DIY solutions for your financial wellness!

By Leah Drewcock, LIT, CIRP

If you live in British Columbia, we can see grey skies heading into 2020, as there’s a 50/50 chance you’re only $200 away from being insolvent, according to the latest MNP Consumer Debt Index conducted by Ipsos.

As scary as this sounds, you’re clearly not alone; in fact, half of the people around you are likely in the same boat. The good news is, like everything else in the 21st century, there’s a Do-It-Yourself solution! So, if you’re up for the challenge, roll up your sleeves and keep reading.

At MNP we have created DIY Debt Solutions: Your road to debt-free is just a couple clicks away!

  • Debt Calculator – by providing a little information about your province of residence, income, assets and debts you can create your plan of action for becoming debt-free.
  • Debt Scale – We all love quizzes, don’t we? The MNP Debt Scale will help measure your debt health and give you insight into where you can focus your efforts to reaching your financial goals.
  • MNP Budget Tracker Spreadsheet – Budgeting is the first step to improving and maintaining good financial health. Every financial plan starts with a budget. If you don’t already have a budgeting method that works for you, try our budget tracker spreadsheet. The key to every good budget starts with recording your income and expenses. This tool helps you record where you are now and plan for where you want to be.
  • Interactive Explainer Video – Sometimes even a combination of budgeting and debt repayment plans aren’t enough. If your financial future is looking bleak and you don’t see any way out, there are legal options for reducing your debt once and for all. Watch this video to learn about bankruptcy and consumer proposals.

A plan of action

Once you’ve completed your budget, it’s time to nail down a plan of action. There are many DIY debt-repayment plans, but the two most common and effective are the Snowball Method and the Avalanche Method.

Avalanche (pay off the highest interest rate first) * – Determine how much you can contribute toward debt repayment each month. Pay only the minimum payments on all the debts, except the debt with the highest interest rate (where you want to focus most of your debt repayment budget). Once you’ve paid it off, move onto the debt with the next highest interest rate, and so on.

*This is by far the most cost-effective approach over the lifetime of your debt.

Snowball (pay off the smallest debt first) ** — Determine how much you can contribute toward debt repayment each month. Pay only the minimum payment on all the debts, except the debt with the smallest balance (where you’ll focus most of your debt repayment budget). Once you’ve paid it off, move onto the debt with the next smallest balance, and so on.

**A study at Boston University found this method had the greatest success rate of the various debt repayment strategies. It may not make sense from a financial point of view, but the psychology of small wins helps build the momentum, motivation and consistency required to keep moving forward.

Know when to ask for help – not all problems are solely fixed by a DIY solution. Learn to recognize when you are ‘in too deep’ and need to get the help of a professional. If you’ve done the budget and tried the different self-directed repayment plans but you are still struggling to get ahead, it is probably time to call in the pros. Licensed insolvency Trustees can provide you with a free confidential consultation. Visit MNPdebt.ca to find the closest office to you!

Based out of Prince George, Leah Drewcock, CIRP, LIT, is a Licensed Insolvency Trustee and Vice President at MNP Ltd. Contact Leah toll-free at 310-DEBT or 877-898-2580 for a free, no obligation, confidential consultation to find a Life-Changing Debt Solution that fits your unique situation.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Police reminding motorists to drive safely after responding to over seven collisions in one day

“We were very lucky that none of these collisions resulted in a fatality,” Sgt. Rodney Guthrie with the Vanderhoof RCMP said.

Letter: Don’t panic at the sight of our protective gear

Community Paramedic and Acting Paramedic Chief in Vanderhoof pens a letter to residents.

Are you ready for bear season?

BC Conservation Officer Service in Vanderhoof says people should take their bird feeders down until next winter.

Letter: We go to work for you, stay home for us

By Dr. Rebecca Janssen, Chief of Staff, St. John Hospital, Vanderhoof Dear… Continue reading

Connexus adpating their services to meet needs amidst COVID-19

Connexus Community Resources is open via phone, text, or video conferencing for… Continue reading

B.C. couple celebrates 61st anniversary through seniors’ home window

Frank and Rena Phillips marked occasion at Nanaimo Seniors Village this week while social distancing

A look at some of the B.C. inventors creating life-saving tools in fight against COVID-19

Groups across B.C. are working together to create what they hope will help people affected by the pandemic

Association launches French-language games, online tools for families learning at home

Games, culture and vocabulary included in new virtual resources

‘There can be no ambiguity’: Travellers brought home to B.C. must self-isolate

Health Minister Adrian Dix said the mandatory isolation must be abided by

55+ BC Games cancelled amid COVID-19 concerns

Greater Victoria set to host 2021 event

BC Hydro offers three-month bill ‘holiday’ for those affected by COVID-19

Industrial customers can defer half of their power bills

Some April Fool’s Day jokes bring much-needed laughter; others tone deaf to COVID-19

Police are warning the public not to use the ongoing pandemic as a punchline

Canada’s 75% wage subsidy is coming, but not for several weeks: finance minister

Subsidy will cost Canada $71 billion, but push down cost of emergency benefit, Morneau said

Call before you dig into spring projects during isolation: BC 1 Call

BC 1 Call gives free checks for utilities in the area of a desired outdoor project

Most Read