Read on to learn some of the ways being debt-free can change your life, and hear some expert tips to help you get there faster. As Canada’s only licensed debt experts, Licensed Insolvency Trustees help people every day who are looking for debt solutions, and we see many positive changes in our clients once they make the decision to take back control of their debt.

How Is Life Different, Debt-Free?

People often say that knowing what they do now, they wish they hadn’t waited so long to take charge and get help with their debt. Money isn’t the only thing that improves when you’re debt-free – your overall wellbeing can benefit too, including:

• The weight of debt-stress and worries or anxieties about your debt is lifted.
• You can stop feeling as though you are being controlled by your debt payments or creditors.
• Having dealt with your debt for good allows you to stop holding space for the debt and instead have space for your future, in your thoughts, plans and finances.
  • It’s almost impossible to think about your future goals when you’re juggling the financial pressures of daily life plus trying to manage high debt payments.
  • Taking debt out of the equation when you’re budgeting can hugely improve your cash-flow and make goals feel a lot more attainable.
  • Picture what even an extra few (if not several!) hundred dollars could do for you a month.
    • 30% of clients previously polled said being debt had previously caused them to put life events on hold.

Facing overwhelming debt can impact people in many negative ways, affecting our physical, emotional, and mental health, and even our relationships with other – and it can be very difficult to see there is light at the end of the tunnel when you’re weighed down by present challenges, or past misconceptions or self-blame.

Dealing With Debt

Your debt and the situations that may have caused it do not define you and are often due to circumstances or events outside your personal control. Money problems can happen to anyone at any time, regardless of your personal finances or financial literacy and money skills.

Many people “do all the right things” and still end up struggling financially, needing help to get out of debt – there is no shame in asking for help, you owe it to yourself.

You do have a future, and you are deserving of a fresh start, with life free from debt and its overwhelming stress. Please know that you are not alone – there are many other people facing similar challenges, and better still, there are solutions and professionals here to help you.

Debt Help Services for BC Consumers

Licensed Insolvency Trustees are Canada’s only debt help practitioners who are regulated and endorsed by the federal government to provide debt help. Sands & Associates is BC’s largest firm of Licensed Insolvency Trustees focused exclusively on debt management services and support for consumers and we offer our full suite of services in-person and online for residents across BC.

• At Sands & Associates it’s important to provide our expertise and advice in a way that’s clear and actionable, and to treat people with kindness, respect, and empathy always. We appreciate that it can feel overwhelming or intimidating asking for help, especially with such a personal issue.

8 Things Canadians Should Know About Debt Relief Services

Whether you know you have a debt problem or you’re hoping to find more effective ways of paying off debt, the best place to turn for debt advice is a Licensed Insolvency Trustee. Working with a Licensed Insolvency Trustee you can count on having a free, confidential consultation where you can get accurate professional advice, and an impartial representative that will help you weigh your full range of options. No referral or special qualifiers are needed – you can simply call or connect directly.

Consumer Proposals are Canada’s number one alternative to bankruptcy and can have many advantages over other solutions like consolidation loans and credit counselling programs. For example:

• The dual advantage of cutting debt and stopping interest makes the monthly payments in a Consumer Proposal often the lowest among debt management options.
• You’ll gain breathing room and legal protection from your creditors.
• With personal one-on-one financial counselling included in the process, you’ll have the opportunity to gain more confidence in financial literacy skills, improving your ability to control and manage your daily financial affairs, as well as gaining a better understanding credit and borrowing.
  • Many people also say they are more open in discussing money matters and even sharing their financial skills and knowledge with others after their experience working with a Licensed Insolvency Trustee.

We help with debt so you can move forward with your life; whether you need a total financial fresh start, debt forgiveness and creditor protection, or reorganization and structure to pay off your debt – we’re here for you.

Ready to get working on your debt-free future? Connect with a caring local Sands & Associates debt expert.

The post The Debt-Free Difference appeared first on Sands & Associates.

Read on to learn about the credit counselling and financial literacy resources available to individuals working with a Licensed Insolvency Trustee on a personalized debt-free plan.

Goals of Financial Counselling Sessions with a Qualified Insolvency Counsellor 

Licensed Insolvency Trustees help people deal with their debt, and if you’ve decided to work with a Licensed Insolvency Trustee on a debt solution like a Consumer Proposal (a special type of debt consolidation) or personal bankruptcy (a legal debt forgiveness solution), you’ll complete two one-on-one financial counselling sessions as part of either insolvency process – and there is no added cost to you for this service.

The “Insolvency Counselling Program” is intended to help people boost their financial literacy, gaining confidence in their ability to manage their personal finances, and provide tools and resources for ongoing future success in money matters. After completing a Consumer Proposal, or exiting personal bankruptcy, people have a financial fresh start and can move forward with their lives – debt-free.

Who is a Qualified Insolvency Counsellor?

The Licensed Insolvency Trustee who is ultimately responsible for your Consumer Proposal, bankruptcy, and related counselling sessions may lead your counselling sessions themself, but most often these private, one-on-one sessions are led by a Qualified Insolvency Counsellor who works closely alongside your Licensed Insolvency Trustee. This is a registered professional financial counsellor who has:

• Successfully completed a practical course for this unique type of counselling.
• Proven to and been registered by your Licensed Insolvency Trustee as possessing the necessary training, experience, knowledge, skills, and competencies to lead insolvency counselling.
• Completed ongoing professional development training every two years.
• Demonstrated that they are of good character.

Quality of care and service is of the utmost importance in these matters, and your Licensed Insolvency Trustee cannot register anyone as a Qualified Insolvency Counsellor who is involved with activities that may be a potential conflict of interest, or could potentially negatively impact the people they are counselling.

4 Questions to Ask When Choosing a Credit Counsellor

Financial Counselling Topics – Stage 1: Budgeting and Planning

Your first confidential counselling session with a Qualified Insolvency Counsellor will usually take place shortly after you file your Consumer Proposal or declare bankruptcy (somewhere between ten and 90 days), and this one-on-one session might be done in-person, or remotely via videoconference (or over the phone).

Budgeting is the focus of this conversation, and the goal here is that you’ll come away with information and support to help you create and maintain a functional household budget realistic for your personal situation.

• A balanced budget is an important financial tool, and every consumer should have one. Budgeting isn’t about restricting what you can and can’t do, it’s about making confident and thoughtful decisions about how you will use your income.
• No two situations are the same, and it’s important to consider and strategize the different components of your budget to find what works best for you and your household.
• In a Consumer Proposal your debt will be combined then cut into one consolidated (usually) monthly payment, (or in a bankruptcy most people pay a minimal administration fee), and this is typically a substantial reduction from the multiple payments you may have previously been trying to manage in your budget.

