For millions of Canadians, a high debt load can be one of the largest stressors in life. The heavier the debt burden the harder it is to keep your head above water. Being overextended each month means that there are fewer resources leftover for spending on other items, or in calculating out how much money an individual needs to accumulate in order to retire.
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Lower debt levels is an important first step to becoming financially secure – for both current and future generations of Canadians. Achieving and managing debt levels in Canada is no small feat. It requires budget discipline, financial planning and dedication to achieve, but given the enormity of debt many Canadians are holding it’s something that needs to be addressed to find financial freedom and stability.
For individuals and couples, the first step to tackling overextended debt is to first define the debt. Taking the time to assess the current debt levels can help provide a foundation for development and tracking where efforts should be best utilized.
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Getting a handle of the debt can come from a combination of: balancing a current budget, setting and sticking to a financial plan and paying off debt in a timely manner with the broadest rates of interest at the top of list for reduction.
By tracking debt levels and budgeting finances, individuals can benefit from increased liquidity and breathing some air into finances. Once the buyer can find reasonable repayment schedules or analysis of existing debt levels, it gives individuals the power to take control of their finances instead of letting debt strip away potential options and savings.
For Canadians, a lowered debt level is an apogee of a life well-managed and can have lasting ramifications that effect future generations. Lower debt level can create increased financial security allowing people to feel more secure putting money towards other goals such as retirement, saving, investing, and planning for their children’s future.
The most successful individuals in Canada often set forth on a well-managed and budgeted road to a low debt lifestyle. Those who take this road will likely save significantly alongside the added instillment of a boosted sense of self, efficacy, and pride in managing their own finances without relying on credit cards or external help for every day swimming.
For younger generations of Canadians that now more than ever understand and rely heavily on the use of credit, being financially smart and savvy is essential for the coming years. Having the gains and practices of managing oneself responsibly is a valuable asset that will pay dividends.
What lowering debt as an individual can do is simple: it creates higher chances of retirement, creates the possibility of owning assets, gives breathing space towards other investments and the overall satisfaction of being in control of your own finances and wellbeing.
To reiterate: lowering debt levels has a much greater impact than simply closing out a few accounts. It increases financial security, reaffirms the ability to own assets, improves investment prospects and removes difficult levels of daily stress. Munro Financial Group routinely advises clients on the importance of decreasing debt levels in order to help alleviate stressors, budget more effectively while allowing for money planning opportunities in the future.
For Canadians, playing near or overextending beyond credit limits is an unnecessary stressor, detracting from life’s demands and subsequently slowing the progression of other needs. Taking the time to budget responsibly, operate multiple accounts and decrease reliance on debt is important – especially for those overcoming financial hardship and protecting their future finances from reaching a point to high debt levels. Those working towards lowering debt levels can play a direct role in securing their future and can set an example for the coming generations when it comes to managing finances appositely and with control.