Canadians are struggling with debt, but here is how to tackle yours!

A new survey shows an alarming trend regarding Canadians and their debt loads—one-third can’t cover their monthly bills.

One-third of Canadians say they are no longer able to cover their monthly bills and debt payments, according to a survey carried out by Ipsos for insolvency consultancy MNP, up from 25 per cent in a survey three months earlier. [Huffington Post]

Debt levels continue to rise in Canada, so while times are tough for some, the stress of budgeting is even more important. Use January as an excuse to get your money back on track.

A budget helps you see more clearly how much money you receive, and how much you spend and save. It helps you set spending limits and live within your means. It helps you find ways to get rid of your debts, reduce costs and have more money for things that are really important to you. [Financial Consumer Agency of Canada]

If you’re unsure how to start with a budget, here are some basic tips for success:

1. Keep track of your money habits right now: how much income do you bring in? Where does your money go to (and be honest with yourself)?
2. Create a budget: there’s a great free budget worksheet online on the Government of Canada website.
3. Stick to your budget: it will be hard at first, but discipline yourself. You’re the only one who suffers if your budget fails.
4. Evaluate your budget: a great budget will mean that your income and expenses are leaving you with enough to achieve your financial goals, if something is way off, it’s time to reevaluate.

If you still need some help, here’s a step-by-step guide to budgeting (including a budget calculator) via the FCAC website.

If you have questions about budgeting for homeownership, please feel free to contact me!

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