Picture you and your spouse starting off a great life together. You purchase a nice house, start to furnish it, and go on vacation. However, upon receiving your bank and credit card statements you realize that your savings are not enough to cover your expenses. You are spending more than you can afford. This can be problematic because that initial $1,000 in debt can rack up to $10,000 in debt very quickly. Check out these tips to help you swim out of the sea of debt.
- Contact your mortgage broker. Start with talking to your mortgage broker to ensure that the payment schedule is affordable. If it is not, consider revamping how you pay back your mortgage.
- Tighten up your everyday spending. Do not buy that pair of shoes just because you like them. Purchase only items that you truly need.
- Have monthly budgeting meetings. You and your spouse need to sit down on a monthly basis to discuss what was purchased the previous month, and to set a goal of what to spend for the month upcoming.
- Invest any “slush” money wisely. Do not put your savings into risky stocks. Instead put it into either a high interest savings account with your bank or with a steady increasing stock.
Consider these tips and you will be able to swim out of that sea of debt. Starting with your mortgage broker is the first step to debt recovery.
