How to Get Out of Debt

How to Get Out of Debt: 6 Strategies for Reaching Financial Freedom

It is natural to have expenses and want to purchase things you like. However, if you are constantly spending more than you earn, it can lead to a negative financial situation. Getting into debt is easy; breaking free from it is much harder. It may seem like an impossible task, but there are ways to get out of debt and begin rebuilding your nest egg. There are many people who have managed to do so in the past and continue to do so today. Understanding where you stand financially and taking measured steps towards reducing your debt can help break the cycle of living beyond your means. Here are some tips on how you can get out of debt and stay that way moving forward…

Identifying The Cause of Your Debt Problem

The first step in getting out of debt is to identify the cause of your debt problem. Start by looking at your spending habits. Do you make unnecessary purchases? Are you spending more than you earn? Do you have a lot of high-interest debt? All of these are possible reasons why you are in debt. There are many different types of debt. Credit card debt, student loan debt, mortgage debt, and car loan debt are some examples. Debt can be caused by various reasons. Credit card debt may be due to making one or two large purchases that you couldn’t really afford. Student loan debt is often due to the rising costs and increasing tuition in college. Mortgage debt may be due to a down payment that was too low or making repairs after something like a storm. Car loan debt may be due to an emergency situation or an unexpected repair.

Consolidation Loan

If you have multiple debts that are not under one payment, a consolidation loan may be a good option for you. A debt consolidation loan brings all of your existing debts into one payment in order to make it more manageable. If you have multiple debts, it might be a good idea to consolidate them into one payment, making it easier to stay on top of them. You can do this by taking out a new loan that covers all of your outstanding debt, and then repaying that loan over a specified duration. Keep in mind that while consolidating your debt might make it easier to pay off, it also extends the length of time you have to pay it off, which can affect your long-term financial goals.

Pay Off High Interest Debt First

If you have multiple debts and are looking for an order of operations for paying them off, pay off the debt with the highest interest rate first. This might seem like common sense, but many people get into this situation because they try and pay off the debt they think they should, rather than the one they should be paying off first. If you have credit card or other type of high-interest debt, you need to pay that off first. If you don’t, the amount of interest you owe will keep piling up, and you’ll never be able to get out of debt. Debt is tricky because it goes up. You might pay off $1,000 in credit card debt, but then someone will charge another $1,000, and you’ll only have $500 that you can use for other things. The best thing to do is to pay off the highest interest rate debt first because that will save you a lot of money in the long run.

Ask Yourself why You Owe Money

Before you start a payback plan, ask yourself why you owe money in the first place. Are you spending too much? Do you have too many recurring expenses? Are you spending money on frivolous items? Do you lack the financial discipline to avoid unnecessary purchases? In many cases, when people are in debt, they are in debt due to a lack of financial discipline. It is crucial to keep track of your spending and make sure that you are living within your means. There is no shame in having debt. It is important to recognize the reason behind it and take the steps necessary to fix the problem.

Commit to a Payback Plan and Be Firm

Once you have identified the source of your debt problem, come up with a payback plan. Make sure the payback plan is realistic and feasible. It is easy to set lofty goals and then become frustrated when they are not met. Keep in mind that you may have to change your payback plan as you progress and get out of debt. It is important to remain firm with your plan and not give up. It is important to stay motivated and disciplined as you work towards repayment. This can be easier said than done, but there are many ways to stay motivated when paying off debt.

Stop Using Credit Unless Absolutely Necessary

If you are currently in debt, it is crucial that you stop using credit unless absolutely necessary. Using credit can make your debt problem worse. It can be easy to fall into the trap of using credit again as you work towards paying off your debt. You may not be able to completely avoid credit, but you can make sure that you are using it as little as possible.


Getting out of debt is not easy. It can be frustrating and challenging. However, it is something that can be done. Keep in mind that you do not have to do it alone. There are many resources available to help you achieve your debt-free goals. There is a reason why so many people have gotten out of debt. It is possible for anyone to do so as long as they are willing to put in the effort necessary to do so.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs and approvals. Contact us today by calling us at: 613-228-3888 or email us direct at:

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Your Debt-to-Income Ratio Capital Mortgage Brokers Ottawa

Your Debt to Income Ratio

Your Debt-to-Income Ratio – What Is It and How Can It Affect You?

You might notice when you apply for a mortgage or car loan that your lender will ask for your debt-to-income ratio. This is a metric used to measure the amount of debt you have in relation to how much income you make. The higher the ratio, the more likely you are to default on your payments and the worse the effects may be on your credit score. Knowing how this ratio affects how lenders see you can help you manage your finances better so that you can use them responsibly.

Why should I care about my debt-to-income ratio?

A high debt-to-income ratio makes it harder for lenders to offer loans because they’re concerned that if something goes wrong and they end up having to foreclose on your home, they’ll also lose money. So if they owe more than what you make, then they’ll be out of luck.

What is a debt-to-income ratio?

The debt-to-income ratio is the amount of total debt you have in relation to your gross monthly income. Your mortgage company or car dealership will use this metric to gauge how much money you can afford to pay back each month. The higher the ratio, the more likely you are to default on your payments and the worse that may be on your credit score.

