Struggling with Debt? 5 Small Steps You Can Take Today

Debt can feel loud. Calls, emails, fees. It crowds out real work and sleep. You do not fix it by wishing. You fix it with small moves that stack.

This guide is for Canadians. Self-employed, salaried, or somewhere in between. The steps below lean on current Canadian rules and programs. No fluff.

Step 1: Make a one-page debt map and sort by cost

Open a blank page. List every balance, interest rate, minimum payment, and the next due date. Add tax debt if you owe the CRA. Add cards, lines of credit, BNPL, even a past-due phone bill. You want one page that shows the whole picture.

Use two anchors to set your order:

• The Bank of Canada policy rate is 2.75% as of July 30, 2025. Many variable products float above that, so actual borrowing costs can sit far higher.
• CRA arrears interest for Q3 2025 is 7% on overdue tax balances. That rate compounds, so tax debt moves near the top of the list.

Sort your page from highest rate to lowest. This is your pay-down order. FCAC’s guidance on paying back debt backs this simple approach and adds basic budgeting to keep payments realistic.

Do today: finish the list, put minimums on autopay where safe, and pick one high-rate balance for any extra you can spare this month.

Step 2: Call early and ask for terms you can keep

Silence makes debt worse. A short call can shave fees or lower a rate. FCAC explains how to work with creditors and what to expect from collectors under federal rules.

If your main problem is tax debt, set up a payment arrangement with the CRA online or by phone. You can schedule pre-authorized debits in My Account or My Business Account once you know an amount you can keep up. If life events or hardship apply, you may ask for taxpayer relief to cancel or waive penalties and interest. That is Form RC4288. Processing takes time, so start now.

Try a simple script. Keep it calm and plain.

“Hi, I want a plan I can keep. Balance is $____ at %. I can pay $ on the 15th each month. Can we set that up and review any fee relief?”

For a CRA call:

“I need a payment arrangement. I can pay $____ every two weeks. I will submit RC4288 for penalty and interest relief. Please note that on my file.”

If a collector calls often, know your rights. Provinces add their own rules. For example, in Ontario a collection agency cannot contact you for the same debt more than three times in seven days after first contact, and statutory holidays are off-limits.

Step 3: Pick a safe relief channel if cards are the main issue

If unsecured debt is the stress point, focus on proven Canadian paths:

• Nonprofit credit counselling and a Debt Management Plan (DMP). One monthly payment through an accredited nonprofit. Interest often drops or stops. You still repay principal. Find agencies through Credit Counselling Canada.
• Orderly Payment of Debts (OPD). Court-administered in Alberta and Nova Scotia. One payment, about 5% interest, with legal protection while you repay.
• Consumer proposal with a Licensed Insolvency Trustee. A formal, binding deal under federal law. Interest stops, collection action pauses once filed, and you repay part of what you owe under terms creditors vote on. Oversight sits with the Office of the Superintendent of Bankruptcy.

Be cautious with for-profit “debt settlement” promises. FCAC has a consumer alert on this space. Read it before you sign anything.

Do today: book one free session with a nonprofit counsellor to review options based on your numbers.

Step 4: Free cash in the next 30 days

You do not need a perfect budget. You need a few levers that move money now.

• Invoice the same day you finish work. Faster invoicing often leads to faster payment. BDC’s cash-flow tips call out reducing days receivable and acting early.
• Consolidate only if the math helps. FCAC explains when a consolidation loan can lower cost and simplify payments, and when it does not.
• Automate what must be paid. If you set a CRA payment arrangement, use pre-authorized debit so you do not miss dates. You can set, change, or skip a PAD inside your CRA account with a few clicks.
• Use one sheet to track cash in and out. If you use a cash-flow app such as Vitality Cash, tag debt payments and set invoice reminders. That keeps your weekly view honest. It also nudges you to follow up on overdue clients so personal cash does not carry the load. BDC’s guidance on managing receivables pairs well with this habit.

Do today: send two invoices you delayed, cancel two low-value subscriptions, and call one lender to ask for a rate review.

Step 5: Set guardrails so the plan sticks

Debt plans fail when they live only in your head. Put rails on the path.

• One page, once a week. Update the debt map every Friday. Cross one action off. Add one next step.
• Alerts on all accounts. Turn on text or email for due dates and low-balance warnings.
• Use government help where it fits. Student loans have the federal Repayment Assistance Plan. You can apply through the NSLSC, and you re-apply every six months. On approval, the program covers interest you cannot meet and can start paying principal after longer hardship.

If tax debt is in the mix, watch the CRA’s quarterly interest rate page so you know the cost you face right now.

Quick Q&A for Canadians

A 30-day plan you can actually finish

Today

• Build the one-page debt map.
• Put minimums on autopay where safe.
• Send one invoice you have been sitting on.

This week

• Call one lender. Call the CRA if you owe tax. Ask for a plan you can keep.
• Book one free session with a nonprofit credit counsellor.

Next two weeks

• If unsecured debt drives the stress, decide on DMP, OPD where available, or a consumer proposal with a Trustee.

By day 30

• Update the map. Note interest saved and payments made. If cash is still tight, adjust the plan rather than drop it.

You do not need a grand overhaul. You need movement you can see. The five steps above give you that. If you use an app like Vitality Cash for invoicing and cash tracking, let it do the boring parts, like reminders and weekly snapshots, so you can focus on the next call and the next small win.