Debt Cosolidation Strategy

Lee Welbanks • July 22, 2026

How to Get Out of Debt Faster

Debt has a way of quickly spiralling out of control, particularly if you face one of life’s most common financial obstacles – such as job loss/wage reduction, separation/divorce or illness/death. But, fortunately, there are debt-reduction strategies available to get you out of debt quicker and remain debt free!

One popular debt-reduction strategy tackles your smallest debt balances first before moving up the chain to pay off larger ones. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment.

Here’s how it works in bite-sized steps:

Record your debts from smallest to largest regardless of interest rate
Make minimum payments on all your debts except the smallest one
Pay as much as possible on your smallest debt
Repeat until each debt is paid in full

Focus on outstanding balances, not interest rates

If your largest debt has the largest interest rate, it’s going to be a long time before you even see a dent in that crazy balance of yours. But when you stick to the smallest balance plan, you’re going to feel a true sense of accomplishment as you pay off that debt super quick. That excitement is what’s going to motivate you to keep working hard until you’re completely out of debt.

This debt strategy is effective because it’s all about changing your behaviour. And once you see positive results, you’re more encouraged to stay the course until you’re out of debt.

Example

Let’s say you have four different debts:

$500 dental bill – $50 payment
$2,500 credit card debt – $63 payment
$7,000 car loan – $135 payment
$10,000 student loan – $96 payment

Using this debt strategy, you make minimum payments on everything except the $500 dental bill. Since you’re paying $550 a month on the dental bill (the $50 minimum payment plus the extra $500), that debt is completely gone in one month.

Now you can take the freed-up $550 and attack your credit card debt, paying a total of $613 ($550 plus the $63 minimum payment). In about four months, you’ll be waving goodbye to that credit card debt too!

Next, you’ll tackle the car loan to the tune of $748 a month ($613 plus $135). In 10 months, you’ll be driving a vehicle you actually own.

By the time you reach that dreaded student loan (your biggest debt), you can put $844 a month towards it. That means you’ll be making your final payment in just 12 months.

With all your hard work and sacrifice, throwing extra money into your debt strategy and staying focused on the goal, you’ll have paid off $20,000 in just 27 months!

Wondering if this is the right debt strategy for you? I’m always here to help. Answers are a call or email away.

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Lee Welbanks

Mortgages Aren’t One-Size-Fits-All

By Lee Welbanks • July 22, 2026

Why the Cheapest Mortgage Isn’t Always the Smartest Move Some things are fine to buy on the cheap. Generic cereal? Sure. Basic airline seat? No problem. A car with roll-down windows? If it gets you where you're going, great. But when it comes to choosing a mortgage? That’s not the time to cut corners. A “no-frills” mortgage might sound appealing with its rock-bottom interest rate, but what’s stripped away to get you that rate can end up costing you far more in the long run. These mortgages often come with severe limitations—restrictions that could hit your wallet hard if life throws you a curveball. Let’s break it down. A typical no-frills mortgage might offer a slightly lower interest rate—maybe 0.10% to 0.20% less. That could save you a few hundred dollars over a few years. But that small upfront saving comes at the cost of flexibility: Breaking your mortgage early? Expect a massive penalty. Want to make extra payments? Often not allowed—or severely restricted. Need to move and take your mortgage with you? Not likely. Thinking about refinancing? Good luck doing that without a financial hit. Most people don’t plan on breaking their mortgage early—but roughly two-thirds of Canadians do, often due to job changes, separations, relocations, or expanding families. That’s why flexibility matters. So why do lenders even offer no-frills mortgages? Because they know the stats. And they know many borrowers chase the lowest rate without asking what’s behind it. Some banks count on that. Their job is to maximize profits. Ours? To help you make an informed, strategic choice. As independent mortgage professionals, we work for you—not a single lender. That means we can compare multiple products from various financial institutions to find the one that actually suits your goals and protects your long-term financial health. Bottom line: Don’t let a shiny low rate distract you from what really matters. A mortgage should fit your life—not the other way around. Have questions? Want to look at your options? I’d be happy to help. Let’s chat.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Lee Welbanks • July 15, 2026

The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.