How to dig yourself out of debt in 2025

Feel like you're living paycheque to paycheque? Krista Sharpe gets advice for anyone struggling to bring down their debt.

Getting your finances in order is a common New Year’s resolution and experts say the best way to achieve that goal is to come up with a solid plan.

In 2023, a Leger Poll showed nearly half of Canadians are living paycheque to paycheque.

Some are hoping 2025 is the year to make better financial choices, especially as the cost of living keeps climbing.

“Definitely trying not to make frivolous purchases that are unnecessary,” one Waterloo Region resident admitted to CTV News on Monday.

Kate Childerhose, a financial advisor with Edward Jones, said the first step is breaking the paycheque-to-paycheque cycle.

“You need advice from someone, so you may go in and see an advisor,” she suggested.

Most experts agree there’s not a one-size-fits-all solution.

“It’s not so much the dollar amount that counts. What matters more is getting into the habit of saving and sticking to it. So start with whatever you can, even if it feels small,” said Patrick Giles, vice president of the Saving & Investing Journey program at TD.

According to Statistic Canada’s most recent poll, 49 per cent of Canadians have a household budget, while less than 10 per cent find budgets boring and 6 per cent finding it too overwhelming.

Giles said organization is key for a good financial plan to work.

“It really comes down to understanding three things. Number one, how much do you make? Number two, how much do you spend? And number three, what are your goals and the steps to achieve them?”

When it comes to debt – don’t wait. Experts said you should reach out for help when even making the minimum payments becomes a struggle.

“What we’re finding is by the time somebody actually makes a decision to get help, it’s almost too late, the debt is too overwhelming, and then we’re looking at legal options,” said Mike Braga at BDO Canada.

The first consultation should always be free. Experts told CTV News, if someone is charging you for their initial advice, you should look for help elsewhere.