How to Make Parenting Affordable When You’re in Debt

Clothes, food, field trips, eyeglasses … there seems to be a never-ending list of expenses when you are raising a family. It is easy to turn to debt to fund the gaps where your income doesn’t stretch. According to BDO Canada’s Inaugural Affordability Index survey, this fact rings true for parents all across Canada who carry a higher debt load.

But it doesn’t need to be this way. You can make small changes that will help you whittle away at those debt balances while making life more affordable.

Here are 3 things you can do now that will improve your affordability:

1. Follow a budget – When you are raising a family, there are often many unplanned and forgotten expenses that can quickly eat up your available income each month. Take some time to go over all of your expenses to make sure you are still in control of your spending. Use a budget spreadsheet or check out a budgeting app that will help you stay on top of your finances and help you avoid overspending in certain areas.

2. Find ways to save – Have a look at the interest rates on any debt payments you may have. Regardless of how low the interest rate is on your line of credit, credit cards, mortgage or loans, you may be able to shop around and find a lower interest rate for the same product. You may be able to show your bank that others have lower rates and get them to do the same for you. Do the same for other products in your home such as your internet, cell phone, and cable bills.

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3. Deal with debt – If you are looking for a way to reduce your debts, find a debt relief method to help you eliminate them fast, such as the Debt Snowball Method. If you are struggling to make the minimum payments on your debts, talk to an LIT (Licensed Insolvency Trustee) who can recommend other debt relief options based on your specific needs.

Sometimes making improvements to your finances is as simple as changing your mindset to become more aware of your financial and spending habits. Follow these timesaving tips to simplify your expenses.

Has debt become a roadblock to you and your family? Keep an eye out for my next column for more #DebtSolutions.