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Family life can be expensive. When you’re looking after kids, older parents, pets, and a partner, it can make getting out of debt tough, even in a dual-income household.
When you find yourself struggling to manage your debt levels, it may be time to take a different tact. These are some of the strategies your family can use to approach your debt in a new way.
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Overwhelming Debt: When Budgeting Is Not Enough
It can be gut-wrenching realizing that you don’t have enough money to cover a bill, or that paying your way out of debt can take years. When this happens, it may be time to talk to a Licensed Insolvency Trustee.
A Licensed Insolvency Trustee is a regulated professional who will show you all of your options for getting out of debt. They are also the only professionals who can help with things like filing bankruptcy or a consumer proposal in Ontario.
A consumer proposal can be a powerful tool for getting out of debt. They can discharge as much as 80% of the unsecured debts that you owe, stop interest charges from growing your debt, and make sure that you’re only responsible for a single fixed monthly payment, which is split between all of your unsecured creditors.
It can speed up the time it takes you to get out of debt and help make an impossible debt load more manageable.
Budgeting Tips: Get Out of Debt Without Impacting Your Credit Score
A consumer proposal can be a faster, more effective way out of debt than trying to do it on your own. If you’re employed and earning a steady income, it can be exactly the debt solution that you need to start over.
However, not everyone in debt needs a consumer proposal, and they may want to avoid the impact it can have on their credit score. Depending on how much you owe, you may be able to solve your debt issue on your own but keep in mind that waiting too long to deal with unmanageable debt can limit your options.
If you’re determined to do it your way, these are some budgeting tips that can help.
#1 Change Grocery Stores
It’s no secret that Canadian grocery store prices are out of control, and there’s no relief in sight. One quick way to save is to switch to a discount grocery brand or even find independent stores.
#2 Find Cheaper Telecommunications Deals
Internet and mobile bills in Canada are among the highest in the world, and you can wind up spending thousands every year on essential telecommunications.
Try looking for budget options from newer, smaller providers. If their plans don’t work, you can also try calling your current provider and insisting on a better deal.
#3 Consider Living with One Car or Going Car-Free
Depending on where you live, what kind of jobs you have, and your family make-up, this may not work for everyone. However, if you have the opportunity to go from two cars to one, or one car to none, you can save thousands every year on car payments, gas, and insurance.
Debt doesn’t have to be an insurmountable obstacle. Whether it’s through better budgeting or debt relief options like a consumer proposal, you can get your family finances back on the right track.
