Debt is a common problem that many Canadians face. Whether it’s student loans, credit card debt, or a mortgage, debt can have a significant impact on your financial health. The good news is that there are ways to prioritize debt repayment and get on the path to financial freedom.

Here are some tips on how to prioritize debt repayment:

  1. Make a list of all your debts: The first step in prioritizing debt repayment is to make a list of all your debts. This should include the amount owed, the interest rate, and the minimum monthly payment.
  2. Determine which debts have the highest interest rates: Next, prioritize your debts based on the interest rates. Start by paying off the debts with the highest interest rates first. These are the debts that will cost you the most in the long run.
  3. Consider consolidation: If you have multiple high-interest debts, consider consolidating them into one lower-interest loan. This can make it easier to manage your debt and reduce your overall interest costs.
  4. Don’t forget about minimum payments: While it’s important to focus on paying off your high-interest debts first, don’t forget about making the minimum payments on your other debts. Falling behind on payments can damage your credit score and lead to additional fees and interest charges.
  5. Look for ways to increase your income: If you’re struggling to make ends meet, consider looking for ways to increase your income. This could include taking on a side hustle, asking for a raise at work, or selling unwanted items.
  6. Create a budget: Creating a budget can help you identify areas where you can cut back on expenses and put more money towards debt repayment. Consider using a budgeting app or software to make the process easier.
  7. Seek professional help: If you’re struggling to manage your debt, consider seeking the help of a professional. A financial advisor or credit counselor can provide you with personalized advice and guidance on how to prioritize debt repayment.

In conclusion, prioritizing debt repayment is an important step in achieving financial freedom. By making a list of your debts, focusing on high-interest debts first, making minimum payments, looking for ways to increase your income, creating a budget, and seeking professional help if needed, you can get on the path to debt-free living.