This is all too often how we deal with debt.

48% of Canadians would be in financial difficulty if their paycheque was delayed by one week according to The Canadian Payroll Association. As Christmas is just around the corner, try to be conservative. If you have a large family you buy gifts for why not try to draw names and set a gift value limit or make home made gifts. Use cash and leave your credit card at home. Don’t get a Holiday Hangover!

Here are a few tips to help you Deal With Debt.

  • Don’t try to keep up with your friends spending habits, remember they are probably struggling with debt too.
  • Don’t take on additional debt. Try to spend only if you can actually afford it.
  • Think about your long-term plans – perhaps change up your investment portfolio.
  • Complete a cash flow statement each month – Money in vs money out!
  • Pay your bills on time – consider setting up automated payments to avoid late payments and penalties.
  • Pay your most expensive debt first. This is the one with highest interest rate not the largest balance.
  • Bring your lunch and coffee to work instead of purchasing it each day.
  • Look into consolidating your debt. By consolidating into one payment you could receive a lower interest rate, lower monthly payment or both.
  • Make a plan and discipline yourself. Change takes time.

Try to set 1 goal each month in your financial life – for example, put what you saved each week or what you can afford into a Tax Free Savings Account, buy groceries and avoid restaurants or make an appointment with your Accounting Team to find ways in which you can save on taxes. One of the biggest investments you can make is to pay off debt.