# data[].attributes.body
In this assignment wall i will me talking about and explaining debt traps.

# data[].attributes.body
This video explains certain aspects of the debt problem in Canada right now. Due to the cost of living going up and wages not being able to keep up Canada has just hit a record high of 3 trillion dollars in household debt.

I chose this video because it goes over current issues with the Canadian economy and as of making this it was uploaded 18 hours ago making it very relevant and up to date.

# data[].attributes.body
This video explains in a very simple and easy to follow way how banks can easily trap people in debt. The video specifically uses the example for immigrants as Canada has one of the highest percentage of immigrants per population however, this video can easily be applied to a young Canadian who is trying to build their credit as well.

I chose this video because it is very easy to understand. it warns about different tricks that banks use to trap you to bring you to debt. They often offer you things such as high limits hoping you will act on them and then offer you loans to pay off those limits with lower interest. This causes a snow ball effect making it harder and harder to escape from debt.

# data[].attributes.attachment_link.title
Credit Card Debt Trap Explained| How Do Banks Put You Under Debt| Be Aware Its A Lifetime trap

# data[].attributes.body
This video is a short and brief explanation on how many Canadians find themselves in debt and how easy it is to remain in debt. It also gives advice on how t recover from debt.

I Chose this video because it is nice and short but holds good information. Not only does it explain debts it explains steps to help you get out of it.

# data[].attributes.attachment_link.title
What is causing Canadians to take on more credit card debt?

# data[].attributes.body
This video explains the reasons why many Canadians get into debt and like the previous video #3 it explains steps you can take in order to escape debt or at least lighten the load

I chose this video for the same reasons that I chose video #3 it is not very long but it contains very useful information that every Canadian can and should use to help them live a better life with less debt and less stress.

# data[].attributes.attachment_link.title
Escaping the Debt Trap - A Guide for Canadian Consumers.

# data[].attributes.body
This web article goes over the differences between good and bad debts as well as gives 4 simple steps you can take to prevent yourself from falling into bad debts

I chose this web article because it mentions the need for a strong financial plan. A strong plan is the key to staying out of debts. Know what you can and cant afford to pay.

# data[].attributes.attachment_link.title
How to avoid falling into a debt trap in Canada

# data[].attributes.attachment_link.description
While loans, financing, and lines of credit can be beneficial tools, debt can be a double-edged sword that can leave you in a financial bind. Personal finance contributor Christopher Liew shares some cautionary tips to help you avoid falling into a debt trap.

# data[].attributes.body
This website is from the government of Canada it has six sections that are all ways that Canadians can get out of their debts such as making a list of debts, reviewing a budget and making a strategy.

I chose this website because it has some good tips on how to get out of debt but I also think its quite ironic that the government that is putting majority of their population into these debts is the same one that makes a small article on how to get out of them.

# data[].attributes.attachment_link.readable_text
Making a plan to manage your debts will help you achieve your financial goals. Follow these tips to reduce your debts.

Make a list of your debts

Start by identifying what you owe. Make a list of all your debts.

For each one, note:

Your list may include:

mortgages

car loans

credit cards

lines of credit

personal loans

student loans

payday loans

taxes you owe

buy now, pay later plans

unpaid utility bills (cell phone, electricity television, etc.)

loans from friends and family

spousal support and/or child support you owe

any other unpaid bill (property taxes, store financing, etc.)

Use the Financial Goal Calculator to manage your debts and set savings goals.

Review your budget

A budget is a plan that helps you manage your money.

It can help you:

Reviewing your budget can help you repay your debt faster. When reviewing it, put needs before wants and try reducing your expenses. You'll be able to cut some expenses that are not necessary. This way, you'll have more money available to repay your debts.

Use the Budget Planner to manage your money and improve your finances.

Decide on a strategy

Once you've created a list of all your current debts, start your plan to pay them off. The types of debt and the amount of debt you owe will influence your strategy for paying them off.

Choose a timeframe

Set a payment timeframe that is reasonable and affordable.

If your timeframe is too long, you may lose focus if there's no progress in paying down your debts. You'll also end up paying more money in interest over time.

If your timeframe is too short, you may not be able to keep up with your payments. You may start to feel like it's unrealistic to continue.

Keep in mind, if interest rates rise, your monthly payments may increase.

Learn how to manage your money when interest rates rise.

Decide which debts to pay off first

Depending on the type of debts you owe, it may be best to pay off certain debts first.

Debts with high interest rates

By paying off the debts with the highest interest first, you'll pay less interest. This will help you be debt-free sooner.

List your debts in order, from the highest interest rate to the lowest. Make the minimum payments on all your debts. Then use any extra money to pay down the debt with the highest interest rate.

For example, payday loans often carry the highest interest rates of any debts you may owe, followed by credit cards.

Learn how payday loans work and what questions to ask a payday lender.

