Author: Oskar Malone

The ongoing high cost of living continues to impact spending plans but this time the victim is holiday trip-planning.

According to Allianz Global Assistance Canada’s (Allianz) annual Vacation Confidence Index Study the biggest barrier to holiday trip planning, this year, are limited funds and the higher cost of goods and services.

"This year’s Vacation Confidence Index Study highlights how economic pressures are influencing Canadians’ travel decisions," explains Allianz’ Vice-President of Marketing and Insight, Dan Keon, in a statement released regarding the survey.

"While the aggressive post-pandemic travel rebound appears to be levelling out, it’s great to see that the desire to travel remains strong. Travel insurance is more essential than ever, not only for medical emergencies, but to protect trip investments and provide the confidence needed to enjoy travel to the fullest."

Now in its eighth year, the Allianz study found that only 35% of Canadians expressed confidence that they will take a winter vacation this year, a 12-point drop from last winter.

Financial barriers to travel

In the short term, many Canadians are opting to stay home for the holidays, with only 17% planning out-of-province travel during the holiday season. This decline aligns with continued financial pressures, as 38% of Canadians cite high travel costs as their main holiday travel concern.

Looking ahead to 2025, 60% of Canadians plan to travel next year – down 10 points from 2024. Among those not planning to travel, financial considerations continue to be the main barrier at 60%.

In addition to financial concerns, the survey results indicate Canadians’ desire to make up for lost travel time following the pandemic may finally be waning, with 29% of travellers expressing a desire for "revenge travel" this year – down 10 points from 2023 and 21 points from 2022.

Travel remains important to Canadians

Although Canadians are scaling back, the study reveals a strong desire to travel despite these barriers, with 66% of Canadians stating that an annual vacation is important to them.

With financial concerns top of mind, travel insurance continues to play a vital role in the trip planning process, with two thirds of Canadians intending to purchase travel insurance for their next trip abroad.

Additionally, nearly 90% of travellers intend to secure some form of travel coverage for upcoming travel, including through work benefits, credit card coverage or some other means.

Survey methodology

The Vacation Confidence Index is based on an Ipsos survey conducted from November 1 to 6, 2024, among a representative sample of 2,001 Canadian adults. The study examines year-over-year trends in vacation intentions, barriers and the evolving role of travel insurance in Canadians’ travel plans.

This article Canadians staying home for the holidays: High cost of living is biggest block to holiday travel plans originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

All good things must come to an end – even record breaking tours. Spanning 149 shows over 21 months, Taylor Swift’s Eras Tour wrapped up in Vancouver, British Columbia on December 8, 2024 and became the first ever concert tour to gross over USD$2 billion in ticket sales.

That’s “double the gross ticket sales of any other concert tour in history,” according to the New York Times.

But the Eras Tour wasn’t just a cultural moment – it was an economic force. Hotels were packed, restaurants saw crowds and tourism took off in every city the tour touched. One Minneapolis brewery even raked in double its normal revenue after hosting Eras-themed events, including karaoke, dance parties and trivia.

“This was bigger for us than when the Super Bowl came to town in 2018,” Emily Elmer, general manager of Inbound Brew Co. told The Washington Post.

As the friendship bracelets and glittery outfits fade into the background, the spotlight turns to where the money actually went.

While major entertainment companies and Swift’s own production team claimed the lion’s share of revenue, one question remains: did small businesses truly get an economic boost?

The Eras effect: Impact on the economy

Throughout the tour, much has been said about Taylor Swift’s effect on local economies. Destination Toronto, for instance, estimated that her six sold-out shows in Toronto would bring $282 million into the local economy in 2024, with $152 million coming from spending on hotels, dining and other services. To put this in context, the 2019 Raptors NBA Championship parade generated $239 million in direct economic activity in Toronto, according to a City of Toronto Economic Report, published in 2019.

