Debt is common in Canada, and managing it isn’t always straightforward. According to the Fig Barometer, 84% of Canadians carry existing debt, and almost half say a single unexpected expense could push them further into it. While every situation is different, many debt challenges stem from a few common patterns.
Here are some of the most frequent debt mistakes - and how to avoid them.
Relying on Credit for Everyday Expenses
Using credit cards or loans for essentials like groceries or utilities can feel necessary at times, but over time it can lead to higher balances and growing interest costs.
How to avoid it:
If everyday expenses are consistently going on credit, consider consolidating balances into a single fixed-rate payment or building a small emergency buffer to reduce reliance on high-interest credit.
Making Only the Minimum Payment
Minimum payments keep accounts current, but they slow progress and increase total interest paid.
How to avoid it:
Whenever possible, pay more than the minimum or focus extra payments on the highest-interest balances first. A predictable monthly payment can make repayment easier to manage.
Letting Convenience Drive Spending
Digital wallets, saved cards, and Buy Now Pay Later (BNPL) options make spending faster but also easier to lose track of.
How to avoid it:
Review all credit commitments together, including BNPL plans, and check balances regularly instead of waiting for statements.
Avoiding Regular Financial Check-Ins
Debt can feel overwhelming, which sometimes leads people to avoid looking at balances altogether.
How to avoid it:
Short, scheduled check-ins, even once a week, can help keep payments on track and reduce surprises.
Comparing Your Finances to Others
Spending decisions influenced by comparison can quietly derail financial progress.
How to avoid it:
Base decisions on your own goals and comfort level, not what others appear to be doing. Financial situations are rarely visible from the outside.
Moving Forward with Confidence
Debt doesn’t mean something is wrong, it means a plan is needed. Small adjustments, clearer visibility, and predictable repayment can make a meaningful difference over time.
At Fig, we believe financial health starts with transparency, flexibility, and tools that make managing debt simpler so Canadians can move forward with clarity and confidence.
This article is for informational purposes only and is not intended as legal or financial advice
