We all go through periods where we are balancing multiple debts, mortgages, interest rates and payment schedules each month.  It is becoming more difficult each year as we see less and less of our income but our expenses keep going up.  It is getting harder to save money, harder to save for our retirement and our future.

It is becoming the norm is max out our credit cards in order to cover all these costs.   The problem is after we consolidate all of that outside debt and if we don’t change our spending habits, then a couple of years down the road, we are in the same situation.

Signs you have a debt problem:

■ Refusal to acknowledge debt
■ Don’t ask and don’t talk to anyone about money
■ Using one credit card to pay off another
■ Spending your emergency money while promising to pay it back later
■ Using your overdraft as a backup while you wait for your pay cheque
■ Utilizing pay day loan companies
■ If you only make minimum payments on your credit cards, it could take up to 70 years to pay off your credit cards
Using credit cards or loans for consumption purposes.

One of the best ways to take control of your debt is to take out a debt consolidation mortgage.  This loan is based on the equity in your home and you are able to borrow money against your home at a much lower interest rate to pay off your multiple sources of debt.  With a lower interest rate, you will automatically begin to pay off your debts faster.

What is the solution?  We need to budget, we need a plan and we have to stick to it.  It’s not easy, for sure but we have to get control of our lives.  Understanding your financial picture will help you reconcile what you want with what you can actually afford.

Let me give you some examples of how much money you could save on a monthly basis, you will be amazed!!