In a context where the cost of living continues to rise across Canada, many households are looking for practical solutions to get out of debt. At Prêt Heure, we believe that this challenge, while serious, can be tackled with a clear, realistic, and tailored strategy. Here is a multi-step action plan to help you free yourself from the burden of debt in 2026.
1. Take stock: assess your debts and income
First of all, to get out of debt, you need to know the full extent of the problem:
- Make a complete list of all your debts (credit cards, lines of credit, personal loans, student loans, tax debts, etc.), including balances, interest rates, and minimum monthly payments.
- Also take inventory of your monthly net income and fixed expenses (housing, transportation, food, utilities).
This assessment allows you to understand your current situation, identify the most costly debts, and define a starting point.
2. Create a realistic budget and stick to it
One of the pillars of getting out of debt is to create a budget. Without a budget, it’s difficult to know what can be reduced or eliminated.
- Categorize your expenses: essentials (housing, food, insurance, transportation) vs non-essentials (subscriptions, entertainment, clothing).
- Allocate a portion of your net income to debt repayment, a portion to an emergency fund, and a portion for “fun” expenses.
- Track your budget monthly, using an app or spreadsheet, to quickly correct any overspending.
A realistic budget shows what is possible — and prevents adding more debt through impulsive purchases or high minimum payments on high-interest cards.
3. Prioritize the most costly debts
Not all debts are equal. To get out of debt faster:
- Focus first on those with the highest interest rates (usually credit cards or lines of credit).
- You can consider two strategies:
• Avalanche method: pay off the highest interest debt first.
• Snowball method: pay off the smallest debt first to gain psychological momentum.
The key is to have a strategy and stick to it.
4. Consider an easy-to-get personal loan for consolidation
Sometimes, it can be useful to use an easy-to-get personal loan to consolidate multiple high-interest debts into a single loan with a lower rate.
- Check with reputable lenders, verify interest rates, and watch out for hidden fees.
- Think about the term: a short-term loan can be advantageous if you can repay it quickly — it often allows you to pay less interest and get out of debt faster.
- Make sure that interest savings justify any associated fees.
This consolidation can simplify management (one monthly payment) and reduce stress, helping you stick to the plan long-term.
5. Reduce expenses and increase income
To get out of debt, you need to both control spending and increase income:
- Identify non-essential expenses (streaming, subscriptions, shopping) and reduce or eliminate them.
- Negotiate bills (phone, Internet, insurance) to get better rates.
- If possible, seek additional income: part-time work, freelancing, selling unused items.
Every extra dollar earned or expense avoided counts.
6. Build an emergency fund
Too often, people get further into debt due to unexpected events: a car repair, a health issue, etc.
- Set aside the equivalent of 3 to 6 months of essential expenses.
- Automate your savings or set up a regular transfer as soon as you are paid.
This fund reduces the risk of needing to borrow in an emergency.
7. Monitor progress and adjust the plan
The path to getting out of debt is rarely linear. It is essential to:
- Set milestones (e.g., “reduce debt by 30% in 6 months,” “pay off this card,” etc.).
- Regularly track (monthly or quarterly) the evolution of your debts, expenses, and budget.
- Adjust the plan: if one strategy doesn’t work, switch methods (e.g., snowball to avalanche).
8. Seek professional help and support
Sometimes, debts can feel overwhelming. Seeking help can make all the difference:
- Credit counselors, consolidation services, licensed insolvency trustees.
- Non-profit organizations specializing in debt management.
- Programs offered by financial institutions to better understand how to get out of debt.
If you are looking for a reliable partner to plan your exit from debt, obtain an easy-to-get personal loan, or help create a solid budget, contact Prêt Heure today. We provide personalized, transparent advice tailored to your financial situation.
