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Five First Steps to becoming Debt Free

Debt Help in Edmonton has to start with you. Many people find themselves drowning in debt and turn to others to try to help them. However in order to finally find yourself debt free you have to be ready and willing to make sacrifices to get yourself back on track. Here are five first steps to help you become debt free:

1 . Stop Spending: You will never become debt free if you cannot learn to stop spending. You have to be focused on paying off your debt and managing your income wisely. This means the only money you are spending should be going towards needs and lessening debt. You will have to cut out all of the following:

  • Take out and dining out
  • Movies and entertainment
  • Pampering such as high end spa treatments, hair cuts, manis and pedis, etc.
  • Cigarettes and alcohol
  • Consumer goods from clothing to electronics equipment
  • All non-essential items

2 . Cut Up Credit Cards: The next step is to cut up all of your credit cards. You will not be able to use your credit cards again until you learn responsible spending.

3 . Cash Only: You must then take on a cash only policy. This means no Interac, no credit cards, no cheques and no withdrawals or usage of lines of credit. You must pay cash only as this will stop you from spending money you do not have. It will stop overdrafts on your chequing account and allow you to stop adding to interest rates on your credit cards, lines of credit and any other loans you might have.

4 . Consolidate: Speak to your bank about getting a single loan to pay off all of your debt. This will allow you to have one single and manageable monthly payment to pay off debt on credit cards and other loans you might have.

5 . Seek Debt Help: If your debt is so out of control you will not have access to a consolidated loan then you must seek the debt help Edmonton requires to help get you out of your mess. A debt solutions company will work with your creditors on your behalf in order to arrange to stop interest and come up with a payment plan that you can manage.

If you are willing to take these five steps you will be on your way to becoming debt free and also learn to spend your money wisely in the future.

If you are in need of the debt help Edmonton, 4 Pillars can help. Visit to learn how you can become debt free.

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