Don’t let your mounting Debt Steal your Dream of owning your DREAM HOME tell Jay and Molly Banerjei Toronto Real Estate Agents with Re/max.

High debt can be in the way of owning your dream home. If you see your debt rising, but you just can’t seem to stop using your credit cards? Well you are not alone. Unfortunately there are thousands of others who are in the same boat as you because it’s quite easy to grow dependent on credit cards for impulse buys and even everyday expenses. But, if you’re starting to drown in your debt, you have to stop using your credit cards before the debt consumes your life. Therefore take a couple of hours to come to terms with your situation. Most of the time we are so busy that we do not even have the time to realise the gravity of the financial crisis.

If this describes you, you are not alone. This has become the North American way. The good news is that you can change this. Take small, baby steps. Get a professional like myself in your corner who can be a coach to you. Hold on to your dream.

Start by taking a picture of the home you want to buy. Place the picture where you can see it regularly so that your goal is always in front of your eyes. This will be a powerful motivator. Carry a copy of this picture in your wallet. Every time you have the urge to spend, take a look at your Dream Home. In addition to this take a few of the following steps and you will be well on your way to being financially FREE.

1. Inactivate your Card immediately

One call to your cardholder is all it takes to inactivate your credit card. You can easily quiet a nagging desire to use your card by thinking of the embarrassment you’ll feel when the clerk says your credit card has been denied. Closing credit cards can have a negative impact on your credit score, so make sure you’re not closing a card you should be leaving open.

2. Cut the Card up or shred it.

Office shredders work just as well on that little piece of plastic as it does on your paper. If your credit card is in pieces, there’s no way you can swipe it. Don’t have a shredder? Scissors work just as well. Cut the card up into small pieces so the credit card number can’t be guessed by identity thieves.

3. Don’t go to the Mall. Visit a friend instead.

If you have an urge to engage in retail therapy, go visit a friend instead. Enjoy a cup of coffee and forget about the visit to the Mall.

4. Place the card in the safety deposit Box.

The “out of sight, out of mind” approach might be the thing to work for you. Put your credit cards somewhere that takes effort to get them – in a safe, file cabinet, the bottom of the laundry. Keeping your credit cards out of your immediate reach will help control your “need” to use them.

5. Do the Math

Have you ever thought about the amount of money you spend in interest each year? Or the length of time it will take to pay off your credit cards? Sometimes the numbers will shock you into putting your credit cards away for good. A $1,000 balance at 14% will take you 4 1/2 years to pay off if you make $25 payments each month. You’ll have paid $347.55 in interest by the time you pay off the balance.

6. Reward yourself.

Positive reinforcement goes a long way in building a habit. We use it with our kids and with our pets. Why not use it with ourselves? Each week that you don’t use your credit card, treat yourself to something you like but don’t ordinarily allow yourself to indulge. Keep your treats on the inexpensive/free end of the spectrum so you don’t upset your monthly budget.

7. Just say NO

Being able to tell yourself “no” is a skill that goes beyond using credit cards. The same self-discipline that gets you to work on time each morning can also be used to stop using your credit cards. Think twice about swiping your credit card just like you’d think twice about pressing snooze just one more time.

8. Find an accountability Partner

Finding someone that can hold you accountable to your goal can be very helpful. Give them permission to check you. Call them immediately when you have the urge to use the credit card. When they say ‘STOP’ do it right away.

9 Create a budget

Sit down and create a realistic budget. It does not have to be complicated. List all the expenses and then add the total income. Stick to the budget. If you fail, don’t beat up on yourself. Try again. Celebrate every small victory.

10 Begin an Exercise programme

Exercise can decrease ‘stress hormones’ like cortisol, and increase endorphins, your body’s ‘feel-good’ chemicals, giving your mood a natural boost.

As long as you follow some of the suggestions listed above you will be on your way to achieving your goal of owning your Dream home. If you feel that you require additional help, CALL US. We are here to help.
Take us up on our “YOU CAN DO IT” Challenge.

Together ‘We Can Make It Happen”

Written by:
Jay Banerjei, MBA
Sales Representative

RE/MAX Rouge River Realty Ltd., Brokerage
6758 Kingston Road,
Toronto ON M1B 1G8

Office: (416) 286-3993 • Fax: (416) 286-3348
Website: http://www.torontorealestatebestagent.ca
Email: jay@jaybanerjei.com