Five steps to reduce debt
By Alterna Team
December 18, 2023
  1. Rank your non-mortgage debt. Make a list of your debt and organize it according to the interest rate from highest to lowest.
  2. Take a 50/50 approach. If you owe student loans, credit cards, or something else, aim to pay off 50% of your available credit and when you hit your target, reset and pay off the rest. For example, if you owe $8,000, aim to pay off $4,000 by making your minimum payments and extra each month.
  3. Plan your finances like you plan a vacation. Sit down, look at your calendar, and plan it out. Decide what you want to do, how much it’s going to cost, write down what it will take to get you where you want to go, and set up check-ins to keep you on track and accountable.
  4. Save a little. Let’s say you have $400 available. Put $200 towards your debt and the additional $200 into a TFSA or other savings fund. You will be taking steps to pay off your debt sooner while keeping some money around to pay for different urgent needs – so you don’t end up putting those costs back on your credit cards. To ensure this is the correct strategy for you, please consult with an Alterna Advisor.
  5. Talk to an Alterna Advisor. Alterna Advisors can also help you plan to manage your debt. They can assist you with goal development, cash flow management, debt management, investment opportunities and strategies, retirement income strategies and estate, and tax guidance.

These five steps will help you reach your goals sooner, and an Alterna Advisor can help. They have access to a full suite of tools and products to support your debt assessment, planning, and recovery.

For more information, call our Contact Centre at 1-877-560-0100 or schedule a conversation with an Alterna Advisor. We’re here to help!