Dealing with Debt the Wrong Way

Here are seven common mistakes people make with they are having trouble with debt

Consolidated Credit Counseling Services of Canada has helped over 500,000 Canadians take care of their debt. We are dedicated to providing Canadians with suggestions on how you can gain control and live a debt-free life. We can show you exactly what you should do, to enjoy financial freedom.

But this page is different. Below you will find some of the pitfalls that Canadians find themselves in. While it is encouraged to find a solution for yourself, you should be selective in the path you take. Instead of working with the expert advice from our trained credit counsellors, you should be aware that not all paths lead to success. Often misguided choices can put you into an even worse situation. If you are considering these solutions for yourself, it might be time to try a Free Debt Analysis on our website, or speak to a trained credit counsellor now by dialing . You’ll receive customized advice that reflects your own unique financial situation, along with suggestions to help you conquer your debt.

When dealing with debt, don’t…

  1. Ignore the problem. It won’t go away. Falling behind on payments and doing nothing about them will make your issues exponentially worse. You will incur finance charges, penalty APRs, and your account could go to a collection agency. All the while, your credit score will plummet. Be proactive and take care of your credit problems when they appear.
  2. Spend the way you always did. If you’re facing debt problems, you should immediately reevaluate your budget (or create one). You might find that you’re spending too much money on wants instead of needs. Every debt situation is unique, but living beyond your means will almost certainly keep you in debt.
  3. Pay debts with borrowed money. You want to avoid the proverbial situation of robbing Peter to pay Paul. You can never borrow your way out of debt. Paying loans with cash advances or payday loans is only delaying the inevitable, and you might also rack up extra interest while you’re at it.
  4. Close out a credit card without knowing the impact. Sometimes closing a credit card can hurt your credit score. If your card still has a balance, or if you’ve had it for a very long time and it makes up a big part of your credit history, you should try to keep it open.
  5. Take your credit card shopping. If you’re having difficulty keeping up with your credit card payments, it’s probably time to banish it from your wallet or purse. If possible, switch to a cash-or debit-only policy. Your debt levels are already growing due to interest; don’t magnify your problems by adding to the principal balance.
  6. Give up on negotiating with creditors. If you have tried to reach an agreement with your creditor but were denied, try speaking to someone more senior, or call back another day to speak with a different agent. Refer to our do-it-yourself negotiation guide.
  7. Be afraid to reach out for help. Non-profit credit counselling services like Consolidated Credit are designed to offer non-judgmental, confidential, expert advice to people who are struggling with debt. Call our trained credit counsellors today at or try our Free Debt Analysis online and find out your available options.

Consolidated Credit Counseling Services of Canada, Inc has been verified as the owner or operator of the Web site located at Official records confirm Consolidated Credit Counseling Services of Canada, Inc as a valid business. Call us today and see what we can do for you.

We are a proud member of the Canadian Association of Credit Counselling Services (CACCS), the national voice for not-for-profit credit counselling services. As a CACCS member, you can trust that our trained credit counsellors strive to provide the best in professional, independent and unbiased personal finance services. We’ve helped hundreds of thousands of Canadians find relief from debt. Call us today to find out if we can help you.

Consolidated Credit Counseling of Canada is proud to be a member and support the Toronto Board of Trade. Founded in 1845, the Toronto Board of Trade is Canada’s largest local chamber of commerce. We share their vision, passion and commitment to serving the community and to foster economic and social welfare of the City of Toronto. Call us today and see what we can do for you.

CCA logo

Consolidated Credit Counseling Services of Canada is accredited by the Canadian Centre for Accreditation – a national organization responsible for ensuring excellence in community service. We meet CCA’s high standards of service and accountability. Give us a call today and find out what we can do for you.

We are proud members of the Ontario Association of Credit Counseling Services (OACCS). OACCS sets the standard of required expertise for the financial counseling industry and the only organization to offer the exclusive professional designation of Accredited Financial Counsellor Canada (AFCC). With over 500,000 people helped, you can be assured that we can find the right solution for you. Call us today.

Time tested and customer trusted. Consolidated Credit Counseling Services of Canada, Inc has been a BBB Accredited Business since 2008 and has a current A+ rating. Call us today and see what we can do for you.

View the review status

AFCC (Accredited Financial Counsellor Canada)

AFCC (Accredited Financial Counsellor Canada) is a distinguished professional designation, indicating that a counsellor has successfully completed the program and has specialized knowledge, unique skills and expertise as a qualified Credit Counsellor.

You can save!

With this amount of debt, you'd pay around $xx.xx on a DMP.

FREE Debt Consultation