A Better Way Of Managing Debt

Debt is one of the worst financial burdens you can have as a Canadian. You not only have to work hard to pay for it but also meet your day-to-day needs. For some, it may be a tough cycle to break, but it can be done. All you need to do is to find better ways of managing the debt. This all comes down to habits, focus, and commitment.

Paying off debt is a significant factor for those who wish to establish financial security. At the same time, it can be an opportunity to improve your financial habits and become more disciplined to save money and establish a better lifestyle.

The best way of managing debt is to forgo some of the things that you want so that, in return, you can pay off your debt. It will take an honest, straightforward evaluation of your spending. Often debt is created from short-term problems, and the problem compounds on itself. 

a better way of managing debt

 

Sacrifice To Pay Off Debt

The idea that you need to sacrifice to pay off debt can be a difficult concept to swallow. But you are sacrificing anyhow. The sacrifice is your future as the debt inches forward and your health and happiness if you have debt stressing you out. However, the key to accomplishing this is developing habits that enable you to save money, setting financial goals, and creating a system to track your progress. 

To achieve your financial goals, you should create a budget and stick to it. Always remember that paying off your debt and saving should be part of that budget. 

Reading books, enrolling in courses, or attending webinars(including the free ones) can help you establish a working system that will assist you in tracking your progress. Click here to learn personal finance management in Canada.

Re-capturing Debt

a better way of managing your debts

Another way of managing your dues is by “re-capturing” debts. This method is a concept that many Canadians may be unaware of. It involves capitalizing on a system and building equity that you can access to pay off your third-party creditors. You may take a longer time to pay your creditors when you apply this process entirely. However, the basic idea is to build up a system that turns your external debt into inside debt, and in return, you can then use it to pay off your third-party debt. The advantage of applying this system is that you build a lifetime asset that continues to grow. 

You can quickly eliminate all third-party creditors using the process without working harder or changing your cash flow

Furthermore, re-capturing your debt will eliminate your creditors, build up your system's equity, and make your plan a sustainable asset. This accumulation happens because your system is constantly working. It is not being interrupted by sacrificing suture growth potential while paying off your creditors. 

Isn't this subtle change worthwhile?

Contact Ascendant Financial today.