Gurbinder Mander, branch manager of the North Delta branch of Envision Financial, a division of First West Credit Union, offers some advice on setting financial resolutions for the new year.
Nothing changes your financial situation like reducing debt. With interest rates trending upward in 2018, getting personal debt in a downward trend should be top of mind for British Columbians as they approach 2019.
Start by knowing your total debt
Do you really know how much debt you have? And how much of it is good debt and how much is bad debt? It’s easy to lose sight of how much total debt you have if you don’t take time to analyze it. At least a couple times of year, gather all your credit card and other loan statements to get a grip on how many loans you have and how much you owe.
Then, it’s all about strategy—and sticking to it. Pay as much as you can toward high interest debt, but make sure to continue to pay minimum payments toward all other debt. Be absolutely sure to avoid taking on additional debt—this only sabotages your debt reduction objective.
Seek help from a financial advisor if you feel overwhelmed with assessing your debt or creating a plan to manage it. A financial advisor can bring money management know-how into your debt situation and help you move toward solutions.