Did you know that more than 60% of Newfoundlanders and Labradorians live paycheque to paycheque? This means that many people take on debt to cover their spending and many find themselves feeling overwhelmed by debt. This financial stress can take a toll not only on the individual, but on their family and work performance. There is good news; you can reduce your debt and the financial stress that goes with it. First, add up your total debt to know what you are dealing with; many people have no idea exactly how much they owe. Next, rework your budget to ensure you can not only pay the minimum interest payment, but are actually reducing the principle. Find something that motivates you to stay on track, and use resources like budgeting apps or other tools to help. Lastly, and most important, speak to a professional. Seeking help is a big step and making the call the hardest part, but a Licensed Insolvency Trustee like myself can help you navigate your finances and put together a plan that will work for you and ensure you and your family are on the right financial footing for a healthy, happy future. Nancy Snedden is a Licensed Insolvency Trustee and can be reached at 1-855-839-2823.
Avoid these common money mistakes
(NC) Whether you’ve been working for one year or 20, it can be hard spending your money wisely and making sure you’re budgeting properly. Here’s how to make the most of your earnings and avoid the most common money mistakes:
Unnecessary credit. With a steady income, it’s easy to fall into the trap of taking on too much credit and then unpaid debt. Give yourself a few days to decide whether you truly need that latest gadget or big-ticket item. Plan for what you need and when you need it instead, and avoid costly impulse purchases altogether.
High interest, low credit rating. Credit card interest rates are high, so it’s important to pay off your balance in full each month. If you can’t pay the full amount, always make the minimum monthly payment on time, otherwise your credit score will suffer. All credit card companies (and other companies that lend money) report to credit reporting agencies each month. Your score affects your ability to borrow and negotiate lower interest.
Unpaid student loans. Follow a budget and be sure to set aside a portion of your income towards paying off your student debt and any other loans. Pay off this debt as quickly as you can and shift the focus to saving and investing in your future.
Consider working with a financial advisor to help find the right savings and spending balance for you. Find more information online at investorcentre.ific.ca.