Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

For this post, we’ve teamed up with our partners at Fairstone 

Everyone can benefit from a budget, especially individuals who are trying to pay down debt. A budget is an important part of your overall plan to get out of debt and can help you stay debt-free in the future. 

Our partners at Fairstone have helped millions of Canadians pay down their debt faster with a consolidation loan – check out their top tips for creating a budget that will help you get out of debt:

List your income and expenses 

Go through your debit or credit card transactions for the last several months to gauge how much money you’re spending in different areas. You can always adjust these numbers later – you just need a rough estimate as a starting point.

While you’re listing expenses, identify any late or unpaid bills, deadlines and make note of any interest rates on your credit cards or other loans. If you’re making a monthly budget, don’t forget about expenses that are on a less frequent basis (car maintenance, property taxes, gifts, etc.) – you can lump these in a miscellaneous category for the month.

Ask yourself: “What can I spend less money on?”

If your goal is to pay down debt, it’s important to allocate as much money as possible towards debt repayment (within reason). Are there some expenses you can eliminate completely? Trust us, you’ll learn to adjust without your food delivery service or music streaming service for a few months! Or perhaps, you can reduce your spending in some categories – try pre-planning your meals and commit to making a list before heading out to the grocery store, or give couponing a try.

Simplify your debt repayment schedule

Are you dealing with multiple payment deadlines a month? A debt consolidation loan can help you combine multiple bills and loans into one simple payment a month. Plus, debt consolidation can help you pay down your debt faster saving you hundreds to thousands of dollars each month.

A debt consolidation loan is especially helpful if you’re trying to tackle credit card debt. Why? Credit cards are a type of revolving debt. If you’re only managing to cover your minimum payments each month, it can take you a long time to pay down your balance. Since a debt consolidation loan from Fairstone is an installment loan, you’ll benefit from a structured payment schedule. 

Be realistic about your goals

The key to a sustainable budget? Making it realistic. Sure, you can say that you’ll only spend $25 a week on entertainment. But, are you really going to stick to it? It’s okay to have some areas of your budget that are a “splurge” – just make sure it’s important to you. If you really value going out to dinner with friends, you should try to fit it in your budget even if that means only going out every other week, or asking your friends to meet up at a more affordable restaurant. Otherwise, you won’t stay motivated to stay on track with your debt repayment. 

Look for opportunities to increase your income 

You can only eliminate so much spending from your budget. If your budget is still feeling tight, try to find opportunities that will help increase your income so you can allocate more money towards debt repayment. Whether that means you get a part-time job, freelance, have a yard sale or something else altogether. If you need more ideas to earn extra income on the side, Fairstone lists 10 of them in this article

The last and most important tip? Hold yourself accountable to your budget. Once a month, cross-reference your actual spending with what you have outlined in your budget. And, don’t get discouraged if you spend too much in some areas. Your budget will need to be revised as your priorities and financial goals change over time. 

If you’re interested in learning how debt consolidation can help you pay down your debt, you can visit for a free loan quote. You’ll find out how much money you could qualify for, and what your payments might be all without impacting your credit score. 

Fairstone avatar on Loans Canada

Fairstone Financial is a leading alternative lender in Canada, they have been helping Canadians since 1923. Their mission is to provide Canadians, with fair to good credit, with an affordable alternative to payday loans.

More From This Author

Special Offers

More From Our Experts
Loans Canada places No. 228 on The Globe and Mail’s fifth-annual ranking of Canada’s Top Growing Companies.

By Caitlin Wood, BA
Published on September 29, 2023

Loans Canada is excited to announce it has made it onto the Globe and Mail’s Top Growing Companies list for the second year in a row.
Finder Awards Finalists: Personal Loans Customer Satisfaction Awards 2023

By Priyanka Correia, BComm

Loans Canada is happy to announce it received the finalist award in the Best Personal Loan Search Platform category.
Beware of Fraudulent Lenders Impersonating Loans Canada

By Caitlin Wood, BA

A note to our clients about fraudulent lending practices and illegal upfront fees.
Medical Expenses You Can Claim For Taxes In Canada

By Sandra MacGregor

Wondering how much can you claim for medical expenses on taxes in Canada? Find out what medical expenses are eligible and the proper way to claim them...
Conditional Offer: Meaning And How It Works

By Lisa Rennie

Find out how a conditional offer can protect buyers financially and protect them from purchasing properties with hidden problems.
Alberta Child And Family Benefit (ACFB) Payment Dates 2024

By Chrissy Kapralos

The Alberta Child and Family Benefit (ACFB) is a program that gives lower- and middle-income families with children under 18 financial assistance.
How Does Buying A House As A Common Law Couple Work In Canada?

By Lisa Rennie

Are you buying a house as a common law couple In Canada? Find out how it'll affect your mortgage and how it affects the property title.
Understanding The Compassionate Care Benefits Available To Canadians

By Lisa Rennie

Government programs known as "compassionate care benefits" are designed to help caregivers financially while they're off work.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Expert Tips
And Advice

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card