It’s easy to find yourself looking a mountain of debt and wondering how you got there. Many people are looking for ways to reduce debt on credit cards in Toronto, because the truth is the number of people who aren’t financially literate is staggering. This isn’t down to wilful ignorance either. The fundamentals of responsible money usage is not a prerequisite that is required before one is allowed to use money to make purchases or even apply for (and get) credit.

One of the biggest mistakes people make is confusing credit cards with an emergency savings fund. For instance, when an unexpected event results in a large bill, instead of having emergency savings to draw from they turn to credit cards to fill the gap. Unfortunately, the interest can quickly pile up, even if minimum payments are made and then it quickly becomes so out of control that it seems like one is drowning in debt.

Getting out of financial trouble takes time, dedication, education and changing spending habits.

When the situation is not yet out of control, simple tools like budgeting and cutting costs can be enough to reduce debt on credit cards in Toronto.

However, for a bigger credit problem, a bigger solution may be required.

One big solution many consider is mortgage refinancing. Simply put, mortgage refinancing is when one cancels their current mortgage and starts a new one. Many people use this type of mortgage product to fund renovations or upgrades on their homes, to pay for children entering post-secondary studies and as mentioned, to reduce debt and pay off any outstanding credit.

As well as creating a quick source of cash flow, mortgage financing can also facilitate some long term savings in order to help people stay on track via a lower interest rate and, should it be favourable, the option to swap between variable or fixed interest. Top mortgage professionals in Toronto are the best resources for determining the best way to refinance.

For those truly interested in getting their finances in order mortgage refinancing is a great jump-start. However, as mentioned above, for this to be an effective long-term solution it will require time, dedication, education and actively changing spending habits.

Luckily there are free online resources to help on that journey:

For education, the Canadian government along with the Financial Consumer Agency of Canada are a wealth of information on everything money to ensure that citizens are financially literate. This webpage dedicated to money and finances includes educational resources on everything from how to manage money responsibly to retirement planning and everything in between.

Another online resource that can help with actively changing spending habits is Shop2Save. Not only are members provided with access to the best volume discounts, they are rewarded for shopping smarter. Further, with Shop2Save associations, members can browse top Toronto and Canadian industry professionals when they need to shop for home and automobile insurance, real estate or finance products. For mortgage refinancing, this is Dominion Lending Centres, the leading mortgage company in Canada.

So, if you find yourself in a credit crisis wondering what the best way is to quickly reduce debt on credit cards in Toronto, visit Shop2Save to see how you can get help and get rewarded too!