By Jasmin Brown, BDO Debt Solutions

BDO Debt Solutions

A Fresh Start for a New Year

Jan 15, 2021 | 9:32 AM

The new year is underway and debt repayment is top of mind for many Canadians.

Many people make debt repayment a New Year’s resolution. The trouble with resolutions is that many of them fail, so we would encourage you to think of the bigger picture – making a 2021 financial plan. Many Canadians have faced challenges this year as a result of the pandemic, and the financial impact and uncertainty continue. Financial pressures continue to mount, and that can cause stress for many people. Creating a financial plan will help to reduce that stress and give you some control over your financial situation.

To get the process of creating a 2021 financial plan started, you need to take an honest look at your current financial situation. Ask yourself some key questions, such as:

· What challenges are you currently facing?

· What successes have you had?

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· Do you have a savings plan that is accessible in the event that you need it?

· How much debt do you owe? Are you managing to keep up with the payments?

· Do you have a financial budget in place? If you do, is it still reflective of your current financial situation? Does it requiring any tweaking?

Use your responses to these questions to help you set some financial goals.

You have probably heard it many times before, but you want to set “S.M.A.R.T.” goals. Those are goals that are specific, measurable, achievable, timely, and realistic. Setting goals using this criteria will help you to create goals that you will be more successful in achieving.

Achieving a goal creates motivation to achieve another. Eventually you will create momentum and make some real progress toward creating the financial situation for yourself that you want. Make sure that your goals fit into your overall financial plan for 2021.

Once you have your 2021 financial plan in place, it is equally important to review it and to track your progress against your goals. What you don’t want to do is create the plan and then set it aside and not look at it until the end of the year when it is too late to do anything about it.

How frequently you review is really up to you, but we would suggest reviewing as frequently as possible. Perhaps that means weekly, or bi-weekly – we would suggest a monthly review at a minimum.

This is the start of a new year and an opportunity to make a fresh start. Many people need that after the difficult year that we have just had.

Endeavour to make 2021 the year that you begin taking steps to creating the financial situation for yourself that you want. Set yourself up for success by setting some achievable goals for yourself as part of your 2021 financial plan.

If you are struggling with debt and are unsure how to make debt repayment a part of your 2021 financial plan, we would suggest that you meet with a professional to provide solutions for your particular situation.

A consultation with a Licensed Insolvency Trustee is confidential, free of charge and is meant to give you information. Do not struggle any longer than you have to – there is help available. All you have to do is reach out. It may be a great first step toward improving your financial health not only for 2021, but for years to come.

If you are having trouble make ends meet each month, finding the right debt solution can help. Call 1 855 BDO DEBT to book a free, no obligation consultation with a BDO debt professional.

Prince Albert and Area