How Much Debt will a Consumer Proposal Eliminate? Learn More

This first financial counselling session is a great opportunity to work with a professional to fine-tune your new spending and saving plans, and maybe even learn some new tips and best practices. Your Counsellor will plan to review your budget together with you, and offer support such as:

• Mapping out a plan for record-keeping, and how you will track and check-in and evaluate your estimated VS actual income, expenses, and general budgeting in future.
• Developing strategies to adjust your budget, and for managing unexpected changes to your budget or impacts to your income.
• Addressing any other circumstances or financial difficulties you may want extra guidance on or support / resources for.

Financial skills take time for everyone to learn, and there are often some trials and errors along the way. Once you’ve got a solid understanding, you’ll be in that much better a position to make well-informed and confident decisions about money matters that impact you and your family.

Consolidating Debt with a Consumer Proposal: Step-by-Step

• As well as these two credit counselling sessions that are done as part of completing your Consumer Proposal or bankruptcy, there is an optional self-directed online learning program available to help you get the most out of this opportunity for individual learning and support.
• The online modules offer an introduction to the topics that will be covered in depth during these private sessions, and if you’re able to become comfortable with some of these materials before your sessions, you’ll have more time for tailored resources and support with your Counsellor.

Financial Counselling Topics – Stage 2: Goals, Spending and Credit 

Your second one-on-one session with a Qualified Insolvency Counsellor is done at least 30 days after the first, and again may be done in-person, or remotely. While the first session was all about budgeting stages, strategies, and tools, this second session focuses on your future planning and providing you support to continue moving forward with (debt-free!) success.

Your Counsellor will check in with you about how you’re doing with your Consumer Proposal (or bankruptcy), your new budget, and together you’ll review several other key financial literacy topics, which include:

• Financial goal setting
  • Why, and how to set SMART (specific, measurable, achievable, relevant, time-bound) goals.
  • Specific support in creating a plan to achieve these goals.
  • Strategies to help you meet your spending and savings goals.
  • Identifying, avoiding, and mitigating potential financial risks that could get in the way of your future financial success.
• Spending habits
  • Practical ways to prioritize spending, and spending systems.
• Using and managing credit as a tool
  • Best practices for using credit well.
  • Considerations and questions to ask lenders before borrowing.
  • Breaking down and comparing the costs of borrowing.
  • Types of credit that are considered high-risk.
• Understanding credit scores and reports
  • Establishing a responsible credit history and habits.
  • How and when to check your credit history reports.
  • Steps you will want to take after your Consumer Proposal (or bankruptcy) is complete.

A lot of people worry they have no way to get out of debt – or that by working with a Licensed Insolvency Trustee they may compromise their future financial goals or ability to get credit in future, but the reality is that with options like Consumer Proposals, or even bankruptcy, most people are able to get to debt-free much sooner than if they were to continue trying to chip away at their debt on their own.

The financial fresh start of these processes allows individuals a means to take back control of their finances and make the most of their income. Without the constant nag and weight of burdensome debt, not only to personal finances, but wellbeing, there is much more space to look to the future with optimism.

Meet some of the people whose lives have been changed working with Sands & Associates

More About Debt Help Services from BC Licensed Insolvency Trustees 

Getting confidential debt advice from a qualified expert couldn’t be easier – simply reach out and contact a Licensed Insolvency Trustee local to your area. All Licensed Insolvency Trustees offer a free confidential consultation where you’ll have opportunity to better understand your situation and explore ALL your options.

Sands & Associates serves all of BC and offers our full suite of debt help services in person at local offices throughout the province, as well as over the phone or video conferencing.

• Take an hour and talk with a Licensed Insolvency Trustee; we can give you a debt-free plan that works for you and your unique situation, and, as Canada’s only appointed debt help professionals, offer you additional resources and insights you may not otherwise be aware of.
• No referral is necessary to connect with a Licensed Insolvency Trustee. If you are asked to pay any referral fee this should be a warning you are not talking with a Licensed Insolvency Trustee.

You Are Not Alone in Dealing with Debt – We Are Here to Help You 

You do not need to be behind in your debt payments to seek professional debt solutions or use a Consumer Proposal to consolidate your debt. In fact, many people we work with have never missed a payment and hold a good credit rating, but realize that at their current rate of repayment, they will be facing years or decades of debt payments.

If, however, you are dealing with a serious or urgent financial issue such as a creditor who is threatening you with legal action for a debt, or already garnishing your wages, we can work with you to quickly implement a solution that will stop these collections immediately.

Learn More About Wage Garnishment

Some questions or concerns we commonly address include (but are certainly not limited to):

• Debts are generally worrying you, or your household is being negatively impacted by debt.
• Your monthly debt payments aren’t enough to pay off your (non-mortgage) debt within five years.
• Ways to consolidate and/or cut debt.
• What options exist to deal with a specific creditor or whether a debt is collectable?
• How you can get debt relief or forgiveness by your creditors.

You don’t have to try to interpret all your rights and remedies to deal with your debt, a Licensed Insolvency Trustee is your go-to resource, and we provide safe accurate advice and information to consumers every day.

Many people feel embarrassed about their financial situation, or worried about being judged or even scolded about having difficulty managing their debt; please, know that Sands & Associates is a judgment-free zone.

We believe that a money problem can happen to anyone at any time, and that everyone deserves the opportunity for help and a financial fresh start to move forward and live their best life! You owe it to yourself to get debt help, and we are here for you.

Connect with local debt experts who care – book your free, confidential debt consultation with Sands & Associates today.

The post Financial and Credit Counselling with a Qualified Insolvency Counsellor appeared first on Sands & Associates.

What Could Make a Debt ‘Good’ or ‘Bad’?

Although some people might argue that having any type of debt is bad and should be avoided, the reality is that credit is a tool and there are times when borrowing does make sense – usually this is when debt is taken on with the expectation of a significant future benefit, a way of investing for the long run. Here are a few common examples of when using credit might be considered helpful ‘good’ debt:

• Buying a Home: Since housing is a necessity and you are investing and building equity in a property that would be expected to increase in value over time, taking out a mortgage is often considered useful debt.
• Paying for Education Costs: Student loans to fund education that establishes or boosts your career is another type of potentially beneficial borrowing if you expect to get returns with increased future earnings.
• Starting Your Own Business: A loan to launch or expand your business can be a useful tool in pursuing profitable growth.

