Let’s talk about the elephant in the room that gets swept under the rug all too often when discussing our finances: personal debt. Our bills for borrowing can suddenly rack up as we establish new lines of credit and loans that are all too easily accessible via mail offers or pre-approvals. A 2017 poll conducted by Ipsos noted that Canadians with any amount of debt averaged $15,473 of consumer debt1.
Thanks for taking some valuable time out of your day to read about our story on how we became debt free. Whether you are a long time reader or this is your first visit to my blog, I truly appreciate the visit.
Perhaps the most encouraging outcome of the latest recession is the increasing emphasis on debt reduction by most Canadians. We are borrowing less and saving more, and, hopefully, developing some more frugal habits that can lead to healthier finances in the future. Still, many people continue to struggle with their debt. It takes a firm commitment and a lot of discipline, but most people are only a few steps away from gaining the upper hand. By implementing these key step now, you can be more effectively managing your debt, and on your way back to prosperity.
Over the last month or so, I’ve created a list of "Ten Common Money Mistakes Millennials Make" and posted them to our Facebook Page found here. I’ve decided to summarize them in series of blog posts just so everyone can see them in one spot. The list in is no particular order of importance, but I feel they do all need to be addressed or considered. I’ll post the first five mistakes this week and the remainder next week.
The saving versus paying off debt is an age-old quandary that has plagued people since the advent of consumer debt. Pose this question to a group of financial planners and the responses will be split, roughly down the middle. While there might be as many advocates for savings as there would be for paying down debt, the broad consensus will likely be that it really depends on the situation.