Renovating Your Financial House Part 2

Just last week the Bank of Canada announced household debt is emerging as the the greatest risk to Canada's Financial System! (and so is the risk for the financail well being of families in Kelowna and the Okanagan Valley.)

As part 2 of a 4 part series on Renovating Your Financial House we will be focusing on how to deal with debt and eliminating its effect on your families life!

(The amazing part is consumer debt has been growing since the 60's but the challenges are the same. Check out this comparison from 1978 and 2008.)

Can you imagine a life with no debt? No overdraft, credit card, line of credit, car loan or home mortgage. How much better would your life be with no payments? Most have been in debt so long they don't remember what it used to feeling like.

So question is how to your get rid of debt? First get your financial house in order BEFORE you pay off your debt. If you have not read part one of Building Your Financial House go here first Part 1 - Protecting Your Family - Where do you start?

Change the way you think ... pay cash for everything. Sounds easy enough, but when was the last time you paid cash for something? Groceries, gas, or nice iced latte. If you are using plastic you will never see the end of debt in your life.

Make a list of all your debts. That's right ... sit down with everyone in your house hold you spend money with and make a list of all your current balances, payments and interest rates. Seeing it on paper gets everything in open and makes everyone accountable.

Optimize your debts and make a plan. Organize all from smallest to largest and keep us minimum payments on all. The focus all extra income to systematically eliminate your debt. As you pay down each debt and the payment from the previous to next.

In the coming weeks here are the next two areas of Renovating Your Financial House ...

Building Savings. How to get your money working for you. Coming July 13th.

Creating a Written Plan to achieve your goals and dreams. What questions should your financial game plan answer and how to tell if your plan is working. Follow along on part 3.

Now is great time to Renovate Your Financial House and improve your quality of life today and in the future.

Mike Hassard Kelowna

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