‘Bad’ debt isn’t necessarily bad, but this term usually refers to credit used either for fast consumption or for spending that provides only a brief benefit. Here are a few examples of this type of short-term benefit debt:

• Vehicle Financing: It’s difficult for most people to purchase a reliable vehicle outright, and taking advantage of credit isn’t always a bad thing, but borrowing to buy a car can have downsides:
• Vehicle values begin to depreciate immediately after purchase, so you often owe more than what the vehicle is worth for some time – especially if you don’t make a significant down payment when you buy.
• Car payments can take up a sizable amount of your household budget, and financing terms can regularly extend to over six years.
  • Be careful financing a vehicle with a co-signer. Many people fail to realize the full commitment of joint vehicle financing because the other party plans to be the primary insurer and driver.
• Consumables Bought on Credit: With high interest rates (especially on store cards), charging your credit cards for household goods and purchases you don’t have the cash for is seldom a good use of credit. These goods hardly ever have enduring value and if you don’t pay off your balance in full right away, the true cost climbs very quickly.

Ways to Deal with Credit Card Debt

Consider Your Personal Finances and Circumstances

Your personal situation and specific circumstances are also a key factor when evaluating your debt load or potential future debts. Consider the following:

Can you consistently afford the payments required to repay the debt on time, and in full? Even a useful debt can end up a ‘bad’ debt if you can’t afford the payments.

• Take a mortgage for example: This can be a huge problem if you borrow too much or experience an increased interest rate such that your regular monthly payment becomes unaffordable.
• Student loans can later be a problem if you borrowed heavily but don’t get the expected increase in earnings.
  • Always be careful not to borrow more than you need and take time to carefully research the career ladder realities of courses of study you are considering.

Why are you borrowing, and what emotions are you experiencing in relation?

• Always consider your needs VS wants and don’t emotionally justify your spending.
  • Are you using credit for a true ‘must-have’, or could this be a ‘want-to-have’ that you’re feeling emotionally caught up in?
• Avoid impulse purchases, especially if you are borrowing to acquire them.
• It can be difficult to get into a new habit of scrutinizing purchases you’re considering – don’t be pressured or swayed by advertising, whether sales or credit offers.

What’s the Best Way to Consolidate my Debt?

Pros and Cons of Using Credit – and Tips for Using Credit Well

No matter what debt you are taking on there can be pros and cons, many of which will be strongly influenced by how you use your credit. Some pros of credit may be:

• Not needing to wait to save up cash needed for major goals (like education or buying a home)
• Earning perks and rewards on day-to-day purchases you were going to make anyways
• Building a positive credit history that can help with future borrowing at ‘best rates’

Having credit as a resource to help with unexpected expenses may be a ‘pro’ but understand this can quickly turn into a ‘con’ if you struggle to pay the debt off – especially since the impacts of an emergency can disrupt your finances for some time. Other common cons to credit may include:

• It costs money to borrow because you pay interest. For example: Credit card interest increases the true cost of purchases if you don’t pay the charge off in full right away.
• Debt repayment takes money away from yourself now and in future, leaving you less for other needs and goals.

Good Habits for Using Your Credit

It’s a good idea to hit pause and take time to get grounded before moving forward with purchases made on credit. Detach from the excitement and feel-good rush of buying; check in with the realities of your budget and financial goals. Realizing that new debt repayment will set your finances back in other areas can be sobering. Using credit to your best advantage, you might also consider habits such as:

• Keeping borrowing limits low to avoid the temptation of using more than you need (or can afford).
• Not using credit for transactions that don’t have an interest-free grace period, such as cash advances or lottery ticket purchases.
• Always paying more than the minimum monthly payments required on your credit cards.

It’s also essential to ensure your budget is well-balanced and that you have a solid plan for paying off your debt. Without either of these you’re likely to struggle with virtually any type of debt, even the ‘good’ ones.

7 Signs You Should Deal with Your Personal Debt – Now

Where Can I Get Help With my Debt, or Advice on my Debt Situation?

Licensed Insolvency Trustees are the professionals in Canada who are fully government-qualified, empowered and endorsed to help people with debt. We can assist people with many different debt needs and circumstances, including (but not limited to):

• General information on all your formal and informal options to deal with debt
• Addressing urgent situations or creditor conflict (i.e. Wage garnishment, legal action, etc.)
• How you can restructure or consolidate debt to make payments lower
• You’re interested in some form of debt forgiveness or debt relief

Sands & Associates’ Licensed Insolvency Trustees work with people across BC, and we offer our services in-person from local offices throughout the province, as well as online or over the phone, so you don’t even have to leave the comfort of home to get support.

There is no cost to get confidential debt advice and insights about your situation; we believe everyone should have confidence in their personal financial planning and how they are managing their money.

Preparing for Your First Meeting with Sands & Associates? Learn More

You Owe it to Yourself to Get Debt Help

A lot of people who are struggling to manage their debt feel guilty about the debts they accumulated, and often have a lot of embarrassment and shame around being unable to pay them off.

The idea of discussing your situation with someone who is essentially a stranger, professional or not, can be uncomfortable – and taking the first step of reaching out for help is often the hardest part.

Having a debt problem does not make you a bad person. Financial challenges are not a reflection of your self worth. You deserve to live with dignity and without overwhelming stress.

You do not have to struggle alone with your debt. We understand that despite your best efforts and intentions it is not always possible to repay your debts as planned, and there are options to help you deal with your debt in a way that is manageable and affordable so you can move forward with your life.

Connect confidentially with a friendly local expert – your debt-free future could be closer than you think! Book your free, non-judgmental consultation with Sands & Associates today and get a debt-free plan that’s right for you.

The post What’s the Difference Between Good Debt and Bad Debt? appeared first on Sands & Associates.

Read on to learn more about why prioritizing a debt management plan is important for both financial benefits and for our overall personal wellbeing, and some expert tips on how you can get out of debt faster.

4 Reasons to Get Out of Debt Now

Whether you need inspiration for action, or motivation to keep going – here are some key reasons why focusing on addressing debt should be a high-priority goal for almost everyone:

1. Debt is Expensive

Any time you carry a balance on credit there’s going to be a cost, and when you factor in interest charges, financing fees and more, debt can become outright unaffordable (especially in the long-term).

What’s more, when you owe money it can feel as though your creditors are in charge of your financial wellbeing since you can be impacted by interest rate hikes, policy changes, or even have your rates bumped-up if you miss a payment.

Debt gets particularly expensive if you’re carrying balances from:

• Credit cards
  • Be especially aware of the added expense of using cash advances and/or enrolling in balance protection insurance.
• Payday loans
  • A 2-week payday loan can equate an annual percentage (interest) rate of almost 400%!
• Canada Revenue Agency debt
  • Daily compounding interest plus penalties can add up fast on things like outstanding tax debt.

Learn About Solutions to Deal with Government Debt

2. Maximize your Income

Borrowing means taking money away from your future self, and carrying debt prevents you making the most of your income. Think of all the different uses you could have for your money that is unfortunately going to pay even a few hundred dollars’ credit card balance each month.

Unpaid balances (especially on credit cards) can lead to everything from tight budgets to seriously strained challenges in meeting costs of living, and the claim on your future earnings might stop you from moving towards other goals that would require that cash commitment (like investing in retraining or education or saving for a home or retirement).

