To avoid over spending and accumulating debt over Christmas, stop using credit cards and stick to cash. Start by saving for Christmas gifts throughout the year. When your gift fund runs out, your shopping is done.
Transfer Mortgage Debt to a Business or Rental Property
If you own an unincorporated business, Revenue Canada treats you and the business as the same entity. This means that if you have business expenses, you can use them to incur business debt and free up your cash flow to pay off your mortgage, your car loan, or any other debt, more quickly.
The advantage is that interest payments on business loans are tax deductible. (Note: Paying yourself out of the business does not denote a business expense. This has to be money that you pay to others.)
The same method can be used if you own rental property, or rent out an apartment in your home. Borrow to pay any related expenses you have. The interest you have will be tax deductible, and the extra cash can go directly into your mortgage.
Tips To Turn Bad Debt Into Good Debt
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Convert Mortgage Debt into Tax Free Debt Using an Existing Asset
Convert Mortgage Debt into Tax-Free Debt Over Time
Use an RRSP Loan to Reduce Your Taxes
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