Debt is not a new thing, it’s a common issue for many people in Canada. Debt can come in different forms, shapes, and sizes. Examples may include money owed on credit cards, student loans, auto loans, mortgages, payday loans, etc. sometimes, paying debt is not necessarily the issue, but the subject of convenience. If it is not convenient, it will lead to stress and probably accumulation of more debt that can lead to a debt cycle. Handling debt is not just about paying monthly, it’s about finding smarter ways to manage what you owe so you can eventually live a life free from debt.

Many Canadians feel overwhelmed by their debts. They might worry about how to pay them off while still having money for everyday needs. This is never a sweet feeling, it can be stressful. But, there are methods and steps that can make dealing with debt less challenging and more convenient.

In this blog, we will explore practical strategies that can help anyone pay down their debt more conveniently. If you’re feeling stuck in debt and not sure of where to start, you’re not alone. Read on to discover how you can begin your journey toward a debt-free life in a way that feels manageable and not overwhelming.

Debt Assessment Comes First

Before you can start tackling your debt, you need to first understand exactly how much you owe. This can be a little bit uncomfortable. The reason is because many people shy away from knowing exactly how much they owe. But the truth is, just because you’re scared of how much you may be owing doesn’t mean it will one day disappear and take care of itself. Don’t worry about how high the debt is, no matter how high it is, there are ways to pay down debts conveniently. Scare the debt by finding out how much it is.

Now get a piece of paper or open a spreadsheet on your computer. List every debt you have. Beside each amount, note the interest rate and the minimum monthly payment required. When you know exactly how much you owe, it will help you understand your situation, maybe it’s not that bad after all, and if it is, no debt situation is beyond help.

Seeing all your debts laid out in front of you helps make the situation clearer. It allows you to see the big picture, and it’s the first step in making a plan to pay everything off. 

A Closer Assessment 

Now that you know how much you’re owing. Looking at how much you earn monthly and minimum required payment for each debt, do you think you can conveniently pay down your debt? Convenience might be relative but let’s give a general perspective of what a convenient payment structure would look like.

While paying down debt, you should still be able to take care of all your basic needs. Even though you may need to cut down on expenses and some unnecessary spending so you can make room for extra money. You should also be able to save, no matter how little. You should also be able to pay a little above the minimum payment required so you don’t keep accruing interests. If you are unable to do all these barest minimums, then it may be safe to say you can’t conveniently manage your debt. Let’s look at what inconvenience looks like.

If you can barely make minimum payments on all debts, you have little to nothing left to take care of your basic needs. You still have to take out a fresh loan to take care of some things, yet there’s no savings. This could mean you can’t conveniently pay down your debt.

If this is your reality, there are other ways to go about it 

1. Debt Consolidation Options

Debt consolidation can make your debt repayment easy to handle. This strategy involves combining all your existing debts into a single. This means instead of juggling multiple payments each month, you only have one payment to manage. Look for a consolidation loan through a bank or credit union that offers a lower interest rate than you are currently paying. By doing this, you can reduce the amount you pay in interest, which can help you pay off your debt faster. However, it’s important to read the terms carefully to make sure the loan truly benefits you and doesn’t just extend your debt period unnecessarily.

2. Government Programs

Canada offers various government programs designed to help citizens manage and reduce their debt. One notable program is the Repayment Assistance Plan (RAP) for student loans, which adjusts your monthly payments based on your income or even pauses them if you qualify. For those struggling with severe debt, options like a Consumer Proposal or Bankruptcy might be a good option. 

Consumer Proposal 

Consumer proposal can be a viable option when it comes to paying down debt conveniently. You can reduce your debt by up to 80% and you won’t lose your assets. It’s one of the sought after debt relief options Canadians consider.

3. Increase Your Income

You have probably considered this but it can’t be overemphasized. Increasing your income can make a huge difference in how quickly you can pay down your debt. You can consider taking on a side hustle or part-time job. Even a few extra hours of work each week can translate into a substantial amount of extra money that can be put to good use. Think about what skills you have that can be monetised and look for opportunities that fit your schedule.

4. Reducing Monthly Expenses

It’s hard but it’s for the greater good. You need to cut down on your spending. When you do, you will realise that you can have a few hundred dollars that could take care of your needs and pay down debts. Sometimes we spend without thinking twice, knowing full well that such a decision will affect future spending. It could lead to you having to use a credit card to make payments, thereby adding to whatever is on ground already. You need to be cautious with spending and reduce it till you’re comfortable enough to afford some luxury.

Conclusion

If you’re thinking about how to reduce your debt, there are different ways to get it done. There are debt experts who are experienced and have mastered how debt can be tackled. They will give you tailored advice that will help your situation. You can speak with one of our debt experts at EmpireOne Credit and see how we can be of help to you. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation. Being debt-free feels good!