Are Your Debts Haunting You? Overcome Your Fear of Debt and Become Debt Free
By Kelly Gabriel
Everyone has something they’d rather not face — whether it’s a stack of credit card statements or a missed mortgage payment — and Halloween has a way of stirring up those financial frights, especially with the holidays lurking just around the corner.
Being scared of debt is completely understandable. It can feel like a haunted house: rooms you don’t want to enter, shadows that grow larger, and every creak that sends your heart racing. But what if you’re already living your worst fear?
If you’re spending more nights worrying about your bills than sleeping soundly, it’s time to face those fears and take back control. The good news? With the right plan, a few practical habits, and a little help along the way, you can chase away the cobwebs and start your journey toward being debt-free.
Unmask the Monsters: Name What You Owe
The first step in overcoming any fear is to face it head-on. Gather your bills and statements, every last one, and make a list of what you owe, to whom, and at what interest rate. It might feel scary at first, but once everything is out in the open, it’s often far less frightening than what your imagination conjures up in the dark. When you know exactly what you’re dealing with, you can start to make a plan. This is where fear begins to lose its power.
Cast a Spell for Success: Build Your Debt Repayment Plan
Once your debts are laid out, the next step is to decide how much you can reasonably pay each month. Start with your budget — if you don’t have one, now’s the perfect time to create one. Look at your income, essential expenses, and what’s left over for debt repayment. Even small, consistent payments can add up to big progress over time.
If high interest rates make it hard to move forward, you don’t have to face them alone. Through a Debt Management Program (DMP), you can consolidate unsecured debts into one affordable monthly payment — typically at a greatly reduced interest rate — and without taking on new credit. Reach out now and one of our counsellors would be happy to review your situation, explain your options, and help you build a repayment plan that fits your financial situation and goals.
Practical Money Tricks That Lead to Real Treats
Getting out of debt doesn’t happen overnight, but small, consistent actions can help you regain confidence and control. Here are a few tried-and-true strategies:
Budget like a pro: Track every dollar for a month to see where your money really goes. Focus on tracking discretionary spending rather than regular monthly bills that don’t change much. A clear picture helps you make meaningful changes.
Tackle high interest debts first: Paying off the costliest debts saves money and builds momentum. That’s the avalanche method; the snowball method is an equally good option depending on what keeps you motivated to pay off debt.
Use extra cash wisely: Apply tax refunds, bonuses, or other windfalls directly to your balances before you spend the money — your future self will thank you.
Set no spend challenges: Try a week or weekend of spending only on essentials. It’s empowering, and sometimes even fun. Curious about what to do to get ready for a no spend challenge? Spoiler alert: buying extra ahead of time is not the answer.
Keep your progress visible: Use a debt thermometer or tracker to see how far you’ve come. Watching those numbers drop is a powerful motivator. Try ‘loud budgeting’ to get your friends and family involved, too!
Each small victory is a treat worth celebrating. Plan what to do with the cash you save and don’t let it trick you into feeling rich and spending more.
You Don’t Have to Face the Fear of Debt Alone
Debt can feel isolating, but help is closer than you think. We offer free, confidential, and judgment-free guidance to Canadians who want to take control of their finances. One of our certified credit counsellors can help you:
- Review your full financial picture
- Create a realistic spending plan that incorporates your goals
- Explore all your options, including debt consolidation and alternatives to bankruptcy
- Provide credit rebuilding advice to help you get back on track quickly
Connect with us by phone, email, or a live chat option, whatever feels most comfortable for you. We help hundreds of people every day, so as far as ghosts in the closet go, financially speaking, we’re experts and are happy to share. Sometimes, just talking to someone who understands can lift a huge weight off your shoulders.
Face Your Fears, Take the First Step
Debt anxiety is real. It can affect your sleep, your relationships, and your confidence. But avoiding the issue only gives the fear more power. Each time you take a small step forward — whether that’s checking your balances, setting a goal, learning a new money skill, or asking for help — you reclaim a little more control. This Halloween, instead of hiding from your financial fears, shine a light on them and turn what feels like a nightmare into a story of confidence, recovery, and hope.
Last Updated on November 5, 2025