3. Improve your Credit Score

Although many debt experts caution that your credit score shouldn’t be your major focus, if you have a future financial goal such as getting a mortgage in the next few years, it is worth noting the benefit of being debt-free as it relates to your medium-term financial plans.

Clearing your debt can make it easier to borrow for important things you want – and can enable you to do so at “best” interest rates and terms. Being debt-free helps by:

• Freeing up your ‘credit utilization’ ratio (essentially the proportion of your credit limit you are regularly using – lower is better).
• Giving you the time and ability to boost savings.
  • Although savings aren’t reflected in your credit score, having sizable savings can certainly improve a lender’s consideration when you apply for credit.

Remember, your credit history is regularly updated and scores are simply calculations at a moment in time that can change dramatically in a relatively short period. Credit scoring is not an exact science nor reliable as a measure of financial health – and sometimes what can lower your score temporarily is a beneficial strategy in the long term.

Why are Credit Ratings the Wrong Indicator of Financial Health? Learn More

4. Stop Debt-Stress

Whether you’ve experienced a cash-crunch moment or regularly have finances on your mind, being in debt can create a near-constant undertow of anxiety and/or worry; money matters can impact us tremendously, financially, emotionally, even physically. Getting to debt-free can help us to:

• Stop constantly thinking about debt, improving peace of mind and even our overall health and relationships with others.
• Allow us space to enjoy and get more of the things we want (whether to do or to have), without accompanying guilt.
• End debt-stress and the mental nag of monthly payments.

When Isn’t Paying Off Debt a Priority?

There are of course exceptions to every rule, and there may be a (very) few instances where a person would want to continue making their debt payments but focus some of their extra cash into other areas, even temporarily.

This strategy may be the case in scenarios such as where:

• Your debt is essentially down to just your mortgage and you need to focus on retirement funds.
• Where the interest rate on your debt is very low and you have no emergency savings.

Save Money or Pay Down Debt?

Having savings is important – and at minimum we recommend consumers should generally aim to at least have a modest emergency fund set aside. Without even a small cushion of savings many people end up relying on credit to cover unexpected costs that inevitably come up.

• Start small – if you can – even having $1,000 in savings can make a difference in a cash-crunch (car repair, dental emergency, unexpected day off work, etc).

Unfortunately, having a surplus cash-flow that allows you to even temporarily set money aside to accumulate savings can be almost (if not completely) out of reach for some people. If you’re in a situation where your debt payments are leaving you straining to meet your costs of living, or unlikely to pay off your debt in the next 5 years, seek a Licensed Insolvency Trustee to get some debt advice and learn about your options for debt management.

For example: If you can afford to repay part of your debt, a Consumer Proposal can be a great way to substantially cut your monthly debt payments, freeing up room in your budget for savings and more.

Try the “Rule of 60” math:

• Divide your total non-mortgage debts by 60 – does the number look like a monthly payment you could consistently afford to pay so that you can have all your debt paid off in 5 years?

Compare the Monthly Payments of 4 Common Debt Options

A Common Debt Payment Trap to Avoid

Many people end up essentially trapped in a debt cycle of borrowing, paying, then re-borrowing.

It may not be obvious, but sometimes simply keeping up with your debt payments won’t be enough to successfully pay off debt or keep a debt problem at bay. One common area of concern we often see people stalled in is “the minimum payment trap”.

• Getting comfortable with making just your minimum monthly payments, especially on credit card debt, is risky and many people can get stuck in decades-long debt repayment cycles, not really making meaningful progress towards being debt-free.
• Your minimum payments on a credit card could be contributing very little per month to reducing your debt load, with the rest of your payment going to (ongoing) interest charges and fees.
  • Be aware that new interest charges can easily outpace your payments and even push balances past your credit limit – from there finances can unravel quickly.
  • Check your credit card statement to see how long it would take you to pay off your balance only making minimum monthly payments.

Over 3 in 5 Sands & Associates clients surveyed said “overwhelming stress” was how they eventually knew their debts were a problem. “Only making minimum payments” and “Accumulating more debt” were two other top-reported signs of a debt problem. – 2020 BC Consumer Debt Study

Strategies and Solutions to Get Out of Debt

If you have an income-to-debt ratio that is favourable (ie. higher income with lower debt levels), you may consider one of these first two payment strategies to help you pay down your debt:

• Focus on Highest Interest Debts First – The idea with this strategy is to save money by reducing interest charges where possible.
  • List all your debts, with the highest interest debt at the top.
  • Make all your monthly payment requirements across all your accounts but focus extra money you’ve identified in your budget towards the debt at the top of your list.
  • Once it’s paid off, move your extra payments on to the next one.
• Focus on Smallest Balance Debts First – If you do well being motivated with adding up all the small victories, this might be a different debt strategy to consider.
  • List all your debts, with the smallest balances at the top.
  • Again, make all your payments but focus extra funds on the smallest balance debt first.
  • Once it’s paid off, keep the ball rolling…

For those who want or need to take a more proactive approach to debt management – consider consolidating with a Consumer Proposal so you can:

• Consolidate virtually all types of debt without borrowing
• Save money by cutting debt by up to 50-80%
• Get breathing room from creditors and protect your assets and income
• Simplify your finances AND generally have the lowest monthly payments possible
• Have a definite date of being “debt-free”

How Much Debt Will a Consumer Proposal Eliminate? Learn More

As debt management professionals we are all too aware that unfortunately some strategies and actions can end up creating additional challenges, and often simply drag out the overall stress of the situation.

Many people pursue various debt strategies on their own such as:

• Borrowing from friends or family
• Applying to extend credit limits or get consolidation loans
• Using assets to pay down debt

It’s important for Canadians to know there is no cost to connect with a Licensed Insolvency Trustee for a confidential debt consultation so you can make an informed choice about how to deal with your debt.

• We can help you regardless of your credit score, and consultations to talk about your situation, answer all your questions, and assess your options are always free. We’re here to help you find your best solution to get on track, meet your goals and become debt-free for good.
• Sands & Associates can even work with you over the phone or via video conference, so you can get support from a qualified professional without leaving the comfort of home.

Whether you’re facing a difficult situation with your debt, want to explore options to cut debt, or pay off your debt with a guided debt-free plan – connect with a Licensed Insolvency Trustee to have a confidential debt consultation and get unbiased professional advice about all your options.

Got an hour? It could take less time than to get a debt-free plan that changes your life. Connect with a caring Sands & Associates debt expert today – book your free, non-judgmental debt consultation.

The post Is Being Debt-Free Your Top Financial Priority? It (Almost Always) Should Be appeared first on Sands & Associates.

