Newsletter January 2017

Welcome to the Guardian Financing January 2017 monthly newsletter. This month’s edition is about practical tips you can use to get out of debt when you are on a low income, as this is always the excuse given by many people trying to get out of debt. 

4 Ways You Can Get Out Of Debt When You Have a Low Income

It is not a secret that millions of Canadians are wallowing in the miasma of debt. It is also no secret that everyone in debt desires to clear all their debts so that they can live a debt free life. Sadly though, the majority who find themselves in debt are also low income earners and for one reason or another, they have always viewed the fact that they are on a low budget as a roadblock to getting out of debt.

But truth be told, there is very little connection between your level of income and the ability to get out of debt. All that is needed is a little bit of financial practicality and a solid plan to clear all your debts. Below, we have shared four practical methods you can use to get out of debt, which may be particularly interesting for you if you are a low-income earner:

Create a practical payment plan

Part of the financial prudence needed to get out of debt when you have low income, is to come up with a practical plan for setting yourself free. Evaluate your situation by determining the amount of money you owe and order the debts in order of priority. Start with the most pressing ones onwards to the least pressing ones, then allocate an amount of money that you can comfortably afford each month to the settlement of the debt.

Use automatic deduction

To create the discipline and engrave the commitment to clear your debts, set up automatic payment deductions so that you don’t fall prey to defaulting on the repayment simply because you had to do it manually and somewhere along the line, you allocated the money elsewhere. With automatic payment, you are guaranteed to reduce the debt each month, albeit slowly but surely, via small proportions on a monthly basis.

Do away with unnecessary expenditure through cutting costs

Cutting costs is another awesome method to help you get out of debt, especially if you are on a low income. By cutting costs, you will make more money available, which you can then channel to some of the repayments so that you clear them faster. You will also reduce your spending to strictly include items or services that are absolutely essential. Some of the things you may consider doing away with, include eating in restaurants regularly, cutting your cable subscriptions, renting cars for road trips, etc.

Evaluate your spending habits

The number one reason why people get into debt is the lack of attention concerning spending. You didn’t just wakeup one morning and find yourself in debt. It was a gradual process that resulted from the accumulation of poor spending habits over the years. It is therefore imperative for you to reevaluate your spending habits so that you identify the holes gobbling up your money and seal them. This is a must if you desire to get out of debt when you are on budget.

Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term mortgage loans, typically ranging from $50,000 to $500,000. Contact us today to discuss your file at 514-700-3121 or by sending us an email at files@guardianfinancing.ca.