What To Do When You Are Using Debt To Make Ends Meet

Borrowing can be a useful financial tool, but if you find yourself in a situation where you cannot cover all of your monthly expenses and you resort to credit cards to make ends meet, that’s not a good thing.

If you resort to using credit cards, or even payday loans every month, you will soon find yourself trapped in a cycle of debt that is very hard to get out of.

This page will give you advice on what to do when you are using debt to make ends meet and how you can break out of that cycle.

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Warning Signs To Look Out For

Many people don’t realise that they are falling into a debt spiral until it is too late, so you need to watch out for the following warning signs:


  • Buying essentials like groceries on credit cards because you don’t have enough cash to pay for them.
  • Only being able to afford minimum payments on debts each month.
  • Reaching or exceeding credit limits on your credit cards on a regular basis.
  • Applying for more credit cards because you have maxed out existing ones.
  • Using payday loans to cover essential expenses like rent or to pay unexpected bills.
  • Feeling stressed and anxious about money on a daily basis.


If you notice any of these warning signs, and you get regular calls from your creditors, it is likely that you are already in a bad financial position.

Breaking The Cycle Of Debt

The first thing you need to do when you are using debt to make ends meet is break the cycle, which means paying your expenses without relying on credit cards or loans.

The best way to do that is to track your spending and create a budget.

First, cut up your credit cards or at least leave them at home when you go shopping, so you cannot spend outside of your means.

Review all of your spending and cut out anything that isn’t a necessity.

Then you need to look at your other expenses and see if there are ways to cut back.

For example, if you eat out a lot, you should start cooking at home more often.

Monthly subscriptions, like the gym or streaming services, should also be cancelled, for a while at least.

Now that you have reduced your living expenses, you need to write down your new budget and stick to it religiously.

If you let your old habits creep in again, you will find yourself back at square one.

Clear Your Debts

Once you have reduced your expenses, you need to start paying down your debts.

If you focus on high interest debts first and put all of your extra cash towards debt payments, you may be able to get things under control.

Once you clear a debt, double down on payments and put that extra money towards other debts.

In many cases, balancing the budget and focusing on debt payments will be enough to get your finances in order again.

However, if you are in a particularly bad position, you may have to consider debt relief options, like bankruptcy or consumer proposals.

If you want to know more about different debt relief options and what to do when you are using debt to make ends meet, get in touch today and our expert team will advise you.

You can reach us by phone or fill out an evaluation form and we will get back to you.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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