Show Notes
If someone asked you right now how much you owe, you'd probably have a number. It's probably low.
Doug Hoyes and Ted Michalos see it constantly: someone says, "I think I owe about $20,000," yet once every debt is listed it turns out to be $40,000 or $50,000. Not because anyone is lying, but because they just don't keep track or understand how fast debt can accumulate.
Build a Debt Repayment Plan including a free debt repayment worksheet!
Debt can feel manageable when it is spread across a few credit cards, a line of credit and several payment plans. But being able to make the monthly payments does not tell you how much you owe, or whether your payments mean your total debt is going down.
In this episode, Doug and Ted explain why people underestimate their debt, how monthly payments shape our perception, and why everyday spending can replace the balances we pay off. They also identify debts that often get left off the list because we don't think of them as debt, including buy now, pay later plans, unpaid bills, taxes and money owed to family.
They discuss:
Why several small balances can add up to a large debt
How debts accumulate one account at a time
Why minimum payments become the number we focus on
How new purchases can cancel out repayment progress
What your credit report can help you find—and what else to check
How joint and co-signed debts affect the full picture
How to list your balances, rates and required payments on one page
Why comparing today's total with last year's matters
What to do when your debt payments exceed the money you have available
The key takeaway: write down the full amount you owe, then check which way it is moving. You cannot make a realistic repayment plan until you know the total.
Debt Free in 30 is hosted by Licensed Insolvency Trustees Doug Hoyes and Ted Michalos of Hoyes Michalos. 📚 FREE Canadian Credit Repair Course and NEW Budgeting Resources ✅ Licensed Debt Relief in Canada – Debt Help Starts Here 📩 Debt Free Digest Monthly E-Newsletter Sign Up Here 🧮 Debt Repayment & Consumer Proposal Calculator 🎥 Hoyes Michalos YouTube Channel – Reliable Canadian Debt Answers by Experts
Timestamps:
00:00 Why your debt estimate may be too low
00:36 What people leave out of their debt total
01:56 Start with your credit report
04:03 Why debt can feel smaller than it is
04:49 Several small balances add up
06:32 How debts accumulate over time
08:15 Monthly payments vs. total debt
08:37 How minimum payments become an anchor
10:40 Why repayment progress may disappear
12:04 Making payments, then borrowing again
13:22 Everyday expenses going back on the card
13:58 Paying $800, adding $500: why the total stays put
15:19 Debts that never make the list
17:24 Unpaid bills and taxes count too
18:50 Family loans, co-signed debts and joint debts
20:18 Put everything you owe on one page
21:55 Compare your total with a year ago
23:19 Use your real numbers in a repayment calculator
24:15 Compare required payments with available cash
25:32 When consolidation may help
26:28 Consumer proposals and bankruptcy
28:14 Why a complete debt inventory matters
29:18 The number in your head vs. the facts
#Debt #DebtRepayment #CreditCardDebt #DebtFreeIn30
Disclaimer: The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personal guidance from a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions, strategies, or digital tools/apps discussed
More from Debt Free in 30
Rounding up your income or leaving debts off a credit application may help you get approved. But it does not give you more money to repay what you borrow. Learn more about credit and rebuilding your credit score with our free online course after the podcast!
If you carry $5,000 on a credit card at around 20% interest, keeping that balance can cost roughly $1,000 a year. Making the minimum payment may keep your account in good standing, but it does not mean you are paying the debt off.
What does it really mean when you max out your credit card?
Why would a lender raise your credit limit when you're already struggling to keep up?
What does it actually take to become a Licensed Insolvency Trustee (LIT) in Canada? Hint: It's not just a quick course and a quick test. In this episode, Doug Hoyes welcomes back Charlie Kovacs to the studio for his first official appearance as a newly minted Licensed Insolvency Trustee! Together, they pull back the curtain on the multi-year journey required to earn the designation. From university requirements and the BIA Insolvency Counselors course to surviving the notorious PC3 assignments, the rigorous two-day CNE case exam, and facing the Office of the Superintendent of Bankruptcy (OSB) oral board examinations—they cover it all.