Thursday, 15 November 2012

How to deal with debt

On CBC Radio this morning, I'm talking about Canadian household debt levels rising at the fastest pace in two years.

Time and time again, we've heard warnings that Canadian household debt levels are out of control. And as Canadians head into the holiday shopping season, there's yet another reminder that we shouldn't be spending as much as we are.  A new report from credit reporting agency Transunion says Canadians' personal debt loads grew at their fastest pace in 2 years over the summer.  The agency says the average consumer's total debt load, excluding mortgages, rose to $26,768 in the three months ended on September 30th.  Auto loans were the biggest driver for the increase.

If you are dealing with high debt levels here is what you should be doing.

  • Calculate your mortgage at a rate atleast 2 per cent higher - can you still afford your home?
  • Try to be a one car family- you will save $500 a month, that's the average cost to own a car.
  • Don't charge anything to your credit card unless you can pay the balance off at the end of the month.
  • Make the holidays all about the kids, keep gifts for adults small and simple and save money.
  • Stick to your holiday budget.
  • All year make a hapbit to save 5 per cent of your salary in a slush fund to pay for Christmas gifts, vacations anything extra.
  • STOP SPENDING!!!!

3 comments:

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  2. This is a very enlightening blog. Consumers should work hard to save money and deal with debt correctly. This is important especially when times are really tough.

    ReplyDelete
  3. Although it is quite impossible to stop spending because we have to spend for our needs, I think it's just a matter of prioritizing needs over wants.

    ReplyDelete