We are being bombarded everyday in the media with products that are
not essential for our everyday life. But, as brain washing works, they create a
necessity where there is not. For instance, we used to enjoy a Saturday
afternoon at home watching a movie in a 32 inches TV. That was enough in those times. Since the evolution
of electronics we don’t enjoy watching a movie in the same old TV. We need a 60 inches HD TV with surrounding sound home theater.
Our life is not the same anymore. We feel that if we don’t have that new TV we are not happy. The enjoyment is not the same. We must have that TV.
All these are implanted necessities programmed very careful by the big companies. They invest tons of money to develop ways to create that necessity.
When we can’t afford anymore all these gadgets we start using the plastic.
As a result we end up with the sickness that most people have…
Debt!
In school we are not taught how to live a healthy financial life. On the
contrary, We are taught ” to be good consumers”.
Well, below there are a few tips on how to reduce or eliminate credit card
1. Refinance you mortgage to consolidate.
If you own a property and have some equity built up, you can remove part of it to pay credit card
2. Convert high interest rate balances into lower rate. How? Move balances from the card that has
higher rates to the ones that have lower rates.
3. Adjust your budget and live within your means. Have extra money to start paying balances. Pay-off one
card at the time. Start with the card that has the highest rate.
4. Ask your bank for a line of credit to consolidate.
This option is not available for most cardholders when they are experiencing too much debt.
5. If you have any savings, Take them out and pay down the balances. Remember, always pay first the
card that has the highest interest rate no matter the balance.
Unless you are getting more for your savings than what you are paying in
interest keep the savings.
6. File for bankruptcy. Bankruptcy, is one of the strongest medicine of all. It
will alleviate the symptoms and cure you at once leaving only scars for
you to remember not to relapse. But not all qualify for this procedure.
You have to meet certain criteria.
7. Consumer Proposal. This procedure follows under the same category of bankruptcy as it is
contemplated under the same Act. With this your debt can be reduced to more than half. Payments
to the creditors are done monthly with zero interest. You have up to 5 years to pay and it is open. You can pay at anytime the remaining balance.
I will talk about these two last items in another article.
Once you had eliminated all your debts, please, do not get new ones. Save for the
item that you want to purchase. Remember you used to pay a huge amount of
money to your credit cards. If you keep the same lifestyle as when you were paying
off the credit cards,( now without debt), the cash used to pay the cards, can now go
towards savings or investments.
by: Carolina Paredes
Mortgage Broker Serving all areas of Alberta, Canada
www.ecmortgages.ca
Real Estate and Financial Tips 