4 Key Debt Resolution Strategies

4 Key Debt Resolution Strategies

Reduce Debt in New Westminster, BC

Reducing debt takes work, and strategy is critical. The trustees at J. Bottom & Associates Ltd. have some important strategies to help you reduce debt in New Westminster, Port Coquitlam, and North Vancouver, BC. Having a game plan can help you pay off debt so you can get to where you want to be on your financial journey. Check out these strategies to pay off debt, and get in touch with us to schedule your free consultation for a personalized strategy.

Four Cornerstones of Debt Reduction Strategies

Getting out of debt is usually not easy and takes work and planning. Spending money is easy, but paying down debt and budgeting takes discipline. Check out the four cornerstones of debt reduction:

1. Credit Card Debt Reduction – Reducing your debt takes intentionality. After you stop using your credit cards, you need a way to pay for unplanned expenses. An emergency fund will come in handy and help you avoid using your credit cards again. Start making extra payments on your credit cards when you have extra money.
2. Debt Reduction Advice – Before credit cards were offered, people found other ways to pay for things. Working hard, saving money, and budgeting were tools used to pay for expenses. Getting back to the basics is solid debt reduction advice. The team at J. Bottom & Associates Ltd. can provide additional debt reduction advice and strategies.
3. Debt Solutions – You don’t have to follow the crowd. Just because many people are in debt doesn’t mean that using a credit card is a good idea. Charging things is easy, but it won’t get you where you want to be. Decide that you are going to be different and do the right thing with your money.
4. Debt Counseling – Creating a realistic budget is a good first step to getting out of debt. Don’t be afraid to make adjustments and find out what works for you. Professional debt counseling services can help you get up to speed and discover effective strategies for managing and getting out of debt in British Columbia.

Steps to Reduce Debt

Understanding debt reduction strategies is critical when it comes to reducing your debt. The two basic strategies for reducing debt are the highest interest rate method and the snowball method. The highest interest rate method focuses on the debts with the highest interest rates first and pays those off as soon as possible because they are costing you more than other loans. The snowball method focuses on your smallest debt first and gets rid of it as quickly as possible before moving on to the next smallest debt. This method can help you build momentum and see faster results. After understanding which strategy you are using, the next step is to create a debt reduction plan. Budgeting is key during this step. Organize your monthly bills to keep track of your necessary expenses and figure out how much you have left over.

Professional Debt Consolidation Services

When getting out of debt seems impossible, there’s help. The experienced trustees at J. Bottom & Associates Ltd. are here to help you break the debt cycle. We offer proven strategies and would be happy to provide you with a free consultation. There’s no such thing as a silly question, so contact us today.