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

  • Canadian agriculture ministers briefed on trade-war contingency plan

    Economic CTV News
    VANCOUVER -- Federal Agriculture Minister Lawrence MacAulay emphasized the importance of the provinces working together as an escalating trade war with the United States puts some farmers on edge. The minister said his provincial and territorial counterparts discussed trade negotiations and the contingency plan during their conference that wrapped up Friday in Vancouver. Source
  • Teamsters members at CP Rail ratify new contract

    Economic CBC News
    Unionized conductors and locomotive engineers at Canadian Pacific Railway Ltd. have voted in favour of a new four-year collective agreement. Members of the Teamsters Canada Rail Conference (TCRC), which represents about 3,000 workers at CP, voted 64.7 per cent to ratify the new contract. Source
  • Pipeline protesters say they're willing to defy eviction notice

    Economic CTV News
    BURNABY, B.C. - Protesters at an anti-pipeline camp in Burnaby, B.C., say they are ready to defy an eviction notice handed out from the city. The City of Burnaby issued a 72-hour notice to those occupying "Camp Cloud" on Wednesday, but protesters say in a news release that isn't enough time to comply with concerns raised over safety. Source
  • Japan resumes Canadian wheat imports after suspension

    Economic CBC News
    Ottawa says Japan has ended its temporary suspension of Canadian wheat imports. Japan had halted shipments after some unauthorized genetically modified wheat was found in southern Alberta. Ottawa says the decision marks an end to all international trade actions arising from the discovery on June 14. Source
  • Ottawa says Japan has resumed Canadian wheat imports after temporary suspension

    Economic CTV News
    Ottawa says Japan has ended its temporary suspension of Canadian wheat imports. Japan had halted shipments after some unauthorized genetically modified wheat was found in southern Alberta. Ottawa says the decision marks an end to all international trade actions arising from the discovery on June 14. Source
  • 'This is madness': Auto industry warns U.S. lawmakers of dire tariff consequences

    Economic CBC News
    The world's automotive industry gathered in Washington with uncharacteristic unity, to deliver a singular message to American policymakers: If you start a trade war with tariffs on cars, you'll shoot yourself in the foot. The issue that has been gaining steam for weeks came to a head Thursday as dozens of representatives from the industry around the world deliver their remarks at a hearing before the U.S. Source
  • Loonie moves up as inflation ticks higher, TSX ends lower along with U.S. markets

    Economic CTV News
    Stock indexes in Canada and the U.S. closed down Friday on geopolitical tensions, while the loonie surged higher after Statistics Canada said the inflation rate jumped in June. Data from June showed the country's annual inflation rate rose to 2.5 per cent for the month, up from a 2.2 per cent reading in May to hit its highest mark in more than six years. Source
  • Loonie moves up as inflation ticks higher, TSX moves lower at late-morning

    Economic CTV News
    TORONTO - The loonie surged higher after Statistics Canada reported the annual inflation rate in June hit its highest mark in more than six years, while Canada's main stock index lost ground. The Canadian dollar was trading at 76.16 cents US, up from an average value of 75.44 cents US on Thursday. Source
  • Aimia shares surge after it announced Aeroplan program changes in 2020

    Economic CTV News
    MONTREAL -- Aeroplan's parent company received its biggest boost since announcing a change in CEO in April after its shares surged more than eight per cent Friday after it unveiled changes to the loyalty program once its exclusive partnership with Air Canada ends in 2020. Source
  • Boost to Canada Child Benefit comes into effect

    Economic CTV News
    If you are eligible for the Canada Child Benefit program, your monthly payment could soon be increasing. Effective Friday, the federal tax break is being indexed to inflation, which means an increase to keep up with the growing cost of living. Source