When the clock struck midnight this last New Year’s Eve, did you set your sights on a new financial resolution? Maybe you want to pay off your student loans, your mortgage, or credit card debt. Maybe you’re dreaming of financial freedom in the form of saving for retirement. Maybe you want to start saving for your dream vacation once and for all.
Whatever your version of complete control over your money looks like, you need the proper tools and strategies to work towards your goals. If you are currently faced with a major hurdle of overwhelming debt, then you need to make debt recovery your number one priority.
Focus on Debt Relief
True debt relief can actually reduce the amount of unsecured debt by negotiating with your creditors. Does this sound like something you need? Simply check out this blog for information on debt relief strategies for those faced with insolvency. Living a debt-free life might not seem like a possibility if you’re living under financial stress from owing money to creditors, but a credit professional like a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) can help you see the light at the end of the tunnel.
Strategies to Overcome Insolvency
When you can’t meet your financial obligations, you might be thinking that the only way out of debt is through filing for bankruptcy. One commonly underestimated bankruptcy alternative is the consumer proposal, a form of debt relief that allows you to negotiate with your creditors to pay back a portion of your debt.
With the help of a bankruptcy trustee, you can come up with a consumer proposal that allows you to hold onto certain assets that you couldn’t retain if you filed for bankruptcy. In many cases, a consumer proposal is an excellent option for reducing your debt and keeping your credit score in better shape than if you filed for bankruptcy.
Save for a Vacation by Reducing Costs
Cutting costs and saving money go hand in hand, but it can be hard to pinpoint exactly which expenses you can trim from your spending. You’d be surprised to see just how much you can save by cutting back on your monthly food budget.
Without actually affecting how much you eat, smart food buying moves like buying in bulk, joining a food co-op, and purchasing more fresh produce will ultimately reduce your grocery bill. And as you save for an upcoming vacation, make a point to cut back on unnecessary treats and novelties that add extra calories to your diet and chip away at your budget.
Put Extra Costs on Hold While You Save
You can also focus your attention on monthly memberships that may be underused. You can save money on your workout by cutting back on your gym membership. You can trade in a monthly pass for a fitness app on your phone or at-home workout gear.
Check to see if your gym has a suspension program for memberships. You might be able to put your pass on hold for a few months while you’re saving for your trip without having to pay any extra cancellation fees. Gaining control over your finances is incredibly empowering and you should congratulate yourself for taking the first steps towards debt recovery. Things like a dream vacation can be more than just a dream with the help of a bankruptcy trustee to guide you on the path to financial freedom.
