✔ Turn down the stress of post-holiday bills by having a plan to tackle your debt.
✔ Create a budget for the new year that shows where your money goes so you can look for ways to trim costs.
✔ A debt consolidation loan can help give you some financial relief with payment terms that can fit your budget.
While the start of a new year is full of opportunity, it also comes with the added pressure of paying off post-holiday expenses. As the bills arrive, you may begin to feel overwhelmed and worry about your ability to manage it all. But with a little planning and a “can-do” attitude, you can tackle those bills and become debt-free. Here are four tips to turn down the financial stress and get your new year off to a great start.
Know where you spend your money
Before you start making any payments, create a list of what you owe and when each payment is due. Then, add additional expenses that you need to plan for like rent, utilities, and groceries. By making this list and tracking all your expenses, you’re taking the first step toward creating a budget for the year. Having a budget that captures what you make, what you owe, plus all of your expenses can help you better manage your money and get you on the path to a better financial future.
Start small and build
It is unlikely that you will be able to wipe out your holiday debt all at once. Instead, make a plan to pay it off as quickly as you can to avoid paying more in interest charges. Focus on making the minimum payments first so that you don’t damage your credit score. Then, look for ways to reduce your spending so you can put that money towards your debt, starting with the card with the highest interest rate. By staying committed and making regular payments, you’ll gain momentum and your debts will start to shrink.
Trim your expenses
January is a time when many people set resolutions such as getting healthy, tackling their bad habits, and getting their financial house in order. Trimming what you can from your monthly expenses is never easy, but there are ways to cut costs and use that money toward your debt. Try these money-saving tips:
- Subscriptions and memberships. Cancel any cable channels or streaming subscriptions that you no longer use. Check out some budget-friendly and free alternatives to cable.
- Groceries. Smart shopping and cutting down on food waste are two of the fastest ways to lower your grocery bill. Here’s a list of ideas to help you cut costs.
- Auto, home and renter’s insurance. It pays to shop around. See if you can find the same or better coverage at a lower cost.
- Home repair and service. How-to videos make it easy to get expert advice and instruction so you can do your own repairs instead of paying someone else. Check out all these services that you can do yourself to save some money.
Explore a debt consolidation loan
If the amount you owe is high and you need some financial relief to help tackle those January bills, you may want to consider a debt consolidation loan. It combines all your debts, with different balances, interest rates and payment due dates into one loan with one predictable payment. With a debt consolidation loan, you get:
- The simplicity of only one predictable payment, instead of several with various due dates.
- One interest rate.
- A fixed amount of time to pay off the loan.
- Payments personalized to fit your budget.
To explore whether this option is right for you, check out the easyfinancial debt consolidation calculator.
Start the new year on the right foot
Post-holiday bills don’t have to be stressful. By having a plan, staying calm, building a budget, and setting realistic goals, you can tackle your debt with confidence.
At easyfinancial, we believe in helping Canadians get on the path to a better tomorrow. If you’re looking for additional financial relief or want to explore a debt-consolidation loan, we can help you understand all your borrowing options. Visit your local easyfinancial branch or give us a call at 1-888-502-3279 to discuss your options for debt freedom.
Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.