Which Type Of Debt Can Cause The Most Damage?

Which Type Of Debt Can Cause The Most Damage?

Debt has to be the most talked about personal finance topic of the past decade.

Out of all the types of borrowing people use, which is the one that causes the most damage?

According to our experts, it would be the lines of credit. Credit cards get a lot of hate because they’re very high interest, and they cause many problems. The crushing debt is often on lines of credit. Lines of credit can be $15,000, $30,000 or even $50,000 to many.

And because of the emotional costs of debt, many people are stressed out and in tears about it. One financial advisor described one of their clients as putting their hand on their chest, and in tears at the drop of a dime. The reason for this is because many people feel embarrassed and ashamed being in debt.

The good news is that debt can be repaid and cleared off. People need to remember that there are basic methods and ways to pay them off, and there are many experts out there willing to help out. The biggest challenge for many is that they feel someone is just going to sit down with them just to obliterate their lifestyle. A good financial advisor’s job is to work with their client and try to find a reasonable, realistic middle ground where they’ll actually pay down their debt; they’ll stick to it for more than three months.

If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.