Debts with the lowest balance

You may find it easier to start with your debt with the lowest balance. You'll feel the accomplishment of paying off a debt sooner. This can keep you motivated to maintain your goal to become debt-free. However, this option may cost you more over time. For example, if you have one or multiple debts with high interest rates.

Make a plan to pay back your family or friends

If you have a personal loan with family or friends, talk to them about the money you owe. Commit to a payment schedule that works for you and the person who lent you money.

Consider writing post-dated cheques or setting up automatic money transfers to stick to the payment plan. This will show that you're committed to repaying them.

Work directly with your creditors and your financial institution

Contact your creditors to discuss your financial situation with them. Your creditors are the companies you owe money to.

They may offer you:

Close accounts on debts you've paid off

Once a debt is paid, consider closing that account. Only keep what you need and can manage responsibly. However, you should keep an older account open. Your credit score is based in part on how long you've had credit, also known as your credit history. Keeping an older credit account open helps maintain a long-term credit history.

Learn more about how your credit score is calculated.

Consider a secured credit card

You may also want to consider using a secured credit card instead of a regular credit card. It requires you to leave a deposit with the credit card issuer as a guarantee and you can only spend to that limit.

Learn how to use and apply for a secured credit card.

Consolidate your debts

You may want to consider applying for a loan to pay off multiple debts with high interest rates. This is called consolidating your debts.

Consolidating your debts means you'll only have to make one monthly payment instead of paying each debt individually.

A consolidation loan may help you get out of debt if:

If you're considering a consolidation loan, ask your financial institution which debts you'll be able to group together.

Eligibility for a consolidation loan

Your financial institution may be able to provide you with a consolidation loan depending on your situation. To be eligible, you must have an acceptable credit score and enough income to make the monthly payments.

Shop around for a consolidation loan

Some companies offer consolidation loans with interest rates that are higher than the debts you are trying to consolidate. Shop around to find the lowest rate and weigh your options. Although it's not the biggest factor, applying for loans with different lenders within a short period of time may lower your credit score.

Financial institutions may offer you different interest rates depending on the type of product you choose. Shopping around might help you find the best loan for your budget.

Learn more about getting a loan.

Avoid taking on more debt

If you spend more than your income, it will be difficult to become debt-free.

If you're considering borrowing more money, understand how it would impact:

your existing debt payments

your budget

your ability to save for other goals

your credit report and score

You're at risk of no longer being able to manage your debt if:

Tips to avoid taking on more debt

Follow these tips to lower your chances of taking on more debt.

Save for your financial goals

You can avoid taking on more debt by saving for your financial goals. For example, your child's education, a new car or a down payment on a house.

Saving a little every day can go a long way. Good examples of ways you can save money include:

taking public transit instead of driving your car and paying for parking

bringing your lunch to work instead of eating out

making your coffee at home instead of going to the coffee shop

Learn how to set savings and investment goals.

Use your credit card responsibly

Your credit card spending should fit within your budget. If you don't use your credit card wisely, you may end up taking on more debt.

To avoid getting into more debt, you can use cash or debit instead of your credit card. That way you'll avoid spending money you don't have. You should also stop using your credit card until you've reached your debt repayment goal.

Learn more on how to use your credit card responsibly.

Avoid "buy now, pay later" plans

Many companies now offer buy now, pay later plans for the purchase of products and services. With this type of plan, you are financing your purchase with credit. You purchase something and spread the payment over a period of time. Buy now, pay later plans could encourage you to spend beyond your means.

Be sure to pay your balance in full by the due date. If you don't, the fees and high interest rates that you'll pay will be added to your debt load.

These types of plans can be an expensive way to borrow money. You need to make your payments on time to avoid fees. These fees may lead to over-borrowing and put your credit at risk.

Learn more about buy now, pay later plans.

Look for ways to increase your income

Consider selling some of your assets or taking on more work to make extra money to put towards your debt.

Rebuild your credit

Getting into debt may harm your credit score. A poor credit score can affect more than your ability to borrow. For example, many employers require a good credit score in order to hire you. Landlords may also run a credit check before accepting you as a tenant.

You can improve your credit score by:

making sure you make payments on time and in full

not using all the credit that is available to you

not applying for new credit if you don't need it

Learn how to improve your credit score.

Know where to get help

If you're trying to pay down debt and need help, don't wait too long. Be proactive and seek help before experiencing challenges.

You can contact:

With their help, you'll be able to:

evaluate your current debt situation

determine your current and future needs

make a budget

find ways to pay off the debt

Before you sign up for services to get help to pay off your debt, explore your options. Compare the different services offered.

Find a Licensed Insolvency Trustee near you.

