7 Ways to Manage Household Debt

For many families in Canada, household debt has reached an alarming high, with more than 80 per cent of debt in mortgages and home equity credit lines, the Financial Post reports. The rise in debt levels has largely been due to the rise in home prices.

If you find yourself in the same boat, here’s how to find ways to reduce your debt. One of the most effective is cutting down on household spending. Check the following tips and advice to help you:

Be organized

Keep a record of everything you spend. That will make it easier for you to track and monitor your spending. Once you’ve mapped out your daily, weekly and monthly spending, you can figure out where you’re spending the most and find ways to change that.

Know what you need

Many find it difficult to distinguish what they want from what they need. Don’t make the same mistake. Be clear on the essentials. That will make it easier for you to say no to things you only want but don’t need.

Review your expenses

You may have forgotten about those monthly subscriptions that you may still be paying for. If your monthly gym membership isn’t seeing much action, then withdraw your membership and put the money into paying for your debt. You can find other ways to get the exercise you need without paying for gym membership you aren’t using.

Research

People love freebies. Not everyone will research on the best ways to get a deal, though. That’s a money-saving skill, one you’ll want to cultivate. Every time you buy something, remember to do a bit of research first. This can provide you with options that won’t break the bank or are, better yet, free of any charge.

Pay on time

Late payments can lead to extra charges. Don’t pay more than you should. Pay on time so you won’t have to deal with any reconnection charges.

Look for a debt management pro

Find a debt management expert to help you eliminate your debt. If you have massive debt, reach out to a debt consultant in 4 Pillars in Victoria. They will review your case and offer you a debt restructuring plan to help you get your finances and life back on track.

Know and understand

Before you say yes to that restructuring plan from 4 Pillars in Victoria, know and understand everything. Read through the contract, chapter, and verse. Still, have questions? Call us.