Last week, knowing that the holidays have now come to a close, we started 2015 off with a list of helpful tips to get rid of holiday credit card debt. This week, we thought we’d go a step further and help you get a handle on all of that debt – both credit cards and other debt – that has managed to stack up over the course of the year. If your debt has become a problem, and you are finding even the smallest minimum payment a struggle, this list will really help you stay on track when you start seriously paying off debt.

2015 paying off debt tips list:

1. Our first piece of advice: take a breath. Yes, we know how stressful debt can be – but it helps, even if just a little bit, to put it in perspective. You are not alone. Thousands of Canadians are in the same boat. And, there are resources to turn to when you don’t want to do it alone anymore.

2. Make a budget. Include absolutely everything that you spend money on on a weekly and monthly basis, and the amounts. Estimating? Round up.

3. Decide what can be removed from this list. Sure, you can’t stop paying your mortgage or rent, but the daily lunches out and weekly massages may not be financially feasible. Think about making that morning coffee at home – even the little things can make a huge difference. Cutting costs is perhaps an unwanted part of paying off debt, but it is completely necessary.

4. Start with the credit product with the highest interest rate, and ramp up your payments on it first. Continue making payments (as much as possible) on the others. Once you feel more comfortable, move on to the next highest one.

5. Start saving – even just your spare change – in a piggy bank. This way, when you want to make an indulgent purchase you can use that money rather than increasing your debt.

If even these tips seem like a drop in the bucket, perhaps it is time to think about getting some extra help. A debt consolidation, one done by a reputable company, can turn all of those small monthly payments into one and cut the interest. A consumer proposal shares these benefits, as well as the possibility of cutting the total debt. Bankruptcy may also be a viable option.

Our best advice as far as paying off debt? Be realistic. Speak to a debt specialist to find out exactly what works for you.

DebtCare Canada has the resources to help you get that debt under control. For advice about your strategy for paying off debt, please call us today at 1-888-890-0888.