Demystifying debt.
We hear this a lot.
The burden of debt, combined with stressors like a pandemic, can make anyone want to wish it away. But avoiding those payment alerts may only contribute to more stress in the long run.
Out of sight, out of mind, right? Well, not really.
Although support systems like the government’s CERB program have proven to be helpful for many, Equifax has been seeing a continued trend of growing consumer debt.. And if these programs are reduced, Canadians may need to lean on other resources for support.
When the bills are piling up, a task as simple as signing in to your account to view your statement can feel overwhelming. But that feeling could be replaced by a sense of control. The first step may seem the hardest, but it often gets easier with time.
Know your numbers.
Once you’ve had a moment to take a look at things like your credit card statements, upcoming bills and your account balance, the next step is coming up with a plan.
Set up a budget.
Consider setting up a budget so you know where your money is going, and how much you can afford to put into a savings account at the end of each month.
Sign up for online banking alerts.
And if you have a Capital One credit card, you can set up alerts that notify you when your payment is due, and when you’ve exceeded a certain limit you’ve set on your card.
While creating a mood board featuring yourself on a beach, debt-free and happy can provide temporary relief, it’s important to look at your financial situation first.
We love the way Laurie Campbell, consumer credit and money expert, breaks things down:
Now that’s the kind of mood board we can get behind.
If you’re facing financial difficulties and require support, we encourage you to visit Credit Canada Debt Solutions' website. They’re Canada’s longest-standing non-profit credit counselling organization, and we’re proud to continue to partner with them.