You Need to Know THIS If You Hope To Pay Off What You Owe

get out of debt
Are you worried about your finances?

Reports are out here in Canada that Canadian households are carrying the biggest debt-to-income loads in the Group of Seven, the federal budget watchdog says — and that burden is likely to get even heavier.

Canadians have piled up the biggest increase in debt-to-income in the G7 since 2000, according to a new report by the Parliamentary Budget Officer, released Tuesday.

In fact, in the third quarter of 2015, household debt reached 171 per cent of disposable income. In other words, for every $100 of disposable income, households had debt obligations of $171.

This is mind boggling. It seems that the instant gratification society is out of control.

So how are your own personal debt levels? Are you stressed about how much personal debt you have?

I am not any kind of money expert or financial guru. I was simply raised in a household that abhorred debt. My parents saved for purchases, and big ticket items that may have been borrowed for were paid off quickly.

Read: Dave Ramsey’s Total Money Makeover

So what is the reason you cannot get out of debt? Paying off what you owe seems easy enough. Pay off the credit card bills, etc., and boom, no more debt.

If only it were that simple.

Here is the problem: I feel it is that you do not know your number.

You have buried your head in the sand and will not fess up to how much debt you really have.

So how much money do you owe? You should know this. I mean, how can you expect to climb that mountain if you do not know how high it is?

Related- A Personal Budget Plan That Actually Works. Plus How To Make A Budget

So go get every statement you have. You need to have a clear picture of how much debt you have if you are going to climb out from under it.

    your mortgage
    credit cards
    lines of credit
    loans (for your wedding, furniture, whatever)
    auto financing
    student loans
    buy-now-pay-later loans (even if they haven’t come due yet)
    outstanding bills (utilities, phone bills, cell phone,)
    the tax man
    spousal / child support in arrears
    family loans
    loans from friends and family
    pay advance loans (from stores)
    pay advances from your employer

Feel sick yet? Good. Maybe this is the wake up call you needed.

You also need to note the interest rates you are paying on all of these different sources of debt. Hmmm, all those restaurant meals at 19% interest(or more!) don’t look like such a good investment now, do they?

Do I really need to tell you NO NEW DEBT?! Stop buying shit you do not need!

I do not want to get into how to go about paying off the debt. There are experts out there to help you with that.

I encourage you to take a look at Dave Ramsey’s Total Money Makeover. It is the number 1 best seller on Amazon for a reason.

The take away from this is that you need to know your debt number. It is going to scare you and make you feel that is insurmountable. It isn’t. People have had more debt than you and have become debt free. It just takes a plan.

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“Change The Code. Change your Life”

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