As a credit counsellor for 36 years, not only do I hear financial success stories from clients but I hear them from friends and neighbours as well.
Years ago, my neighbour Kelly told me how she had “accidently” taught her young daughter the value of money. One day, Melissa went to Kelly and announced that she was now 8 years old but she was riding a six-year old’s bike; she wanted a new one. Kelly suggested that maybe she should help to pay for the bike and Melissa’s response was “Mummy, I don’t have a job like you do”. “But you do get money from your Grandma, Grandpa and aunts when you see them so you could use that money”. They looked in Melissa’s coat pockets, her little purses and her piggy bank and they found $48 in loonies and toonies. Melissa was so excited she wanted to go to Canadian Tire right away to get the bike. Kelly and Melissa went shopping later that day and after looking at many different bikes, they found a bike perfect for a growing 8- year old. Melissa proudly handed her $48 to the cashier and her Mum paid the difference. Kelly said the cashier had a huge smile on her face as Melissa left the store with her brand new bike.
Melissa was thrilled with her bike. One day she was riding down our street and a neighbour, Mrs. Murphy, commented on her shiny new bike. Melissa got off her bike, carefully put it on the kickstand and proudly replied that the bike was “half mine” because she had paid for half of the bike with her very own money. Mrs. Murphy congratulated her and then asked if Melissa’s friend Kyle liked her new bike. With her hands on her hips, she said that she didn’t let Kyle ride her bike anymore because the first time he rode it, he let it drop to the ground when he was finished. Over time, Kelly heard from other neighbours that Melissa had told them the bike was “half mine”.
When Melissa told her grandfather what she had done, he gave her $10 to put away for her next big purchase. Melissa put it in her piggy bank and when she got other money from family, etc. it went straight in her piggy bank as well.
Kelly said Melissa treated that bike with respect until the day it was passed down to her cousin with strict instructions on how to care for it. Kelly doesn’t know why she suggested to Melissa that she could put money towards the bike, but she is glad she did. She says Melissa got an early lesson in financial responsibility and the pride of ownership.
It is never too early to teach financial responsibility to our kids. I still remember the pride I felt when I paid for my first clothing item – a maxi coat. My brother got tired of me telling people that I had paid for it myself.
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Frequently Asked Questions
Have a question? We are here to help.
What is a Debt Consolidation Program?
A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!
Can I enter a Debt Consolidation Program with bad credit?
Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.
Do I have to give up my credit cards in a Debt Consolidation Program?
Will Debt Consolidation hurt my credit score?
Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.
Can you get out of a Debt Consolidation Program?
Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.
