Most Canadians are in debt and want to get out of debt. But, some will never get out of debt, or take too much time to do it, because they do certain things, which only sabotages their chances of getting out of debt.
Here are some things that may cause you to stay in debt longer than necessary:
You do not know how much debt you have
Most people are generally aware that they are in debt, but they do not know how much and where they are relative to the Canadian average.
It is ridiculous to think of getting out of debt when you do not have the actual numbers regarding what you owe.
The first step towards being free is to make a list of all your debt debts, and to develop a clear picture of what you need to pay. Only there, you can come up with a plan to clear your debts.
You only pay the minimum
Getting out of debt will require a real effort, and it will be difficult to achieve if you only commit to pay the minimum balance.
You should realize that the more you pay, the sooner you will be released from your debts, but if you continue to pay the minimum, you will be in the hole for the long run.
You have a big mortgage
A mortgage is one of the most important sources of debt for most Canadians. If you take out a huge mortgage, it will probably mean it will take decades before you are debt free.
If you want to get rid of your mortgage debt, you have a number of options, including additional payments for the mortgage, a reduction in the size of a smaller and cheaper house, or refinancing to a mortgage.
Get lower rate to reduce the time needed to pay off the mortgage.
You do not follow your expenses
If you are the type of person who does not know where their money is going, or if you simply can not say NO to the financial demands of your children, then be prepared to be in debt for a relatively long time.
It is important to know where your money is going and to know that you should not give your children everything they ask for.
By monitoring your expenses, it becomes so easy to know what to reduce, and how you can increase the amount of money you save, which you can then begin to eliminate your debts.