Controlling your personal debt

Learn how to control your personal debt and accomplish your financial goals, by making your personal debt work for you.

 

 1. Americans are loaded with credit-card debt. 

Americans at least have a credit card debt of $ 15.950 , and the average interest rate runs in the mid-to high teens at any given time .

2. Some debt is good.

The loan for a home or college usually makes sense. Just make sure you do not borrow more than you can afford.

   3. Some debt is bad .

Bad idea to get the card for things you consume quickly, eg meals and vacations, if you can not pay the debts in a month or two. There's no faster way to fall into deuda.al otherwise it is better to save and paying so things can go entirely without debt.

4. Get a handle on your spending.

Write down everything you spend a month, cut back on things they do not need, and start saving the extra money or use it to reduce debt quickly cancel .

5. Pay the highest rate debts first .

Pay first loan balances or credit cards of interest while paying at least the minimum to all its other debt .

6. Do not fall into the trap minimum .

If only dedicated to pay the minimum , it will take years to pay off your balance , and potentially you 're going to spend thousands of dollars more than the original amount to be charged .

7. Watch where you borrow .

It may be convenient to borrow against your home or your 401 ( k ) to pay the debt , but it can be dangerous. You could lose your home or fall short of their investment objectives in retirement.

8. Expect the unexpected .

Make an emergency fund to think ahead and save at least something meaningful for an emergency.

9. Do not rush to pay off your mortgage .

Do not pay all your debt which has a low interest rate since this makes you run out of capital and so will he come down to borrowing potential.

10. Get help as soon as you need it.

Look for people specialized agencies that help minimize your debts.

In the following video we can see

Dealing with debt is a daunting task that many people find confusing. BDO Canada provides information and solutions to treat and manage their debt. In general, there are three methods to choose from when it comes to debt solutions: Options do-it-yourself solutions, formal or informal and legal solutions.

For more information about which of these options is right for you, talk to BDO.