Even for the shows held in 2023, The Washington Post reported that a survey by QuestionPro found concert attendees spent an average of USD$93 million per show total — not just on tickets, but on merchandise, travel, hotels, food and even carefully curated outfits. Compare this to major Canadian events, such as the Calgary Stampede or the Toronto International Film Festival (TIFF). According to a 2022 Calgary Stampede Economic Impact study, visitors spend an average of CDN$65 million per day, covering accommodation, dining, and entertainment expenses while attending Stampede festivities. And according to Destination Toronto, local restaurants and bars report a 20% to 30% increase in revenue from themed menus and events targetting tourists during TIFF celebrations.

For the US Eras Tour dates, it’s estimated that Swifties helpe to generate USD$5.7 billion in additional spending with many local businesses directly and positively impacted by this spending. For instance, one California-based bakery, Susie Cakes, sold USD$50,000 worth of Swift-themed cupcakes during the Eras Tour dates. They weren’t alone. According to the California Center for Jobs and the Economy, Swift’s shows had longer-term effects on the job market as a whole, including an estimated revenue increase capable of funding 3,300 new jobs in Los Angeles, CA.

The true cost of hosting the Eras’ tour

There’s no denying that major events like the Eras Tour bring significant benefits to local economies. With the amount of ticketholders that travelled to see a certain Swift show, you could even compare the tour to something more grand like the Olympics. However, the economic impact of big events like these are often overstated when weighed against the cost of hosting.

For example, Beijing’s 2008 Summer Olympics brought in USD$3.6 billion in revenue but cost over USD$40 billion. Tokyo’s 2020 Summer Games also generated USD$5.8 billion in revenue, falling short of the USD$13 billion it cost to host the event.

The Eras Tour, on the other hand, stands out. Unlike the Olympics, it didn’t demand expensive new infrastructure or massive public investment. Cities didn’t have to build new stadiums or upgrade transportation systems.

While some cities went all out with fanfare — putting up signage or temporarily renaming one street “Taylor Swift Way” in Toronto, Canada — these are small-scale efforts that didn’t burden taxpayers with long-term financial burdens.

This relatively low-cost setup allowed cities to enjoy the economic boost from tourism, hospitality and local spending without the lingering costs of hosting a global event. Taken together, the Eras Tour was an example of a cultural movement that helped some local economies globally while avoiding the financial burden that can often overshadow large events. Given that 10,168,008 fans attended the Eras Tour, according to Taylor Swift Touring, the singer’s production company, with an average ticket price of about USD$204, it appears that the Swift impact on the economy is was net-positive for everyone.

—with files from Romana King

This article ‘Bigger for us than the Super Bowl’: Economic impact of the Taylor Swift Eras Tour significantly improved the bottom line for many businesses. Was this really the people’s tour? originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Pat Wong believes in ‘waste not, want not’ – but her inability to let go of old stuff has cost her money, relationships, and time.

The 82-year-old Ottawa resident is a self-described ‘A-Class hoarder,’ and told CBC that she has amassed so much stuff that she’s had to stuff her belongings in six storage lockers, tents in her daughter’s backyard, and her property.

Since childhood, Wong has held onto things, but her hoarding lifestyle has gotten out of control.

Her property has fallen into decline and her retirement savings have been spent on storage spaces, property taxes for additional space to stash items and keeping up with the premises.

Wong’s warning to others is clear, “It’s kept me from maybe enjoying experiences with people," she told CBC. "It might have cost me my husband."

How can you avoid becoming a hoarder? Learn some tips to declutter your house and your finances.

Wasted money and time

Wong invited CBC into her home to share her story of the downfalls of hoarding.

She hasn’t been able to have visitors for years in her home. There’s no space for them to sit down. There are items stuffed into every crevice of her house, with a narrow pathway winding between random items such as old newspapers, a birdcage, lamps and more.

"I stopped having people over and just started adding more clutter," she said.