Related links

Report a problem or mistake on this page

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

# data[].attributes.attachment_link.keywords[]
budget planning; personal finance; banking; debt; credit; loans; borrowers; debtors; interest rates; consumer protection

# data[].attributes.attachment_link.description
Making a plan to manage your debts will help you achieve your financial goals. Follow these tips to reduce your debts. Start by identifying what you owe. Make a list of all your debts.

# data[].attributes.body
This website is pretty much a giant data sheet. using a sample size of around 30 million Canadians with credit cards he analyzed all of the info given and has made many different conclusions and charts from the data off the top of my head I remember that nearly 50% of Canadians do not pay their credit cards of in full thus carrying a balance to the next month and paying interest.

I chose this website because it has so much great data. there are charts and explanations as well as different groups such as people with and without a mortgage. I spent a good long time just reading it all.

# data[].attributes.attachment_link.title
The reliance of Canadians on credit card debt as a predictor of financial stress

# data[].attributes.attachment_link.description
I analyze the relationship between carrying a credit card balance and future financial stress. I find that carrying a balance significantly increases the likelihood that credit card holders miss future debt payments. This likelihood tends to rise as credit card balances grow and are held for long periods.

# data[].attributes.body
This website uses the real example of a student that immigrated to Canada. He was given a grant for his schooling of about $15,000 but during the pandemic those grants became loans causing debt. this website also has other examples of how debt can trap students for life through interest and inflation.

I chose this website because it is very informulable about students debts and students loans. It also has a real life story that happened to a student which can make it feel more personal and get the feeling that this could happen to anyone which, makes it more real.

# data[].attributes.attachment_link.readable_text
When Samuel Bonne received $15,000 in student grants to fund his studies, he wasn't expecting to have to pay it back. But just two years later - in the middle of the pandemic - those grants were converted to loans.

At the end of his sophomore year at the University of Toronto, the Ontario Student Assistance Program (OSAP) asked Bonne, originally from Mauritius, for his parents' financial documents, but they couldn't provide them.

"My dad works in Kenya and my mom doesn't work," said Bonne. "So I ended up having $15,000 in loans that I did not know about."

Bonne, who became a permanent resident in 2018 on humanitarian grounds, says there was no consideration for the fact that his parents were not Canadian citizens and didn't have the relevant documentation.

What's more, the interest on OSAP loans rose from 4.7 per cent when Bonne entered university in fall 2018 to 7.95 per cent this spring when he graduated with a degree in biological chemistry.

"That's when the interest starts taking over," Bonne said.

Bonne was grateful that he was able to find summer work and receive a research grant, which allowed him to get a head start on his payments.

"I'm just not comfortable with the idea of taking that [debt] for the rest of my life," he said.

But he isn't in the clear yet. Bonne enters medical school at McGill University in Montreal this fall - and, pending other scholarship funding, he's considering taking on a line of credit from a bank, which offers medical students loans of up to $350,000 to finance their medical education.

Bonne isn't sure what area of medicine he wants to pursue yet. But he wants to serve immigrants and other marginalized groups in Quebec, recalling a time after his family first came to Canada in 2009 when his sister got sick and they didn't have a family doctor or a clinic they could go to.

"That's a problem many immigrants face today. I don't even have a family doctor; I'm still on a waitlist," he said, darkly noting that he might be a family physician before he has one himself.

WATCH | Where are all the doctors?

Bonne says he'll take the funding he needs but no more, noting that he also doesn't have family support in Canada to fall back on in a crisis.

"One bedroom, one desk - that's really all I need."

'Gateway debt'

Bonne is far from alone in his struggle with student debt; 1.9 million Canadians owed the federal government a total of $23.5 billion in student loans as of July 2022 - a number that only balloons further when including provincial loans and private debt. More than half of those who pursued professional programs such as medicine took on bank loans or lines of credit, according to a 2020 Statistics Canada report.

Erika Shaker, the director of the national office at the Canadian Centre for Policy Alternatives, says this "gateway debt" perpetuates social inequality and prevents people from achieving financial independence.

"That debt that you graduate with sticks around," she said. "It ends up with you postponing the choices that you can make, whether or not you can buy that house, whether or not you can buy a car, whether or not you can start a family."

It's a reality Ari Black knows well.

"I don't have any financial goals. I can't," said Black, who teaches American Sign Language at Carleton University in Ottawa. "My financial goal is to make sure that I pay all of my bills, I don't default on my student loan - and there's groceries."

WATCH | Petition takes aim at student loan interest:

Black says he's been on interest-only payments since he graduated with a master of education from the University of Ottawa in 2019. As such, the student-turned-activist has made little progress paying off the principal. But he stresses that he had a little choice, especially given the limited income he makes teaching.

With the increasing interest rates, Black says his monthly payments will soon increase by $500 to $600.

"We already have people choosing rent or food," said Black. "I'm not in that situation, but I'm close to it."

