Follow these tips to help get yourself out of debt

There’s no question that personal debt is a barrier for those of us wanting to put a little money away for the future. But, writes Christopher Liew for CTV News, there are a few ways that can help kick-start your drive to leave debt in the rearview mirror.

First, he writes, you have to fully understand what your total debt is, and from all sources – student loans, credit card debt, personal loans, auto loans, and mortgages.

The interest rate on these debts should help you set priorities for paying them off, he notes.

“Mortgages and student loans typically have lower interest rates, so paying them off quicker may not make as big of a difference. As long as you’re making your minimum monthly payments, I would prioritize paying off high-interest debt first, as the compounding interest can cost you a lot of extra money in the long run. This is how credit card companies trap you,” he explains.

Liew offers up five debt-reducing strategies.

You can consolidate all your debts into one loan, “typically with a lower interest rate. This strategy can simplify your monthly payments and potentially reduce the total amount of interest you’ll pay over time,” he notes.

Another idea is to get a side job to make higher debt payments, he explains.

Side jobs that you could consider so you can pick up a few extra bucks include food or grocery delivery companies, being a ride share driver, waiting tables or bartending on weekends or looking for freelance jobs.

You can also, Liew writes, try to negotiate better terms with your creditor.

“Approach your lenders to discuss options like lowering interest rates, waiving fees, or modifying repayment plans. Be honest about your financial situation and be ready to present a case for why the adjustment is necessary,” writes Liew.

“Successful negotiation can lead to reduced payments or interest rates, making your debt more manageable and accelerating your journey to being debt-free,” he adds.

You could look at cutting your living expenses to free up more money to pay down debt, he writes.

A whopping “51 per cent of Canadians under 35 are living beyond their means,” notes Liew, citing research from the Healthcare of Ontario Pension Plan.

You can cut costs by trading in “your newer car for a more affordable used car,” cutting back on streaming subscriptions, “your personal shopping habits,” and “eating out and ordering in.”

The dollars you save by cutting back on life costs can be redirected to debt reduction, Liew explains.

Finally, you can always go ask your employer for a raise.

“One of the simplest ways to get out of debt quicker is to increase your income, and one of the easiest ways to increase your income is to ask your employer for a raise,” Liew writes.

“While some companies give out raises on a steady annual basis, others are a bit more stingy and wait for their employees to come to them first.”

Once you have taken control of your debts, you’ll have more money to put away for the future. An ideal place to put those hard-earned dollars is the Saskatchewan Pension Plan. Find out how SPP has been helping Canadians save for retirement since 1986! Check out SPP today!

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By Sheryl Smolkin

According to weddingbells 65% of weddings in Canada take place between June and September with 25% of weddings taking place in the month of August. I don’t know the month when the most divorces are granted, but according to 2008 data from Statistics Canada (the last year for which it was reported), the divorce rate has been relatively stable for the last 20 years, fluctuating between 35% and 42%.

Now don’t get me wrong. I’m a big fan of marriage. In November of this year we will celebrate our 40th anniversary. But considering what’s at stake, it’s well worth asking your prospective spouse a few important questions before you say, “I do,” so you don’t have to unravel the whole thing a few years later when you realize what you really meant was, “I don’t.”

Here are 10 things I thought of. No doubt you can think of others:

1. Religion: How important is religion to each of you? If you are of different religions will one of you convert? If you have children, in which faith will you bring them up?
2. Children: Do both of you want children? How many? How soon? If you cannot have children together is it a deal breaker? Would you consider adoption if all else fails?
3. Childcare: Did one of your parents stay at home to care for you and your siblings? Do you believe there should be one stay at home parent in each family? If so, which one?
4. Abortion: Legally a woman gets to make the decision if she is going to terminate a pregnancy. She may make this decision in a variety of difficult circumstances including personal health problems, lack of viability of the child or if she was a victim of rape. Do both parties share the same personal and/or religious views about abortion?
5. Debt: There is nothing that can take the shine off a relationship faster than finding out later rather than sooner that one or both partners have significant credit card, student loan or other consumer debt. Be completely open about the state of both of your finances and consider how to get them in order before you walk down the aisle.
6. Money management: How will you pay the family bills? Will each of you contribute the same amount monthly or pro-rate expenses based on income levels? Will you consolidate your finances or maintain different bank accounts? Who will be responsible for managing and reconciling accounts on a regular basis?
7. Pre-nup: Is one of you older or more affluent? Have one or both of you been married before? Is one of you part owner of a family business? In these circumstances your prospective spouse may ask you to sign a pre-nuptial agreement giving up some of your rights on divorce. If so, be realistic and get independent legal advice before you agree.
8. City vs. country: Where will you live? Are you willing to trade off a smaller apartment in the city for a detached house in the suburbs and a daily two-hour commute? Is living in a rural area on a huge lot a priority or is it important to you to be part of an urban community?
9. Household chores: Are both of you neat freaks or is one of you a slob? Who is going to do what in the home and how often? If both of you are working are you open to hiring someone to do regular house cleaning for you?
10. Resolving conflict: Can you discuss your feelings openly? Every couple has disagreements. How will you handle yours? Are you willing to consider counseling if problems arise the two if you can’t handle easily?
    

Relationships are dynamic and the discussions you have before the big day are not cast in stone. But if you build your life together based on open communication and shared values, chances are greater that when you encounter inevitable roadblocks down the road you will find a way to work together to overcome these obstacles.