Elaine Birchall, a hoarding behaviour and intervention specialist in Ottawa and co-author of Conquer the Clutter: Strategies to Identify, Manage and Overcome Hoarding, said, “Not every hoarding situation represents a disorder. It becomes a disorder when the person is functionally impaired … [and] then becomes a disability as well," she said. "It ruptures relationships, it breaks trust."

It takes time, according to Birchall, to work with clients and help them let go.

Don’t want to end up a hoarder like Wong? Learn how to declutter your house and your finances to stay organized.

Decluttering tips for your home and your finances

Decluttering can help make your living space safer, and cleaner and keep you from becoming a hoarder.

Some decluttering tips for seniors include:

• Start with one room: When you start with manageable goals you can avoid feeling overwhelmed
• Get rid of hazardous items: Broken items, old electronics or expired food are easy targets for the garbage bin
• Donate duplicates: Multiple pairs of the same shoes, extra pots and pans that you bought on sale, if you’re not using them there is someone in need who could benefit

Wong mentioned her retirement savings are tied up in maintaining her hoarding habit, and it is worthwhile to declutter your finances along with your living space.

To get started, here are five easy stepsfive easy steps:

1. Know where you stand: Assess your money situation and understand what bills you have, your debt level and your savings
2. Use the one-to-two rule: Only have one or two credit cards, insurance companies and chequing accounts to keep everything easier to stay on top of
3. Get rid of old accounts: If you want to follow the one-to-two rule you’ll need to close old accounts and consolidate
4. Get online: Once you automate your accounts and use online banking, you’ll be able to keep track of your money, bill payments and accounts
5. Stay organized: Know where you keep your files and keep them organized for easy reference

Cleaning house, whether it’s your living space or your finances, or both, makes it easier to manage your life and helps keep you on track.

As for Wong, she told CBC that she felt the responsibility to warn others to avoid the ‘trap’ that hoarders create for themselves.

Sources

1. CBC News: At 82, Pat Wong is warning others about the high cost of hoarding (October 30, 2024)

2. Saber Healthcare Group: Decluttering tips for seniors

3. Truist: How to clear your mind by decluttering your finances

This article Extreme hoarder: An 82-year-old Ottawa woman struggling with hoarding that’s cost her time, ruined relationships and depleted her savings — her warning to other seniors originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

In today’s unpredictable world, with financial markets swaying under the weight of global uncertainty, finding smart investment strategies can feel like navigating a storm. Stocks are often volatile, and traditional options don’t always offer the stability or returns investors hope for. That’s where alternative investments can make a difference.

As an alternative to mainstream investments, such as stock or bonds, these assets do not follow the same market cycles and, as a result, can help investors diversify their investment portfolio and ride out uncertain investment markets.

Over the last decade, art has become one of the more popular alternative investments. It offers investors a way to diversify a portfolio while potentially safeguarding against market turmoil.

While artwork can be highly illiquid — and it doesn’t generate income — the historical appreciation of this asset is impressive.

For instance, over the past several decades, the annualized returns of the S&P/TSX Composite Index (TSX:OSPTX), the de facto benchmark for the Canadian stock market, were between 6% and 9%. In this same time period, fine art investments provided annualized returns between 6% and 10%, depending on the quality, era, and type of art.

Unfortunately, investing in artwork can be complicated. There are different eras and styles to consider and when you consider that only 1% of artists generate the bulk of work bought and sold for investment purposes, and deciding what artist to include as part of your portfolio can be a daunting experience.

Thankfully, there are plenty of established and emerging artists with strong track records for investors to consider. Even better, investors can now rely on the expertise of art investment platforms, such as Masterworks, to authenticate, insure and store the art piece, before finding the ideal time to sell and earn a profit on the art piece.

To help, here is a quick guide on how to find relevant and profitable artists to add to your investment portfolio.

