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When it comes to debt, many people dare not add up the amount they owe, or the total amount of their debt-related monthly payments. To do so would make it all too obvious that they have too much debt. Instead they focus on their ability to afford the monthly payments and skip on their merry way playing the business-as-usual game. And if they’ve been in debt long enough, that game may actually be easy to play.

But even if you do your best to avoid looking at your actual debt numbers, there are telltale signs in your behavior that will give it away in spite of your best efforts to ignore the problem.

You’re having trouble sleeping at night

Everyone has trouble sleeping from time to time. But if it is becoming a habit, it’s likely that your subconscious is trying to tell you something.

You won’t be able to sleep if you’re worried. It can even come in the form of “something is bothering me, but I don’t know what”. That something may be excess debt. On the surface, you try to block it out. After all, it isn’t an immediate problem. You may do this by immersing yourself in various projects, trying to keep yourself busy during your waking hours. But while you are laying in bed – with no activities to distract you – you subconscious may be keeping you awake.

The truly bad aspect about not being able to sleep is that it will actually magnify your problems, what ever they are. You’ll be adding fatigue to more tangible problems, like debt. And that will lower the chance that you’ll be able to deal with it in an intelligent manner.

You think about your debts – a lot

This is probably a better situation to be in than losing sleep – at least you’re consciously aware that you have a problem. Still, many people are aware enough to worry, but not enough to take constructive action against the problem.

You may even put on a happy face for others, but inside you are aware you have a problem. Continue Reading →

Making New Year’s resolutions is a time honored January tradition. The problem is that by February most of those resolutions have been broken and completely abandoned. But there’s one New Year’s resolution that you need to keep, that you cannot afford to give up on – and that’s paying off debt.

January is the perfect time to get going in paying off your debt.

A new year, a new approach

In truth, there’s nothing magical about a new year. It’s not as if you flip the calendar and all of the sudden life is different. It will only be that way if you make it so.

When it comes to debt a new approach is usually necessary. One of the fundamental problems with debt is that we can easily become comfortable with it. A small car payment, a long-term student loan debt and a few thousand dollars in credit card debt can easily become traveling companions in life. We’re so used to them that we hardly notice that their there. We pay them faithfully and get on with life.

The start of a new year is an opportunity to remedy that situation. Start right now to begin making extra payments on each of your loans, or even to start a debt snowball in which you begin to payoff the smallest balances first.

Last year’s debt overhang

Another factor that makes January a perfect time in paying off debt is that you usually carry at least a little extra debt from the holiday season. The holidays mean extra expenses for entertainment, gifts and travel, and all have a way of increasing debt levels.

In addition, if you’re self-employed or you work on commissions, the holiday season often brings a decline in income. The decline is often covered with credit card debt. There’s no problem doing that on a short-term basis, as long as you fix the problem after the fact.

That time is now – the holidays are over but the debts are still with you. Begin now to reduce those debts and eventually to eliminate them. The next holiday season will be here quicker than you know, and when it is you will be glad for having cleared the decks of last years debt. Continue Reading →

It’s so easy to get overwhelmed by debt, especially f you’re a young adult out there and are just starting off.  If you’ve graduated and your student loan grace period has ended, there’s a good chance you’re panicking about paying your loans back.

Combined with other debts you might have like a car loan and credit card debt, it’s easy to see only red on your balance sheet.  Debt consolidation loans in Ontario and other provinces can help with your specific situation by making your debt understandable and easily manageable.

What Are Debt Consolidation Loans?

Unfortunately, no one is going to pay off your debts for you.  A debt consolidation loan is simply a way to combine all of your existing debts under one umbrella.  Rather than worry about credit card payments, car payments, and automatic student loan withdrawals, everything gets grouped together so you only make one monthly payment towards your entire debt.

Why Debt Consolidation Loans Are Helpful

• One Monthly Payment – For anyone who feels like they’re drowning in debt, reducing all of that paperwork, confusion, and stress to one single payment can be a huge relief.

• Lower Your Interest Rates – Half the problem with dealing with multiple loans is the wide range of interest rates.  Your credit card balance might be relatively small, but the high interest rates can be frustrating.  A debt consolidation loan may be able to lower your total interest rate, thereby reducing the total amount of money you’ll pay in the end.

• Lower Monthly Payments – Having a single bill or multiple bills doesn’t really matter if you can’t afford any of them.  Your debt consolidation lender will be able to determine a monthly payment that works with your budget.  With this system you’ll not only be able to pay off your debts, but you should even be able to set aside a bit of money for an emergency fund or other savings.

• Eliminate Calls From Creditors – There’s nothing worse than feeling harassed by creditors who are trying to force you to pay when you don’t have any money.  With debt consolidation, you don’t have to deal with creditors anymore.  They’ll be paid on time via your monthly payment, and you’ll never have to worry about dodging their calls again. Continue Reading →