As a society, we’ve bought into a very harmful way of thinking when it comes to credit ratings, debt, and financial freedom. We’ve been told for too long that what truly matters is a good credit rating and nothing else. People all across Canada continue to live in debt, struggling to make payments that go mostly towards interest, all so they don’t affect their credit rating in a negative way. Below, we’ll explain why this system, and way of thinking is so dangerous.
The Dangers of Idolizing Credit Ratings
If someone spends their entire life being taught one path—one way of thinking—it can be hard to see the flaws in the system. Most of us have been told that having a good credit rating means you’re successful, responsible, doing well, etc. We’ve been told it’s highly important; so much so that it has become part of our identity and is linked strongly to our confidence and self-worth.
It is hard to realize the toxic mentality behind that way of thinking and to realize it’s a dangerous and often soul-sucking path to walk down. Believing your credit rating matters that much does one thing, and one thing only; it keeps you trapped in a system that doesn’t care about you. You’re a slave to interest rates and spend your hard-earned money appeasing creditors that don’t care about you or your well-being. They only care about taking more of your money.
Why It’s Better to Get Out of Debt
Everyone wants to get out of debt. Of course, you want to be financially free and to experience life without that dark cloud hovering over your head at all times. But, because of the credit system in place, you want to do it without damaging your credit rating. For some, this is possible. Though it will take an extremely long time and still isn’t worth it. But for others, it’s not even a possibility. Those with astronomically high debt will spend their lives working towards a goal they will never reach. Because compound interest absorbs so much of the payment, they’ll never be free.
Intentional or not, the system is designed in a way that very easily sets people up to fail. A consumer proposal, structured by a professional who represents the client, provides a healthy alternative to this broken system. With a consumer proposal tailored to the client’s situation, they can start to see the light at the end of the tunnel. Carefully thought out proposals offer a solid and realistic plan, a future without crushing debt, and a chance to enjoy your life now.
There’s Always Hope
Some people have simply resigned themselves to living with debt. Perhaps they don’t realize there are other options. They think living with debt is simply the way of life. There’s no escape. Everyone has debt—everyone lives with it. But that’s not a healthy mindset nor a recipe for a happy life. Debt shouldn’t be the unwelcome guest in every home. There’s always hope for a life filled with financial freedom. Getting out of debt with a consumer proposal is a process, and your credit score will take a temporary hit. But when you come out on the other side, you are free. The question you have to ask yourself is, “how much is that freedom worth to you?”
Temporary vs. Forever
One thing people don’t seem to consider is that when you pay off your debt through a consumer proposal, you can always rebuild your credit rating. You can do this immediately, and you do it without debt hanging over your head. Imagine for a moment that you have no more debt. Your money is your own, and you don’t have to pay interest or ridiculously high payments for decades to come. Imagine going to bed at night without soul-crushing debt and immeasurable stress. It’s a beautiful life. And it’s attainable.
Once you’ve gained your financial freedom, you can focus on rebuilding your credit rating. The beauty is, you do this from a place of joy, peace, and hope. Now, imagine the alternative. Imagine that you stay in debt to protect your credit rating. You face unending payments, you work hard and give your money away to the interest knocking at the door, you go to bed at night worrying about finances and wondering if you’ll ever be free from your debt. Now ask yourself, which life brings more joy? Which life seems more rewarding? Have we, as a society been valuing the wrong things all these years?
Life is Meant to be Lived
Life was never meant to be unbearably hard. It was never meant to be spent constantly trying to catch up while never finishing the race. You aren’t supposed to work your entire life just to give your money to large corporations who need it far less than you. You’re meant to enjoy your life. You’re meant to spend your money on things that bring you joy and enrich your time on this Earth. Debt has become such a staple in our lives, that we, as a society, have forgotten that there’s an alternative way of living. The damage debt does to our mental health, the stress it brings to our daily lives, and the crushing weight that never lifts from our shoulders have become ‘normal’. But that’s not what life should be; life should be filled with joy and freedom.
High-interest debt is a monster. It’s the villain in many of our tales. And we’ve simply stopped trying to fight it. We appease it and let it dictate many of our choices. But there’s another way. There’s a way to win and live without it haunting your sleeping and waking hours.
If you think having extra cash flow each month and immediate stress relief is worth a small, and temporary, hit to your credit score, please contact us to learn more information about client-tailored consumer proposals. At 4 Pillars, we work hard to give you a plan that fits your needs and is customized in a way that will bring you the most success. We work for you, not for your creditors. We are on your side and will not only help to eliminate your debt in a reasonable time frame, but we will also offer you the tools to effectively rebuild your credit score. There’s a life beyond debt. Come find out what it looks like.