FLM 2017: 3 Debt Options for Families Living Paycheque to PaychequeNov 02, 2017
Being in debt can cause stress and concern, especially when you don’t know how you’ll be able to cover the bills. More and more families live paycheque to paycheque in Newfoundland due to unemployment, high taxes and living costs. Workers used to high salaries are especially at risk of adding to debt and being unable to manage monthly bills if they lose their job. Because of these factors, delinquency rates in Newfoundland have increased by 18 per cent – the highest in Canada.
3 debt relief options for struggling families
Newfoundland and Labrador’s consumer debt has risen by another two per cent and families now owe $1.74 for each dollar earned. Here are three options to lighten the load:
- Get real with your budget – Cutting your spending is the best place to start when you’re looking to pay down debt. If you’re juggling bills from month to month, create a budget that details all your necessary and non-essential expenses. Cut out anything that isn’t essential and keep track of your spending until you get back on your feet.
- Speak to a debt professional – Sometimes, you may need an expert to make sense of your finances and that’s OK! A debt professional, such as a Licensed Insolvency Trustee (LIT), can go over ALL your debt relief options and recommend what works for your situation. This might include credit counselling, loan consolidation or filing a consumer proposal. Use this calculator to weigh your debt options.
- Break the cycle – Living paycheque to paycheque gives you no room for a buffer when things go wrong. Once you’ve got a handle on your debt and budget, start putting money toward an emergency fund. Take a look at Jordann Brown’s blog, My Alternate Life, to see why it’s best to have money on hand for whatever life throws at you.