With the cost of living on the rise and the temptation to live beyond our means greater than ever, it’s no surprise why many Canadians struggle with debt. Whether it’s through credit cards, student loans, or personal loans, debt can cause a significant strain on any household and their monthly budget.
Managing household debt is imperative to finding a way through financial hardship and wiping the slate clean. When households can come together to eliminate stressful monthly payments, they can then focus their attention and resources on what’s important — from saving for their children’s education to planning for retirement.
If you’re looking for tried-and-true ways to improve your financial standing and manage your household debt effectively, we’ve put together a list of tips and resources to help you get started.
Know Your Resources
When it comes to handling debt efficiently, many households are unaware of the options at their disposal. While every financial situation is unique, there are alternative avenues that prioritize transparency and convenience, for borrowers who may need to get loan in Canada to consolidate multiple payments.
Finding the right opportunity for your family is imperative to effectively minimizing your debt in real-time, so you can reprioritize your income and save for those major milestones.
Put Your Tax Returns to Good Use
It’s easy to think of our tax returns as free money and use it for entertainment purposes, but allocating any money you receive to your debt is a helpful way to pay off more than your minimum payments. The more money you can allocate towards debt, the faster you’ll be able to pay down the balance.
Pay Balances On Time
It may seem straightforward but it’s not uncommon to forget to pay a bill or two on-time each and every month. The key is knowing which is the best reminder to help you stay on track — whether that means setting a regular alarm or incorporating automated payments directly from your bank account, to ensure you never miss a payment and don’t have to worry about added interest.
Find Ways to Save
There’s no doubt how tempting it is to continuously spend money with every paycheck, especially if you live in a metropolitan city like Ottawa or Toronto where there are always entertainment-based activities and amenities to take part in.
The key is knowing how you can save money without sacrificing quality time with family and friends. Love going out to restaurants to eat? Consider having a potluck with friends or a bi-weekly themed culinary night.
Love spending time outdoors? Enjoy more park days or find free festivals or outdoor activities to partake in. When you take the time to cut back on spending and incorporate more low-cost or free activities, you can easily allocate the additional funds to your debt payments.
On the other hand, if you can find a way to earn supplemental income — whether it’s a short-term, part-time job or freelance opportunity, you’ll find how much more efficient it is to become debt-free. The faster you’re able to help your family out of debt, the more time you’ll have to build a robust financial foundation.
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