Pollard & Associates Inc. (www.pollardandassociates.ca), an insolvency and financial restructuring firm operating out of the GTA, offers various debt solutions for corporate and personal circumstances. Angela Pollard, President of Pollard & Associates Inc., weighs in on how to pay off debt when you live paycheque to paycheque. D & A MacLeod Company provides some insight on managing your finances and regaining control. (Source: D & A MacLeod Company., “how to pay off debt when you live paycheque to paycheque,” October 17, 2020; https://www.macleod.ca/b/how-to-pay-off-debt-when-you-live-paycheque-to-paycheque .)

D & A MacLeod Company explains it will be difficult to eliminate debt if you continue to pay your current expenses with your current salary. Angela Pollard, President of Pollard & Associates Inc., agrees, “we believe in order to manage your finances effectively, you must look at the big picture and keep the end goal in mind, which is to eliminate debt. If your salary does not increase, then organizing your expenses will help you to work with what you have.”

The first tip presented by D & A MacLeod Company on how to eliminate debt when you live paycheque to paycheque is to calculate your expenses. Once you have made a list of the total expenses, organize the list to understand the fixed expenses. Angela suggests, “making a list and organizing your fixed expenses and variable expenses will show you where you can afford to make some adjustments. Some variable expenses are gas, entertainment, dining out, clothing, and groceries. If you limit your expenditures and make reasonable purchases, the additional money you save can be put towards eliminating debt.”

The second tip presented by D & A MacLeod Company is to find a budget buddy. A friend or family member to help you through these challenging financial situations can help you remain committed to the end goal of eliminating debt and hold you accountable to help you stay on track. Angela agrees, “a budget buddy is an extremely effective way to help you make informed choices and purchases. It is also helpful to have someone to speak to for emotional support. Working through debt is a difficult process and can take a toll on your lifestyle and family. These changes are not easy to adapt to. Therefore, it is essential to have someone for moral support who can offer encouragement during difficult times. However, if you do not feel comfortable speaking to a relative or friend, debt counselling is another great option. Here at Pollard & Associates Inc., we offer debt counselling services. You will receive professional advice and discussions are kept confidential.”

The last tip presented by D & A MacLeod Company is to pick a strategy and stick with it. The article explains that it is not enough to reduce expenses. You must set aside an amount that exceeds the minimum monthly payments and consistently make the designated payments. Angela adds, “there is much work that goes into making consistent payments. Limiting expenditures is only one way to change your current financial status. Picking up more hours at work or selling unused items online, can help bring in a little extra cash flow. In combination with a successful strategy like cutting excessive or unaffordable credit card spending, these changes can put you on a path to reduce your debt. However, if your debt has gotten out of control and you cannot manage to reduce it with budgeting and spending strategies, it may be time to contact a Licensed Insolvency Trustee to discuss your options. At Pollard & Associates Inc., we will work with you by offering solutions and helping you make informed decisions to eliminate debt.”