When Life Throws You A Curveball

Sabeena Bubber • November 2, 2017

While America may believe they Run on Dunkin' Donuts, I'm pretty sure they actually run on credit and debt. And the truth is, Canada isn't that far behind. Debt is not only culturally acceptable, but oftentimes the norm. Our governments borrow money in order to fulfill campaign promises and to fund various programs (legitimate and [arguably] otherwise), small business owners borrow money, and on a micro level, families borrow money for houses, cars, and things. It almost seems like some level of debt accumulation is inevitable.

Debt can be split into three categories, good, bad, and ugly debt. 

Good debt would include any debt that is used to build long term equity. Securing a mortgage to purchase your home falls in under this category. So could financing a rental property. An education is certainly something that people invest in, oftentimes at a considerable expense, but as this debt is used to increase earning power, it's a good debt.

Bad debt would include anything you purchase on credit, that doesn't appreciate in value, or allow you to earn more money. Bad debt is when you spend money you don't have on a credit card or line of credit, and choose to pay it off in instalments (sometimes at considerable interest). 

Ugly or unforeseen debt is what I'm here to discuss, the debt that shows up when life throws you a curve ball. It's the debt you aren't prepared for. Regardless of how much good or bad debt you have accumulated, in order to have that debt in the first place, a lender somewhere has considered you a good credit risk. This means you make your payments, and you're reliable. Perfect. But what happens when life happens and you aren't able to make your payments? 

Let's say that you get in a car accident and can't go to work, a family member falls ill and you are there to take care of them, you lose your job due to corporate downsizing, you take a risk with your own business and you fall short, what then? Ultimately, if you end up losing your ability to make timely payments on your debt, things can snowball really quickly, your good and bad debt become really ugly debt.

There is hope!

If you're like most established Canadians, your house is your biggest asset. So if life does throw you a curveball, and you don't qualify for a mortgage refinance to access some of your equity, this is where the CHIP reverse mortgage comes in. A CHIP Reverse Mortgage enables homeowners aged 55 and older to access their home equity without making any monthly repayments. So if you've got debt to pay off, not only can you consolidate it with a CHIP reverse mortgage, you aren't required to make any payments. 

My name is Sabeena Bubber and I'm a certified reverse mortgage specialist. Please call me anytime, Sabeena Bubber at 604-862- 8526 or visit myreversemortgage.ca for more information on how a CHIP reverse mortgage could work for you! 

SHARE THIS ARTICLE

RECENT POSTS

What You Need to Know About Porting a Mortgage When Moving

By Sabeena Bubber • September 9, 2026
This is a subtitle for your new post

Bank of Canada Holds Rate at 2.25% — September 2, 2026

By Sabeena Bubber • September 2, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. While Canada's economic recovery is broadening, a new layer of uncertainty has entered the picture. Here is what happened and what it means for your mortgage.

Fell Behind on a Payment? Don’t Panic—Here’s What to Do

By Sabeena Bubber • August 26, 2026
Missed a Credit Card or Line of Credit Payment? Here’s What to Do If you’ve missed a payment on a credit card or line of credit and you’re worried about how it might affect your credit—or your future mortgage—this is for you. First things first: 👉 If you currently have an overdue balance, log in and make the minimum payment now. Seriously. Do that first. Everything else can wait. If You’re Only a Few Days Late Here’s the good news: Credit bureaus don’t record late payments until they reach 30 days past due. So if you missed a due date by a few days and paid it as soon as you noticed, it typically won’t show up on your credit report as a late payment—as long as you’re under the 30-day mark. That said, it never hurts to double-check. You can call your credit card company, explain what happened, and confirm the account is back in good standing. If you normally pay on time, they may even reverse the interest charged. It doesn’t hurt to ask. If You’re 30, 60, or 90 Days Behind If payments have gone past 30 days, your credit has likely been impacted—but the situation is still fixable. The most important step is to: Bring all accounts current as soon as possible Make at least the minimum payment on every account The faster you catch up, the more you limit the damage. Ignoring missed payments only makes things worse. If Cash Flow Is Tight If you’re struggling to make payments, communication matters. Contact your lender and keep them informed—even if you can’t pay right away. Lenders are far more willing to work with you when you’re transparent. What hurts your credit most is silence . If lenders don’t hear from you after repeated missed payments, they may write the balance off as bad debt and send it to collections. Collections can significantly impact your credit and stay on your report for years. How This Affects Mortgage Qualification Repeated missed payments can make qualifying for a mortgage more difficult—but timing matters. Once you’re back to making regular, on-time payments: Your credit can improve over time The impact of past mistakes becomes less significant If you’re planning to buy a home in the next couple of years, addressing credit issues early gives you far more options later. Final Thoughts Missing a payment doesn’t mean you’re “bad with money,” and it doesn’t mean homeownership is off the table. What matters most is how quickly you respond and how consistent you are going forward . If you’d like help reviewing your credit report or understanding where you stand from a mortgage perspective, feel free to connect. I’d be happy to walk through it with you and help you create a clear path forward.