5 Attributes to Adopt In Order to Eliminate Debt

Are you looking to eliminate debt but finding it difficult? Or constantly losing focus and getting sidetracked? Eliminating your debt can be a tall task, and in many cases, it could require a lot of personal transformation.

Our blog has featured several tips and tricks to get Canadians (who are strapped with on average over $22,000 in consumer debt) to get back on the right path. However, debt elimination doesn’t just happen by implementing a few tricks. It starts by adopting the right mentality, making a plan and sticking to it.

We’ve explored the top 10 causes of debt in Canada, and although a lot the reasons are out of our control, most of them are the byproduct of impulsive shopping, ignoring debts, and other poor financial habits and attitudes towards debt. By adopting the following personality traits, you can start on the right path towards eliminating your debt.

1. The Penny Clincher

The penny clincher understands the value of every dollar they spend. They know that even the little purchases we make every day can add up. They don’t say no to all the good things life has to offer, but they have control over when they should spend and when it’s a better idea to tuck that money away for a later time. This means sacrificing a night out with friends, avoiding impulsive purchases, and focusing more on what they need for their future, rather than what they want at the moment.

Related article: If you want to start holding onto your pennies, we invite you to try the “7 Day No Spending Challenge”

2. The Savvy Shopper

While we wish to save as much money as possible when paying off debt, there are certain things we can’t avoid spending our hard earned money on. Holiday shopping, groceries, and new phone plans force savvy shoppers to become very creative.

Before making a purchase, the savvy shopper will compare prices across several stores, will know when to wait for a sale, and also know how to get the maximum amount of loyalty points on their credit card for their purchase. Even saving something as small as $25 on a holiday gift becomes very helpful when it all adds up.

Related article: Looking to cut down on your grocery bill? Read our article on  “5 Ways to Save Money on Groceries”.

3. The Budgeter

To the budgeter, the spreadsheet is the single greatest weapon in their arsenal. The budgeter will begin their credit recovery journey by checking their credit score, sitting down and assessing their complete financial situation. After their budget is planned and in place, no transaction big or small will go untracked, whether they’re tracking on their spreadsheet, smartphone, or just in their head.

Related article: Every budget looks a little different. Need help setting your own budget? Read our “8 Tips to Successful Budgeting” here.

4. The Student

The student is always looking to become more engaged with their finances and the outside world that impacts their own situation. They are always learning new tips and strategies to pay off debt and eventually invest their money towards their future.

Looking for new sources of financial information? Listen to these “5 Podcasts That Are Great For Increasing Your Wealth”.

5. The Achiever

All of the previous personality traits mean nothing if the person isn’t willing to set the goals and see them through to the end. Eliminating debt requires patience, persistence, and an enthusiasm for getting to the finish line. Falling back into bad spending habits and missing debt payments is not an option of the achiever. The light at the end of the tunnel may be far, but for the achiever, every payment towards debt counts.

Of course, we always encourage financially conscious Canadians to keep learning about ways they can increase their credit score by staying tuned to the Dime turner blog. If you’re really interested in taking your debt elimination to the next level, see the credit building programs available from Refresh Financial.