Personal Debt Assessments – Why & How

Just as it’s a good idea to have a regular check-up with your doctor and dentist, and routine maintenance done on your vehicle, checking in on your finances is key to keeping on top of money matters. Without a regular check-in it can be all too easy to simply navigate on financial “auto-pilot” and not recognize when things are headed for trouble, particularly when it comes to debt.

How Do you Feel About your Debt?

First and foremost, set aside “the numbers” – you are often the best gauge of your own financial health. If you’re feeling any of the following in relation to managing your debt or overall financial situation, it may be a clear sign that it’s time to seek professional debt advice:

• Overwhelming stress about your finances
  • This debt-stress often manifests with physical, emotional and/or psychological impacts
• Worry, anxiety or fear about money and debt
• Alienating yourself from family or friends due to embarrassment or stress about spending or debt
• Ongoing arguments with your spouse or partner about money
• Constantly thinking about your debt

Many people find themselves frustrated trying to get to debt-free, and often feel as though their best efforts just haven’t been enough to pay off all their debt. In our experience as Licensed Insolvency Trustees, a debt-cycle or money problem can happen to anyone and there are many factors and events outside of our control that can derail even the best laid plans.

Although it might initially feel defeating to ask for help, a Licensed Insolvency can be a great resource to you in clearing debt and meeting your debt-free goals. At Sands & Associates we take a non-judgmental and supportive approach to debt help services – you can even connect with one of our friendly debt help experts from the comfort of your home. Book your free debt consultation here.

When it comes to “on-paper” tactics, you can start your personal debt assessment with the following:

Check Your Credit History

Even though it’s generally recommended to review your credit report about once a year, this is a financial chore that often falls by the wayside. From inaccuracies and errors to fraud and other surprises, an unkempt credit history can be hiding a lot of financial hassle – don’t get caught unaware!

There are two main credit bureaus in Canada: Equifax and TransUnion. It is a good idea to check your reports with both since one may have different information than the other. There are a couple of ways you can access your credit report:

• Online: By visiting the website of Equifax you can complete a request to have your credit history reports mailed to you (recommended), or for a cost you can access your credit history reports online. For TransUnion, you can complete requests to obtain your Consumer Disclosure.
  • If you opt for this route, make sure you’re not inadvertently signing on for subscriptions or information that has a cost – different “packages” that contain additional information will be available for purchase. You only need to see the basic credit history report or Consumer Disclosure, which is free.
• By mail: You can fill out and submit forms to request a copy of each of your credit reports be mailed to you. You can obtain copies by mail for free once a year!
  • You’ll need to fill out the request forms in entirety, attach necessary identification documents and either mail or fax the request form to each credit bureau. Alternatively you can call either agency to request copies of your credit reports be mailed to you.

Though it may seem surprising at first read, one thing you DON’T need in evaluating your personal debts is your credit score, as outlined in further detail below.

Your Credit Score

A credit score alone is not an accurate rating of your financial health and cannot be relied on to gauge your finances on a daily basis. It’s also important to note that whatever credit score is calculated by the credit bureaus, each lender uses their own set of calculations to calculate a credit score for their purposes which could be quite different than the score you are able to access directly from Equifax and/or TransUnion. Also consider the following:

• Person A has what they would consider an optimal credit score and makes their minimum monthly payments on time, keeping their account in good standing – but they can’t afford to pay off their debt outright, nor will they be able to have the balance to zero even in the next 5 years.
• Person B has just finished a personal bankruptcy proceeding and, therefore, immediately following the personal bankruptcy, Person B’s credit score will be poor. However, they’re now debt-free and can start to rebuild and accumulate savings because of the “reset” the bankruptcy has provided.
• And then there’s Person C who has only one credit card, which they use only infrequently as they often pay cash for purchases and always pay any balance in full each month. Having a minimal credit history makes it difficult for lenders to assess their “lendability”, therefore they have a lower score than a person who may juggle multiple accounts.

Quite often despite good-standing credit, lenders determine that a person is essentially maxxed-out, meaning that “good” credit score may not provide much (if any) advantage when it comes to assessing your progress in paying off debt. It’s also important to know that a credit score can change rapidly.  People often go from very poor credit scores immediately following a bankruptcy to having rebuilt credit sufficiently to qualify for a mortgage if desired in as little as two to-three years following the conclusion of their insolvency proceeding.

Calculate Your Debt-to-Income Ratio

Your debt-to-income ratio is a personal finance ratio often used by lenders when you’re applying for credit, but it is also a measure that can be useful for you to see just how “affordable” your debt-load may be. Here’s how to find your ratio:

1. Add up your gross (before tax) monthly income
2. Add up your debt payments plus monthly rent or mortgage payment as well as child support you may pay
   • Rent/mortgage
   • Credit card payment
   • Student loan payment
   • Car payment
   • Other monthly debt payment
3. Divide the total of your monthly debts by your monthly gross income and multiply by 100. This percentage is your debt-to-income ratio.

Some experts suggest that your total debt payments (including a mortgage) should add up to no more than 35-40% your gross monthly income. If you’re not a home owner and are looking at this ratio with money owed on debts other than mortgage debt (but including credit card balances, vehicle loans etc.), then the recommended consumer debt payments are no more than 15-20% of your gross income.

• It’s important to remember many guidelines are primarily for lenders in gauging whether or not to issue you credit, with the thought that low debt-to-income ratios indicate a person is more likely to manage their monthly payments well and repay the debt over time.
• When it comes to the question of “how much debt is OK?”, the answer to that largely depends on your personal circumstances. An “ideal” debt-to-income ratio for you personally may be much lower than for a lender.

Consider how much of your income is going towards servicing your debt, as well as your housing costs. A high debt-ratio may be an early indicator that your debt load has the potential to become unmanageable – be wary if debt is taking a significant amount of your income as this can indicate a highly risky overall financial situation.

From records to credit scores – What You Need to Know After Making a Consumer Proposal

Do you truly know where all your money is going? Whether you are trying to achieve your debt-free goals, or are already there and wanting to maintain your financial health, having a balanced budget is key:

Check in With Your Budget

One of the biggest mistakes people make when it comes to budgeting is simply not comparing their estimates of what they will bring in and plan to spend with their actual incoming and outgoing funds.

• A successful budget should be tracked, checked and revisited regularly. For many people this will be part of an ongoing monthly plan.
• Though putting money aside for savings often comes last in terms of priorities, it’s important to know that savings can be a major advantage during a financial emergency. Consider the following:
  • Do your income, household expenses and debt payments leave you enough room for: emergency savings, retirement needs, other financial goals (vacation, large purchases, etc.)?
  • Set up automatic withdrawals to a savings account (even if it’s a small amount) each month so you’re saving something.

Although any type of debt be difficult to manage if you find yourself in a position where you can’t make your payments, not all debts are created equal in terms of urgency if you are struggling to maintain payments. As outlined below, certain debts have a much higher risk of compounding into an ongoing problem if they go unpaid.

