If you’re in debt, you’re in good company. The average Canadian household owes $100,000 according to a financial survey earlier this year. That means all kinds of debt – student loans, credit card debt, mortgages and more.
But – even though so many Canadians are in debt, doesn’t mean you want to be there forever. To get out of debt, you are probably going to need to make some changes. Financial behaviours aren’t set in stone. As you get older (and wiser) it’s easier to see the mistakes or spending patterns that got you into debt in the first place.
What did you do that got you into debt?
Take an honest look at your spending over the past few years. What has gotten you into debt? Were they all planned expenses or were they things that snuck up on you?
Wants vs. Needs
We all know the difference between something you want and something you need. However, there are times when we’re at a store, online or even on the bus when we try to convince ourself otherwise. For many people, getting over this hump – and regularly thinking about making purchases – is a hugely important change in spending habits.
What can you change?
Do you know what you spent on? Is that going to be another unavoidable cost in the future? Identify where you can change your spending and concentrate there. When you can make those big cuts, you can really take a chunk out of your debt (and any debt you may have incurred). Whether it’s cutting unnecessary purchases, starting a new savings account or moving to a more cost-effective apartment there are changes you can make to affect your savings, spending and debt load.
Ready to make that change?
Take a look through the Total Debt Freedom blog for more great tips, action plans and fun! Make those changes and get ready to get out of debt.
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