When it comes to personal debt, it can be tough to manage your priorities! SkyCap Financial is one of Canada’s top personal lenders, and they want to share insights on how to manage your personal debt. They believe that money management is essential and created SkyCap Financial University to teach financial literacy in a fun and engaging way.
Managing Personal Debt
Whether its student loans, mortgage payments or credit card bills, the following strategies can help you prioritize your personal debts:
Keeping it Simple
If you are having trouble managing your debts, the first step to prioritizing your accounts is to keep things simple. Sort your debt into categories, such as home, utilities and loans. It will help you organize your accounts.
Big loans such as mortgage payments and other loans such as SkyCap Financial’s short-term loans offer automatic payment programs to help you keep up with your payments. By prioritizing loans with high interest rates, you can pay down your loans faster and never miss a payment!
Debt Avalanche Technique
If you have debts with varying interest rates, perhaps the Debt Avalanche Technique is right for you! Sometimes it helps to prioritize your debts by paying off debts with higher interest rates first. By organizing your bills and loans to determine the interest rate, you can determine a payment schedule that works for you.
Paying off the minimum amounts can help you shrink the size of your loans and reduce your monthly interest payments.
Debt Snowball Technique
If your income doesn’t support a debt repayment technique such as the Debt Avalanche, maybe the Debt Snowball Technique is right for you! This payment approach looks to organize your debts from lowest interest rate to highest. Instead, this technique focuses on paying off your lowest interest rate debt entirely. It is often a credit card or a short-term loan like SkyCap Financial’s 9-month loan term.
When it comes to prioritizing debt, your most valuable asset is your income. By maintaining your stability and credibility, you have the ability to predict how you can prioritize payments by your income payment schedule.
To help you prioritize your debt, it always helps to look for ways to trim your spending. By being an active consumer, you can reduce unnecessary spending by being aware of products with comparable use, value and quality. For example, instead of buying brand name, stick to supermarket brand goods with similar quality at lower prices. It will lower the amount of money you spend on your credit card bills.
These tricks will help you in prioritizing your personal debt and help you save! Learn more with SkyCap University, available for free to SkyCap Financial clients.
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