Types of Debt You Carry

When you assess your debt consider and categorize with some of the following in mind:

• Provided they are affordable, debts you incur with the expectation of a future benefit such as a mortgage on your home or a student loan to pursue a career.
• Debt you incur for something that loses value or benefit quickly. A common example would be non-essential credit card purchases where you will carry a balance.
• Many debt management professionals caution that two types of debt that could be considered “urgent debt” and potentially a sign that you may be headed towards financial trouble:
  • Payday loans (and/or instalment loans through “payday loan lenders”)
  • Government debt (taxes, outstanding student loans, etc.)

What Can You Do About Government Debts? Here’s what you need to know.

As well as how much and the types of debt you have also consider your:

Payment Habits

Are you able to make all your payments on time, every time – or has your personal financial situation left you falling into (or near) warning-sign habits such as:

• Shuffling money from one credit account to another (ie., Taking from one credit card to make a payment on another).
• Trying to ignore your debt, or avoiding account balances (or hiding them from your partner).
• Accumulating more debt:
  • Relying on credit to meet day-to-day living expenses.
  • Considering (or already) using payday loans.
  • Taking on more/new debt while you are working on paying off a consolidation loan.

One payment distinction that should NOT be taken as a measure of success:

Only Making Minimum Payments

As a direct result of high interest charges and fees, only making your minimum monthly payments on credit card or line of credit debts often means you’re stuck in a debt repayment cycle that can last for many years and stop you from truly making progress towards being debt-free. Even a small $1,000 balance on a credit card that charges 18% interest could take up to 10 years to pay off making just the minimum monthly payments due!

Try doing the “Rule of 60” math:

• Divide your total non-mortgage debts by 60 – does the number look like a monthly payment you could afford in order to pay your debts off in 5 years?
• If that 5-year figure barely fits your budget (or not at all) then you may benefit from restructuring your debt working with a Licensed Insolvency Trustee to put together a debt payment plan.

Whether your debt-free goals feel within reach or seem too far away to imagine, know that you are not alone – Sands & Associates is here for you if you need professional debt advice at any point. BC residents can access qualified government-endorsed debt help services by connecting with a Licensed Insolvency Trustee (no referral is needed) and confidential debt consultations are always free. Our caring debt management specialists across the province are here to help with non-judgmental advice and solutions.

Get professional help assessing your debt and explore all your options for becoming debt-free – knowing is not owing! Book your free confidential debt consultation with a friendly debt expert today.

The post Personal Debt Check-Up: What to Look for (and What to Ignore) appeared first on Sands & Associates.

Budgeting Best Practices & Tips

Having a balanced household budget that’s working for your personal situation is a major foundation of having control over your finances. No matter what your level of income, without a monthly budget it’s next to impossible to meet your financial goals, let alone keep debts in check.

How to create and live within a budget is not something that anyone automatically knows, but it is a key financial skill with which everyone should get comfortable and confident. Money management concepts take time to learn and develop, and since finances are often a topic that people feel uncomfortable discussing (or feel they aren’t fluent enough in to teach) – many people simply don’t have detailed financial conversations growing up, resulting in a lot of trial and error in adulthood, often translating into financial stress.

The following tips are aimed at helping you implement some general budgeting “best practices” – whether you’re struggling to make your budget work or already have a personal budget that you want to take to the next level in paying off debt.

1. Leave Room for Flexibility

It’s important to be realistic with your budget. While you should have a basic spending plan structure, your budget should also be flexible enough to let you have some room for a general spending allowance to cover a reasonable amount of unforeseen, but often inevitable, costs each month.

• Much like a too-strict diet, telling yourself you can’t have any room for things like general entertainment or “fun spending” is likely setting yourself up for failure. Leave yourself some slack in your budget but commit to staying within the spending limit you’re allocating to this category.
• If this is an area you find challenging you may want to try using cash for more discretionary categories such as ‘dining out’ or ‘entertainment’. It can be much easier to make discerning decisions when you can physically see how much money you have left.
• Although staying on track will inevitably mean saying no from time to time, budgeting is intended to be a tool, not a punishment or restriction – use it to your benefit and allocate your funds where they will be to your advantage.

2. Spend Windfalls Only Once (and Well)

Whether an extra injection of cash into your bank account may or may not be anticipated, many people often don’t have a clear plan on how best to use money from things like an employment bonus, working overtime, or credits like a tax refund – any funds that fall outside your “usual” income. Without having a clear plan, it’s possible to ‘over commit’ on these funds and even spend more than the windfall received, leaving you in a worse financial situation.

While you might decide to make a large purchase or perhaps use some of the money as a reward, it’s a good idea to at least allocate a portion of those unplanned funds for some type of long-term benefit (not to mention the fact that you’re more likely to avoid feeling regretful).

Be sure to carefully consider how to use these types of funds, remembering that this is generally not just “free money”, but rather funds you’ve earned. Avoid feeling guilty by spending smart – and above all, only spending it once!

• Could you use this money to bulk up your emergency savings account, make extra progress on one of your financial goals, get prepared for an annual expense that’s coming up?
• How about starting an RESP, making an extra debt payment or investing in yourself by taking a course or learning a new skill? 

3. Break Down Annual Costs

Has holiday spending snuck up on you before? What about annual insurance renewals or semi-regular medical or dental costs? Vehicle maintenance or vet check-ups? Professional dues or other memberships?

Your monthly budget should incorporate setting aside funds for irregular expenses, helping to keep big yearly (or even semi-annual) costs a manageable expense away from your credit card.

Revisit your past spending patterns and, once you’ve got a clear handle on those annual recurring costs, simply break them into a monthly expense and set up an automatic savings transfer so that what you need to set aside is done without you feeling inconvenienced or being left short when the expense comes due.

Learn About Borrowing and Non-Borrowing Debt Consolidation Options in BC

4. Have Separate Savings Accounts (and Goals)

From the financial stress reduction of knowing you’ve got some cushion in case of emergency to the excitement of planning for big-ticket items like a vacation or new vehicle – there are countless reasons why saving money is beneficial. Take some time to come up with a few savings goals for yourself!

• Make it easy to “pay yourself first” with automatic savings transfers arranged through your bank and be sure to keep your savings money separate from your day-to-day chequing account. Good intentions to put “leftover” money into savings can easily become overshadowed by other costs.
• You don’t have to be restricted to just one savings goal or single type of savings account either. Depending on your goals you may find it advantageous to have multiple savings accounts to keep your earmarked funds separate.
  • Be sure to find a bank and account that’s working for you (and not the other way around) and that your accounts are suitable (and convenient) for how you bank. Unnecessary bank fees can really add up and free banking options are easy to find with a little research!

