5 Ways to Get Your Finances Back on Track
The Season of Spending has come and gone, and for many of us, this means higher credit card bills and possibly new debt. If you’re feeling the post-holiday blues when it comes to your finances, you may be one of the many Canadians whose New Year’s resolution is to pay down their debt.
Well, then. You’re in luck! Keep reading for some simple tips to get your finances back on track.
5 Financial Tips
- Take inventory of your debt. Throw all outstanding balances together into one document and be sure to note when payments are due.
- Map out a realistic repayment schedule, keeping in mind that you should always pay the minimum payment amount of each bill on time to keep your credit score in good standing.
- Pay down the debt with the highest interest rate first. Continue making the minimum payments (see #2), but put the largest amount of available cash towards your most expensive debt.
- Avoid additional debt until you’re in a comfortable place financially. Now’s not the time to purchase a fancy new car or plane tickets to a summer getaway. The best plan of action is to get a handle on your finances before you start buying again.
- Got cash for Christmas? Make a low-risk investment and enjoy a guaranteed return. Sure, you may have spent a lot of your hard-earned cash over the holidays, but you may have also received some extra spending money as a gift. If that’s the case – and you have enough to pay off your debts – consider turning that spending money into savings. How? By parking it in a short-term investment option that will earn you a little more interest than the savings account at your bank.
With the New Year comes a fresh opportunity to look at our finances with a fresh set of eyes – a great time to start paying off any debt and to take advantage of an investment option that helps you keep two other important New Year’s resolutions (i.e., spend less & save more).
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