Debt used to be for the \u2018deadbeats\u2019 or people who didn\u2019t care about their finances. Today, though, it\u2019s the new norm.<\/p>\n\n\n\n
Why?<\/p>\n\n\n\n
Mostly because we live in a world of instant gratification. Millennials, and younger generations especially, want everything now. Technology, the internet, and the advancement of most services today are to blame but that doesn\u2019t make it okay.<\/p>\n\n\n\n\n\n\n\n
The average Canadian has at least $8,500 in debt, but as much as 14% of Canadians have $10,000 to $24,999 in consumer debt and that doesn\u2019t include mortgage debt.<\/p>\n\n\n\n
The reasons are plentiful and vary by person, but here are the most common reasons.<\/p>\n\n\n\n
Higher education is pushed heavily to younger generations, but the cost keeps rising. The average student leaves college with $27,975 in student debt<\/a> and that\u2019s before graduate school. The total cost varies based on location and course of study but starting adulthood with $28,000 in debt with an average interest rate of 6.5% isn\u2019t a great start.<\/p>\n\n\n\n While keeping up with student debt might be doable while still buying a house or a car, it doesn\u2019t help when you\u2019re trying to keep up with everyone else. Social media makes it easy to compare yourself to people halfway across the world, let alone your friends, and see what you don\u2019t have.<\/p>\n\n\n\n Too many people today buy what they can\u2019t afford just to keep up with everyone else. What you don\u2019t know is behind closed doors, those same people are drowning in debt<\/a> too. Instead, focus on yourself and not what anyone else is doing.<\/p>\n\n\n\n Too many people mistakenly think credit cards are an extension of their income. They use the credit line to buy things they can\u2019t afford. That\u2019s the worst way to get into debt.<\/p>\n\n\n\n Instead, credit cards should be a personal finance tool. They are a way to help protect your purchases or even earn you rewards for normal spending you can afford to pay off in full before the due date.<\/p>\n\n\n\n Using them as an extension of your income is the highway to debt<\/a>, bankruptcy, and insolvency if you aren\u2019t careful.<\/p>\n\n\n\n Missing even one credit card payment can be detrimental. Before you realize it, that $100 purchase turns into several hundred dollars because you missed payments, collected interest and carried a balance for years.<\/p>\n\n\n\n Interest and fees accrue the minute you miss a payment, and they aren\u2019t forgiving, which makes it hard to get out of debt.<\/p>\n\n\n\n While drowning in debt might be the new Canadian norm, it\u2019s not a trend you should follow. Instead, learn to manage your finances, and get out of debt<\/a>. It\u2019s not as hard as it seems, especially when you have professionals from Creditaid at your side. Their credit counselors<\/a> can help you get out of debt and create a plan to stay there.<\/p>\n\n\n\n Don\u2019t let debt take over your life and ruin your financial future. Learn how to get control of it today!<\/p>\n","protected":false},"excerpt":{"rendered":" Debt used to be for the \u2018deadbeats\u2019 or people who didn\u2019t care about their finances. Today, though, it\u2019s the new norm. Why? Mostly because we live in a world of instant gratification. Millennials, and younger generations especially, want everything now. Technology, the internet, and the advancement of most services today are to blame but that … <\/p>\nKeeping up with the Joneses<\/h2>\n\n\n\n
Using a Credit Card as an Extension of your Income<\/h2>\n\n\n\n
Missing Payments<\/h2>\n\n\n\n
Final Thoughts<\/h2>\n\n\n\n