Black says he calls the National Student Loans Service Centre every six months to request to continue with interest-only payments. But while he was grateful to hear that federal loan interest was eliminated in April, he was also informed that provincial interest would continue - and that there was a 12-month cap on how long he could make interest-only payments.

So after a final period of reduced payments, he says he'll likely have to apply for a repayment assistance plan.

All this led to Black starting an online petition to eliminate student loan interest at all levels of government. It has roughly 74 signatures.

Shaker says eliminating interest is "the least that can be done."

"If we're really looking at systemically addressing the issue, the answer is not more loans, not raising the loan ceiling," she said. "It's actually acknowledging that investing in post-secondary education is not just a commitment to the students who want to pursue it, but it's a commitment to future innovation, future equity."

High costs of higher education

Shaker says pressure to make loan payments can also trap many former students in a cycle of precarity as they take on "whatever job[s] they can" to make ends meet. Beyond that, she stresses that the increasing costs of higher education excludes those whose families can't or don't support them - and those who have children or other dependants of their own.

Average undergraduate tuition fees for full-time domestic students have risen from $534 in 1972-73 to $6,834 in 2022-23. These figures are almost double what they would be if tuition rates grew proportionally with inflation.

"We need a much more honest understanding of who is going to post secondary," said Shaker. "Otherwise we're leaving out swaths of students who don't fit this template and we're reproducing the inequalities that already exist."

Rania Phillips, a recent graduate of the Rotman School of Management at the University of Toronto, feels that the student financial aid system places too much emphasis on income over wealth.

"Things like expenses are very much affected by wealth," she said. "Families who make less money but don't necessarily have to pay a mortgage have a very different financial situation than families who do have a mortgage, especially in the current housing market."

Phillips worked three jobs in her final year of undergraduate studies and took a year off to work before pursuing a masters degree this fall. She says the pressure to make ends meet led her to only consider academic programs that would allow her to immediately start repaying her student loans.

"There's certainly ... a different way you carry yourself when you don't have the constant stress of how you're going to make the very basics of your education," she said.

Despite his difficulties, Black says he's appreciative of how the student loan system allowed him to pursue an education, and he intends to pay back "every cent."

"I don't want to give anyone the impression that I think that I'm somehow a blameless victim in this scenario - I'm not," said Black. "I'm an active participant in my situation."

But unlike a lease on a car or a mortgage on a house, he says, he can't return the education he received - nor would he want to.

"I was gambling that I would succeed," he said. "So far, it's helping me, but it's not helping me enough to keep up with what they are asking for. And I can't give it to them to make up for it.

"There's nothing for me to pay them back with - so I'm trapped in the system."

# data[].attributes.attachment_link.title
How student loans keep some people trapped in debt | CBC News

# data[].attributes.attachment_link.description
Some 1.9 million Canadians owed the federal government a total of $23.5 billion in student loans as of July 2022 - a number that only balloons further when including provincial loans and private debt. Meanwhile, tuition fees are now 13 times more than they were 50 years ago.

# data[].attributes.body
This Photo is very simple but effective. It shows debt traps in what I feel is a very smarts way. The human offers a mouse cheese and the mouse's greed leads the mouse to its death. it a similar fashion the bank offers you higher limits and loans and then you take them. This leads to you having possible lifetime debt. I feel this is a very good metaphorical photo representing debt traps.

# data[].attributes.body
This picture showcases the ball and chain often worn by prisoners to prevent them from running away or escaping when doing tasks outside of the prison. Like the ball and chain debt effects what you are able to do and what you're able to enjoy. and like the prison it is hard for someone to escape their debts especially if they are in the hole really deep.

# data[].attributes.headline
1. What did you learn about your topic that surprised you the most?

# data[].attributes.subject
1. What did you learn about your topic that surprised you the most?

# data[].attributes.body
What probably surprised me the most is how much money is owed to the government alone. Website #4 said that there is over 23 billion dollars owed in student debt alone and that was in 2022.

# data[].attributes.headline
2. Provide a real-life example of how this topic is relevant or interesting for you.

# data[].attributes.subject
2. Provide a real-life example of how this topic is relevant or interesting for you.

# data[].attributes.body
This topic is relevant to me because as someone with a credit card I could get into a bad habit of over spending. thankfully I am very good with my money and I have no debts but that could all change once I have major loans to pay such as a mortgage or car loans. It also helped give me steps to ensue I can stay out of bad debts through research for tis assignment.

# data[].attributes.headline
3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

# data[].attributes.subject
3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

# data[].attributes.body
I think the most important information to pass on is the importance of a budget and or a plan. A budget may seem simple but creating a budget and following it can help a person or family in all the right ways. If you need to take a loan work out numbers and terms to find what fits you and your budget them best so you can pay it off in a fast and smooth fashion. BUDGET BUDGET BUDGET!