Debt can accumulate faster than we think- whether through student loans, credit cards bills, business or home mortgages, and more. Dealing with debt can be daunting but there are practical strategies and tools to help you manage it without losing your mind.
Below are three practice ways to tackle debts using resources from Canadian-based institutions and organizations.
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1. Understand Your Interest Rates and Save Money on Debt
We all have different types of debt with varying interest rates, and these rates can change after contracts expire. Do you know how much money you could save by switching your repayment plan from monthly to bi-weekly? And do you have a clear understanding of the interest rates for each of your repayment plans?
The best way to tackle your debt and build a sustainable repayment plan is to fully understand your debts and the interest rates attached to them. The Financial Consumer Agency of Canada offers a Debt Calculator that helps break down car loans, mortgages, and other debts into simple charts and explanations, showing different strategies to pay them off faster. This is a great tool to use to understand all the debts you may be managing.
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2. How to Consolidate Debt in Canada for Lower Payments
If you have multiple debts at high interest rates, combining them into one lower-interest payment can make repayment easier and more affordable. Talk to your bank about consolidating repayment plans, or explore a non-profit credit counselling agency like Credit Counselling Society. They have services including credit counselling, debt consolidation, filling bankruptcy and more. Check out our community partner's page for more information on debt-managing resources.
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3. Build Habits to Stay Debt-Free for Life
Prevention is key to building a debt-free lifestyle. Paying off debt is just the first step—staying debt-free is the real victory. If you aren't already, setting up an emergency fund and intentionally tracking expenses are two great way to be proactive with your finances.
The Markham Public Library offers free workshops on financial literacy for all ages. You can sign up for our Business & Finance e-newsletter to get the latest workshop updates. We have also included a few curated reading lists below on financial literacy. Other helpful financial literacy resources include:
- abcMoneyMatters
- Financial Basics from Financial Consumer Agency of Canada
- York University's Financial Literacy Resources
Managing your personal finances can be challenging - but it doesn't have to be! Simplify this process and learn more about your finances by reading the helpful books within this guide!
A book list on achieving financial freedom through budgeting, retirement planning and management, debt elimination, and building wealth, perfect for seniors looking to take control of their financial future.
This book list introduces children to the basics of money, teaching concepts like saving, spending, earnings, and budgeting.
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