Having another look at the topic of Debt. Am I a debt shamer? I think I am. I realize debt happens to folks, I am shaming the staying in debt aspect. If you can’t deal with it, get help from a Licensed Insolvency Trustee. They can help you get out of this mess.
Debt Recovery advertising is becoming more and more, warmhearted these days. There is no need to be puritanical and lay the blame directly on those in debt, is their thematic premise.
The ads are quite comforting, telling the listener:
… it’s not your fault that you have gotten into over $10,000 in consumer debt, it is the global economy collapse that causes it all, but we are here to help you get back on your feet…”
Is this really helping the consumer?
They also point out that you may have lost your job, which may have caused your problems with your consumer debt. This is a little more believable.
How is the collapse of cryptocurrency causing my financial issues? That must have been part of the dismal science I missed (advanced quackery economics).
Another “debt counselling” firm claims that helping you with your debt problems, will be helping the Canadian economy to recover from the recession. Wow, my Mastercard bill is what is slowing down Canada’s recovery? Sorry guys, I would have done something about it if I had known!
The other exciting thing to note is that many of these new Debt Help offices, sometimes play dirty tricks with their customers. They negotiate a settlement price with the creditors but then charge an exorbitant fee for this service.
Is it your fault you have high consumer debt? My answer is, Yes, you bought the stuff or built up the deficit. How is it anyone else’s problem (yes, you could be paying off a loved one’s debt or something noble like that, but you know I am not razzing you guys)? My only advice is to be careful if you are trying to extricate yourself from the clutches of consumer debt, sometimes you will only go from a Bear chewing on your butt, to a Tiger chewing your ass (best metaphor I could come up with).
Is it really not your Fault?
My list of debt commentary articles is quite long, so let’s stick with the basics.
- Three Solid Ideas For Your HeLOC is a misdirection title. With interest rates going up, home equity lines of credit are becoming heavier anchors on your financial life.
- Pay Day Loans? Absolutely, positively NO! Go talk to a licensed insolvency professional before you do this.
- Surreal Paragraphs Found in Credit Card Bills, if you carry balances on your credit cards, you are in trouble. Look at their estimate for how long it will take to pay off the debt on minimum payments.
- A Mortgage Changes You, which is very accurate. When you get a mortgage, your life changes, and it will be a major element of your financial decision-making process.
- Make More by Reducing Debt with some elementary (maybe naive) arithmetic.
- Straight Talk on Your Money is not just a good book (and podcast). It explains how debt can get out of control quickly.
- Debt-shaming: Debt is Bad, but You Aren’t having a poke at the “influencers” who say my commentaries about Debt being BAD is debt shaming.
- My coup de grace There is No Such Thing as good debt. Debt is a tool, like a chainsaw, and must be respected.
Though everyone is responsible for its own debt, our gouvernements also are responsible for allowing such debts… The usury rate hasn’t been revised and is still 60%, as defined in the Criminal Code of Canada. Worse, Canada is allowing payday loaners to charge much more than 60%.
For the sake of comparison, here are the usury rates effective in France (revised quarterly):
Consumer debt ≤3000€: 20.23%
Consumer debt >3000€ and ≤6000€: 14.15%
Consumer debt >6000€: 9.04%
Fixed mortgages: 4.49%
Variable mortgages: 4.09%
It’s worth keeping mind that Europe is currently in a much lower rate environnement than Canada. Still, a fixed usury rate is useless in Canada. Especially when not enforced.
Very true
I looked into various debt help options at one time, but they all sounded too fishy to me. So I ended up handling it myself. It can be done.
They’re appealing to the same people who believe that it’s morally acceptable to walk away from a mortgage because their house values fell.
As much as I would love to put the blame on someone else all my debt is MY fault. I choose to get the loans and car payments and though I may have needed the car a used one would have done just as well. Companies prey on people who make one bad decision after another.