Putting your finances on a debt diet through December might be a great way to get your money in shape for the new year. And, by incorporating healthy money habits now, you’ll be more likely to stay motivated and meet your goals in the months to come.

The season of spending has begun

According to a recent holiday outlook poll, Canadians predict they’ll spend an average of $1,500 this holiday season, which includes gifts, entertainment and travel. Eight in 10 Canadians thought they would spend as much or more than they spent last year during the holidays, which can mean more debt being added to already tight budgets.

Instead of adding to your debt this holiday season, put your credit cards on ice and follow these three steps to reduce debt and spend less.

3 tools to help you avoid debt this December

1. Set a holiday budget. Although the holidays are just a couple of weeks away, you can still take advantage of a few of these helpful tips about how to create a four-week spending plan that will allow you to see exactly how much you have to spend on presents, travel, entertaining and decorations throughout the holidays.

You can also use this holiday budget calculator.

2. Shop with a plan. Keep a detailed list of what you’ve bought already and a list of what you still need to buy. Avoid shopping when you’re hungry or emotional because this can trigger overspending. And, don’t forget to cross people off your list as you buy for them so you don’t feel tempted to continue buying. Bonus, save money by making your own gifts or getting thrifty with inexpensive gifts. Follow these ideas from Simply Frugal.
3. Keep your goals front and center. If your budget is tight and you’re hoping to reduce debt rather than add to it, here are a few goals you might want to incorporate this month:
   • Scale back your holiday shopping and add extra money to an emergency fund.
   • Look into your debt relief options by contacting a professional or using a repayment options calculator.
   • Communicate with family that you’d rather spend time together rather than money.

If you were beginning a diet or exercise routine, you would research what you needed to do and gather the necessary tools to help you reach success. The same is true when it comes to meeting financial goals. By setting goals and making debt relief a priority, you’ll reduce your stress and get a head start on planning for the new year.

How will you avoid holiday debt this season? Share your ideas with us via Twitter. #DebtSolutions #HolidayDebt

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Planning for retirement is more than picking an age and letting your savings grow over time. 60 per cent of Canadians are saving for retirement, but the question is: are you asking the right questions to ensure you have a happy retirement?

In fact, there’s a clear knowledge gap when it comes to financial literacy and retirement. While six out of ten Canadians are saving, the same study found that just four out of ten had some idea of how much money they need to retire, and one-third had no idea at all.

This November is Financial Literacy Month, and if you’re working and putting money into an RRSP, TFSA, or another investment for retirement, it’s a great time to do a check-up.

Know what you need, and how you intend to live in retirement.

Retiring isn’t just packing up a box then going home forever. The ideal retirement for you might look a lot different then what others plan and do!

As financial advisor Annie Kvick puts it on Money Coaches Canada, retirement is a “fresh chapter” to explore starting a business or learning new skills. Giving up the old idea of retirement can help you plan better financially, and actually save for what you intend to do.

Save for 100, not 80.

Canadians need to face the reality that they will live longer. Half of babies born in 2007 are predicted to still be alive at age 104 according to the World Economic Forum. This health is astounding, and your finances should keep up.

Paying off debt before retiring is very important.

Explore your options by visiting with a Licensed Insolvency Trustee (LIT), who provides help for bankruptcy, consumer proposals, and other less formal solutions. Making a plan to pay off debt before ending a steady income stream will ensure you’re not scrambling early in your retirement years.

There’s also no shame in working during retirement! Plunged In Debt has a great article on this, explaining the process of going back to work.

All this planning can keep you debt-free for a longer, happier retirement. Making some time to reassess your savings, and planning how you’ll spend your golden years is a solid use of #FLM2017.

Have suggestions for retirement planning? Join the conversation on social media by using the hashtags #DebtSolutions and #FLM2017.

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A recent BDO poll revealed that student debt is top of mind for many Canadians. Almost three-quarters of graduates under 40 who had post-graduation student debt admit they have regrets about their student debt.

Graduates also say that their student debt has caused them to delay important life events, such as buying a house, getting married or starting a family. Student debt was also the reason why many Canadians in their 20s and 30s haven’t been able to save enough for emergencies or put money away for their retirement.

