Dumb Ways To Pay Off Debt

Don’t try this at home… or anywhere. These are all ways that you SHOULD NOT try to pay off your debt.

Playing The Lottery

Odds of winning the lottery in Canada are about 1 in 28 million. Compare that to the near 100% chance of becoming debt-free with DebtHelpers.ca, the choice seems pretty obvious. Gambling can be addictive, and an endless path of trying to find wealth. Far more people become poor from playing the lottery than they do getting rich.

Using Your Emergency Fund

Many of us have money set aside for a rainy day, which is great! Don’t go down the rabbit hole by spending all of that money at once on something that isn’t absolutely necessary, because that’s when things seem to go bad.
– A leaky roof
– A flat tire
– A chipped tooth
This is why an emergency fund is important and should be used accordingly.

Withdraw Retirement Funds

That chunk of retirement savings may be tempting, but don’t do it! Not only are those funds required to maintain your lifestyle after retirement, but you may also be taxed additionally if you withdraw funds before your retirement age.

You may be a health nut and live to age 150, so be careful!

Remortgage Your House

This is definitely one of the dumbest ways to pay off your debt. You’re essentially filling one hole by digging another – paying off debt with debt. That doesn’t make any sense.

Paying Off One Credit Card With Another

“Robbing Peter to pay Paul”. Most credit card issuers don’t allow you to pay off a credit card by punching in the numbers of another credit card, although there are very easy ways around this (such as getting a cash advance). High interest rates will accumulate and you’ll find yourself more strapped than before. Don’t do it!

Wait For An Inheritance

Mom and Dad have that nice property that they bought back in the 80s, which has appreciated 300%? Good for them, but not necessarily for you. Financials are always a sensitive talking point; maybe your parents remortgaged their house somewhere along the way and were too embarrassed to ever mention anything. Are you certain that you’re the favourite son/daughter? Maybe one of your other siblings is set to inherit everything. Whatever the situation may be, waiting on an inheritance is plain dumb – so don’t!

If you are struggling to pay off your personal debts, there is one SMART way that we can suggest, and that is to call DebtHelpers.ca at 1-855-873-6222.