Many Canadians are learning how to be responsible with non-mortgage debt
Canadians are learning that living on plastic is not the best way to go and are choosing to say no to credit cards. The latest report from Equifax Canada says many consumers are being responsible with their debt.
The Equifax report revealed Canadians are not eager to add to their debt mountain so much so; some consumers are paying down on their non-mortgage debt.
“Canadians want to live debt free lives. One way to achieve this is to pay down on their debts and depend less on their credit cards,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
Although many consumers choose to say no to credit cards, Equifax Canada says consumer debt is still growing.
“While most consumers are tightening up on their spending, partially due to seasonal spending, a significant number of consumers are still adding to their debt obligations,” said Regina Malina, Senior Director of Decision Insights at Equifax Canada in a statement.
The report also observed some consumers are paying off their credit card balances on a monthly basis and some are even adjusting their spending habits to compliment a change in their life.
“This is a tale of two consumers. On the one hand you have a consumer who is responsible with credit and on the other you have a consumer who continues to rack up debt,” says Schwartz.
“If you are the latter, you need to examine your whole financial picture and determine if you can continue to live this way. If you cannot, you need to consider a debt management program for help,” says Schwartz.
If you are unable to pay off your credit card balance on a monthly basis and you are stressed out with your growing debt, Consolidated Credit offers the following tips:
- Assess your situation and make adjustments. Determine your needs vs. wants. If you enjoy eating steak and lobster and you recently lost your job – it is time to re-evaluate your grocery shopping list.
- Create your household budget and stick to it. The fastest way to spend your hard earned cash is to ignore the necessity of budgeting. Creating a budget will add money to your wallet, instead of draining it dry.
- Embrace a frugal lifestyle. There is a difference between frugal and cheap. Adopt frugality and watch your dollar stretch like a rubber band. Frugal living is a sure fire way to add money to your wallet.
- Cash rules everything around you. Leave your credit card at home and embrace a cash only lifestyle. You will spend less and only spend on what you are able to afford.
If you are in over your head in debt and you do not know where to turn, call Consolidated Credit and speak to a trained credit counsellor. A credit counsellor will assess your situation and let you know, what debt management program will work for you. Give one of our trained credit counsellors a call at 1-888-294-3130.