A recent Equifax Canada report shows that 1.4 million consumers missed a credit payment in Q1 2025. With household debt at historic highs and interest rates still elevated, it’s clear that many Canadians are struggling to keep up.

If you’re feeling the pressure, here are smart steps you can take to protect your financial health and avoid becoming part of this growing statistic.

1. Refinance High-Interest Credit Card Debt
Many Canadian credit cards charge interest rates above 20%. Carrying balances month-to-month can cost you thousands. Consider refinancing through a lower-interest personal loan or a home equity line of credit (HELOC) to bring those payments down and simplify your finances.

✅ Bonus Tip: Some lenders offer promotional rates for debt consolidation loans—shop around and compare options with your bank and credit union.

2. Use Home Equity to Boost Cash Flow
If you own a home and have built up equity, consider a cash-out mortgage refinance or HELOC. This can give you access to funds at a much lower interest rate than credit cards—ideal for paying off debt, building an emergency fund, or covering major expenses.

⚠️ Caution: While this strategy can lower your monthly payments, it also increases your mortgage balance. Make sure it aligns with your long-term goals.

3. Create or Rebuild Your Emergency Fund
Even $1,000 set aside for unexpected expenses can prevent you from needing to rely on credit in a pinch. Aim to build three to six months of expenses in a high-interest savings account or TFSA (Tax-Free Savings Account).

4. Automate and Review Your Budget
Set up automated bill payments and track your spending monthly. Apps like Mint, YNAB (You Need a Budget), or your bank’s built-in budgeting tools can help you stay organized and avoid surprises.

📉 Look for ways to reduce “quiet” expenses like subscription fees or unused memberships.

5. Contact Your Lenders Early
If you’re worried about missing a payment, reach out to your lender before it happens. Many banks and financial institutions in Canada offer hardship programs, including deferred payments or temporary interest relief.

📞 Contact Us for Free Advice
The Equifax report is a wake-up call—but you’re not alone. Whether you want to refinance, pay off debt, or just figure out how to stay afloat, we’re here to help you manage your finances with confidence.

We shop around for the best mortgage and refinance solutions, so you don’t have to lift a finger.
Our advice is always free, honest, and tailored to your situation.

Namrata Shah
Mortgage Agent Level 1
Licence Number: M24001890
📍 9235 Janet Street, Vaughan ON L6A0J8
📞 647-238-3798
📧 Info@absoluteexposure.ca