Debt Trap by Sebastian

Image 1

sebbhl6 — 2024-11-26 01:53:54 UTC

From what I've been researching, this image perfectly demonstrates what a dept trap is and the cycle you go through when you are in a debt trap

Welcome

colerfusee — 2024-11-26 02:16:13 UTC

Here you will learn about the alluring but vicious cycle of the debt trap. You will learn not only what a debt trap is, but you will also learn how to avoid them, what causes them and ultimately, how to escape them.

Video 1

sebbhl6 — 2024-11-26 02:27:34 UTC

This video is about two people, Jennifer and Somxay who are both in college and just finished college and are both in a debt trap. The filmmaker tells us that the banks weren't making money off people who were paying their payments on time so they started targeting college students like, Jennifer and Somxay because they knew they could make a profit off students who weren't educated on how loans work and end up getting in a trap ^{The reason why I chose this video is because it's about students like us and I felt like I could relate to it. One thing I found useful is that the banks are almost always try to trap us because that's how they make their money.}

Website 3

colerfusee — 2024-11-26 02:28:31 UTC

Let's say you somehow did end up in a debt trap, CIBC has laid out some methods on how to escape it. The CIBC (Canadian Imperial Bank of Commerce) is a well-known and trusted Canadian bank which offers debt reduction services and counselling to help you end the cycle of a debt trap. This webpage provides some solutions on how to lower your debt as well as some contact information for counselling.

One piece of information I found useful on this site is the inclusion of others' stories and how they got out of it. Being in debt is not only financially difficult, it can also be mentally stressful and make you feel depressed and alone. But the inclusion of other people's success stories, not only would give you hope but also make you feel less alone and less taboo.

video 2

sebbhl6 — 2024-11-26 02:42:41 UTC

To summarize this video, banks are always trying to lure you by offering benefits for signing up for a credit card. Banks will see that you're paying your credit card on time and will increase the limit on your card to entice you to spend more of your limit This video is a great video for anyone who isn't educated on what loans are and what credit cards are and it serves as warning about debt trap. One piece of information that I found useful was banks will raise your limit on your credit until it reaches up to 10000$. I liked how this video went into more depths

Website 2

colerfusee — 2024-11-26 02:46:25 UTC

Now that you know what a debt trap is, here is how you can avoid it. CTV News (Canadian Television) a reliable Canadian news source outlines things to look out for when taking out loans, and once you have taken them, the steps to take to make sure you pay them off and don't end up in a debt trap.

One piece of information I found useful on this site was the explanation between good and bad debt. It went into detail about the benefits that a credit card can have even though it creates debt, but it also explained how to recognize when something is bad debt and how to avoid it.

Website 1

colerfusee — 2024-11-26 02:57:54 UTC

Debt trap is the trap of being stuck in a seemingly endless cycle of debt, where it seems that every time you pay off one debt, another one appears. Yet many Canadians do not know they are a part of a debt trap, this website offers insight into what debt traps look like to most Canadians and why they are experiencing it.

One piece of information that I found useful was the statistics that were shown about the sheer amount of Canadians stuck in a debt trap without knowing it and why they are in it. The way that inflation is proportional with debt and the subsequent debt trap.

Video 3

sebbhl6 — 2024-11-26 03:00:54 UTC

This video goes on about how getting a mortgage for your house could end up being a debt trap. In the first 10 years of you owning a house mortgage, you pay most of your interest on your house and less on the principal, and on average you are bound to move every 6-7 years due to plenty of reasons like a new job, downgrading or upgrading, and what ends up happening is you get a mortgage and you have to pay most of that interest again. The reason why I chose this video is because it shows a different example of what a debt trap can be. One piece oof information that i found useful is it might be better to not move and just keep your house because it can end up saving you money.

Website 4

colerfusee — 2024-11-26 03:11:42 UTC

With all this talk about how common the debt trap is, you are probably wondering why it's so common. In this webpage, the CBC (Canadian Broadcasting Corporation) goes into detail about how many young Canadians are unknowingly walking themselves into a debt trap via student loans.

One piece of information I found useful on this site was the input of students currently enrolled or recently graduated on how the debt is affecting them. Many of them have few goals that don't revolve around just paying off their student loans, they can't buy homes or get cars or support families because they are so bogged down in debt.

Video 4

sebbhl6 — 2024-11-26 03:21:10 UTC

This video goes into detail about the history of credit cards and how there used to be a limit on how much interest these credit card companies can charge. Some of these credit card companies would hire lawyers to write their fine print and find loopholes to make you pay more like making your payment due on a holiday so you'll hopefully forget to make your payment The reason I chose this video is because it's important to know the history of the companies you borrow money from. One piece of information that I found useful is the average American household is in 8000 dollars worth of debt

Reflective Question

colerfusee — 2024-11-26 03:22:56 UTC

One thing we've learnt is that banks can't always be trusted and you must always read the fine print to prevent yourself from trapping yourself in debt.

A real-life example is that we've realized that many people in our lives are in fact in a version of a debt trap, which is very relevant to us. One thing we would pass on to friends and family is the identify the signs of bad debt and how to avoid it.

Image 2

colerfusee — 2024-11-26 03:27:20 UTC

This image shows how debt can quickly rise up and overwhelm you, forcing you to take more loans and push you deeper into a debt trap which can be extremely difficult to escape.