Blog

3 Mistakes You Must Never Make When Trying To Get Out Of Debt

By Debt.ca on June 1, 2012 No Comments

Everyone wants to learn how to get out of debt, and why not? Nobody wants to be in financial trouble. But even as most of us work hard to try and get out of debt, there are a number of mistakes that we make, which can cost us a great deal and even put us at a disadvantage in our efforts to seek the debt relief.

If you are making any of the mistakes below, then it may take you longer to get out of debt. Try to avoid these mistakes at all costs.

1. Failing to put it in writing

Yes, you want to get out of debt, but have you put it down in writing? In order to affirm it in your mind as a goal you must set a specific time to get out of debt. If you don’t write it down, then your goal to become debt free becomes just like any other idea that may never be executed. You may wonder why you need to write your goal down when you already know it. Well, putting it down makes it real, it makes it formal and in a way commits you to the goal. Some of the most successful people in the world are said to have written their goals on paper before they seriously embarked on pursuing them. Indeed some of the best leaders in the world did exactly the same. You may never achieve any major degree of progress if you can’t write it down. The secret to remaining focused on repaying your debt is by being specific and ensuring that you constantly remind yourself of the task at hand. You could for instance write “I want to get out of debt by the end of this year”. Failing to write it down can be interpreted to mean that you are not so focused on eliminating your debt.

We must also mention that writing it down is not enough, you must work on a plan and see to it that the debt is cleared within the time you allocate. It is also advisable that you propose to
clear your debt way before the deadline given by those you owe. This gives you peace of mind because you will know that creditors won’t be knocking on your door for their money.

2. Keeping your spending habits unchanged

You can never get out of debt if your spending habits remain unchanged. If you are not willing to cut any expenses or maybe you hope that things will somehow work out and one day you will be out of debt, think again! You will start to make serious steps towards eliminating your debts the day you realize that getting out of debt is a task you have to attend to just like any other job. You ought to make a personal decision and remain objective until you are completely out of debt. So if you have cable TV and your financial statements show enormous debts, can you go ahead and do without it until your debt is cleared? If you have an expensive car, make the painful decision and sell it or stop using it altogether and divert the fuel money to your debt payment plan. You’ve got to get serious about debt reduction in order for your efforts to be worthwhile.

3. Spending more than you earn

This is so obvious that we should not even mention it! But we will mention it anyway because unfortunately most of us never really seem to get it properly. A famous piece of advice goes like “You will be in debt forever if you keep spending more than you earn”. There is no way you are going to be debt free if you are always spending more than you earn. Spending more than you earn simply means that you will always have to get the extra money from somewhere else, and this is debt which you will have to repay at some point – however long it takes.

No one likes debt, yet very few of us can avoid it. Even the richest men and women on earth have had to deal with debt at some point in their lives. People like Donald Trump have had to file for bankruptcy, and there are thousands of examples where super wealthy individuals have had to deal with the challenges of debt.

So don’t be’ ashamed of your debt situation. Instead, commit to getting out of debt (see credit counselling services) and try as much as possible to avoid the mistakes we have outlined. They are clearly costly!

Debt.ca

Admin


TFSA vs. RRSP: Where to Start Saving for Retirement

By Rubina Ahmed-Haq on January 23, 2017

After landing your first full time job the advice is often to start saving for retirement. Now it can be hard to convince a young person to put money away for an event that’s 40 years in the future. But what can be even more difficult is understanding where to save that hard earned cash….

Tackle holiday debt now

By Rubina Ahmed-Haq on January 13, 2017

The holidays are expensive. We know that. According to a recent survey from savings destination RetailMeNot.ca, the average Canadian spent almost $1000 this past holiday season on food, drink, travel and gifts. Another survey by PC Financial finds 77 per cent agree the holiday season tends to be more expensive than planned. If you went over…

4 Money Moves You Can Do To Start The Year Off Right

By Andrew Daniels on January 2, 2017

With 2016 in the review mirror, it’s time to turn our attention to the amazing year ahead, and see what 2017 has to offer. With all of the possibilities and opportunities it’s hard to know where to begin. To make the most of your money this year, make sure to get these money items off your checklist…

How to Set New Year’s Financial Goals and Actually Stick to Them

By Jordann Brown on December 27, 2016

As the New Year approaches many Canadians will begin planning their resolutions, and many of those resolutions will be financial in nature. Money-based resolutions are the third most popular type, yet only 19% of Canadians keep their resolutions for the entire year. That’s because setting a goal is one thing, but sticking to it is…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered