Why debt matters in wealth conversations Debt is part of life for many Canadians. But not all debt is the same. As an advisor, you can help clients understand their debt and how to manage it. This is key to building wealth and confidence. Financial Literacy Month is a great time to “Talk Money.” Types of debt1 Secured: This is backed by something the client owns, like a house or car. Its cost of borrowing or interest rate is usually lower. Unsecured: This includes credit cards and personal loans. These debts have no asset behind it and often cost more. Revolving: These are like credit cards. The balance owing can carry over to the next month. Installment: These are like car loans. Clients pay a set amount each month. Helping clients manage debt Pay off high-interest debt first:  Credit cards are often a good place to start. Consolidate: One lower-interest loan payment can replace many. Make a budget: Include debt payments and savings. Use insurance-based investments: Segregated funds and Daily/Guaranteed Interest Accounts offer protection and guarantees. These can help clients manage risk while growing wealth. Why reducing debt matters Less debt can mean more financial freedom. Clients can save more, stress less, and plan better for retirement. It also helps them leave a financial legacy. Your role as an advisor You do more than sell products. You guide clients to make smart choices. Use this article to start a simple, clear conversation about debt—and how Equitable Individual Wealth solutions might fit into their overall financial picture. Talk to your Director, Investment Sales today for more strategies to help clients with debt. 1 Source : ARC, 2025-03-28