(NC) When people struggle to pay off their debt, it can add a lot of stress to their lives. Financial stress can even lead to health problems, including everything from insomnia to more serious issues like high blood pressure and depression. If paying down your debt is becoming a challenge, small actions can make a difference.

Assess your debt load and set a timeframe for all your debts
Start by making a list of all your debts. Then, set goals for paying down your debts and track your debt-repayment progress. Prioritize paying down high-interest debts first. That way, you’ll pay less interest over the term of your loan. If you have multiple high-interest debts, consider consolidating them into a single loan with a lower interest rate. Consolidating your debts means you’ll only have to make one monthly payment rather than pay each one individually.

Review your budget
Review your budget carefully to see where you can cut costs to rebalance your spending to debt-repayment ratio. If you don’t have a budget, take some time to make one. Having a budget that lays out your income and expenses is an effective way to manage your day-to-day finances. To help you get started, try the Financial Consumer Agency’s online budget planner tool. It will help you identify areas where you can cut expenses to put more money towards paying down your debt.

Seek advice
If you’re struggling to keep up with payments, be proactive and contact your bank or creditor immediately. There could be options available to you. Banks are expected to help individuals who are struggling to pay their mortgages due to exceptional circumstances such as high household debt, increased cost of living and rapid increases in interest rates. For example, they could offer you a lower interest rate on your debt, extend your payments over a longer period and reduce your minimum monthly payment amount.

You may also consider consulting a financial advisor or credit counsellor for guidance. If you are considering that option, make sure that the agency is in good standing with a provincial or national association. And remember that no reputable credit counselling agency will charge you for the first meeting.

Managing your debt isn’t always easy, but there are resources to help you. Find unbiased and fact-based information you can count on at canada.ca/money.