Is Debt Creep Keeping You Up At Night

Click here to watch the full interview or continue reading below. Believe it or not, household debt in Canada has actually soared past levels in both the U.S. and the U.K. The average household carries about $110,000 in debt – more than double the amount we used to carry back in the early 90s. While we have to consider inflation and soaring housing costs, that’s still a hefty increase. For many people – whether low-income or high-income – realizing you have too much debt can be an ugly surprise. So how do you find yourself in a situation where you’re ‘suddenly’ overwhelmed by debt? In a recent interview I conducted withBusiness News Network, we talked about what’s known as ‘debt creep’. When you aren’t keeping track of your expenses, what may feel like a tight financial situation could actually be an indication of a serious debt problem. The good news is, there are several warning signs that indicate when it’s time to stop and take a closer look at your finances. One of the earliest red flags is spending more than you’re earning. If you’re not sure where your money is going or have become increasingly reliant on your credit card, even for the basics, it’s time to sit down and budget for all of your regular and anticipated monthly expenses. More serious signs include your credit cards being cancelled, receiving collection letters or phone calls or worse, legal action. Perhaps most tellingly, how you feel about your finances – stressed, anxious or uneasy – is an indication you need to re-evaluate your debt. If the weight of your debt is keeping you up at night, watch my interview with the Business News Network. In it, we discuss a real life situation about a couple that appears to have their finances in order, but is struggling to retire. We also review some strategies for managing, and potentially even preventing, serious debt loads.