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New Year?s Debt Resolutions

By Ross Stevenson

It’s that time of year again, where people look to get a fresh start and improve their lives. Many people do this in the form of New Year’s resolutions. Some of the most common New Year?s resolutions are:

• Improving personal health: some of the popular resolutions in this category are weight loss, quit smoking, exercise more, and drink less alcohol.
• Improving education:  such as obtaining a post-secondary degree, finishing high school, learning a new language or improving grades.
• Self improvement: Getting more organized, learning to cope with stress, and better time management are common goals people set for themselves.
• Getting a better job: Many people aspire to advance their career or change their career field.
• Getting finances in order:  save money and get out of debt are the most common.

If your New Year’s resolution is to get out of debt, there are some steps you need to take. The first step would be to make a summary of your debts and your significant assets, such as your house, car and RRSP.

The next step would be to make a budget. It is important that you make your budget realistic. You don?t need to get complicated; you can simply calculate the monthly family income and where your money is being spent each month.

The final step would be to set financial goals. Consider what is important to you and your family. Think about where you would like to be in the future.  It is easy to get distracted by the things going on in our day-to-day lives and we forget about what we want in the future. New Year’s is an excellent time to evaluate where we are and what goals we have for ourselves.

In order to be in control of your financial situation you need to summarize your significant assets, make a budget, and set realistic goals.

After you do these things, you can evaluate the advantages and disadvantages of all your options, which may include:

• Using your assets to deal with the debt, perhaps by selling your house, or your second car, or cashing in some of your investments
• Getting a debt consolidation loan with a financial institution
• Debt Management Plan
• Consumer Proposal
• Personal Bankruptcy

Which option is right for you? Start by using our free, on-line debt options calculator.

If your New Year?s resolution is to get out of debt and you would like to discuss your options, we are happy to help. You can phone us at 310-PLAN (no area code required), email us, or fill out our online evaluation.  One of our experts will contact you and go through all your options. This could be the Year you finally get out of debt, so contact us today, and let’s get started.

Full post as published by Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog on December 27, 2010 (boomark / email).