Carrying a heavy debt load is common – it can happen to anyone and it can happen before you know it. All it takes is a bump in the road and the next thing you know, your financial stability is teetering off  balance. The good news is that, after you have filed a consumer proposal or bankruptcy, it is possible to bounce back, rebalance and get back on the road to reach your financial goals.

The Goldhar shed the debt® professionals have 6 tips to help you bounce back from insolvency filings and attain financial stability once again:

Money Management:

One of the main reasons that most people get into debt in the first place is due to the inability to properly manage money and budget accordingly. Once a consumer proposal or bankruptcy wipes out your debt and gives you a fresh start, it is very important to sit down and analyze your net monthly income, non-discretionary expenses, household expenses, and cost of living. From now on you should strive to make sure your money out does not exceed your money in. If your money out exceeds your money in, you may need to reassess your situation and rebalance once again.

Emergency Fund:

It is always a good idea to set aside an emergency fund that you only touch in the event of an emergency (i.e. unforeseen necessary repairs, antibiotics/medical supplies, etc.)

Most financial experts agree that a person should have an emergency fund of 3-6 months’ expenses – and if you’re self-employed, this number should be higher.

Start building today. Dedicate a separate savings account for emergencies and contribute to it on a regular basis until you have met your savings goal. Only make withdrawals from this account when you have a legitimate emergency.

Rebuild your savings:

It feels good to have money in the bank! If you’ve been used to seeing an overdraft or just enough to scrape by, then having $1000 or more in your account can be a real boost to your ego. When drawing up a budget, allocate a portion of your income to go straight to savings.

Make changes to your spending:

Most people, when they take a look at their monthly spending, can find areas where they can cut back. Reducing your cable, foregoing morning stops at Tim Horton’s and making coffee at home, eating out less, or cancelling your landline and just using a cell phone are all possible ways to reduce costs.

Change your relationship with creditors:

Finally, it is important to remember that credit is not a bad thing, and you can qualify for credit after a consumer proposal or bankruptcy. Once you have established new credit relationships, a few simple actions can help you avoid becoming overextended again in the future.

For starters, try not to use credit cards for everyday purchases, like gas and groceries.  Use a credit card only to pay for items you know that you can afford, and pay off the card balance in full at the end of each billing period. Do not fall into the trap of paying only the minimum each month.

You also can help avoid accumulating interest and late payment penalties by putting recurring expenses such as utilities and property taxes on auto-pay straight out of your bank account.

Track your earnings and expenses

All of the above tips may sound intuitive, but they often turn out to be more difficult than most people think. A common mistake that people often make is trying to keep track of their income and expenses in their heads – which usually results in them spending more than they should.

That is why you should have a written budget and track your money in and your money out. To help you, we have developed this interactive re-balance tool to make it easy for you to follow the money.

At Goldhar & Associates Ltd., we help people regain control of their finances. We can help you assess your progress and ensure you have the knowledge and budgeting tools that you need to realize your financial goals and personal dreams.

Call us today at 1-855-541-5114 or dial #debt (#3328) on your mobile phone.