Even if you’re working on getting out of debt, you should still aim to have some money saved. Having savings can make a big difference both short and long-term if you can cover an emergency instead of needing to rely on credit.

5. Keep Track and Check In

Be sure to track your income and expenses and measure these “actual” results against what you had “projected” in your budget. Mapping out a spending plan is an important step in keeping control of finances, but not every month will be exactly the same, and you need to know where your money is going. No matter how long you’ve been working with a particular budget, periodically check-in to see how everything is working for you – you can also anticipate needing to make adjustments from time to time.

For example, you might realize you spend more on transportation costs than you initially thought or find out that every month part of your grocery allowance is actually going to dining out. Remember, you’re the boss here, so modify allocations and categories as needed to keep your budget as accurate as possible. Evaluate areas such as:

• Are there gaps in what you anticipated for income?
• Are the expenses you’re paying on par with what you budgeted?
• Is an expense you previously considered irregular coming up more often than you thought?
  • Do you need to add something to your list of “annual costs” to plan for?
• What larger costs are coming up in the next 6-12 months?
• Are your saving account balances where they should be?

There’s no right or wrong way to track your expenses, so long as you’re holding yourself accountable. You might keep it “old school” with pencil and paper, use a cash/envelope system, update a spreadsheet or opt for an app – whatever works best for you!

Particularly in the beginning, don’t beat yourself up or allow financial anxiety to take over if you’re off-budget. It could take a month or three to adjust to a new budget, especially if you’re looking at some major money changes or trying to change some long-entrenched spending habits.

If you have a spouse or partner be sure they’re involved in the household spending plan too. It’s easy for one person to become overburdened juggling the household’s financial affairs and paperwork alone.

My Spouse is Filing for Bankruptcy – Now What?

Budgeting Trouble Paying Off Debt

Debt payments can be a difficult (and frustrating) part of any household budget. If clearing credit card or other debt tops your financial goals, here are some key areas to watch out for when it comes to paying off debt and kicking debt-stress for good:

• Only Making Minimum Payments

Getting comfortable only making minimum payments each month is risky. Although your accounts are being paid up to date it’s easy to fall into the false sense of achieving progress on paying off debts because you are making monthly payments. In reality, you might be on a 50/80/100 year payment plan without even knowing it. Do not mistake minimum payments for substantial progress in paying down debt.

• Your minimum payments on a credit card could be contributing very little per month to reducing your debt load, with the rest of your payment going to (ongoing) interest charges and fees.
• If you can, start paying more than the minimum monthly payment required each month ASAP.
  • You may want to start by adding the extra you can afford to the highest interest card, then once that is paid move the additional funds to the next, and so on.
• Always avoid taking cash advances on your credit cards – immediate (often higher) interest and convenience charges make this some of the most expensive borrowing available.
• Check your monthly credit card statement for a “minimum payment warning” section that provides information on how long it will take you to fully repay your balance if only minimum payments are made every month.
  • If you bank online you may need to download your official monthly statement to see this. Even relatively small amounts of debts can trigger decades long repayment schedules if only minimum payments are made each month.

You should always pay more than the minimum where possible but be careful that your budget is realistic about how much you truly can (and will) put towards these payments each month.

Did my Debt Expire? Learn about BC’s Statute of Limitations on Debt

• Do the “Rule of 60” Math

If debt payments are part of your budget, try adding the “Rule of 60” math to your check-in process. This can help you gauge your progress and be an early indicator if debts start becoming unmanageable:

• Divide your total non-mortgage debts by 60 – is the number a monthly payment you can afford in order to pay off your debts in the next 5 years?
• If that 5-year figure seems impossible or would create a financial strain you can likely assume that assessing a professional debt solution that will consolidate and cut your debt is advisable.

If this is the case, your best plan is to connect with a Licensed Insolvency Trustee to explore your options for getting out of debt.  A Licensed Insolvency Trustee can help you access remedies that can help you get back on track and there is no cost to talk about your situation and get impartial confidential professional debt advice.

• Expenses Outpace Income

Unfortunately, struggling to manage expenses can be a challenge many people experience. In fact, more than 1 in 10 people polled in a BC Consumer Debt Study said that problem debts that eventually led them to consolidate debt with a Consumer Proposal or file bankruptcy accumulated due to their costs of living outpacing their income.

When facing more costs than income, if you haven’t already done so, the first thing to try is to scale back on expenses as much as possible and evaluate whether it’s possible to increase your income. Spend time considering the below questions:

• Which expenses are causing the most damage?
  • Interest rates often have one of the biggest impacts on how “affordable” a debt may be.
• Is there any way to mitigate the effect?
  • Example: If one of your debts has a high interest rate consider asking the lender for a better rate or investigate whether it makes sense to move the balance elsewhere.
  • Compare how interest rates impact common monthly debt repayment options.
  • If you’re considering consolidation options a Consumer Proposal often has the most affordable monthly payments.
• Do I have options to increase my income?

For many people debt needs to be addressed as a stand-alone issue to gain breathing room and stop an ongoing borrowing cycle. Debts can have serious consequences for more than our budgets – debt-stress can be one of the largest impacts on our emotional well-being, physical and mental health. If you are experiencing the burden of a debt problem don’t hesitate to connect with a Licensed Insolvency Trustee for professional guidance and debt advice.

No room in your budget for debt repayment? Connect with a caring Sands & Associates debt help specialist today and get started with a debt-free plan. Your confidential free debt consultation will take less than an hour and can even be done online from the comfort and privacy of your own home, book yours now.

The post How to Balance Your Budget to Pay Off Debt and Cut Money Stress appeared first on Sands & Associates.

Watch here:

Why is a budget important?

Less than half of Canadians operate with a budget on a month-to-month basis; it can be very difficult to make financial headway like this – it’s like “driving blind”, with no ability to course correct and know whether you are trending positively or negatively.

The biggest mistake people make in budgeting is to never track actual expenses against their estimates – if you don’t revisit your budget every month, you don’t really have a budget.

Key budget areas and percentages (percentage of after-tax income):

Housing – 35%

35% is the upper limit of what most experts would recommend in a monthly budget for housing costs (mortgage or rent plus all utilities).

The challenge is that living in Vancouver it can be difficult to meet even this target of 35%, with many people spending more on rent and mortgage than they would have to if they lived elsewhere.  Options such as hosting homestay students, or considering a roommate can help to reduce this cost.  Be careful if you consider moving that additional transportation costs do not offset any savings in housing costs.

Transportation – 15%

Consider all of the costs of owning a car: Gas, insurance, maintenance and repairs, depreciation, etc.  BCAA estimates that the average compact car costs about $9,500 per year. 

