Recent surveys on Canadian youths have revealed the following facts:
- The average loan the students from the college have drawn was $3,75,749 in 2022.
- The average credit card debt of students was approximately $3,100.
- A Credit Canada survey revealed that nearly 25% of Canadians lose sleep over debt, and counselors must provide emotional support.
These are eye opener figures that Canadian youths are facing debt-related issues and after consequences. Unfortunately, Canadian youths are formally missing financial education. They often
rely on informal ways to receive guidance on financial management, and they become victims of scams, high-interest-rate loans, and various debts.
Our youths often have the wrong credit concept. They consider credit cards as an additional income source. If they have received credit cards for student loans, they start spending on lifestyle things or entertainment. It is mandatory to teach them how to manage their various urges to pay credit card money for other than study purposes.
- Youths need to manage a budget and avoid the use of credit cards.
- Youngsters have to pay off the entire credit card balance every month. They will save by paying any interest rate on their dues if they pay the total amount.
- Teach youths to save money wherever and whenever possible. So they can make additional purchases later.
- Show your teens how long it will take to pay off credit card debt. So, they can cooperate with you in saving.
Low Credit Limit
When teens reach 18- or 19, they might get credit cards. In such cases, keep the initial credit limit low so they can pay off monthly installments quickly. They can make some cheaper purchases, such as:
- Pay for gas.
- Pay for haircuts.
- Pay for small meals.
You must keep an eye on their monthly statement of credit cards. It will give you a rough idea of where your teens are spending money, and you will have an opportunity to teach them money management or debt management early. If your teens are paying off any interest rate on credit card purchases, teach them how to pay it as early as possible and save from dire debt consequences.
Maintaining a good credit history on your credit card is vital for your future because when you go to:
- Get a loan
- Get a job
- Rent a house
You will face the consequences of a lousy credit history. Landlord will not rent you a home, the bank will not issue a loan, and you might not get a good job or offer.
You must teach your teens how credit history affects their credit scores.
Secure Credit Cards in Calgary, Edmonton, Lloydminster, & Alberta
As a responsible parent in Calgary, Edmonton, Lloydminster, & Alberta, you can use a secure credit card. You need to cosign a credit card and have deposited money you anticipate your teen will consume for a period.
A secure credit card allows your teen to build a good credit history because banks and other financial institutions report payments to the credit bureaus. Once the credit score rises enough, your teen can receive unsecured credit cards without cosigning.
Effective debt management involves tailored debt repayment strategy, financial literacy, and financial counseling services.
Debt Management Services in Alberta
Fortunately, Credit720 provides help with budgeting, credit report reviews, debt consolidation loans, and negotiating lower interest rates on existing debt.
- Alberta has Canada’s relatively highest student debt, averaging $28,000 for university graduates.
- During the oil recession, the unemployment rate rose among youths. Credit720 provides alternate payment plans to ease the crisis further.
- Our services aim to avoid bankruptcy and minimize credit score damage.
- Counseling is available on the phone, in person, or through online chats.
Debt Consolidation Alberta
- Credit720 provides debt consolidation Alberta services to roll your multiple loans into a new loan with lower monthly payments.
- Our debt management counselors focus on saving your interest rate.
- We offer advice on enhancing your credit score by budgeting your income and repayment wisely.
If our debt management services in Alberta make sense to you, feel free to contact the Credit720 team.