Debt is a problem facing many Canadians. Debt problems can have many root causes and no two people have the exact same situations. However, there are many broad areas that are common causes of debt problems. If you’re having issues with debt it is important to address the root causes of the situation before trying to find a solution. Here are three common debt problems and what to do if you need assistance.
When you think of debt, credit cards are one of the first things you may think of. Credit card debt is a subtler form of debt as the money you owe slowly builds up over time. Therefore, it’s very easy to end up owing a great deal of money through simple bad spending habits. These bad habits don’t have to be particularly egregious ones either. Eating too much take out, getting too many drive through coffees, or buying clothing a bit more expensive then you can afford can slowly but surely add up. Where credit cards become a burden is that interest rates take up part of each monthly payment and the more you owe the more this ends up being. Only through careful spending habits and consistent payments can you hope to pay down a credit card debt.
Buying A Home
A home is one of the most important expenses on your budget. Where it can become a debt issue is when you’re buying a home. Buying a home is a long term proposition and, unless you’re independently wealthy, one that will take you a long time to follow through on. The problem is that life often gets in the way of even the best plans. Losing a job, having a decrease in income or even unexpected expenses can quickly lead to situations where paying your monthly mortgage becomes an issue. The underlying problem may not be the mortgage itself but the fact that outside events have harmed your ability to pay it. However, through careful planning and review of your income and expenses, along with possible assistance from your bank, mortgage debt can be brought under control.
According to CBC news the average post-secondary graduate owes $25,000 in student loans. Student loans (while essential to furthering your education) sadly start you off in the job market post-graduation with a large amount of debt. Such debt can endure for many years and prove difficult to pay off without careful planning. Defaults and several years passing without much headway made on the loan principal are not uncommon for many graduates. However, student loans, despite not being credit card debt, are alike in that they can be paid off with careful planning and money management. With a nuanced approach and a careful payment plan you can pay off your student loans.
When You Need Help
Getting out of debt isn’t something you have to do on your own. As the above examples show, many people just like you end up in debt even with the best intentions. Debt counselling services can help you get your debt under control and help you pay it down. If you have debt problems and are having difficulty getting them resolved contact a professional today for assistance.