This is another area where overspending is common.  Most of us greatly underestimate how much it costs us to get from point A to point B.  If you’re able to use transit, you’re ahead of the game as it’s near impossible to spend more on public transit than you would spend if you owned a car.  Is 2015 the year to embrace car sharing?  Options abound in Vancouver for short trips, long trips and everything in between.  Consider Car2go, or Modo Car Coop as good, cost effective options.

Food and Other Living Expenses – 30%

Food costs can vary widely depending on your diet, shopping habits, affinity for couponing, and size of your household.  A good estimate is about $250-300 per household member for groceries each month.

We’ve all felt the increase in food prices lately; according to StatsCan, inflation in food in 2014 was dramatic, with meat, fish and vegetable prices all increasing in the range of 5-12% over last year.  While you can’t do much about the increased cost of ‘staple’ items, this category also includes some budget killers like eating out, lattes, taxi rides, nights out, etc.  The key is to track this category accurately – consider whether an app could be helpful, or even try ‘giving yourself an allowance’ by putting money in a separate account for food and other living expenses each month.

Savings – 10%

You must pay yourself first, by setting up automatic withdrawals into an account.  Otherwise, there will never be enough money left for savings.

Saving money is usually the first thing that goes to the wayside when money is tight.  It is also hands down the number one factor that will determine whether you will achieve financial success – can you save money each month?  RRSPs are the only funds that are safe no matter what, so even if you aren’t debt free, you should still be making contributions to your future.

Debt repayment – 10%

90% of Canadians say they have more debt today than five years ago.   Top priority for 2015 is to pay down debt according to a recent study by CIBC.

Many people fall into a trap of ‘financial tetris’ where they are using one card to pay another.  Though they might feel great about taking action on their debts, they may not be getting any further ahead if they are just shuffling money around between cards.  Consider how much money 10% of your income is, if you’re required debt payments are much higher than that amount, you should investigate whether professional debt help is required.

Make this the year of your financial freedom!  Contact us today to arrange a free, confidential consultation about your debt resolution options.

The post Blair Mantin shares Budget Basics with Vancouver’s Breakfast Television appeared first on Sands & Associates.

Paying for more than you need.  Double-check your cell phone and cable packages:  Are you actually using everything you’re paying for?  Data charges and channel/satellite package costs can run quite high but if you’re not even close to using what you’re dishing out for contact your providers and see about making some revisions.  It’s generally good to do this once a year or so, plans and offers change – make sure you’re getting good value!

Getting charged fee after fee…after fee.  Do you frequently forget to grab cash at your branch and resort to the $3 per withdrawal ATMs?  Make payments a few days after the deadline and wind up with late charges?  Pay for bank account feature you never access?  Those ‘convenience’ fees can accumulate to anything but convenience!  Grab your bank statements and try to plan ahead for cash withdrawals, look into alternate bank account options and mark payment due dates in your calendar.

Accumulating little costs.  OK, it’s unlikely that the occasional fancy coffee out will break your budget completely – but a few times a week is likely to siphon enough of your budget to be noticeable.  Same with things like parking (downtown Vancouver anyone?), your favourite weekly guilty-pleasure magazine, regular Friday happy-hour cocktails, and anything else you can think of!  You’re the boss of your budget and if you decide you want these things it’s fine – just make sure you actually budget for them.

Letting interest build up.  You know this one friends:  Using your credit card and not being able to pay the balance in full is going to cost you.  Unfortunately it will continue to cost more and more if you’re only paying the minimum.  Keep pesky interest charges off your back and don’t use your credit unless you know it’s to your advantage, and not to the bank’s.  If you want extra incentive, check out the portion of your statement that shows just how long it would take to pay off your card making only those minimum payments.

Forgetting to plan for the unexpected.  At some point in time, big or small, irregular expenses AND emergencies will occur – the best way to keep them from derailing your budget is to plan for them!  Whether it’s an annual insurance premium, an inconvenient trip to the dentist or unwelcome vehicle repair, regularly set funds aside to deal with those eventualities.  Allocating a small, consistent portion of your budget to an ‘unexpected’ fund can save you a huge headache later.

If it doesn’t seem like your budget is successful, always check for gaps and try again.  No matter what your income and expenses look like, a sound budget can save huge hassle and provide great piece of mind.

Is debt sinking your budget?  Find out how a trustee can help!  Contact us for a free, confidential consultation in one of our 17 BC offices.

The post A Hole in your Budget? appeared first on Sands & Associates.

We’re about halfway through the calendar year now and it’s a great time to check in on your financial affairs!

To arrange a free and confidential consultation to discuss your debt resolution options in one of our local BC offices, please contact us.

The post A Mid-Year Financial Check-Up appeared first on Sands & Associates.

1. Schedule a financial check-up.  When was the last time you had a heart-to-heart with your finances?  If it’s been a while there have probably been changes!  A pay increase, new financial obligations, even revised utilities should all be addressed.  Set aside some time to review where your finances are at and get up to speed with where your money is going.
2. Set some goals.  Coming up with some financial goals and structuring a plan to  meet them is a great way to make friends with your budget.  Knowing that you’ve met some short term goals (such as starting and contributing to a savings account or paying off that pesky credit card debt) could provide you with momentum to expand your financial horizons and the drive to keep up good habits you’ve created.
3. Make your own rules.  Think you’re not entitled to your favourite fancy coffee or a weekly fitness class?  Think again!  Unless you have super-human discipline, trying to keep any and all “extras” out of your budget is probably setting yourself up for overspending.  Of course you’re entitled to the occasional indulgence – just make sure you’re planning for it and hold the reigns firmly!  You can decide what you’re willing to find room for within your means.
4. Keep cash on hand.  Spending with cold hard cash instead of plastic actually does help you stay on target.  If you know you’ve only got $100 in your wallet to last until next payday it will make the decision of say, buying a round of pints for friends versus groceries for yourself a lot easier to make.
5. Bag a bargain.  Had the same cell phone provider for years now?  Stuck with a tried and true credit card company?  You’re the customer and you CAN ask for a better rate or deal!  Call your various providers and see if they can’t give you a better offer.  You’d be surprised at how willing companies are to up the ante to loyal customers.
6. Nix the stress.  If juggling your bills is constantly in the back of your head, take a big breath and a closer look.  Are the bills unmanageable because there are too many small balances that could be consolidated into one, or are the debt payments something likely to outlast your car’s life span?  Make a clean break, whether it’s through consolidating, a consumer proposal, or even a bankruptcy.
7. Share your successes.  Being able to talk about your new financial plans is a great way to stay motivated.  When you’ve met a goal or found a financial strategy that works, share with those you’re close to!

Dealing with a budget doesn’t have to be a downer.  Money and finances in general play a huge role in our day to day lives, so why not make the most of it?

Debts got your budget down?  Contact us for a free, confidential evaluation of your debt reduction options in one of our local BC offices.

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