Modern vs contemporary art investing

When looking for potential artists to invest in, one easy way to begin your search is to compare contemporary and modern artists.

Despite the name, modern art refers to artwork created from the 1880s up until the 1970s. Contemporary art refers to artwork created after the 1970s, up until the present day. That means many well-known, famous modern art pieces were created by artists who have now passed away, while many contemporary art pieces were created by artists who are still alive.

That said, neither the contemporary nor modern art period is better for investors. Instead, focus on finding opportunities to invest in established modern artists, such as Picasso or Pollock, or emerging artists with a solid history of building a following and a reputation, such as Banksy.

To help, here are six artists to help in your quest to build a solid fine art investment portfolio.

6 of the best artists to invest in today

Here are 6 of the best artists to invest in right now based on their popularity and the historical price trends for their art pieces.

Banksy

When it comes to contemporary artists, Banksy is perhaps one of the most well-known. The street artwork from this anonymous graffiti artist has taken social media by storm, with pieces like “Girl with Balloon” being immediately recognizable.

The anonymity surrounding Banksy is part of what makes this artist so alluring, as well as his often cheeky political commentary. But Banksy isn’t just a social media sensation. Pieces like Sunflowers from Petrol Station have sold for over $14 million at Christie’s auction. And even a piece that Banksy had rigged to self-destruct at auction sold for over $1 million while stunning onlookers.

Of course, buying a Banksy outright is unrealistic for many investors due to the high entry price. However, you can still purchase shares of artwork from Banksy with a platform like Masterworks.

How to invest in art using Masterworks

With Masterworks, you can purchase fractional shares of blue-chip artwork from artists like Banksy and Monet to diversify your portfolio. Shares often start at only $20, and Masterworks generally holds artwork for three to ten years before selling a painting. Following a sale, shareholders receive distributions.

In March 2022, Masterworks sold a Banksy that it had been holding since October 2019 for US$1.5 million, which represented a 32% annualized net return.

Past performance isn’t a guarantee for future results. But if you want to invest in famous artwork from the likes of Banksy, alternative investment platforms like Masterworks make it far more accessible.

Hunt Slonem

Hunt Solnem is an American painter and sculptor born in 1951. Slonem began his career in Manhattan in the 70s, having his first solo show in 1977. His career would largely exist in New York, although his work wasn’t of skylines and bustling cities. Rather, Slonem is known for his paintings of exotic and vibrant butterflies, birds and other tropical island scenes.

According to Artsy, Slonem’s work has sold for an average of $11,000 per piece and 40% overestimate over the last 36 months.

Pablo Picasso

Pablo Picasso is another famous painter from the Modern Art period, largely known for pioneering Cubism and his later surrealist works.

This Spanish artist was born in 1881, and his career is so expansive that art collectors and historians attribute his works to different stylistic periods, like his Blue Period and Rose Periods. He also had a tremendous influence on the art world, his development of Cubism being one of many examples.

Picasso paintings are immensely valuable. One Picasso work sold for over USD$100 million in a Sotheby’s auction, making it the first painting to sell for such a high amount. But you can also find prints, ceramics, drawings and sculptures from this renowned artist through fine art auctions and private sales.

Like Banksy, the easiest way to invest in works from Picasso is to use a fractional art investing platform like Masterworks. But many of his ceramics and sculptures are sold at auction for lower starting bids, so they’re still accessible to investors who want to buy an entire work of art outright.

Loie Hollowell

Loie Hollowell is an American painter who emerged as one of the best artists to invest over the last few years. In 2016, Hollowell had her first solo show at the Feuer Mesler Gallery and shortly after that she sold several of her pieces for sums between USD$8,000 to USD$15,000. It was a pivotal moment in the emerging artist’s career.

Since then, prices for Hollowell paintings have risen by more than 1,200%. At this point, According to Artsy, a Hollowell has an average sale price of USD$519,000 over the last 36 months, which is an appreciation of 19% over initial price estimates.

