They should be enjoying sunset vacations, dance classes, afternoon golf or extra time with the grandkids. Instead, many Canadian seniors are sinking deeper into debt.
Nearly three in 10 Canadians (29%) planning to retire in the next 12 months expect to continue making mortgage payments into retirement, based on a new survey by Royal LePage.
According to the report, the age of first-time home buyers has been creeping up, which increases the odds of future generations of retirees carrying a mortgage into their non-earning years.
And it’s not just mortgage debt. At the end of 2024, the amount of money Canadians owed on credit cards increased by 9% compared to the year before.
Just because you’re carrying debt into retirement doesn’t mean it’s too late to regain control and find financial freedom. Here are three simple ways to tackle the problem and make your golden years shine brighter.
Make a budget
Debt happens when you spend more than you earn. If you can’t earn more, you have to spend less. The easiest way to do this is to make a budget.
Your budget can be simple, outlining your total monthly income, expected expenses and variable expenses. When you subtract your expenses from your income, you’ll know how much you have left over for savings, leisure and repaying debt.
Budgeting can be a challenge when trying to track multiple accounts and factor in daily expenses simultaneously. With YNAB, you can track spending and saving all in one place. Link your accounts so you can see a big-picture look of your expenses and net worth growth.
If you want to pay debts faster, you can create personalized paydown plans to calculate how much interest you’d save if you topped up your monthly payments with a little extra.
The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today.
Consolidate your debt
Managing multiple debts can feel like an uphill battle, but debt consolidation can help you streamline your finances and put you on the fast track to becoming debt-free.
By merging your debts into one single personal loan — often with a reduced interest rate — you can save on interest charges while paying one predictable payment each month.
The process of finding the right loan is fast and easy with Loans Canada.
You can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by various lenders.
You don’t need a minimum credit score or annual income to receive personalized loan offers.
Use a transfer balance card
A balance transfer moves debt from one or more credit cards onto a new card with a low or zero interest promotional period. The keyword here is promotional.
Once that period ends, your interest rate jumps — quite often to double-digits. So the goal is simple: Use the 0% interest promotional period to pay off as much debt as possible.
Finding the right transfer balance credit card is important. Some cards offer 0% interest for a set period, while others offer low promotional rates with other perks.
If you consistently carry a balance on your credit card, you could opt to pay an annual fee in exchange for a lower interest rate overall.
The Scotiabank Value® Visa Card is perfect for this scenario. It offers a low intro rate of 0.99% for 9 months† — and the $29 annual fee is waived for the first year.
After the intro period, you can take advantage of the card’s lower-than-average interest rate for everyday purchases. A balance transfer card isn’t a reset button. It’s a tool — and like any tool, it only works if you use it properly.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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