Is Consumer Debt Making You Poor?

Is Consumer Debt Making You Poor?

Ouch! As this article’s title illustrates, plain speak can be a bit painful. However, understanding what consumer debt really is, how it hurts you, and what you can do to beat it – can take some of the sting out of consumer debt’s bite.

What is Consumer Debt?

According to Stats Canada – Consumer debt is the “amounts outstanding on credit cards, vehicle loans, other personal loans, instalment or revolving debts, and unpaid bills.”

Although they can have a serious impact on your financial health, long-term debt such as student loans and mortgages are not normally considered Consumer Debt.

Isn’t buying stuff on credit the easiest way to get the things you want? Only if you don’t count the interest costs and the months/years it can take to pay back the debt generated by these ‘easy’ purchases.

In plain terms: Consumer Debt is a financial penalty (usually in the form of interest) for purchasing something before you have the cash to buy it outright. Whether it is the latest techno-toy, a holiday trip, or true necessities – the net result is the same – an increased debt burden and reduced disposable income.

For some it can become a vicious cycle – consumer debt leads to reduced disposal income, which leads to reduced ability to save, which leads to more consumer debt.



How to Get Out of the Consumer Debt Cycle

  1. Accept that you have power over your debt. Faith is not required – you really do have power to control your debt load.
  2. Take a hard realistic look at your debts. It will take some effort on your part – but we have set up some straightforward instructions in Clearly Identify Your Starting Financial Position that will help you complete this essential step.
  3. Set realistic goals for getting out of debt and making the most of your money. Clearly Identifying Your Financial Goals can help you take this essential step.
  4. Set up a realistic plan to achieve your goals. Set Up Your Plan (aka Budget) – be confident, you really can do this, and you can succeed!
  5. Stick to your plan – You Can Beat Consumer Debt.

You can do this!

It might not be easy, and the temptation to give up might be strong – but just remember what your goals are. Picture your life, using your money to make the most of your life – and not loosing large portions of it to the financial penalties that Consumer Debt inflicts on all its victims.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22