Lucas Arruda

Born in 1983, Lucas Arruda is a Brazilian painter known for his semi-abstract landscapes that often feature beaches and dense forests. He’s had exhibitions around the world, including London, New York, and Paris, and his work can be found in prestigious venues including the J. Paul Getty Museum and Rubell Museum.

According to Artsy, an Arruda has sold for an average of USD$241,000 over the last 36 months, which is 61% over the anticipated value of the piece.

Arruda limits the number of paintings he sells each year, but investors can find his work through an active secondary marketplace of collectors and auction houses.

Henry Taylor

Born in 1958, Henry Taylor is an American artist most known for his depiction of African American life in America. Taylor exhibitions have been held across the world and, like Lucas Arruda, Taylor’s works can be found in museums like Rubell and the Museum of Contemporary Art in Los Angeles, CA.

According to data from Artsy, the average Taylor sold for approximately USD$298,000 over the last 36 months — a 39% increase in the original value of the work.

Risks and rewards of artwork investing

Whether you invest in established modern artists or emerging contemporary ones, it’s important to understand that artwork isn’t a guaranteed, profitable investment. However, it is a unique asset class with the potential for outsized returns that can help diversify a portfolio. If you’re considering investing in art, it’s important to consider some of the major risks and rewards:

Risks when investing in artwork

• Liquidity: Artwork is typically illiquid, meaning it’s difficult to sell quickly if you need the cash. Platforms like Masterworks have secondary marketplaces for shares that help improve liquidity, but it’s never guaranteed in the art world.
• Lack of income: Unlike investments like bonds and dividend stocks, artwork doesn’t generate income. This means you need pieces to appreciate – and by a decent margin – to make holding artwork for years a worthwhile investment.
• Volatility: Blue-chip artwork can have stable prices, but prices for emerging artwork can be more volatile. And tastes and the overall art market can change, so it’s difficult, and somewhat subjective, to predict how much a piece might be worth in a few years.

Rewards when investing in fine art

• Potential returns: According to Masterworks, contemporary artwork has outperformed the S&P 500 and real estate since 1995. This potential for outsized returns is one of the main advantages of investing in alternatives like artwork.
• Diversification: Another benefit of investing in artwork is to diversify your portfolio. This can be done with other alternatives as well, like wine or collectibles, both of which are also becoming more accessible with fractional investing platforms.
• Downside protection: Historically, artwork prices don’t correlate strongly with other asset classes or the general market. This means art can provide downside protection for a portfolio when markets are down or other asset classes dip.

Should you invest in artwork?

According to the Motley Fool, ultra-wealthy investors with a net worth of at least $30 million, alternatives make up at least 50% of total assets. But for everyday investors, alternatives only comprise about 5% of the average portfolio.

In other words, the world’s wealthiest investors are piling into alternatives like artwork, hedge funds, private equity, and cryptocurrency. But does this mean you should do the same?

Ultimately, the answer comes down to your investing goals and risk tolerance. Investing in assets like artwork can help you diversify your portfolio and gain some downside protection.

But you also give up liquidity and income generation.

If anything, you can use fractional investing platforms to begin investing in art without having to purchase paintings outright. And there’s nothing wrong with sticking with investments like stocks and ETFs if you don’t want to dabble in alternative investments whatsoever.

Bottom line

I’ve covered six potential artists worth investing in based on historical and recent auction results. But this is only scratching the surface of the number of talented artists out there. And, the art world is ever-changing; who knows what other emerging talent will captivate the world in the coming years?

If you want to regularly invest in art, it pays to keep your ear to the ground. This means attending galleries, following your favorite artists online, and keeping up to date with auction results. As trends change, you’ll hopefully be in a position to capitalize by investing in the right pieces at the right time.

