4 Simple Ways To Change Your Relationship With Consumer DebtFeb 21, 2019
A new year, a new you! Whether it’s eating healthy, adding more exercise or dealing with consumer debt, Canadians are motivated to make big changes in 2019. When it comes to dealing with debt, committing to finding debt relief is definitely the first step. However, changing your relationship with your consumer debt may be the key to making those debt relief goals come true. Here are four simple strategies you can use in order to develop a healthier relationship with your debt load.
Break up with your credit card
If you are like many Canadians, your credit card got quite the workout during the recent holiday season. To reset after a period of increased holiday spending, it may make sense to take a vacation from your credit card for the next couple of months and stick to cash only.
Taking a break from plastic will not only allow you time to repay any balance remaining on your card, it can also help you to track and monitor your spending more consistently and develop more mindful spending habits and patterns.
Spend some quality time with your finances
Dedicating some quality time to your finances is another way to improve the quality of your relationship with your money and your debt. Consider declaring every Monday ‘money management day’. On this day, take time to review your budget and your spending, pay any bills that need to be paid, and review your financial goals and make any necessary adjustments.
If you are in a relationship. a financial date night may also be a good idea. According to a recent IPSOS poll for BDO, 59 per cent of Canadians admit that they wish they could change at least one thing about their partner’s financial habits. 36 per cent also admitted that they don’t have regular discussions with their partner about their finances and consumer debt. As such, a financial date night will not only change your relationship with your finances, it could also strengthen your romantic relationship with your partner.
Realize you are not alone
Struggling to deal with your debt load can make you feel isolated and alone. Keep in mind that this is definitely not the case. From online debt relief resources provided by the Canadian government to financial bloggers to debt relief professionals, debt help and advice is available and there is a solution.
Create a plan
One of the main reasons why Canadians may feel stressed out about their debt is that they don’t have a solid debt relief plan in place. The debt relief resources that are available can help you create a plan that works. Often, one of the biggest pieces of a debt relief plan is the creation of a personal budget. A personal budget can help individuals track and monitor their expenses and become more mindful with their money. If you don’t currently have a budget in place, check out this budget worksheet to help you get started.
Be Kind To Yourself
As you work towards finding debt relief and dealing with your consumer debt, remember to be kind to yourself and congratulate yourself on the big (and small) wins on your journey. Committing to getting your debt under control is a big step and one that will set the stage for your financial future. Give yourself a pat on the back for making this commitment and working towards reducing your debt load!
How would you describe your current relationship with your debt? What would you like to change? Join the conversation and share your thoughts with BDO Vernon. Don’t forget to include the hashtags #LeaveDebtBehind, #RelationshipWithMoney, #DebtSolutions.