Five Reasons to Take Action Against Your Debt TODAY

Dealing with debt can be overwhelming and stressful. Often, it may seem easier to leave the credit card statements unopened, or to just make the minimum payments and to stop keeping track of the balances. If you have been avoiding your debt altogether, hoping that it will somehow magically disappear on its own, you can take comfort in knowing that you are not alone. However, taking action on your debt sooner than later can have many lasting benefits, both financially and personally. Here are five great reasons to stop procrastinating on getting rid of your debt, and start working toward a debt solution right away.

1.  Save hundreds of dollars on interest charges.

A loan of just $2,000.00 borrowed at 18% APR will cost you approximately $200.00 in interest charges if repaid in one year. However, that same loan will cost you at least $600.00 in interest if paid back over three years, and more than $1000.00 if paid back in five years! The longer you wait to pay off your debt, the more money you give to your creditors.

2. Get your budget on track.

Overwhelming debt payments can make it difficult to balance your monthly budget. Getting your debt payments under control will leave more funds available for everyday living expenses, making it easier to have a positive balance at the end of each month.

3. Start rebuilding your credit.

It is easier to rebuild your credit once you have gotten rid of any outstanding debt. Even if you choose to go with a debt solution that will initially have a less favorable impact on your credit rating, in many cases it will take less time to repay your debts and rebuild your credit, than to try to repay your debts on your own. Every situation is different and depends on your current financial situation and debt load. Our DebtAnswers Solution Finder can help you determine which debt relief options are worth looking into.

4. Reduce your stress.

For many people, debt can cause a significant amount of guilt, worry and anxiety. With every passing moment, it is constantly in the back of their mind. Having a structured plan in place toward becoming debt-free can help you live and sleep better.

5. Start moving toward a financially secure future.

It can be tough to think ahead when you are barely staying afloat with your current debt payments. Things such as emergency savings and retirement plans often take a back-seat. However, once you say goodbye to your debt, you can start focusing on future priorities such as education funds, RRSPs and life insurance.

If you're ready to get out of debt but not sure where to start, our DebtAnswers Solution Finder can help guide you through your options. Once you get the ball rolling, its just a matter of time before you're on your way to becoming debt free.