An issue that causes about half of working Canadians a large amount of stress is debt. A survey released by the Canadian Payroll Association stated that 48 percent of the participants live paycheque to paycheque. The other 40 percent spent an amount equal to or more than their average earnings each week.

If you can relate to these working Canadians, then you should be looking for advice to push your finances in the right direction. One solution would be to look for financial advice from someone like a debt consultant, but, while you look, in the meantime you can follow these hot tips.

TIP #1 Pay down your consumer debt

One way to pay down your consumer debt is by using the “Avalanche Method” (an Avalanche Method calculator can be found online at This method is done by organizing your debts in a list from highest interest rate to lowest interest rate.

Once a list is made, you will then circle the debt with the highest interest rate. All the debts that are not circled will have the minimum payments made towards them, where the one debt that is circled will have “extra” money put towards it.

You can consider “extra” money to be the money that is saved when you buy one less coffee each day, or when you decide to stop purchasing fast food. The concept of “extra” money leads on to the next hot tip, decrease your discretionary spending.

TIP #2 Decrease your discretionary spending

Decreasing your discretionary spending is a task that involves doing a huge overhaul of all your daily and weekly expenses. A good point to start the overhaul would be with the weekly trip to the grocery store.

One mistake that most people make would be not making a shopping list. Without a list to help you stay on track, you are more than likely to purchase items that are not necessary.

Another important task that people overlook would be planning the right day to go grocery shopping. It is beneficial to keep track of when the deals happen at your local grocery store; this will help keep your shopping costs at a minimum.

Most people don’t realize it but shopping at a certain time of day can have a heavy influence on your purchases. It is always a good idea to be aware of your state of mind when you are at the store. Being hungry, stressed, or upset can cause you to make some impulsive purchases. Shopping with a clear state of mind will allow you to make some sensible decisions.

Straight to the point

The bottom line is that there are many steps that can be taken to help you avoid debt, but, if you don’t take them you will never be debt free. Focusing on paying off your current debt while preventing yourself from taking on more loans is always a good idea.

By organizing your expenses you gain a better idea of your debt situation which gives you more control over your personal finances. Having strong will power and being more aware of how you spend your money will give you the ammo necessary to win the battle against debt.

We are Licensed Insolvency Trustees and have extensive experience in addressing financial issues and challenges as well as all the questions you may have, including managing credit.

Feel free to email us at, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no-obligation consultation with one of our debt solutions’ experts.

Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.