— with files from Romana King

Sources

1. RBC Wealth Management: Is artwork a wise investment?

2. EDEN Gallery: Modern vs. Contemporary Art: A Comprehensive Guide (April 2019)

3. MyArtBroker: Banksy

4. Sotheby’s: Sotheby’s Gets Banksy’ed at Contemporary Art Auction in London (October 5, 2018)

5. Artsy: Hunt Slonem

6. Sotheby’s: Works by Pablo Picasso at Sotheby’s

7. Art in America: Loie Hollowell (January 27, 2017)

8. Artnet: How Newly Minted Art Market Star Loie Hollowell’s Prices Rose More Than 1,200 Percent in Just Three Years (September 15, 2019)

9. Art in America: Loie Hollowell (January 27, 2017)

10. Artsy: J. Paul Getty Museum

11. Rubell Museum: Lucas Arruda

12. Artsy: Lucas Arruda

12. Museum of Contemporary Art: Henry Taylor: B Side

13. Artsy: Henry Taylor

14. CNBC: Buy a Monet instead of a Treasury? Art has shown long-term returns that rival bonds (December 7, 2019)

15. The Motley Fool: Alternative Investments of the Ultra-Wealthy in 2024 (October 18, 2024)

This article When markets are volatile, consider alternative investments: Here are 6 artists to invest in, right now originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As we transition into 2025, investors are navigating a complex financial landscape marked by both opportunity and uncertainty. Invesco’s Chief Global Market Strategist, Kristina Hooper, highlights key risks investors need to address going into 2025. Whether it’s inflationary pressures or market dynamics, investors who understand these challenges — and proactively prepare for them — can secure their portfolios and take advantage of emerging opportunities.

Hooper highlighted her concerns — and offered high-level strategies to mitigate these risks — in a recent Bloomberg TV interview. To highlight Hooper’s insight, here are the five risks investors need to consider heading into 2025.

1. Resurgence of inflation

One of the foremost risks is the potential for inflation to reignite. Hooper attributes this risk to factors such as pro-growth policies, restrictive immigration measures shrinking the labour pool and extended tariffs. These elements could drive prices higher, impacting purchasing power and market stability.

How to mitigate:

• Diversify portfolios across multiple asset classes to hedge against inflationary impacts.
• Consider inflation-protected securities like Treasury Inflation-Protected Securities (TIPS).
• Focus on sectors resilient to inflation, such as consumer staples and utilities.

2. Fiscal unsustainability and debt risks

Hooper emphasizes the growing burden of government debt servicing costs, which exceeded the defence budget for the first time in 2024. This unsustainable trend raises fears of a “Liz Truss moment,” where lack of fiscal discipline could spook bond markets and drive up yields.

How to mitigate:

• Monitor fiscal policy developments closely, particularly in major economies.
• Invest in bonds with varying maturities to navigate potential yield volatility.
• Explore opportunities in international markets with more stable fiscal outlooks.

3. Overvaluation concerns in US markets

While US markets have experienced significant gains, some segments are overvalued, raising concerns about the sustainability of current valuations. Hooper notes that small-cap stocks and cyclicals still offer relatively attractive valuations compared to mega-cap tech stocks.

How to mitigate:

• Take profits from overvalued segments and rebalance into undervalued areas like small caps and cyclicals.
• Explore high-dividend-yield opportunities in international markets such as the UK
• Invest in emerging markets poised to benefit from potential rate cuts by the Federal Reserve.

4. Economic sensitivity and market rotation

As GDP growth accelerates in major economies such as the US, UK and Eurozone, Hooper suggests a rotation toward cyclical stocks and small-cap equities. These asset classes are expected to benefit most from improved economic conditions and rising real wages.

How to mitigate:

• Allocate a portion of the portfolio to cyclical industries and small-cap equities to capture growth trends.
• Maintain a long-term perspective and avoid overreacting to short-term market shifts.

5. Need for diversification

Given the uncertainties surrounding fiscal policies, inflation and market valuations, Hooper underscores the importance of diversification. A well-diversified portfolio can help investors weather risks and capitalize on diverse opportunities.

