“I also want people to consider the opportunity cost of having debt sit down for any period of time,” Arbor notes. “What do you give up by not paying off your debt as quickly as possible, or even making it bigger debt? What dreams or goals do you have for your future self or loved ones that you can save now instead of using your hard-won dollars to pay off debts for the next few months or years?”
There is evidence that being debt can also weigh our emotional health. According to the latest consumer debt report from the Consumer Credit Advisory Association, most Canadians are concerned or worried about their debt (84%), which was 54% in the survey last year.
Debt, especially when it lasts for a long time, can create huge pressure. Chumu designated sleep problems and health complications as physical effects. These can lead to lower productivity and higher absences, which will negatively affect your career. Emotionally, debt can affect your emotions and relationships with others.
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Verified strategies for verifying credit card debt
Once you decide to resolve your debt, you will need to develop a strategy. “The best first step is to take a deep breath and face the problem,” Abbot suggests. “Debt can feel very isolated, but you are not alone and it helps.”
1. Budget
Unless you understand the work you work with, you simply cannot pay your debt effectively. “Understanding your numbers – what interest rates you are going to at and who are owing the debt today is a good starting point and a great place to understand your resources – you have to point your debt directly to your debt weekly or monthly,” Arbor said. She also recommends contacting with a neutral, confidential, professional source like her organization, which provides accredited counselors to assist.
However, be wary of suggestions or plans that sound too good. “It took some time to pay off the debt, so it might take some time to get rid of it,” Arbor warned, skeptical of the company that is expected to fix it quickly.
2. Negotiated interest rates or debt terms
A little-known strategy is to contact your creditors and ask for a renegotiation of rates or terms. This can involve demanding lower interest rates, or even requiring the ability to accelerate payments within your means.
“It is important to understand the terms and conditions of your particular debt,” Arbor said. “Ideally, you don’t want to incur any fines or charges to deny any benefits you pay off by early.”