Although tackling your student debt isn’t easy, it is possible to find debt relief. Here are three important things to focus on:

Motivation

Staying motivated is key when it comes to finding relief from student debt. Start by setting some goals. Try to make your goals as specific as possible and also include a timeline (i.e. pay off 50 per cent of student debt in two years). It’s also important to make sure that your goals are realistic and achievable.

This Financial Goal Calculator can help you create SMART goals (Smart, Measurable, Achievable, Realistic and Timely).

Dedication

Not only is it important to motivate yourself to tackle your debt, it’s also important to stick to your goals and stay dedicated. As finance blogger Krystal Yee admits, tackling debt is definitely not easy and does require some sacrifices.

Committing to specific spending cutbacks is one way to stay dedicated to your goal of reducing or eliminating your student debt burden. Spending cutbacks create a kind of domino effect: less spending frees up funds for debt repayment, which pays down your debt more quickly, which saves you money in interest payments.

Cutting back can be as simple as eating out less, finding a cheaper gym membership or cancelling your Netflix account. Check out NerdWallet’s debt free calculator to see how much you can save by making simple cutbacks.

Education

Tackling your student debt load also involves a little research on your part. Learn about the debt relief options, such as debt consolidation, that may be available to you. You’ll find a wealth of information on Canada.ca, including tips for paying down your student debt more quickly.

Are you a graduate dealing with student debt? How do you plan to find debt relief? #DebtSolutions #StudentDebt #StudentLoanDebt.

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Planning for a financially comfortable retirement is a unique process for everyone. The costs of retirement may look very different from person to person. But in order to have a financially secure retirement, you’ll want to focus on debt management, before and during those golden years.

These blogs can help you with debt before retirement

Here are a few blogs that highlight some important retirement topics, debt management tips and advice on reaching your retirement goals.

Control your spending now

One debt management strategy to put in place is prioritizing needs over wants. Before you buy anything, ask yourself “Is this something I can live without?”

The costs of retirement can be high, and unexpected costs from medical expenses, disability, rising interest rates, or job loss could all make it more difficult to save for retirement. That’s why considering what you need versus what you want, and adjusting your spending accordingly, can help you keep your retirement on track.

Talk about your debt

Paying down debt can be a slow and daunting process. There are a lot of emotions attached to money, and debt specifically. If you feel overwhelmed, guilty, or fearful, it may be more difficult to see the progress you’re making. Talking about your debt and your financial plans with others can help.

Speaking to friends or family about your finances can reduce your personal stress and anxiety. They can also help you stay accountable as you work toward your debt management goals.

A debt help professional, like a Licensed Insolvency Trustee (LIT), could be another good person to talk to. An LIT will provide you with several debt management options that can help you pay down debt before retirement.

Plan, plan, and plan some more

Whether your retirement is five years or 50 years away, planning is important.

All sorts of life events, like weddings, expanding your family, renovating your home, or even a divorce or illness, can affect your long-term plans, including your retirement. Here’s how you can balance debt repayment with the rest of your life.

Don’t let life events impact your retirement plans negatively. Make debt management a priority now, and balance your short-term plans with your retirement goals.

How are you managing your debt before retirement? Tell us on Twitter. #DebtSolutions #HomeReno

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How to pay down debt with minimal sacrifice

Couples who share the same financial ideals are less likely to have conflicts. It helps to discuss which financial goals are most important and then organize them into short, long and medium time-frames. If you’re hoping to choose a wedding date but your consumer debts are keeping your money tied up, repaying debt might be the highest priority. Here are some ways to start making debt a priority:

Choose DIY debt relief. The debt avalanche method suggests that you pay as much extra money as possible to your highest-interest balance while maintaining minimum payments on your other debts. This method will free up cash as you pay down debt because you’ll be saving interest. An alternative to this is using the debt snowball, in which you’d pay down your lowest debt first and then work your way up.

