Study Says Canadian Prioritize Debt Repayment with Extra Cash

If you are one of those who cannot have a restful sleep at night because of debt, don’t worry, you are not alone. This is perhaps one of the reasons why a recent Edward Jones survey showed that Canadians would opt to pay off debt when granted a lump sum of money. The poll showed that almost one in three Canadians planned to use their 2015 tax returns to pay down their debts, including mortgage.

 Last July, market intelligence agency Mintel also published a report that also found that Canadians are more focused on paying off debt and making cutbacks to their finances. The Mintel survey had 34% of respondents answer debt repayment as the top choice where they spend their extra money on.

There is good reason to choose debt repayment over savings. Based on simple math alone, debt from most types of financial instruments are in the double digits, while savings interest are in single ones. Consumers benefit more from zeroing out a debt versus saving. We are not saying that it is not important to save, in fact, we urge you to do so, especially for emergencies. However, for a windfall or some extra cash you get your hands on, debt repayment makes more sense.

Debt repayment also has some psychological benefits. That sense of relief and resolve from debt repayment can help you stay financially healthy. Debt causes stress and even sleeplessness, so being debt-free has a positive impact on your health and well-being.

Knowing you are debt-free can also give you a sense of freedom with your money so you can start using it towards your life goals and things that matter to you.

Taking the next step

Once you’ve made yourself debt-free, the next crucial step is to stay financially solvent. Getting back into debt is easy if you do not practice self-control and budgeting. If you can, this is the point to start saving up for emergencies or even for your retirement.

However, there may come a time (especially when you haven’t really saved up yet) when you can’t just stay away from debt. These are the times when you will be caught by surprise by a situation and your on-hand resources may not be enough – your car breaks down, the house needs immediate repair. This is where we come in: to help you overcome a financial situation with our payday loans. These are short-term loans are relatively easy to pay back than long-term ones.

At GoDay, we offer fast, hassle-free and transparent transactions to help our consumers overcome their immediate and unforeseen financial struggle. GoDay is regulated by the Ontario Payday Loans Act and we help our clients with their financial needs so that they can get back on track as soon as they can.