Hey Canadians, stop spending and start saving!
TORONTO, ON, September 8, 2016 – It is no secret – Canadians are struggling to manage their debt from the provinces to the territories. So much so, 39 per cent of Canadians are feeling overwhelmed by their debt load. Why? Many Canadians are living beyond their means and they do not know how to break the cycle of debt. For some consumers, living a life with a heavy burden of debt is common.
A new survey from the Canadian Payroll Association says 48 per cent of Canadians are living pay cheque to pay cheque on average. As a consequence, many Canadians are stuck in a cycle of depending on debt to get them by. So what kinds of debt are Canadians carrying? The majority of the debt is mortgage debt (26 per cent), followed by high interest rate credit card debt (18 per cent), then car loans (17 per cent) and lines of credit (16 per cent) round out the top four.
“It is unfortunate so many Canadians are having a hard time staying afloat with their debt management. However the cycle of debt could be broken by making small lifestyle changes,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“I know lifestyle habits can be hard to break however if a consumer changed their relationship with their money and learned the importance of saving – their struggle with debt would be a different one,” says Schwartz.
It can be hard to change a lifestyle habit especially if you are used to buying whatever you want when you want it. However once consumers have an understanding of their needs vs. wants – it could be a difference of living knee high in debt or being debt free.
So what can Canadians do to save? Canadians should find a solution that works the best for them. Consolidated Credit Counseling Services of Canada believes a good way to get into the savings habit is to do the following:
- Pay yourself first! Putting even a small amount of money away on a monthly basis could be the key to breaking the cycle of debt. Get started by creating a savings account that automates your savings. Look for a high interest savings account or a TFSA.
- Pinch your nickels and dimes. How? Track all of your spending in a budget from how much is spent on morning coffee runs to how much is spent on entertainment.
- Slash your bad spending habits. It’s time to spend less money than you earn. Sounds simple however if you’ve developed a habit of living like a rock star; it can be hard to break the cycle. So grab your spending by the reins and spend less and live within your means.
- Wrap it up – for lunch that is. Plan your meals throughout the week. Use comparison apps to find the best deals on your favourite foods. Brown bag your lunch and watch your savings grow.
- Seek help! When debt is too much to handle, it is time to call a trusted financial advisor for help.
About Consolidated Credit Counseling Services of Canada, Inc.:
Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.
For more information or to request an interview with Jeffrey Schwartz, please contact:
Natasha Carr, Community and Public Relations Manager, Consolidated Credit Counseling Services of Canada, Inc., T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: [email protected]