We’ve all been there: that end of month moment where we look at our credit card statements and we’ve spent more than we’ve paid off. Debt is older than money itself, and nearly every Canadian household absorbs some debt to survive and purchase above their means.
No one wants debt, so it shouldn’t come as a surprise that there’s such thing as “Toxic debt”, but toxic debt can be dangerous to your long-term wealth and even your family if it isn’t taken care of.
What is Toxic Debt?
Toxic debt is defined as debt that has a very high likelihood of never being paid off by the debtor. Seeing as Canadians owe $1.68 for every dollar they earn, the average Canadian has some level of debt they will never pay off in their lifetimes. This can be from a mortgage, credit card debt, or personally-owned business loans.
Why is Toxic Debt Worse than Regular Debt?
Debt is like trash: it doesn’t seem to be a problem until you see it everywhere. With toxic debt, you’re trapped in a never-ending cycle of interest payments that get harder and harder by the month, while debt relief options are fewer and harder to qualify for.
But leaving aside that toxic debt leaves you permanently owing money to your bank, toxic debt also impacts your family greatly upon your death by:
- Withholding inheritance and estate from your family. The bank must be paid before your wealth can transfer.
- Adding potentially legal liabilities should anyone in your family inherit your wealth.
- Create confusion, delays, and additional costs at a time when your family is grieving and should not have to deal with the stress.
- Requiring the services of a lawyer or accountant to assure that any toxic debt you own is not going to affect your family down the line.
Debt can be a burden to any family in the best of times. Toxic debt following a death can be catastrophic for your family’s financial and emotional well-being.
BUT: Here’s How You Can Fix Toxic Debt in One Easy Step
Sure, you could start today on a lengthy repayment plan and cut back on your budget today, with benefits you might see in ten or fifteen years from now. A smart budget can help stave off financial uncertainty in the future. But the future is naturally uncertain.
Here’s how you can solve your Toxic Debt problem Today.
Final Expense Insurance can cover personal debt up to $25,000 with no proof of insurability needed. That means, if Toxic Debt is a problem that you don’t want to wait decades for to get under your control, you can insure your debt with:
- No medical exam of any kind.
- No questions about your health, travel plans, or personal habits.
- No citizenship or visa required.
- No credit checks, bank statements or employment required.
Final Expense Plan, like all life insurance products, remains the lowest cost investment available to every Canadian as a means to control debt, pay for outstanding fees and owed amounts, and provides your beneficiaries with tax-free support with no dog-eared expenses. You decide what’s best for your finances, and your family uses them as they need them.
Insurance is the only tool that can take care of debt immediately, and Final Expense Plan by Specialty Life can allow you to take care of that debt today, and give you the primary tool you need to secure your toxic debt before it becomes your family’s burden.