Financial Literacy Month in Canada: 5 Debt Myths Ontarians Still Believe

November is Financial Literacy Month in Canada — and while it might not sound thrilling at first, it’s the perfect excuse to slow down and really look at how we handle money. Managing credit, debt, and savings isn’t simple, especially when everyone seems to have different advice. Somewhere between “never use credit” and “you need debt to build credit,” it’s easy to get mixed messages.

That’s why financial literacy matters. It’s about understanding how money fits into your life so you can make choices that actually move you forward — and not just for now, but for the long run.

Still, a lot of myths and half-truths about debt keep people stuck. So, let’s clear a few of them up. Here are five common misconceptions that make managing money harder for Ontarians, and how learning a bit more about your finances can help you take back control.

(And if you already feel stuck or unsure where to start, you can book a free consultation with a Farber professional anytime to chat through your options.)

What Is Financial Literacy and Why It Matters for Debt Management

Financial literacy isn’t about becoming a finance expert, it’s about feeling confident with your money. It means understanding the basics of budgeting, borrowing, saving, and spending so you can make decisions that feel right for your situation.

In Canada, that also means knowing how systems like banking, credit scores, and taxes impact your financial picture. Once you understand how those pieces connect, managing debt stops feeling like guesswork and starts feeling like something you can actually control.

The Connection Between Financial Literacy and Debt

Here’s where it all comes together: when you understand your money, you stop letting it stress you out. Financial literacy gives you the confidence to manage debt instead of avoiding it.

When you actually know how interest piles up or what makes your credit score tick, you can make smarter moves — like paying down the right balances first or knowing when to ask for help. People who strengthen their financial literacy don’t just react to debt; they plan for it, tackle it, and bounce back from it faster.

At the end of the day, it’s not about being perfect with money, it’s just about being in the driver’s seat. And once you get there, managing debt doesn’t feel scary anymore. It feels empowering.

Here are five common misconceptions that make managing money harder for Ontarians, and how learning a bit more about your finances can help you take back control.

Myth #1: All Debt Is Bad Debt

Let’s get this one out of the way first: not all debt is bad. In fact, some debt can be really useful.

A mortgage can help you build equity and own property.This type of debt can  your long-term financial position.

The real problem is high-interest consumer debt, things like credit cards or payday loans. Those can snowball fast and eat up your income. But avoiding debt entirely isn’t always the answer either. It’s about balance.

Myth #2: Minimum Payments Keep You Safe

Repeat after us: payments are not your safety net. They’re more like a snooze button for your debt.

If you’re only paying the minimum on a $5,000 credit card at 19.99% interest, it could take over 20 years to pay off — and you’ll end up paying way more than you borrowed. That’s money you could use for literally anything else.

Financial literacy in Canada is all about understanding how interest quietly eats away at your income. Paying even a little more each month can save you serious cash and stress.

And if things already feel out of control, explore debt relief options like consolidation or a consumer proposal. It’s easier — and more empowering — than you might think.

Myth #3: Credit Counselling Ruins Your Credit Score

So many people avoid help because they think it’ll wreck their credit forever. That’s simply not true.

Working with a Licensed Insolvency Trustee (LIT) or going through credit counselling doesn’t destroy your credit, it helps you rebuild it. Yes, your score dips at first, but it recovers faster than you’d expect once you’ve got a repayment plan in motion.

Ignoring your debt is what causes long-term damage. Missed payments and collections can haunt your report for years. Getting help isn’t a setback, it’s a power move in your financial literacy journey.

Myth #4: You Need to Carry a Balance to Build Credit

This one’s a classic and completely false. Carrying a balance doesn’t help your credit score: it just helps your bank earn interest.

What actually matters is your credit utilization — how much of your available credit you use. It’s best to keep it under about 30%. For example, if your total credit limit (on all cards) is $2,000, try to stay below $600. And yes, paying your card in full every month is totally fine (really, it’s a good thing!).

Myth #5: Financial Problems Mean You’ve Failed at Money Management

Debt doesn’t mean failure — it means life happened.

Job loss, inflation, medical bills… these things happen to good, responsible people all the time. The important part isn’t that you have debt, it’s how you recover from it.

When you build your financial literacy, you stop seeing debt as something shameful and start seeing it as something solvable.

How to Improve Your Financial Literacy

You don’t need to become a money expert overnight — just start small.

• Read and learn: Try free tools like Canada’s Financial Literacy Program or read books about financial success.
• Listen and absorb: Swap a playlist for a money management podcast.
• Track your money: A quick weekly check-in or budgeting app helps you see where it’s all going.
• Ask for help: Advisors, credit counsellors, or Licensed Insolvency Trustees can guide you when you’re stuck.

Free Resources for Ontarians

During Financial Literacy Month, you’ll find plenty of free ways to boost your money skills. The Government of Canada’s Financial Consumer Agency shares helpful tools and webinars.

You can also check your local library — many offer free workshops, book lists, and events about budgeting and debt. Community centres and non-profits across Ontario host similar sessions, making it easy to learn wherever you are.

Personalized Financial Education

Everyone’s financial situation is different, so the best advice is the kind that fits your life. Personalized financial education can mean meeting with a credit counsellor, taking an online budgeting course, or using tools that track your spending and credit progress.

When to Seek Professional Help

At the end of the day, financial literacy isn’t about being perfect with money — it’s about understanding it. When you know how debt, credit, and interest really work, you can make confident decisions instead of stressful ones.

This Financial Literacy Month, challenge what you’ve been told about money. Ask questions, learn something new, and take a step toward financial freedom. And, if your debt feels overwhelming, that’s your sign to get support.

Ready to start? Book a free consultation with Farber today at and take that first step toward a future you can feel good about.