How to Stop Debt from Taking Over Your Life

Debt is a simple fact of life for many households in Canada.

In fact, the average Canadian family carries over $20,000 in non-mortgage debts.

Collectively, we’re spending almost 15% of our disposable income on repaying our debts and over 7% of this is interest.

Over time, it’s easy to fall into the habit of piling debt upon debt until it seems as though there’s no way out. 

But no matter how bad your debts have become, there’s always a way to improve your situation and bring them under your control.

If you want to stop debt from taking over your life, it’s imperative that you do the following…

Be proactive!

It’s okay to admit it.

Debt is scary.

Especially when we’re getting threatening letters and phone calls from your creditors.

But burying your head in the sand will only make matters worse.

It will allow interest rates to climb, put more of a stranglehold on your cash flow and prevent you from getting your finances in order.

As a result, when unexpected expenses come along, your only option will be to take on more credit. 

The simplest and most powerful thing you can do is change your attitude and be more proactive with your debts.

Even something as simple as moving your credit card debt to a new, lower interest card, can free up more of your monthly income and pay down your debt faster.

Take control by budgeting

It’s easy to lose control of your finances when you’re not keeping track of your spending.

Even little purchases like a coffee shop latte, a takeout pizza or a pack of gum can add up by the end of the month. 

Use a household budget template to track your income and spending, and identify ways in which your household may be leaking money.

It will fundamentally change the way you think about the kind of impulsive and unconscious spending that results in debt.

Come up with a plan

Now that you’ve started to think proactively about your finances, you need to come up with a plan.

Reach out to your creditors.

See if you can negotiate better rates of interest.

Look at ways to consolidate your debts.

See if your creditors are agreeable to a Debt Management Plan that could reduce the amount you pay in interest. 

And if you can’t see a way out of your debts on your own…

Reach out for help where necessary

Even if all the above measures fail you, you still have a number of options.

A Licensed Insolvency Trustee can talk to you about options like a Consumer Proposal or even filing for Bankruptcy.

No matter how much you owe or to whom, there are always ways you can stop debt from taking over your life. 

If you’re ready to take control of your finances and live debt-free, call us today on (877)879-4770.

We’ll be happy to arrange a risk-free, zero-obligation and completely confidential callback. 

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