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January 04, 2018 | By: Editorial Staff

How to Get Out of Debt in 2018

Holidays and Money

Did you burn your budget over the holidays only to realize you need to make some big changes in 2018? You are not alone! According to a recent CIBC poll, over 50 percent of Canadians wish they had paid off more debt last year when interest rates were at their lowest. 

For the eighth consecutive year, paying off debt is at the top of Canadians' list of financial priorities with 25 percent of Canadians saying that it's their no. 1 financial goal for 2018. And it's no surprise—the average Canadian household owes $1.72 for every dollar they earn in disposable income. That's a huge financial burden, especially for families, which makes getting rid of debt an essential first step towards gaining financial freedom. 

If you're joining other Canadians this year by making debt elimination one of your resolutions, there are a lot of resources that will make the chances of your success a lot better. No matter what reason you have for being in debt, making a few important changes will transform the way you look at your finances forever. Before you know it, you'll start to enjoy all the freedoms that come with not owing creditors a dime.

Why 2018 Is the Right Time to Eliminate Debt

While there is no bad time to eliminate debt, 2018 is shaping up to be a particularly good opportunity to reach your goal. According to Pierre Cléroux, Vice President, Research and Chief Economist for the Business Development Bank of Canada (BDC), 2018 should be a banner economic year for Canada and the rest of the world. Growth is projected to be above 2%, and jobs are expected to increase at a steady rate. When you're trying to get rid of debt, good economic conditions mean you'll have the income you need to reach your goals.

While positive economic conditions are favourable if you're in debt, growing interest rates in the coming year will prove to be the stick. The BDC is anticipating significant interest rate increases on the horizon, which means people with outstanding debt will pay more for the money they borrow. With interest rates on the rise, it's only going to get harder to eliminate debt in the coming years, so it's best to start now if you want to have a debt-free future.

The Power of Debt Consolidation

Rising interest rates can be a major challenge when you're trying to figure out how to eliminate debt. Fortunately, Credit Canada's Debt Consolidation Program (DCP) has helped countless Canadians in your situation. We can negotiate with your creditors on your behalf to either stop or significantly reduce the interest on your outstanding debt, help you to create a personalized plan that includes an easy to understand repayment schedule, and even help you rebuild your credit once you are done paying off your debt. By having an expert credit counsellor help you manage your debt, creating a budget and sticking to it will become a whole lot easier. This can help you save hundreds or even thousands of dollars in interest, especially in a year like 2018.

Why Consolidate Debt with Credit Canada?

When you take advantage of Credit Canada's Debt Consolidation Program, an experienced and knowledgeable credit counsellor will work with you one-on-one to maximize your chances of success. Our job is to help you develop the money management skills you need to get rid of debt and stay out of debt in the long-term. We'll change the way you look at your household budget and spending, so your money and finances provide you peace of mind instead of stress.

Eliminating debt can be a challenging process, but Credit Canada is ready to assist you every step of the way during your journey in 2018. Anyone in Canada who wants to eliminate their debt for the New Year is welcome to use our non-profit services. Contact us by calling 1.800.267.2272 to learn more about our debt consolidation program.

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