You Need to Know THIS If You Hope To Pay Off What You Owe
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.
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?
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.
Enjoy this post? Please share it on social media.
“Change The Code. Change your Life”