Overcoming Debt from an Overspending Adult Child

As a responsible parent, it can be quite a stress-inducing predicament when your adult offspring’s expenditure begins to saddle you with debt. It’s a complex conundrum, but imperative that you take command of the situation and make the required alterations to enhance your financial well-being. This composition will furnish you with some practical suggestions and guidance on what you can do when your adult child’s spending causes you debt.

Understanding the issue

To solve any predicament, you must first comprehend it. You need to fathom why your adult child’s spending is resulting in debt for you. It could be that they’re splurging on unnecessary purchases, living beyond their means, or simply not contributing enough to the household expenses. Whatever the cause may be, it’s crucial to have a candid and transparent discussion with your child to comprehend their stance and work towards a resolution.

Establishing limits and expectations

Once you’ve had an honest conversation with your grown-up child, it’s crucial to establish unequivocal limits and expectations. Inform them of what you anticipate in terms of their financial contributions and how much you’re willing to aid them. It’s also vital to set limits on their spending and help them grasp the impact it has on your finances. By defining clear boundaries and expectations, you can sidestep any misunderstandings and ensure that everyone is on the same wavelength.

Assisting your child in managing their finances

If your adult child is struggling to manage their finances, you can offer your assistance. You can provide them with financial counsel, help them construct a budget, and educate them on effective money management. By aiding your child in managing their finances, you’ll not only be supporting them but also preventing any future financial stress on yourself.

Devising a debt repayment plan

If you’re already in debt due to your adult child’s spending habits, it’s imperative to formulate a repayment plan. You can begin by assessing your current financial status, creating a budget, and identifying areas where you can curtail expenses. It’s also crucial to prioritize your debts and focus on repaying the debts with the highest interest rates first. By formulating a debt repayment plan, you can take command of your finances and enhance your financial well-being.

In conclusion, dealing with your adult child’s spending habits can be a taxing situation, but it’s essential to take command of the situation and make the required changes to improve your financial well-being. By comprehending the issue, establishing limits and expectations, assisting your child in managing their finances, and devising a plan to pay off the debt, you can navigate this challenging predicament and emerge with your financial well-being intact.

Debt is a vicious cycle that can be difficult to break out of once it starts. It can be overwhelming to try and figure out how to get back on track and stay debt-free, but it is possible. In this article, we will provide you with tips and strategies for breaking the cycle of debt and staying debt-free.

Assess Your Current Debt Situation

The first step in breaking the cycle of debt is to assess your current situation. Take a look at how much debt you have and where it is coming from. This will help you determine what steps you need to take to get back on track. Make a list of all of your debts, including credit card debt, student loans, car loans, and any other debts you may have.

Create a Budget

Once you have assessed your debt situation, it is time to create a budget. A budget will help you keep track of your expenses and ensure that you have enough money to pay off your debts. Start by listing all of your income, including your salary, any side hustles, and any other sources of income. Then, list all of your expenses, including rent or mortgage payments, utilities, transportation, food, and any other expenses you may have. Be sure to include any debt payments you need to make.

Prioritize Your Debts

Next, prioritize your debts. Start by paying off the debt with the highest interest rate first. This will help you save money in the long run and get out of debt faster. You can also consider consolidating your debts into one payment to make it easier to manage.

Cut Expenses

In order to pay off your debts, you may need to cut expenses. Start by looking for ways to reduce your monthly expenses, such as cutting back on eating out, buying generic brands, and reducing your entertainment budget. You can also consider getting a side hustle to bring in extra income.

Increase Your Income

Increasing your income is another way to help you get out of debt and stay debt-free. Consider getting a second job, freelancing, or starting a side business to bring in extra income. You can also ask for a raise or negotiate a higher salary if you are currently employed.

Stick to Your Plan

Breaking the cycle of debt takes time and discipline. It is important to stick to your plan and stay focused on your goal of becoming debt-free. Surround yourself with positive influences and people who support your goal. If you find yourself struggling, don’t be afraid to seek help from a financial advisor or debt counselor.


Breaking the cycle of debt can be a challenging process, but it is possible. By assessing your debt situation, creating a budget, prioritizing your debts, cutting expenses, increasing your income, and sticking to your plan, you can become debt-free and stay that way. Take control of your finances and start taking steps towards financial freedom today.


Purchasing a home is a big step, and it all starts with saving for a down payment. If you’re a first-time homebuyer in Canada, the thought of coming up with the money for a down payment may seem overwhelming. But don’t worry! With a little bit of planning and discipline, you’ll be well on your way to achieving your dream of homeownership.

