If you’re dealing with debt, know that you are not alone and there are ways to manage your debts and begin to pay them off. Here are four ways you can get started on your debt journey.
4 ways to manage debt
Consolidating debt.
Speak to your bank about the possibility of consolidating your debt into one payment with a lower interest rate. This may be helpful especially if you are carrying debt on credit cards or other high interest loans. Lowering your interest rate will allow you to pay down your debt faster and having one payment will make your spending plan easier to accomplish. *Tip – ask your financial institution to match your loan payment dates with your payroll pay dates to make monthly cash flow planning easier.
Tracking spending and creating a budget.
A monthly spending plan can help determine your monthly expenses and where you are spending your money. You may be surprised where you may be able to cut back to pay down debt and enhance your savings plan. If you have consolidated your debt, you will want to avoid increasing debt so you consider putting together a spending plan that matches your income. Learn three simple steps to create a budget.
Building a savings buffer.
Building a plan for those unexpected events or emergencies is a good idea if you have the extra funds to do so. However, it’s important to “pay yourself first” when saving for emergencies. Speak to your bank about setting up a savings account where you can make automatic contributions. *Tip – have the automatic contributions match your payroll pay dates. Learn how to save for a rainy day.
Find out what support resources are out there.
There is support available from several organizations and financial or debt repayment professionals. There are many options to choose from, so it’s important to do a little research first – think about what you need, find out what sectors are regulated, read up on your rights as a consumer and investigate what services are provided at what cost.
There’s a lot to know and many resources at your disposal related to debt management. Only you know what’s right for you.
Where to go for help
Paying off debts isn’t something we can help you with but there are other options to consider. You may be interested in speaking to your financial institution or a financial advisor to see if they can help you reach your financial goals. The Financial Consumer Agency of Canada also has information and resources available online to help you make a plan to be debt-free.
Getting calls from a debt collector?
We know dealing with debt can be stressful, especially if you’re getting collection calls. In BC, you have rights when it comes to debt collection. Not everyone’s experience with debt is the same but the rules apply to all of us. Learn your rights in BC and access tools and resources to help you on your debt journey.
Learn more
How to get the calls to stop
What to do if it’s not your debt
The rules debt collectors must follow in BC
The impact of debt on your credit report
4 ways to manage debt
Debt relief: Credit counsellors vs debt repayment agents
8 tips for choosing a debt relief service
3 simple steps to create a budget
How to save for a rainy day
How to prepare for changing interest rates
About Consumer Protection BC
We are responsible for licensing debt collectors and regulating certain aspects of the debt collection industry in BC. The law speaks to when a collector can contact you and how they can communicate with you. We can’t help with every debt related issue and we’re not financial advisors. Find out more about us and the other industries and transactions we oversee by exploring our website.