{"id":25400,"date":"2019-05-23T18:15:01","date_gmt":"2019-05-23T18:15:01","guid":{"rendered":"http:\/\/dev.northstarbrokers.ca\/?p=25400"},"modified":"2019-05-23T18:15:01","modified_gmt":"2019-05-23T18:15:01","slug":"5-mistakes-to-avoid-when-paying-off-your-debt","status":"publish","type":"post","link":"https:\/\/northstarbrokers.ca\/fr\/5-mistakes-to-avoid-when-paying-off-your-debt\/","title":{"rendered":"5 Mistakes to Avoid When Paying Off Your Debt"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||||false|false&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;][et_pb_row _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221;][et_pb_column _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h1>5 Mistakes to Avoid When Paying Off Your Debt<\/h1>\n<p>[\/et_pb_text][et_pb_image src=&quot;https:\/\/northstarbrokers.ca\/wp-content\/uploads\/2021\/01\/debt-1-1.jpg&quot; _builder_version=&quot;4.8.1&quot; _module_preset=&quot;default&quot; title_text=&quot;Attractive young housewife wearing shirt at home studying gas and electricity bills, checking calculations, looking at sheet of paper in her hands with serious and focused expression on her face&quot; hover_enabled=&quot;0&quot; sticky_enabled=&quot;0&quot;][\/et_pb_image][et_pb_text _builder_version=&quot;4.8.1&quot; _module_preset=&quot;default&quot; hover_enabled=&quot;0&quot; sticky_enabled=&quot;0&quot;]<\/p>\n<p>Becoming aware of your indebtedness and being firmly committed to breaking free of the debt trap is the first step to putting an end to this situation. But you still need to implement a coherent and effective action plan to get out of this downward spiral. Here are 5 mistakes to avoid when paying off your debt.<\/p>\n<h3>Not setting a budget<\/h3>\n<p>Putting your income and expenses down in black and white has several virtues:<\/p>\n<ul>\n<li>This already lets you take stock of the balances due and look the situation in the face by identifying all the accumulated debts.<\/li>\n<li>Starting from a budget developed in this way, you can also analyze the causes of the problem and look for solutions, especially sorting out the essential expenses and the unnecessary expenses.<\/li>\n<li>With a budget, there\u2019s no more driving by feel: you stick to what is budgeted, taking care to remain below the bar of 30% indebtedness.<\/li>\n<\/ul>\n<p>Of course, the budget must be realistic so that it can be followed. If it\u2019s not sustainable, you may find yourself having to borrow to pay for essential expenses, such as groceries or energy bills.<\/p>\n<h3>Taking out new loans<\/h3>\n<p>If on one hand, you\u2019re paying off your debt, and on the other, you keep taking out <a href=\"https:\/\/northstarbrokers.ca\/\">loans<\/a>, buying on credit, and using your credit cards, you\u2019re not putting yourself in a position to get out of debt.<\/p>\n<p>You should therefore reserve the use of credit cards and the reliance on loans for emergency situations and refrain from paying for anything else with credit.<\/p>\n<h3>Paying the minimum amounts<\/h3>\n<p>It\u2019s always possible to pay the minimum amount indicated on your credit card statement each month. However, by doing so, you\u2019re more or less only paying the interest and very little of the principal. And it could take you several years to repay a debt of a few thousand dollars even if you no longer use your cards to pay for purchases on credit. It\u2019s therefore essential to pay amounts greater than the bare minimum each month while setting a realistic amount.<\/p>\n<h3>Drawing on your emergency fund<\/h3>\n<p>Certain well-meaning people allocate their emergency fund to repay their debt. This is a mistake, because if the slightest problem occurs, they are obliged to rely on credit once again to cover the unexpected costs. Nobody is immune from having to repair a car that breaks down or unpaid health expenses.<\/p>\n<h3>Repaying the small debts first<\/h3>\n<p>It\u2019s mistakenly believed that it\u2019s preferable to pay off your small debts first before tackling the larger ones. However, those with the highest interest rates, such as credit cards, should be paid off first. By even partially paying off the debts that generate the most interest, you\u2019ll reduce the interest on your loans as much as possible and get yourself out of debt faster.<\/p>\n<p>Besides the desire to put an end to an uncomfortable situation, getting rid of your debt requires consideration and discipline. By setting a realistic budget, refraining from taking out new loans, and paying off as much as possible each month, you can get yourself out of debt and regain control of your financial situation.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||||false|false&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;][et_pb_row _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221;][et_pb_column _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.8.1&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;] 5 Mistakes to Avoid When Paying Off Your Debt [\/et_pb_text][et_pb_image src=&quot;https:\/\/northstarbrokers.ca\/wp-content\/uploads\/2021\/01\/debt-1-1.jpg&quot; _builder_version=&quot;4.8.1&quot; _module_preset=&quot;default&quot; title_text=&quot;Attractive young housewife wearing shirt at home studying gas and electricity bills, checking calculations, looking at sheet of paper in her hands with serious and focused [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":25401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_animmysite_disable_animation":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-25400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/posts\/25400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/comments?post=25400"}],"version-history":[{"count":0,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/posts\/25400\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/media\/25401"}],"wp:attachment":[{"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/media?parent=25400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/categories?post=25400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/northstarbrokers.ca\/fr\/wp-json\/wp\/v2\/tags?post=25400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}