How does debt affect your credit score?

But it’s not just the lender who has to worry about your debt-to-income ratio. Your own credit score will be affected as well. A high debt-to-income ratio can lead to a lower credit score, which makes it more difficult for you to get loans or even find a new apartment.

So how do I calculate my debt-to-income ratio?

Your debt-to-income ratio is calculated by dividing the amount of money you owe by your gross monthly income. So if you make $2,500 a month, and your monthly debts are $1,000, then your debt-to-income ratio is 50%. The higher this number is, the riskier it appears to lenders and the lower your credit score becomes. To help keep your debt low and improve your credit rating, set up an emergency fund and pay off any high interest accounts like student loans first before trying to buy anything else.

What makes up the debt-to-income ratio?

The debt-to-income ratio is the amount of income you make, divided by your total monthly debt obligations. Income includes all sources of money like salaries and wages, as well as investment income. Total monthly debt obligations include all your debts like student loans, car loans, mortgages, and credit card bills.

How do lenders calculate my debt-to-income ratio?

Lenders use different formulas to calculate your debt-to-income ratio. Some might just look at your total monthly debt obligations while others will also add in a percentage of every unpaid bill that’s due within the next three months (this is called a front end ratio).

A loan officer may take more than one look at your application before making a decision to approve or deny you for a loan. The first time they look at it, they’ll be looking for things like whether or not you have any late payments on your account and how much of your available credit you’re using up. The second time around, they’ll compare what you make to what you owe to see if you can afford the payments for the new loan with other expenses that are due each month.

How do I calculate my debt-to-income ratio?

You can calculate your debt-to-income ratio by dividing your annual income by the total debt you have.

Annual Income: $65,000

Monthly Debt: $3,000

Debt/Income Ratio: 20%

The debt-to-income ratio is one of many factors used to determine whether or not you will be approved for a loan. Lenders consider other things as well when they are deciding if they want to give you a loan, such as your credit score or the type of home you are looking to purchase. But this metric is still a good indicator of how responsible you are with managing your debt and money.

Can I lower my debt-to-income ratio?

The best way to lower your debt-to-income ratio is by paying off your debts. As you pay off the loan, your debt ratio will go down. If you have a high debt-to-income ratio, then lenders may not be willing to give you loans because they’ll likely end up charging higher rates for the amount of risk that comes with lending to you.

Paying off your debts not only lowers your debt-to-income ratio but also makes it easier for you to make payments on time. If something goes wrong, then it won’t affect your credit score as much because there’s less outstanding debt attached to it.


A high debt-to-income ratio can make it difficult to qualify for a loan, an apartment, or even a job. But there are a few small changes you can make to lower your debt-to-income ratio and improve your chances of qualifying for a loan.

First, look for ways to reduce your monthly liability. Second, try to increase your income by finding a higher paying job or starting a side hustle. And third, look into what types of loans you qualify for.

It’s never too late to get on the right track and work towards a more financially stable future.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs and approvals. Contact us today by calling us at: 613-228-3888 or email us direct at:

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

How to Eliminate Credit Card Debt: Capital Mortgages

Eliminate Credit Card Debt

The Definitive Guide on How to Eliminate Credit Card Debt

One of the most difficult things in your life can be paying off your credit cards. Whether it’s because there are multiple credit cards, the balances on each card are high, or you just don’t have any extra money, if you want to get out of debt, you’ll need a plan.

The best way to build a plan for paying off your debt is to create a budget that includes all of your expenses. This will help you see where your money is going and what you can cut back on. You can also try making more money by working overtime, getting a second job, or investing in other income generating opportunities. If you’re willing to take on more debt as well as make some lifestyle changes, then there are plenty of ways to pay off those credit cards without relying on willpower alone.

How to eliminate credit card debt

You can start by paying off the credit cards with the lowest balances. It’s important to pay these off in full and on time every month so you don’t add any more interest or fees to what you owe. After that, you can work your way up to the credit cards with higher balances. Last, but not least, it will be important to use a budgeting system for any future purchases. That way, you know how much money you have left in your monthly budget for spending and how much debt needs to be paid off next month.

How to make more money

While this might seem like a no-brainer, making more money is another way to eliminate debt. If you want to make more money, you can try finding a second job. If that’s not an option, then you can try investing in other income generating opportunities. These are great ways to pay off your credit cards without relying on willpower alone.

Budgeting and making a plan for your expenses

If you’ve never created a budget or you’ve let your credit card debt go until now, this first step can seem daunting. But it doesn’t have to be. You might think that your money isn’t going anywhere because you aren’t spending any of it, but many people find they have money going to things they didn’t even know they were paying for.

For example, did you know that your cable bill is also a source of extra expenses? Not only are you paying for the service itself, but there are always hidden fees that make the cost of cable higher than what is advertised on TV. And don’t forget about the internet and cell phone fees! These monthly expenses can sap away at the little bit of discretionary income that most people have each month.

