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.”


Latest Economic News

  • Global vanilla prices squeeze margins for ice cream, cupcake makers

    Economic CTV News
    TORONTO -- Prepare to shell out a little more for the sweet treats of spring and summer as a global surge in the price of vanilla makes its impact at some small-batch ice cream shops and neighbourhood bakeries. Source
  • Companies experiment with killing the barcode on event tickets and in stores

    Economic CTV News
    TORONTO -- When fans score tickets for events at the Burton Cummings Theatre in Winnipeg in the future, they might notice the absence of a familiar feature: that ubiquitous zebra-styled inventory tracker bar that adorns almost every retail product imaginable. Source
  • Tickets without barcodes: Concert venues experiment with new systems

    Economic CBC News
    When fans score tickets for events at the Burton Cummings Theatre in Winnipeg in the future, they might notice the absence of a familiar feature: that ubiquitous zebra-styled inventory tracker bar that adorns almost every retail product imaginable. Source
  • Canadians see possible signal U.S. ready to accept NAFTA compromise

    Economic CTV News
    OTTAWA -- American trade officials are showing newfound interest in a Canadian proposal for revamping NAFTA's automotive provisions as the U.S. seeks to swiftly conclude renegotiations of the continental free trade pact. And that's being taken in some quarters as a sign that the U.S. Source
  • The dirty truth about makeup and the oil change debate: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Don't panic. CBC's Marketplace rounds up the consumer and health news you need. Want this in your inbox? Get the Marketplace newsletter every Friday. Internet prices dialing up Your internet bill could get even more pricey. Source
  • After overcharging for bread, should Loblaws demand ID for a $25 gift card?

    Economic CBC News
    Jenn Iskiw says she'll be grocery shopping elsewhere after feeling betrayed by Loblaws — twice. First, for artificially inflating the price of bread for 14 years, and second, for demanding she send ID to get a $25 gift card offered as compensation for bread price fixing. Source
  • Facebook suspends data analytics firm that worked for Trump campaign

    Economic CBC News
    The Massachusetts attorney general said on Saturday her office was launching an investigation after reports that Cambridge Analytica had harvested private information from more than 50 million Facebook users in developing techniques to support U.S. President Donald Trump's 2016 election campaign. Source
  • Trump's goal of 'energy dominance' could change the global balance of power

    Economic CBC News
    Fuelled by technological breakthroughs and cuts to taxes and regulation, the United States is on target to become the world's biggest producer of crude oil in the next five years. Let that sink in. The U.S will be bigger than Russia and Saudi Arabia. Source
  • How to avoid spending money on unnecessary oil changes

    Economic CBC News
    Oil changes are by far the most common service performed on vehicles in Canada. Customers pay quick lube facilities, private garages and dealer maintenance centres well over a billion dollars a year for the service. But a CBC investigation finds many of us may be changing our oil far more often than automakers require. Source
  • Trans Mountain protester arrested, one day after court grants injunction

    Economic CTV News
    BURNABY, B.C. -- Burnaby RCMP say they arrested a woman who chained herself to a work truck Friday morning, one day after the B.C. Supreme Court granted Trans Mountain an injunction against demonstrators. Just before 8 a.m. Source