debt, why not learn about the different strategies, like the snowball method, that can be used to reduce your debt load?
- Start talking
Finally, the last financial thing our LIT’s recommend focusing on this September is starting the conversation about your finances and debt with your family. Too often, families avoid talking about debt and other financial issues, which actually makes the problem worse. Instead, schedule regular financial “meetings” with your spouse or partner. You can even consider including the kids.