Here are some practical tips to help you get started:

  • Set a savings goal: Determine how much you need to save for your down payment, and create a budget that will help you reach your goal.
  • Track your spending: Keep an eye on your spending and look for ways to reduce your expenses. This could mean cutting back on eating out, reducing your monthly subscriptions, or finding ways to save on groceries.
  • Save automatically: Consider setting up an automatic transfer from your checking to your savings account each month. This will help you save consistently and make it easier to reach your goal.
  • Get a side hustle: Take on a part-time job or freelance gig to boost your income. This extra money can go directly into your savings account.
  • Reduce debt: Paying off high-interest debt will free up more money each month to put toward your down payment.
  • Take advantage of government programs: The Canadian government offers programs such as the Home Buyers’ Plan (HBP) which allows you to withdraw up to $35,000 from your RRSP for your down payment.
  • Stay focused: Remember why you’re saving, and stay motivated. Keep your end goal in mind and remind yourself of the benefits of homeownership.

Saving for a down payment doesn’t have to be difficult. With a little bit of planning and discipline, you can make your dream of homeownership a reality. Start by setting a goal, tracking your spending, and finding ways to boost your income. With determination and persistence, you’ll be well on your way to reaching your savings target.

So, what are you waiting for? Get started on your down payment savings plan today and take the first step towards homeownership!

Considering a Consumer Proposal

A consumer proposal is a legal process that allows individuals who are struggling with debt to propose a repayment plan to their creditors. It is an alternative to bankruptcy and can be a useful tool for those who want to avoid the negative consequences of bankruptcy, such as losing assets or damaging their credit score.

When considering a consumer proposal, it’s important to understand that it is a binding agreement between the individual and their creditors. Under the proposal, the individual agrees to repay a portion of their debts over a period of time, typically up to five years. In exchange, the creditors agree to waive the remaining portion of the debt.

One of the main benefits of a consumer proposal is that it can significantly reduce the amount of debt an individual owes. In most cases, the individual will only have to repay a portion of their debts, which can make it more manageable to repay. Additionally, interest charges on the debt are usually stopped once the proposal is accepted, which can help the individual save money in the long run.

Another benefit of a consumer proposal is that it can protect assets. Unlike bankruptcy, a consumer proposal allows individuals to keep their assets, such as their home or car, while they repay their debts. Additionally, a consumer proposal will not have as much of an impact on an individual’s credit score as a bankruptcy would.

It’s important to note that a consumer proposal requires the services of a licensed insolvency trustee (LIT) who will review the individual’s financial situation, assets and liabilities and help to prepare the proposal to the creditors. The LIT will also act as a mediator between the individual and their creditors during the process.

Before considering a consumer proposal, it’s important to fully understand the process and the consequences. It’s crucial to work with a reputable LIT who will explain all the details of the process and help the individual to make an informed decision. Additionally, it is important to understand that a consumer proposal will be reflected on an individual’s credit score for up to three years after the completion of the proposal.

Overall, a consumer proposal can be a useful tool for individuals who are struggling with debt. It can significantly reduce the amount of debt an individual owes, protect assets and not have as much of an impact on credit score as a bankruptcy. However, it is important to fully understand the process and work with a reputable LIT to make an informed decision.

How Badly do you want out of debt

Let’s face it, debt is a huge problem. If you’re in debt, you know that feeling of dread when the bills come in and the balance isn’t what you wanted it to be. The worst part about being in debt is not having any money left over for fun things after paying off your bills each month. What do people do? They go into even more debt because they want to buy something nice or take a vacation but don’t have enough money saved up (or cannot get financing). This leads us to wonder: how badly do you want out of debt?

I don’t want to be rich. I just want my debts paid off… and then some.

You’re not trying to be rich, you just want your debts paid off.

You want the freedom to do what you want, when you want.

Like retire at 60 and travel with your spouse? Do it!

Or maybe start a business that requires lots of work and long hours? Go for it!

Do you know what your debt payments are every month? If you carry over a balance on your credit card, have you looked at the minimum payment lately? Even if you have a payment of $50 on a credit card, that could take decades to pay off if you only pay the minimum.

To calculate how long it will take for your debt to be paid off, use this formula:

Total Debt / (Monthly Interest Rate x 12) = Time to Pay Off Debt in Years

Say you owe $25,000 in student loans with an interest rate of 6%, and you make monthly payments of $250. You would divide 25000 by (6% x 12) and get 210 months or 20 years.

How many credit cards do you have? Why do you have them? Do you really need so many accounts?

Credit cards are not free money. They’re not even a good way to build credit. You should never obtain a new credit card just because you want the rewards, and it’s best to stay away from co-branded cards that offer points for your favorite store or airline.

If you do have a lot of credit cards, consider how many accounts you really need. Do all these accounts come with annual fees? If so, can you cancel them? Are there any promotional deals available for signing up for a new card which would help offset the cost of switching over?

