It is 2019! It is a brand new year and a fresh financial start for many people. If you have been struggling with your finances, then this year can be the year that you begin your journey to become debt free! If you feel like your debt is out of control then keep reading for some tips to reduce your debt in 2019.
Set a realistic goal for each debt that you have. Make sure that it is a goal that you will be able to reasonably achieve. Keep track of how you are doing by writing down your goals and then marking down when and how much you have paid. It is important to be able to see your progress in front of you to motivate yourself to keep moving forward.
Track every penny you spend for one month. Seeing exactly where your money is being spent helps you to see just how quickly your purchases can add up. Keep your receipts and record every dollar spent in a spending journal. At the end of the month add up what you spent on the things you wanted and the things you needed. Then decide where you can cut back in your want category and use that money to put towards paying down your debts.
Try a spending freeze. In order to lower your credit card balances, you need to stop making purchases on them. A popular way to stop yourself from using your credit cards is to freeze them into a block of ice. This way you will have to thaw out the ice block before you can use the credit card, giving you time to consider whether or not the purchase is actually necessary.
Create a Reasonable Budget. Take a look at your last 3 months of expenses and take an average amount for each bill or expense for running your home. Add them all up to create a budget. Find ways to shrink your budget such as clipping coupons to save on food and walking to work if possible to save on fuel.
If after doing the above you still feel like your debt is overwhelming, call Darrell Pauls of 4 Pillars Medicine Hat (403-332-7361) to learn more of the benefits that 4 Pillars consulting can offer you.