5 LITs Explain How to Change Your Mindset About Debt

Debt repayment is one of the most common New Year’s resolutions in Canada. In a CIBC poll, people named it their top financial resolution for the eighth year in a row. But as we know, most New Year’s resolutions don’t last more than a few weeks—and paying off debt is a long-term commitment. That’s why five of our Licensed Insolvency Trustees are offering their advice on how to change your mindset about debt:

“You don’t have to be resigned to your debt load. If it is part of your long-term financial goals, ensure that you’re reviewing the debt repayment strategy regularly. Be focused on the goals and be sure that you’re doing all that you can to pay down the necessary debt.” Jennifer McCracken, Vancouver

“While we all love to save money, purchasing items we don’t really need just because it’s on sale is not going to assist us in managing our finances. When you see advertisements for the latest sale, I would suggest that you pause for a moment and consider: Do you need the item, or is it simply an impulse purchase?” Doug Jones, Barrie

“Start thinking long term instead of short term. Think about what you want your life to look like when you’re out of debt. Start with one long-term goal.” Craig Fryzuk, Calgary

“When it comes to paying off debt, you need to focus on the ‘why’ for you. Everyone’s situation is different, so what motivates you to get your debt paid off? Whatever is the motivating factor for you, put that top of mind so you keep focused on getting that debt paid down.” Nancy Snedden, St. John’s

“Take ownership of your financial situation, especially the debt. That involves taking a very honest and a very realistic look at the whole financial picture. It’s very difficult, if not impossible, to make improvements to a financial situation if you don’t acknowledge the reality that you’re living in.” Jasmin Calyniuk, Saskatoon

Taking ownership of debt starts by figuring out how much you owe, the interest you’re being charged, and how long it would take to pay off your debts. Our online debt calculator can help you take the first step.

The previous advice was taken from our latest podcast, which you can also listen to below: