The Trap of Unmanageable Credit Card Debt

The Pitfall of Uncontrollable Credit Card Debt: A Canadian Perspective

In 2011, nearly 75 million Visa and MasterCard credit cards were found in Canadian wallets. With an approximate population of 34 million, this statistic sheds light on Canadians’ predisposition towards credit card debt and the ease at which many qualify for credit. After factoring out the younger population less likely to qualify for credit, there are roughly 2.6 credit cards per individual. These numbers reflect the highest per-person debt level since credit bureaus began recording this data in 2004.

The Seduction of Credit Cards

The allure of credit cards lies in their convenience. The ability to purchase now and pay later is a significant factor contributing to their popularity. Whether it’s shopping online from the comfort of your home or making impulsive buys from an infomercial, the convenience of credit cards is undeniable.

Moreover, many e-commerce platforms retain your payment information, nudging you to spend more when they believe it’s time. This has made spending money you don’t have, incredibly convenient and potentially detrimental.

The Reality of Revolving Credit

When physical cash transactions become scarce, shopping transforms into a ‘virtual’ experience. The gravity of your expenditure often doesn’t hit until the credit card statement arrives weeks later. This statement typically outlines a low monthly payment, which barely addresses your mounting credit card debt. The payments only serve to take a portion of your income indefinitely, adding stress to your life.

Regrettably, many Canadians view credit as an extension of their income, a dangerous misconception. With credit, the ability to purchase more, consume more, and compromise less becomes enticing. However, this borrowed money needs to be paid back – with interest – until the bill is fully paid. Credit card companies don’t mind this arrangement at all, as the longer you remain in debt, the more you pay in interest.

In no time, the freedom credit card seemingly offers turns into a cage of uncontrollable credit card debt.

Time to Address Your Credit Card Debt

If you’re currently grappling with credit card debt and are concerned about how you’ll survive next week, let alone the impending holiday season, it’s time to take action. We recommend taking a break from your credit cards and seeking professional help.

You can start by setting up a free, no-obligation consultation with a Licensed Insolvency Trustee. These professionals can discuss various debt solutions to help you trade the trap of debt for a fresh start. When you’re ready, contact our office and start the new year off debt-free.

Key Takeaways

Canadians have an average of 2.6 credit cards per person.

Many Canadians view credit as an extension of their income.

Seeking professional help can provide various debt solutions.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.