4.1.7 Summary of key messages

From: Financial Consumer Agency of Canada

  • How you feel about credit and debt is influenced by your attitudes toward money, the way you define your needs and wants, and your emotions, habits and values.
  • You can manage the cost of credit by borrowing only when you need to.
  • If you borrow, borrow for things that have lasting value. "Good debt" is an investment in something that creates value or produces more wealth in the long run. "Bad debt" is debt taken on to buy something that immediately goes down in value.
  • Keep your "good debt" at a level that allows you to repay it without putting too much pressure on your budget.
  • Limit your total debt load to 35 to 40 percent of your total income.

At the end of the module, you will find an Action plan. This is a tool that you can use to track your progress and take the next steps to manage credit successfully in the future. Use the action plan as a roadmap for financial action!

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