5 Ways to Reduce Your Debt

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When used wisely, debt can be a good thing. It can help you buy a house, pay for your education, or enhance your standard of living. However, if you’re borrowing gets out of hand it can lead to many problems such as running out of money, not being able to deal with unexpected costs, causing stress and much more…

Have a look at the following 5 tips that will help you gain control of finances and reduce your debt:

Make a Budget and Reduce Your Spending

First things first – make a budget and plan your spending. Planning a budget helps you to track where your money goes and enables you to achieve financial success.

Determine your monthly income and then figure out your expenses. Decide how much you would like to put aside for saving and create a template or use this Budget Worksheet. Try to cut down on as many of your personal expenses as possible, such as clothes and eating out. By following your budget, you can put any extra money you have each month towards lowering your debts and saving money on interest fees.

Consolidate Your Debt

Debt consolidation loans offer the chance to pay off your debt faster while paying less interest. All of your individual debts are collected into one loan, giving you just one low, easy-to-manage monthly payment. This saves you money on interest fees and lets you pay off your loan faster.

Contact Your Creditors

Don’t be afraid to contact your creditors and try to re-negotiate your arrangements. Contact your creditors and request one or more of the following:

• Lower monthly payments
• Longer time period to make your payments
• Lower rate of interest
  

More often than not your creditors will work with you to accommodate your needs to the best of their ability.

Communicate With Your Mortgage Lender

Contact your mortgage lender as soon as you run into mortgage problems. Do not feel as though you need to dodge or avoid your lender, as this will just cause more problems for you. Your mortgage lender will work with you to find a solution.

Restructure Your Assets

A personal asset is something that you own. If you cannot earn more money or alleviate your expenses, selling a personal asset (such as your car), down-sizing to a less expensive house, or using savings, investments or cash to pay off outstanding loans can reduce the cost of your debt.

The longer you owe money, the more it is going to cost you. So aim to manage your finances today and pay off your debt as quickly as possible. Before you know it you will be enjoying a hassle-free financial life with controlled financial affairs.

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At Alta Pacific we are active in the specialty mortgage market in Western Canada.  The big conventional banks focus on conventional mortgage opportunities leaving opportunities in the specialty mortgage market for Alta Pacific Mortgage Investment Corp. and other MICs that participate in this market. If you are interested in learning how you can share in the returns generated by specialty mortgages, we invite you to learn about Alta Pacific MIC. We focus on consistent returns for registered investors (those with RRSP, LIRA, RESP, TFSA etc.) or open investments (for Canadians with cash on hand). Alta Pacific works with Western Canada’s best Exempt Market Dealers and will work to understand your current situation and future need.  Feel free to contact us directly with any questions you might have.