Having too much debt is often seen as shameful or lazy when in reality, many people accumulate debt for reasons beyond their control. Let’s #DestigmatizeDebt, by putting a stop to these common misconceptions:
Having too much debt is often seen as shameful or lazy when in reality, many people accumulate debt for reasons beyond their control. Let’s #DestigmatizeDebt, by putting a stop to these common misconceptions.
1.”They’re in debt because they live beyond their means (spend too much money).”
Most people don’t choose to live “beyond their means”; it happens by circumstance. A sudden change in household income can make bills and other living expenses unaffordable. Credit cards and lines of credit can feel like the only solution.
2. “They’re in debt because they’re bad at managing money.”
Some people end up in debt because of poor financial planning or lack of financial education. Limited access to proper financial education can make it hard to manage finances, especially in a changing economic climate.
3. “If you’re in debt, you should just get a job and pay it off!”
Most people who file for insolvency are employed and are still unable to pay back their debts. In addition, many people who use our services can no longer work due to circumstances beyond their control.
4. “Canadians don’t go into debt because of medical reasons.”
According to the Office of the Superintendent of Bankruptcy, even in Canada, medical-related debt is one of the leading causes of insolvency. Oftentimes, people are unprepared for emergencies, like a sudden illness, and the financial constraints they can bring.
5. “They should have stopped borrowing money before it got this bad.”
The cycle of debt isn’t an easy one to break. What might have started as a quick loan to cover a home or car repair can turn into a never-ending loop of high-interest rates and taking on further debt to make minimum payments.
6. “They shouldn’t have used credit if they couldn’t afford to pay it off!”
With inflation and the rising cost of living, credit has become the only way many Canadians can meet their daily needs. No matter your income level, credit can be an appealing solution to cover necessary expenses.
Whatever the reason for your debt, you deserve help! At Grant Thornton, we offer judgment-free, 30-minute consultations to help you find the best path to debt freedom. Call today at 1-844-4GT-DEBT and start your path to a brighter financial future!