What keeps you up at night?

Your newborn? Your partner’s snoring? Your bills?

No one plans to spend more money than they earn, but for many, it feels as if there are an endless number of expenses to pay for every month. Debt can make it hard to plan for the future or look forward to retirement.

Getting a handle on your debt can give you relief, and give you an improved sense of well-being.

There are two kinds of debt: good and bad. Often called “consumer debt”, bad debt is the kind that weighs you down and can create stress. Credit card balances that carry from month to month, car loans, and cash advances – all pile up to pay for items that don’t increase in value such as clothing or cars. Bad debts usually carry high interest rates and added fees, and it’s hard to keep up the payments.

Good debts include mortgages, student loans and low-interest loans or lines of credit. With a mortgage, the home you are paying for usually holds its value or appreciates. With a student loan, you are investing in your education, which can increase your earning potential. Payments are typically spread out over the long term. While paying down bad debt should be a top goal, good debt is still debt. Becoming debt-free gives you the financial freedom to reach your financial goals.

Is debt a problem for you? Pay attention to these signs:

·  You’re unable to reduce your overall debt.

·  You use one credit card to make the minimum payment on another card.

·  You are being pressured by creditors.

·  You use credit cards because you have to, not because it’s convenient.

·  You often pay interest for charges on your credit cards.

If any of these apply to you, then you may have a debt problem.

Many Canadians have a problem with debt, so you’re not alone.

Try these simple ways to control debt, help reduce stress – and help make a positive impact to your health:

  1. Pay off high-interest rate debt first.
  2. Consolidate your debts into one with a lower interest rate.
  3. Live within your means – don’t spend more money than you earn.
  4. Pay credit card balances in full each month, or at least more than the minimum payment.
  5. Avoid impulse buying.
  6. Create a budget so you can set aside some savings every month to pay off debt.

Go to manulife.ca/debt – and start looking forward to a more restful night.