A Guide for immigrants to get rid of heavy loans

Canada, November 30: Feeling stifled with your heavy student loans and rising credit card debt? Well, you are not alone.

It is the common problem faced by many young immigrants in foreign shores who find themselves caught in a web of high student loans coupled with higher living costs.

 And the solution suggested by various economists seems to be a need for exercising restraint in your spending sprees.

So, what you need is discipline and following your budgetary considerations. This is what Alex and his wife Sam did to become free of heavy debt. Let us see how we can put an end to this common problem of many young people by taking an example from Alex and Sam—

Whatever may be the amount of debt, one thing is for sure-that recovering out of debt is, undoubtedly, a difficult process. However, as they say, ‘Every cloud has a silver lining.’ So, to get rid of debt, we need discipline in our lives. Also, we must make a plan and follow it.

Draw a budget-This is the first and foremost step to be followed for getting clear from our rising debts. It means bringing some lifestyle changes including cutting out costs on entertainments and putting a curb on going out for dining. You get to become conscious of your money.

Cut unnecessary costs-This is what Laurie Campbell, an executive director of Credit Canada in Toronto teaches many young people facing a dilemma of heavy personal debts and loans. Laurie suggests paying the most expensive loans first. For this, she emphasis on the need to cut down unnecessary costs. These include keeping one car instead of two cars.

Cut daycare costs- By taking help of our friends and family, we can cut our daycare costs which significantly take out a major chunk of our monthly expenses.

Reduce number of credit cards- This is a suggestion by president of Solutions Credit Counseling Service Inc., Margaret Johnson. She reiterates on the need to reduce the number of credit cards kept by people in their purses. The advice is to know and accept your budgetary constraints before spending money.

Patience- Remember, you need patience to get rid of your loans. It is going to take time and till then, you have to put a strain on your spending.