The majority of Canadians have some kind of debt. There are two types of debt, secured debt and unsecured debt. Secured debt is debt that is secured to an asset, like a mortgage or a car. Unsecured debt is debt that is not secured to any asset, like credit card debt or a line of credit loan. Unsecured debt is the kind that usually sinks most of us in a bottomless pit of endless payments.
So when does debt start? It can start as early as college or university when credit card companies lure students during orientation with their offers to have an “emergency fund” care of plastic. Students may adhere to the sound reasoning of having a fund to draw from in case of emergency, however more than not many succumb to its accessibility for that impromptu “nice to have” or pub night celebration. Will spending a few dollars here and there during your college years sink you into debt? Maybe not, but it’s a start.
Perhaps later on a graduate decides to purchase a professional wardrobe for a new job, a new car to get to that new job, and then rent a place to live near that job. These are all logical reasons for spending, but along the way the credit card may be used for books and dinners out. Then BANG, the car needs a repair and now you won’t have enough to pay off your latest credit card bill. Suddenly only making the minimum payment on the credit card is all that is manageable, and it seems reasonable enough because credit card companies are always encouraging making only minimum payments.
Now you’ve hopped on the interest train. You still need to pay for your monthly car loan, insurance, rent or mortgage, however now you have the endless stream of credit card minimum payments to tack on. With every new emergency that pops up, you’ll continue to be locked into paying only the minimum payment.
Don’t forget there will be expected expenses along the way with birthday celebrations, taxes, and seasonal expenditures that will help rack up the debt, increasing your monthly minimum payments. (Oh, and yes your interest will increase too)
Do you still think you have your finances under control? This is when some people begin to wave the white flag in frustration and surrender. Your balance of unsecured debt has grown into an impossible beast that won’t go away even though you’re throwing money at it each month. Enough is enough! Do you have a plan for debt relief?
There are many ways to deal with debt – ways that are discussed in our OCCA Blog. If you are waving that white flag, there is relief. Resolution is only a phone call away. OCCA Consumer Debt Relief has helped thousands of Canadians for over 11 years. We discuss budgeting with you and offer repayment options that are reasonable to your lifestyle.
It’s time to take charge of your debt. Don’t let it rule you any longer. Give OCCA Consumer Debt Relief a call and speak to a counselor about what options are right for you!.
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