Debt is a common part of modern life, but if left unmanaged, it can seriously impact your financial wellbeing. Whether it’s credit cards, student loans, or lines of credit, taking control of your debt is possible with a clear, strategic plan.

1. Take Stock of Your Debts
List all your outstanding balances, interest rates, and minimum payments. Understanding what you owe is the first step in building a plan.

2. Create a Realistic Budget
Track your income and expenses to see where your money is going. Identify non-essential expenses you can cut to free up cash for debt repayment.

3. Choose a Repayment Strategy

• Snowball method: Pay off the smallest debts first for quick wins.
• Avalanche method: Focus on debts with the highest interest rates to save money long-term.

4. Consider Consolidation Options
Look into personal loans or a line of credit to consolidate high-interest debts. This can simplify your payments and lower your interest costs.

5. Explore Canadian Debt Relief Programs
If you’re overwhelmed, consider speaking to a Licensed Insolvency Trustee about a consumer proposal or other formal options available in Canada.

6. Avoid Accumulating More Debt
Pause use of credit cards while repaying debt. Focus on building a small emergency fund to avoid future reliance on credit.

Managing debt takes time, discipline, and planning. But with consistent effort, you can reduce your financial stress and take meaningful steps toward long-term stability.