Tips for Managing Debt (MNP 3 Minute Debt Break)

2021-01-06

schedule3 minute read

Debt Solutions

3 Minute Debt Break podcast

The ongoing uncertainty and instability caused by the COVID-19 pandemic have many people concerned about their financial circumstances. But managing debt is something you should always be thinking about no matter what is happening around you in the world and even after the pandemic subsides.

There are several timeless tips you can use to help reduce your financial strain, connect with and take advantage of helpful resources, make the most informed decisions possible and regain control over your finances.

First… Revisit your budget or create one if you haven’t already. There is never a bad time to sit down and optimize your budget for your current situation. Visit MNP Debt dot ca for a helpful Budget Tracker spreadsheet to help you get started. There are also several great free apps available if you prefer to keep track of things on your phone. 

Second… focus on your most costly debts. If you have some room in your budget to pay down your credit accounts, you’ll want to maximize the return on your repayment. To do that, focus on paying down your most expensive debts first. Often, this is the one with the highest interest rate; but it could also be the one with the highest balance.

Take advantage of payment deferrals (but read the fine print)! With the financial turmoil and unprecedented job losses that have occurred recently, many banks and lenders are offering payment deferrals on mortgages, loans, lines of credit and credit cards. These could be an immense help if you’ve experienced a significant income reduction. However, you’ll want to review all the terms and conditions carefully before you begin skipping or putting off payments. Not all lenders are structuring these grace periods similarly, and many are doing so in a way that could have lasting negative impacts on your personal finances.

Another tip… Look into federal and provincial support programs. The Government of Canada has announced numerous programs and incentives to help Canadians who have been financial impacted by the ongoing COVID-19 pandemic. These include accelerated access to EI benefits, the Canadian Emergency Response Benefit, and more. Many provincial governments have also announced subsides and support measures for affected residents.

Finally… one of the most important tips… Don’t borrow if you can avoid it. Debt is always risky. Even more so with the level of uncertainty and rapid change that has come to define our current world.  Yet, many people are planning to increase their borrowing right now. And this is something that is advised against wherever possible.

Subscribe to MNP 3 Minute Debt Break on your favourite streaming service.

 Listen on Apple Podcasts  Listen on Spotify  Watch and listen on YouTube
 Listen on Google Podcasts  Listen on tune in  Listen on SoundCloud

Latest Blog Posts

2025-09-02

Side Hustles (MNP 3 Minute Debt Break)

Debt Solutions Lifestyle Debt 3 Minute Debt Break podcast

With rising inflation, increasing housing costs, and mounting daily expenses, many Canadians are finding that their paychecks no longer allow them to live as comfortably as they once did. Whether you're trying to pay off debt, save for a rainy day, or enjoy greater financial freedom, one option to consider is a side hustle.

Read More

2023-06-05

Making the Most of Your MNP Debt Scale Check Up (MNP 3 Minute Debt Break)

Debt Solutions 3 Minute Debt Break podcast

How much debt is too much? Of all the questions Licensed Insolvency Trustees often hear, that is by far one of the most common. It’s also one of the most difficult to answer. 

When it comes to determining the threshold of excessive debt, it can be a challenging question to answer. 

Read More

2023-05-02

The True Cost of Debt (MNP 3 Minute Debt Break)

Debt Solutions 3 Minute Debt Break podcast

Debt is something that affects millions of people, and it's a hot topic for a reason. The financial impact of carrying debt can be enormous, but it's not the only thing to worry about. In fact, prolonged debt can have real and measurable effects on your retirement plans, relationships, and even your mental and physical health.

Read More

Consultation icon