Budget together. A budget can help you both keep an eye on spending, plan for upcoming expenses and reduce unnecessary purchases. Use a budget worksheet to get started. In addition to budgeting, saving regularly will help you reach your goals faster. Automate your savings and bill payments so you can save time as well as money.

Set SMART goals. Planning a wedding, buying a home or paying down debt takes time and patience. Use a financial goal calculator to help you plan goals that are Specific, Measurable, Achievable, Realistic and Time-framed.

Strike a balance. Making debt your main focus could possibly cause you to burn out and actually hinder your debt reduction efforts. Instead, take a balanced approach between debt relief and savings. Spend a little money on things that bring you the most joy and reduce costs in other areas. For example, if you and your partner enjoy food, you can spend on ingredients for nice meals and cook together. Then, save money by taking lunches to work or maybe kicking the coffee shop habit.

Have “The Talk” about finances. Regularly discussing finances and setting goals together are good ways to practice communication and strengthen your relationship. Discuss how much debt each of you have and pool your resources to reduce your debts before marriage. You may want to consider speaking to a debt professional who can explain all of your debt relief options such as debt consolidation, budgeting, consumer proposals or bankruptcy. A Licensed Insolvency Trustee is a certified professional who can recommend a wide range of debt relief measures and discuss the advantages of consumer proposals vs. bankruptcy. A credit counsellor can also provide financial education classes to help you prepare for your lives together.

Is debt reduction a goal for you and your partner? Compare your debt relief options by using the BDO debt repayment calculator. Share your progress with others using the Twitter hashtags #LetsTalkDebt #BDODebtRelief

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The good news is that, by making small changes, you can take action to reduce the impact of that stress. Use short, medium, and long-term goals to build a plan that will help alleviate financial stress. The debt advice provided below can guide you when planning your financial goals for 2017.

1. Use the Financial Goal Calculator.

The Financial Consumer Agency of Canada (FCAC) has been a leading advocate for improving the financial literacy of Canadians. They recently re-launched the Financial Goal Calculator to assist you in developing a realistic plan to get out of debt and save for other priorities like emergencies, retirement, and post-secondary education. Make sure to spend some time exploring other areas of the FCAC’s website as there is an abundance of tools and resources that can really help you increase your financial knowledge on all sorts of topics.

2. Work from a monthly budget.

This piece of advice is offered time and time again because it is critical in helping you pay bills on time, put money into savings, reduce debt, and avoid additional debt. If you are working from a budget already, then this is the time to do a thorough analysis. Look at what worked well for you in your budget and where you can improve in the coming year. Make any necessary adjustments and review your budget each month to make sure that you are staying on track with all of the goals you’ve outlined in your plan.

Small changes in your spending habits can lead to significant savings over the course of a year; helping to reduce stress. United Way offers a “Small Changes” app that can help you implement small changes and support charities in the process — it’s definitely worth checking out.

3. Consider the option to consolidate your debt.

Managing multiple debts means paying multiple bills and dealing with multiple interest rates, which can take away from your ability to save and reach those short, medium, and long-term goals. Consolidating your debt into one debt through a loan can help alleviate stress because it turns multiple debts into one. One debt at a lower interest rate, and a potentially lower monthly payment can mean less stress and more money to go towards savings or paying your debt off faster. More money in your emergency savings, means less stress and worrying should a major financial emergency happen like losing a job.

Debt consolidation isn’t the solution for everyone, so it’s best to speak to a debt relief professional or your lender about your specific situation. And debt consolidation is not the only professional option for debt control. A Licensed Insolvency Trustee in Kingston can explain other options including credit counselling, consumer proposals, and personal bankruptcy.

Considering the high debt load that many Canadians families are carrying, financial stress is bound to be a fact of life. But it’s not something you need to live with. Use the above tips as a jumping off point to do your own research on how to relieve your money worries. Along with financial literacy websites like the FCAC, you can also find the latest financial news, resources and debt advice on Twitter (@FCACan, @abclifeliteracy; @MoneySkillsCA), from major news sites (like BNN, Financial Post and Globe and Mail), and from personal finance bloggers.

Have you come across debt advice that was useful for you? Share your thoughts on Twitter using #LetsTalkDebt.

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