The best way to start saving money is by looking at what you’re budgeting for first. Then create a plan for how much additional debt you want to take on in order to pay off your credit cards faster. Your plan will include budgeting for all your regular expenses as well as anything else that may come up in the future (like new clothes). Keep in mind that if you want to successfully pay off your credit card debt quickly and without too much hassle, then there’s no point in waiting around–you need to make a plan today!

Cutting back on your expenses

One of the best ways to pay off your debt is by cutting back on your expenses. This may sound like a no-brainer, but it’s often easier said than done. If you take a look at your budget, you can see what areas need to be cut back on. For example, if you have a lot of money going towards cable and eating out, then you may want to rethink those budgets and find more inexpensive alternatives. By trimming down in these areas, you will have more money for the credit card payments that meet the minimum payments.

Using a credit card counseling service

One of the most popular ways to pay off credit card debt is by using a credit card counseling service. These services are designed to help people get out of debt and they come in many different packages. Generally, they will have you make monthly payments that are paid directly to them and then one day, all of your debt will be gone. If you’re serious about getting out of debt, then this option could be the best for you. But just remember that it’s always better to change your habits so you can avoid taking on more debt later in life.


If you have credit card debt, it’s time to take action. The best way to get out of debt is to come up with a detailed plan to help you save money and pay off your debt. It’s never too late to get started. If you need help with your plan, talk with a reputable credit card counseling service for personalized advice designed to help you get back on your financial feet.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs and approvals. Contact us today by calling us at: 613-228-3888 or email us direct at:

You can use these links to APPLY NOW or CONTACT US.

You can also click here.

Debt Consolidation Advice: Capital Mortgages

Consolidating Debt

Consolidating Debt: What You Need To Know And Consider.

Consolidating your debt is a great way to simplify your monthly obligations and save money. It also offers a unique opportunity to pay off your debts more quickly. You can use the following steps as a starting point, but be sure to do some research on consolidating debt before making any decisions.

Research all of your options for consolidating your debt. Find out what types of loans exist. What are the benefits and disadvantages of each type? How will it affect the interest rates on the different loans? What are the requirements for applying for specific loans?

Find out how much you owe on each loan and how much you would need to pay back each month if you consolidated those loans into one loan.

Figure out what would happen if you paid only the minimum payment on each loan until they were paid off – how long would it take, and how much would it cost

Figure out what would happen if you made only the minimum payment PLUS an additional amount towards paying off that loan until they were.

The Benefits of Consolidating Debt

The most direct benefit of consolidating your debt is that it simplifies your monthly obligations. You only have one payment to make instead of multiple payments to different service providers. This can help you stay on top of your payments and pay them off quicker than if you had multiple debts with varying interest rates.

Another advantage of consolidating debt is that it offers a unique opportunity to pay off the debt more quickly. Although this isn’t always the best option, it can be helpful for those who need to save money as soon as possible and want to wipe out their balances as quickly as possible. These advantages can help people save money in the long run, too. When you consolidate your loans, you could qualify for a lower interest rate because you now have a better credit score or because the lender thinks you are more likely to pay back the loan. This means less money lost on interest payments over time and an earlier payoff date for your loan balance.

The Types of Consolidation Loans

There are many types of consolidation loans. You could consolidate your debt with a home equity loan, for example, or a second mortgage. A personal loan would be another option because it doesn’t need to be paid back until the term is up.

It’s important to find out what type of loan you are eligible for before making any decisions about consolidating your debt. The benefits and disadvantages may vary depending on the type of loan you are applying for. Some loans may offer lower rates than others, or some may have more flexible repayment plans. Some loans require higher credit scores than others, so do your research on all of your options first before making a decision!

How to Determine if Consolidating Debt is Right for You

It is important to consider several factors when deciding if consolidating your debt is the right decision for you. You may want to take into account:

  • Your interest rates – how much will they go up by consolidating your debt?
  • The total monthly cost – what will your payments be like after you consolidate?
  • The time it takes – how long will it take to pay off each loan individually versus the total amount of time it would take to pay off all loans at once?
  • Paying off one loan at a time versus paying them off in one lump sum
  • What happens if you miss a payment or two on any of these loans? What are the consequences involved with that?

If you still think consolidating your debt is the right choice for you, use these steps as a guide. Remember to do your research and weigh the pros and cons before making any decisions.

What’s the Difference Between Paying Minimum Payment and Making Minimum Payment + Additional Amount?

The difference between making minimum payment PLUS an additional amount towards paying off that loan until they are paid off is the time it would take. If you made only the minimum payment on each loan, it would take much longer to pay them all off. Making an additional amount towards your loans will help you pay them off faster and save money in interest charges.


Consolidating debt is an excellent way to get out of debt faster and make the payments more manageable. However, it’s not for everyone. Before deciding if consolidating debt is right for you, make sure you understand the benefits and the risks. To learn more about the process, visit and we’ll walk you through the steps.

We here at Capital Mortgages look forward to assisting you with Ottawa mortgage needs and approvals. Contact us today by calling us at: 613-228-3888 or email us direct at:

You can use these links to APPLY NOW or CONTACT US.

You can also click here.