Written by Carmen Chan
You have a mortgage and car loan to pay, credit card bills and HELOC payments, plus a long list of utility bills and other major expenses – do you feel like your fixed monthly expenses are eating up all of your income?
Canadians’ budgets are becoming increasingly tight, according to a report. March 2024 Report Credit monitoring firm Equifax released a report indicating that the average consumer owes $21,296 in debt, and their default rates have risen 28.93% year-over-year.
Mortgage delinquency rates rose 135.2% in Ontario and 62.2% in British Columbia at the end of 2023. Due to higher interest rates, consumers who renewed their mortgages saw their payments increase by an average of $457, with increases of up to $680 in Ontario and British Columbia!
If you’re wondering how to cut your fixed monthly expenses so you can keep up with your monthly bills, here’s a look at 4 key strategies to save money so you can also pay off debt.
Get rid of recurring monthly subscriptions and bills
Examine your bank statements, credit card statements, and any other financial documents and list every direct debit payment that was deducted from your account. You can also search your email inbox for any recurring quarterly or annual receipts.
Over the years you may find:
- Cable, Internet and Phone Services
- Gym membership, yoga or stationary cycling classes
- Grocery delivery services or meal prep kits
- Streaming services, such as Netflix, Disney+, Spotify, and Amazon Prime
- Newspaper and magazine subscriptions
- Roadside assistance for your car
- Apps for brain exercises, fitness, calorie counting or other hobbies.
The list goes on—and when you add it all up, recurring costs can add up to a huge amount. Don’t be afraid to make big cuts to your subscriptions, especially those that have barely been touched. You can save hundreds of dollars by canceling, downsizing, or temporarily suspending some accounts.
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