August 16, 2018

10 Tips To Help You Get Out Of Debt

Income inequality is the great domestic crisis facing Western society.  There is a huge gap between rich and poor and the strains on our middle class.  The weakening of the 1950s-70s social contract between employer and employee, by which workers were rewarded with decent pay and benefits for their dedication and loyalty is so prevalent today.

This crisis also derives from the financial illiteracy among individual Canadians today.  Fortunately, this is a shortcoming each of us can address.  Many Canadians work 2 jobs just to make ends meet.  How can we help ourselves?  We need to adjust our lifestyles and rethink our outsized materialism.  The average Canadian spends approximately $1.71 for every $1 that is earned.  Does the “starter home” need to be twice the floor space of the house we grew up in?  Do we need 2+ large screen TV’s and every person in the house have a laptop and an smart phone?  Many Canadians take out 2nd mortgages just to finance affluent behaviours that our income can no longer support.  Borrowers need to think about the pit they might be digging for themselves and it is only common sense to trim one’s budget to fit new circumstances, until they improve.

10 tips to get yourself of debt:

1-  Pay yourself first

2-  Pay in full for depreciating goods and services

3-  Borrow only for goods that appreciate in value

4-  Make the biggest possible down payment on your house purchase

5-  Probably your best investment is to pay down your mortgage

6-  Probably your second best investment is investment into your retirement

7-  Consider the cost of keeping a vehicle on the road

8-  Check out “future preference” and “deferred gratification”

9-  Practice self control in your spending

10-  Never shop for groceries on an empty stomach!!

Something to think about!

Colleen Saunders is a 25 year veteran in the mortgage industry, serving Mississauga, Burlington, Oakville and Toronto and offering all mortgage related services such as 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406

For more info:  Toronto Star:  How to get out of the poorhouse