Tips for tackling household debt

With the average Canadian owing around $1.64 for every dollar they make, household debt reached a record high in the third quarter of 2015.

See Full Article

The amount of household debt was 163.7 per cent of disposable income, Statistics Canada announced in December. That rose slightly from 162.7 per cent in the second quarter.

And with 26 per cent of Canadians naming debt reduction as their top financial goal for 2016, the first step is to make a plan, says Laurie Campbell, the CEO of Credit Canada Debt Solutions.

“First of all, it’s putting goals in place. Because without goals, really there’s no need to look any further,” Campbell said on CTV News Channel Saturday. “You have to have some specific goals on targets, on how to get out of debts.”

She said many debts are accrued by making purchases people might not necessarily need.

“It’s often frivolous things that we’re spending on, although people would argue that they need to use credit just to keep up with their daily expenses,” she said. “But generally, going out, buying yourself meals out on a regular basis, overspending at the malls, luxury vehicles or houses that people can’t afford.”

Campbell said another important part of tackling debt is to talk about your plans with those close to you.

“It’s so important because if you’re out there trying to save money and trying to budget and you’ve got family members out there spending and not recognizing the need, then you’re going to be in a state of flux,” she said. “It’s really not going to happen unless everyone’s on board.”

Ultimately, Campbell says, it takes persistence and discipline to tackle debt problems. She recommends people check in on themselves every couple of weeks to make sure they’re staying on track. And while steadily reducing spending is important, Campbell says it’s also important to treat yourself every once in a while.

“Make sure you give yourself little rewards along the way, because if you don’t, like anything else, it will fall apart because it’s too hard to maintain over a long period of time.”



Advertisements

Latest Economic News

  • Third round of NAFTA talks opens in Canada

    Economic CTV News
    OTTAWA -- A third round of NAFTA renegotiations has begun with chief negotiators from Canada, the U.S. and Mexico meeting in the Canadian capital. Canada's chief negotiator, Steve Verhuel, said Saturday that he doesn't expect this round to see any new U.S. Source
  • Chief Canadian NAFTA negotiator not expecting progress on auto content rules

    Economic CTV News
    OTTAWA - Despite tough talk from the U.S. about the job-killing impact of NAFTA on its automotive sector, Canada's chief negotiator isn't expecting to see a detailed proposal from the Americans during the latest round of talks to rewrite the continental trade pact. Source
  • 'Trump has scared the bejesus out of everyone': How Canada could win the Amazon sweepstakes

    Economic CBC News
    Handicapping the Amazon sweepstakes has become something of a cottage industry in the last few weeks. Predictions of which city will land the company's coveted second headquarters cite everything from the bright lights of big cities like New York and Boston to Denver's crisp Rocky Mountain air to Chicago's spot as a hurricane-free haven. Source
  • Pickleball, anyone? A planned retirement village for active boomers

    Economic CBC News
    Tony DiFruscio is a confessed Disney-holic. "I'm a huge Disney fan," says the president of Zest Communities, a Hamilton property developer. "We go there every year with the family, my oldest son went there for his honeymoon. Source
  • Calgary and Saint John mayors urge NEB to reverse Energy East pipeline ruling

    Economic CTV News
    CALGARY -- Mayors from both ends of the proposed Energy East pipeline are calling for the National Energy Board to reverse its requirement that upstream and downstream emissions be included in its review of the $15.7-billion conduit. Source
  • Lawsuit tossed against Little Caesars over non-halal pepperoni

    Economic CTV News
    DETROIT -- A judge has rejected a lawsuit against a pizza franchise, alleging it sold pork as "halal pepperoni" at one of its locations in a Detroit suburb. The Detroit Free Press reports that on Thursday the Wayne County judge dismissed the lawsuit filed by Dearborn resident Mohamad Bazzi against Little Caesars Pizza. Source
  • Walmart testing service that delivers right into customers' fridges

    Economic CTV News
    NEW YORK -- Would you be OK with letting a stranger into your house for the sake of convenience? Walmart is testing the idea with a new service that lets a delivery person walk into your home when you're not there to drop off packages or put groceries in the fridge. Source
  • Quebec renews Uber's permit for another year with tighter rules

    Economic CTV News
    Quebec's transportation minister is renewing a deal allowing ride-hailing company Uber to operate for another year in the province. Laurent Lessard says the deal extension tightens the rules under which the San Francisco-based company will be permitted to continue offering its services to Quebecers. Source
  • Canadian firm applies to build $10-billion Jordan Cove LNG project in Oregon

    Economic CTV News
    CALGARY -- The Canadian company whose proposal to build an LNG export terminal in Oregon was derailed by U.S. regulators last year has resubmitted its application for a bigger, more expensive project. Calgary-based Veresen Inc. Source
  • OPEC says winning battle to end oil glut

    Economic CBC News
    OPEC and other oil producers are clearing a glut that has weighed on crude prices for three years and may wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018, ministers said on Friday. Source