Something that really surprised us was the the extent to which payday loans and Buy Now, Pay Later (BNPL) plans can trap someone into the vicious cycle of debt. Even though the interest rates of payday loans (up to 400% annually) and the often-hidden fees in BNPL plans are high, many Canadians fall into these traps, especially in an emergency situation or when they are not financially literate. Times are hard and its so easy to fall in to this overwhelming world of debt.

2. Provide a real-life example of how this topic is relevant or interesting to you.

When I was younger, around 18, I got a credit card. Thankfully, the amount was only 1000 dollars; however, I was terrible with money and had a creditor after me. I did pay off the balance and have never again been reckless with my money. I now keep my credit card at a max amount of 2000 dollars as it is manageable to pay off, and even when the bank asks if I want to increase my limit I always refuse. I also only have one credit card and not multiple.

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?

One thing that I would pass on is the importance of avoiding payday loans and being cautious with BNPL plans. Not a lot of people read the fine print, and they need to know how the interest works and what happens if you miss a payment. It's important to know the full cost before you commit. It may not seem like a big decision, but it can affect everything you do in the future.