How to mitigate:

• Spread investments across three major asset classes: equities, fixed income, and alternative assets.
• Balance geographic exposure by including both developed and emerging markets.
• Regularly review and adjust portfolio allocations to align with evolving market conditions.

Bottom line

Heading into 2025, vigilance and adaptability are key. Kristina Hooper’s insights highlight the importance of preparing for inflationary pressures, fiscal challenges and valuation concerns, while positioning portfolios to benefit from economic growth and market rotations. By taking proactive steps — such as rebalancing, diversifying and seeking undervalued opportunities — investors can mitigate risks and stay resilient in an uncertain financial environment.

Sources

1. Bloomberg Markets: The Biggest Risks for Investors Heading Into 2025 (November 21, 2024)

This article Invesco’s Chief Global Market Strategist highlights the 5 biggest risks investors need to consider heading into 2025 originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Life is unpredictable, and financial obligations, such as student loans, can prevent us from acting quickly and decisively to adjust to changing economic circumstances.

According to the Government of Canada, the total amount of student loans owed sat at $23.5 billion in 2022. In April 2023, the accumulation of interest on Canada Student Loans was eliminated. This is certainly helpful in terms of paying off your debt faster, but it still does not totally eliminate the burden of repayment.

In August 2023, Embark Student Corp. reported that 79% of Canadian students believe that the amount of debt they’ve taken on can be debilitating — and this was after the interest elimination.

That being said, no matter what stage of student loan repayment you’re at, it’s never too late to optimize your repayment plan and reduce your debt quicker.

Here are four strategies to help you optimize your student loan repayment plan.

1. Tackle non-government student loan debt first

Canada student loans are a relatively low-cost form of debt. If you have other types of student loan debt, such as a line of credit or a personal loan, those debts will most likely have higher interest rates. That means it’s best to focus your debt repayment efforts there first to minimize the total interest paid.

2. Apply for student loan forgiveness

Some provinces offer student loan forgiveness programs, where they will forgive a certain amount of your debt. These programs are usually centred around specific professions (for example, nurses) and require you to work in certain conditions (like being in a rural area) to qualify. These programs are usually provincially run, so try searching for “your province + student loan forgiveness” to find a program available locally.

3. Consider debt repayment assistance

If you can’t afford to pay back your student loan, apply for repayment assistance. Repayment assistance will recalculate your minimum debt payment as a percentage of your income, or if you don’t earn enough, payments may be suspended altogether.

4. Apply for a debt consolidation loan

If you’ve taken out bank student loans as opposed to Canada student loans, you may find your loan interest rates relatively high.

If that’s the case, a debt consolidation loan could help absorb all of your student debts into one loan with a single, lower interest rate.

If you take this route, it’s best to fully explore the options available to you to get the best rate. Loans Canada — a lending platform — is a great tool for doing this. They specialize in matching Canadians with poor credit scores or thin credit histories with suitable lenders, so regardless of your circumstances, you can find a rate that works for you.

5. Stick to a budget

This tip may seem obvious, but it doesn’t take long for the concept of budgeting to slip away as you rack up expenses.

Having a set budget with space for essentials, your loan payment, and yes, even non-essentials, can help keep you on the fast track to getting your loans paid off.

By having your monthly financial plan set out in front of you, you are more likely to stay on top of the money you owe instead of tapping your credit card into oblivion. You can even use a budgeting app to streamline the process and have your budget just a click away at all times.

Sources

1. Government of Canada: Canada Student Financial Assistance Program annual report 2021 to 2022

2. National Student Loans Service Centre: What’s New

3. Canada News Wire: 79 per cent of Canadian students believe the amount of debt taken on for education can be debilitating, new poll finds (Aug 29, 2023)

This article 4 tips to help optimize your student loan repayment in Canada originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.