Consolidating credit card debt into one loan
To get ahead using a debt consolidation loan, make sure you track your spending for at least 2 weeks, create a budget, follow it, and make sure you're not spending more than you earn.
Otherwise you'll end up like so many others and need another debt consolidation loan once you finish paying off your first one.
Here's how it works: Some people like to debate which debt payoff methods is best.
While paying off the highest interest rates first is mathematically correct, the best method is whichever one works for you.
This will save you money and help you pay down all of your debts faster.
Another method a lot of people like to use to get out debt is to pay off small credit card balances first.
Once you have established an emergency fund and are saving for irregular expenses, you may want to consider suspending extra payments to Canada Savings Bonds or other savings accounts until you have paid off what you owe.
This is especially beneficial for those who aren’t saving for something specific like vehicle repairs.
Once you've paid off a card, cut it up, and cancel the account. Many people regularly contribute to a savings plan, which is great, but consider that this is money that could help you pay down what you owe faster.Monitor your progress regularly to help you stay on track and motivated to reach your goals. You should decide the order in which you will pay off your debts. Paying for your purchases with cash instead of credit will help you separate your needs from wants, remain conscious about your spending, and make you think twice before spending money.For even more ideas of where you can find money to help pay down your debt, have look here (the ideas are about all the places you can find money to save.You're just going to use the money to pay down debt instead).