What is something that costs more than it’s worth to you? Is it a meal at a restaurant that doesn’t feed your family enough or make them feel satisfied? Is it a pair of shoes that don’t fit quite right or aren’t quite what you wanted? Is it an item from a store that doesn’t accept returns (or doesn’t offer refunds or exchanges)? You’re probably being wasteful somewhere in your life.

  • Don’t spend money on things that don’t give you value.
  • Don’t spend money on things that don’t fit your needs or budget.
  • Don’t spend money on things that don’t fit your lifestyle.

Are there things you want to do but aren’t doing because of money? Go on vacation. Start an education. Buy a car. Pay off debt so you can eventually retire and travel. For most people, these are things they’d like to do eventually. But for those holding out for someday, this list never seems to get fulfilled.

  • Go on vacation.
  • Start an education.
  • Buy a car.
  • Pay off debt so you can eventually retire and travel.

For most people, these are things they’d like to do eventually. But for those holding out for someday, this list never seems to get fulfilled—and it’s not just because of money but also because of time and other commitments (work, family). Unfortunately, the longer you wait until you start saving and paying down your debt, the more difficult it becomes when it comes time to invest in yourself or plan for something worthwhile later in life (like retirement).


If you want to cut out the waste in your life, it’s important that you start with what matters most. You can’t be wasteful with all of your money if you’re trying to pay off debt and save for retirement. So instead of feeling guilty about spending $5 on coffee each day, focus on where those dollars are going towards something important like retirement or paying down student loans.

When you’re dealing with debt, one of the most stressful things can be the constant harassment from debt collectors via phone calls and letters. Fortunately, you do have some rights and protection as you deal with them.

Debt collectors are required to follow certain guidelines as they attempt to collect outstanding debts. They are different from Province to Province. For example, they can’t call before 8:00 am or after 9:00 pm.

There are a few ways to deal with debt collectors. The simplest is to simply not answer the call. If you have caller ID on your phone and don’t recognize who is calling, don’t answer. If it turns out to be somebody you would like to talk to, he or she can leave a message.

The most obvious and effective option for dealing with debt collectors is to actually pay the debt. After all, you agreed to pay the debt when you acquired it and you, therefore, should repay the creditor who lent you the money.

If you are unable to repay the debt in full at once for some reason, you may be able to negotiate a reduced interest rate or partial repayment if you explain your situation. Keep in mind, however, that telling a creditor you’ve run up the debt by doing too much unnecessary shopping is not going to gain you much sympathy. On the other hand, if you’ve just been fired from your job and are going through legitimately difficult financial times while you look for another, this will likely give you some room for negotiation.

If you do negotiate a better deal with your creditors, be sure to keep your word and pay what you’ve said you would. While bill collectors may seem relentlessly cruel, they’re really just there to collect the money you owe. That’s their job. Once you have made arrangements with creditors to repay what you owe them and have shown that you can be trusted to keep your word, bill collectors will move onto other people and leave you alone.

Alternatively if your are in a tight spot and need assistance beyond just paying the debt. Reach out to us and we would be glad to assist you in a debt rescue plan.

Is consolidating credit card debt a good option?

Well, the answer will more often be yes than no. Consolidating credit card debt is often regarded as the first step towards credit card debt elimination. However, even before you move to take the first step towards consolidating credit card debt, you must understand that consolidating credit card debt (or balance transfer) is an action that you are taking to eliminate credit card debt. Consolidating credit card debt is not a means of deferring the problem for later.

Consolidating credit card debt is indeed a good option in more than one sense. Not only do you get relief from the rapid increase in your credit card debt, but you also get other benefits too. Offers for consolidating credit card debt are in abundance and are very attractive indeed. Almost all the offers for consolidating credit card debt have an initial low APR period during which the APR is generally 0% (or some low figure). This is one of the main things that make consolidating credit card debt a desirable option. Besides this low APR, the offers for consolidating credit card debt also include no interest rate on the purchases made during the first 5 months (or some other initial period) of the balance transfer. This is another thing that lowers the speed at which your credit card debt gallops. These are the two most important benefits that credit card suppliers deploy to attract people into consolidating credit card debt with them. There are other benefits, which include things like additional reward points on the member’s reward program of the credit card you are consolidating credit card debt to. These reward points can be redeemed for other attractive goods/rebates/rewards etc. Sometimes, the new credit card (i.e., the one you are consolidating credit card debt to) might be a credit card that caters more to your current spending needs regarding the credit limits and the way you spend your money. For example, the new credit card might be a co-branded one offered by an airline that you have started traveling with very frequently in recent times, and consolidating credit card debt on such a card may open up much more benefits as compared to your current credit card which was based on your needs at the time of you applying for your current credit card. The credit card you are consolidating credit card debt to might open up discount offers to you.