It takes time and good planning, but it is possible to get out of debt. Be sure to set clear, yet realistic, goals. Realistic goals will help you to stick with your plan. For example, "I want to get my debt down to less than 20% of my pay," or "I want to pay off my credit cards by the end of the year," are two clear, precise goals.
Here are seven strategies to help you reduce your debt:
- Budget a set amount each year.
- Get rid of high-interest debt first.
- Cash in investments to pay off debt.
- Consolidate different debts into one.
- Set up an automatic savings plan.
- Use cash from a life insurance policy.
- Make an extra mortgage payment.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.
