3. Create a Spending Plan You Can Actually Stick To
Call it a budget, a spending plan, or whatever name makes you most likely to use one. The point is the same: you can’t live within your means if you don’t know what your means actually are. And with the cost of living remaining stubbornly high for most Canadians, having a clear picture of where your money goes is more important than ever.
A good spending plan accounts for all of your real expenses, including the ones that only come up a few times a year, and it assigns your money a job before you spend it. If you and your partner don’t agree on every line, start with what you can agree on. Progress is more important than perfection.
It also helps to track your spending for a few weeks before building your plan. Most people are genuinely surprised by what they find. Small daily purchases add up quickly, and simply becoming aware of them often creates immediate room in your budget to put toward debt repayment.
Before Giving Up on Budgeting, Give an Alternative Method a Quick Try
4. Take Advantage of Lower Rates While They Last
If your current interest rates feel manageable right now, that’s exactly the right moment to act. Variable rate debt, including most lines of credit and variable rate mortgages, moves with the Bank of Canada’s policy rate. When rates go up (and historically, they do), those payments go up too.
Consider whether debt consolidation could simplify your payments and lower your overall interest costs. A consolidation loan or a Debt Management Program can combine multiple debts into a single monthly payment, often at a significantly reduced interest rate. The key is to stop using credit once you consolidate, or the strategy won’t work.
Tackle Debt & Get Out of Debt When Interest Rates are Low(er)
It takes time to get out of debt, but every step forward reduces the risk that a future rate increase will knock you off course. The best time to build your plan was yesterday. The second-best time is today, so if you’re not sure whether consolidation makes sense for your situation or if your debt feels truly overwhelming, reach out. The Credit Counselling Society offers free, confidential, non-judgmental appointments and guidance. There’s no obligation, just honest information and a path forward. We’re truly here to help you.
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