FLM 2017: How to Reduce Debt by Improving Your Financial LiteracyNov 06, 2017
November is Financial Literacy Month in Canada and #ItPaysToKnow what you can do to help reduce your debt. When it comes to managing money and debt, improving your financial literacy is an important step to help you in the process.
There are many factors that are straining Canadians’ bank accounts these days…interest rate increases, childcare costs, post-secondary education, housing prices and home renovations are just a few. Equipping yourself with the right knowledge on how to deal with one or all of these things can give you a leg up when it comes to reducing your debt.
Where can you learn what you need to know?
The Financial Consumer Agency of Canada’s website is a great place to start. You can find a range of information on topics including:
- Managing your money
- Debt and borrowing
- Savings and investments
- Education funding
- Retirement and pensions
These personal finance blogs provide some insight into how your fellow Canadians are dealing with their debt.
- 10 Ways to Make More Money by personal finance writer Barry Choi discusses how additional income streams can benefit you, whether you’re in financial distress or not.
- Jump Start Your Debt Repayment by Halifax blogger Jordann Brown offers great ideas for boosting your debt repayment efforts.
- Dear Debt, We’re Done with Melanie Lockert — a Mo’ Money podcast from personal finance writer Jessica Moorhouse — chronicles how Melanie tackled $81,000 in student loan debt.
How can you put what you’ve learned into action?
Challenge yourself to use a monthly budget, set savings goals, or change your spending habits. Reap the rewards of adopting a minimalist lifestyle. Make it fun, stick with it, and you’ll see progress!
Speak with a professional about getting help with debt if you cannot reduce debt on your own. Your lender, a financial advisor, credit counsellor, or a Licensed Insolvency Trustee can advise you on professional debt relief options that can help reduce debt.
Taking steps to reduce debt starts with taking steps to improve your financial literacy. The more you know about managing your money and debt, the better your chances of achieving your financial goals, now and in the future.