FLM 2017: What’s the Best Advice to Reduce Debt?Nov 03, 2017
There is no one-size-fits-all answer on the best advice to reduce debt. The truth is that continuous learning is the best advice to reduce debt. Take advantage of every opportunity you have to grow your financial knowledge as it will help you make informed decisions with your money and paying off your debt load moving forward. You don’t want to end up with regrets about how you dealt with debt, like many Canadians are when it comes to their student debt.
November is Financial Literacy Month here in Canada. The Financial Consumer Agency of Canada (FCAC) has put together a #ItPaysToKnow campaign to highlight the importance of increasing your financial literacy.
Every debt situation is unique. There can also be a lot of misconceptions about debt and Jordann Brown of My Alternate Life has a great article on that topic that is definitely worth a read.
Here are some advices on how you can get help with debt both on your own and with the help of a professional.
DIY Debt Advice:
- Make a financial plan for the year with goals to pay off debt
- Build a budget to help you achieve the goals in your financial plan
- Use the FCAC – Make a Budget worksheet to help you
- Talk with someone you trust about your finances and debt regularly
- Find ways to not take on new debt and pay off the debt you have faster
- Listen to how others have taken action to reduce their debts
- Mo’ Money Podcast is a great place to start
There are definitely a lot of things you can do on your own to reduce your debt load, but sometimes you need help. The good news is that there are debt relief professionals such as Licensed Insolvency Trustees (LITs) that can help you with your debt problems and offer solutions that best suit your needs.
Professional debt relief options that can help you:
- Consolidation loans
- Credit counselling
- Consumer proposals
Even if you don’t need to use these debt relief options, knowing how they help to reduce debt is a benefit to you should the need to use one come up in the future.