Paying off an overdraft—and staying above zero—is a very powerful step in debt management and relief from financial stress.
Here are the top 8 reasons why:
1. Find some solid ground on which to stand. If your account is overdrawn, how do you feel? Not so great. You can’t build a castle on shifting sand. When your foundation keeps moving south, your plan starts to flounder. A positive bank account balance will give you the strong baseline you need.
2. Immediate calm. When you have $3.00 in your bank account—you get that. What does it mean to have -$574.52? A negative balance makes you feel out of control, overwhelmed, and helpless. There’s a feeling of calm when you’re above zero, even by a few dollars. [click to continue…]
Two thoughts came to me after reading a surprising report this month about Canadians who are living paycheque to paycheque. First, if you’re among those feeling trapped financially, you can take some solace from knowing that you are far from alone in this country. Second, there are ways to deal with living paycheque to paycheque, and I have some pointers that may offer relief, including the option of debt consolidation to help with debt relief. But for starters, let’s talk numbers.
Startling perhaps best describes the findings of a recent survey released by the Canadian Payroll Association. It shows that more than half of working Canadians – 51 per cent to be precise – say they would have trouble meeting their financial obligations if their paycheques were delayed by only a week. At the same time, 63 per cent of Canadians aged 18 to 29 say they are living paycheque to paycheque. Meanwhile, 26 per cent of the thousands surveyed say it’s unlikely they could come up with $2,000 in a month’s time to handle an emergency. Debt, too, is a big concern, with 39 per cent of respondents noting that they feel overwhelmed by what they owe. [click to continue…]