33 Living Debt-Free as a Trades Worker

As a trade worker, individuals are able to work and earn funds while advancing in their trade.  Therefore, graduates of trade programs usually do not surmount significant amount of debt compared to traditional university students.  It’s essential that trade workers spend within their means, so that one can remain living debt-free.

If a trade worker finds themselves in debt, here are some suggestions to increase income or reduce expenses essentially having funds to decrease debt:

1. Adjust budget to focus on debt repayment: Dedicating a portion of the monthly budget to eliminating debt will bring debt load down. One can utilize the debt snowball method or the debt avalanche method.
2. Take up a camp job: Going to ‘camp’ usually entails work at remote locations and for intense block periods.  However, the rate of pay is usually higher for this type of work as an individual needs to be away from their hometown for extended weeks at a time and the hours of work are intensified.  This rotational work allows trades personnel to increase their employment income, with very little cash flow issues as the employer usually pays for such taxable benefits as room and board, meals, and internet access.  Excess funds can be used to pay off debt at a quicker rate.  Please note that taxable benefits will most likely be taxed to the individual upon filing of the Individual and Benefit Return (T1).  Thus, trade workers performing camp work would need to ensure have some funds to cover taxes at the end of the year if the employer does not withhold a sufficient amount.
3. Sign-up to work increased overtime: Overtime work is paid at 1.5 times standard rate, increasing employment income and funds available.
4. Coordinate vacation day breaks with out-of-town conferences and business trip destinations: Taking a vacation is a great way to unwind and mentally rejuvenate the mind, ready to be a better employee to the Company. To minimize vacation time expenses, trade workers can request from the employer to coordinate vacation days at the beginning or end of an out-of-town conference experience.  The employer may have work for the employee that is out-of-town to get to certain destinations.  An employee is entitled to his/her vacation time accrued.  Adding a vacation at the beginning or end of the work trip destination allows the travelling guest to already have flights and other transportation already paid for by the Company.
5. Apply for union roles: Trade workers may find themselves unemployed nearing the end of a construction project.  Being part of a union, the union can assist and provide more responsibility in having other roles lined up so that work and income is steadier to meet recurring bills and expenses due.
6. Register as a trade apprentice: Employers can obtain increased subsidies and tax breaks for employing trade apprentices in certified trades.  Employers would have to ensure that these individuals are monitored and trained to the direct expectations of a certified tradesperson in that trade.  Completion of certified qualification of the trade allows the trade apprentice to increase their employment rate, in turn earning more income.
7. Have employer to pay for employer subsidies: Many employers will purchase outright certain tools, educational upgrading certifications, and travel expenses to work-related conferences directly for their employee.  If the expenses that are incurred will benefit the Company and related business expense, then the employer will be able to deduct these expenses on their tax return.  This methodology will also reduce the expenses of the trade worker, increasing the chances that an employee has debt.
8. Negotiate with individual creditors: When one gets behind on payments of unsecured debt, individuals can sometimes discuss with the debt collector directly for reduced monthly payments, interest charge reduction, or settlement of debt for a decreased amount.  Please note that any revisions to debt will most likely impact your credit score.