3 Ways to Overcome Debt This Summer

Summer can be an expensive time of year, what with vacations, summer sports leagues, utility bills, pool maintenance, higher gas prices, and so on. If you’re already in debt, don’t let summer sink you deeper. Follow these ideas to overcome your debt and start the cold season with positive figures in your bank account.

1. Take a Thrifty Summer Vacation

Summer trips don’t have to revolve around beach resorts and theme parks. Cheap vacations can be just as rewarding as a no-expense-spared trip to Disneyland, and they won’t drive you further into debt. Here are a few ways to avoid going into debt on this year’s family vacation.

• Skip the hotel: Instead of staying at expensive hotels, bring a tent and some sleeping bags and find a campsite. Camping might not be the most glamorous way to spend your vacation, but it’s certainly cheaper, and it brings an element of the adventure to your trip.
• Eat cheap: Give yourself a reasonable food budget, but don’t plan to eat out three meals a day. That will get expensive fast, and before you know it you’ll be well over budget and knee-deep in vacation debt. Plan trips to grocery stores where you can pick up fresh fruit and sandwich fixings instead of paying an arm and a leg for sandwiches at a chain restaurant. Eat out during the slow times of the day—avoid paying dinner prices, and order specials whenever possible.
• Plan lazy days: Instead of planning expensive family activities for the whole vacation, plan a few days where you watch DVDS on the portable player at the campsite, play at a lake, or go on a hike. You can have just as much fun with free activities as you would at an amusement park if you plan it right.

Eat right, stay at the right places, and don’t overbook yourself. There’s no reason to go into debt for a summer vacation—just keep it sweet and simple.

2. Get a Summer Job

Summers can be tight for some professions (such as teachers or small-business owners focused on winter sports or activities), so don’t be afraid to pick up a summer job to bring in a little extra money. It might not be as easy for adults to find quick summer jobs as it is for teenagers, but don’t worry. You still have plenty of options if you’re wanting to pad the budget a little and put some more money towards paying off your debts. Here are a few ideas to get you started:

• Plant a garden or berry patch and sell the produce
• Offer to babysit or nanny for a neighbor
• Tutor private summer school students or teach summer music lessons
• Mow lawns or do yard work
• House or pet-sit
• Detail cars

Summer might be tight for some budgets, but it’s also an easy time to pick up on a few side jobs that can make up the difference.

3. Talk to a Professional

It’s never too late (or too early) to talk to a financial advisor. If you’re concerned about how the summer months will affect your finances, make an appointment with an advisor who can walk you through ways to manage your finances, such as

• Starting a budget: Financial advisors will often start by helping you set up a budget or improving the one you already have. Getting out of debt is all about budgeting, and since it’s so easy to overspend during the vacation months, following a rigid budget is never more important than during the summer.
• Setting up a consumer proposal: One of the last lines of defense against declaring bankruptcy is a consumer proposal. Toronto financial advisors like those at Paddon & Yorke Inc can walk you through the process and help you tailor the proposal to your specific needs. A consumer proposal essentially allows debtors to negotiate their debts with creditors and consolidate debt into a single, affordable monthly payment without accruing interest.
• Offer advice: Financial advisors aren’t there just to fix your problems hands-on, though they certainly do that too. Professionals also have valuable resources, tools, and years of experience and wisdom to share. If all you need is a little advice on how to set up an emergency fund or manage your retirement account, they can offer authoritative advice to get you headed in the right direction.

Managing debt isn’t easy. Don’t be discouraged if you aren’t making progress as rapidly as you’d like—just keep taking steps in the right direction. Use this summer to make strides towards eliminating your debt, and you’ll be well on your way to overcoming it completely.

Tags: Budget, Disneyland, Staycation, Summer vacation, Travel, Vacation

Category: Debt