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Tag: Canadian consumer debt

  • Canadian Consumer Debt News: $200 Increase Could Spell Disaster for Many

    We are continually on the watch for news about Canadian consumer debt and the impacts of certain market conditions such as interest rates and a booming housing market. This week is no different.

    Last week, the Huffington Post released this alarming article regarding debt levels, entitled “Canadian Debt Levels Would Crush Them If They Were $200 Higher Per Month: Survey.” Discussed within the article is a survey done by consumer insolvency firm MNP Ltd.

    The survey results leave much to be desired. According to the responses of the over 1500 Canadians, 56% said they are only a couple hundred dollars from a debt crisis.

    Another 52% said they are worried about their current debt levels, while half of the individuals surveyed said that they regretted owing so much money. An additional 38% said raising interest rates could leave them on the verge of bankruptcy.

    Check out the article in full here: http://www.huffingtonpost.ca/2016/09/28/canadian-debt-levels_n_12235290.html.

    If you find yourself reading the article and counting yourself among the group highly concerned about your current debt levels, it might be time to consider alternatives.
    At DebtCare, we know how important it is to feel financially secure. With the current economy and Canadian consumer debt levels sitting at all-time highs, don’t leave yourself vulnerable.

    Call us today at 1-888-890-0888.

     

     

     

     

     

     

  • In the News: Who is Filing for Bankruptcy? A lot of Seniors it Seems

    used for DC seniors filing bankruptcyWith Canadian consumer debt on the rise, it is no surprise that filing for bankruptcy has become a popular form of debt relief. The ability to combine all debts and make one monthly payment, as well as the ability to halt collection calls and collection action, has proven to be quite appealing for a vast number of people.

    Accordingly, a vast array of individuals from diverse demographics are choosing this option -but which group is most likely to go this route? According to a recent CBC News article, it seems a lot of seniors are filing for bankruptcy as a way to get relief from debts that have piled up.

    The article states, “According to a review of 6,000 insolvency filings handled…in 2013 and 2014, the share of debtors aged 50 and over increased to 30 per cent compared with 27 per cent in the previous two-year period,” with credit cards and payday loans representing the debts of highest concern.

    The report also found that seniors and those in pre-retirement have accumulated the highest unsecured debt load among all age groups: “On average, debtors 50 and older filing for insolvency had $68,677 in unsecured debt, while those over 60 had total unsecured debt of $69,031.”

    You can read more about this here: http://www.cbc.ca/news/business/seniors-in-ontario-make-up-30-of-bankruptcies-report-1.3060463.

    Furthermore, according the Globe and Mail, several factors have contributed to this, including the higher number of personal loans being granted to adult children. For seniors with children, a loan to a child has become quite common, and although intentions may be good, often these loans go unpaid, leaving parents in a position of financial strain.

    Additionally, seniors are the ones with the highest unpaid tax bills owed to the Canada Revenue Agency. Read more on this here:  http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/growing-number-of-seniors-account-for-ontarios-insolvency-filings-study/article24236617/.

    This rising senior debt, coupled with the fact that income is generally less in the post-retirement years, has led many seniors to turn to trustees for assistance. And this isn’t a bad idea in theory. Why start retirement owing more that you can afford to pay? The only problem is that, without understanding the process in detail, many turn directly to those trustees, rather than to a representative.

    Why is this an issue? Bankruptcy trustees are looking out for the interests of creditors, not just the person filing. However, a personal representative, one with the debtor’s interests in mind, can ensure protection throughout the process, lessening the risk.

    If you are worried about debt in your retirement years, a fresh start thanks to filing for bankruptcy may just be the answer. Just make sure that you are protected. Call DebtCare today. We represent you – not your creditors, and can work towards a fair and objective result. 1-888-890-0888.

     

  • Need to Know: What is a Consumer Proposal?

    debt1It is no secret that many Canadians struggle with debt. The ease with which credit is granted, followed by the difficulty in trying to resist the temptation to buy what we perhaps can’t necessarily afford, means that Canadian consumer debt seems to continually grow, even when we are continually cautioned.

    With this consumer debt comes the need for debt relief. Debt relief can take many forms, some more well-known than others. This week we are looking at one of the most popular forms, the consumer proposal, and answering a common inquiry: what is a consumer proposal.

    Similar to a bankruptcy, a consumer proposal is a legal solution for dealing with debt. That being said, it is not a bankruptcy, and in many cases individuals find consumer proposals to be better when it comes to assets. For example, many people who opt for consumer proposals are able to keep their homes or cars.

    So, what is a consumer proposal? When you are in debt, and can’t seem to get any traction as far as paying it off, you may choose to make a proposal to your creditors, based upon an income and asset calculation. This is a consumer proposal. In this proposal, you offer to pay creditors either all or a certain percentage of the debt owed, monthly, over a term of typically 4-5 years. The amount of your proposal is based upon your income/assets and your ability to pay.

    Once this proposal is presented to your creditors, they have a finite period of time to vote to accept or reject it. Once accepted, this becomes a legally binding contract between you and your creditors, and you begin making the monthly payments.

    Benefits of a consumer proposal:

    • Debt is usually reduced in a proposal but even if it is not the proposal will stop interest from accumulating.
    • A consumer proposal stops collection action being taken by unsecured creditors, such as wage garnishments, frozen bank accounts, etc…
    • A consumer proposal can be paid in full at any time, and will be removed from your credit report 3 years following the date in which it is paid in full.

    A consumer proposal is a legal solution, one covered under the Bankruptcy and Insolvency Act, and while it is not a bankruptcy, it is administered by a trustee.

    Something to keep in mind: a bankruptcy trustee is an administrator who earns money based on the size of the proposal negotiated. They do not represent you – they are a court appointed officer with a job to ensure that you make a proposal that is a win for your creditors. This can be confusing because many trustees advertise solutions as though they represent you, when in fact they are more subjective than that, and often working for their own best interests.

    A proposal is a good solution, but you should not make one through a trustee unrepresented. A representative represents you so you can speak openly without consequence. A representative can negotiate the deal on your behalf with the trustee, and can often negotiate a more competitive deal than had you gone directly to the trustee.

    So, what is a consumer proposal? A very viable debt relief option – but one that you should know all about before contacting a trustee. Call DebtCare today – we represent you, not your creditors. 1-888-890-0888.

     

  • In The News: Global News Talks Canadian Consumer Debt

    In a recent Global News release, the most recent Canadian consumer debt statistics were examined, and what’s been found might surprise you.

    According to the article, debt levels vary from province to province, and the spending trends vary with them. The article states that in the east, where consumers are less likely to be able to handle the financial burden, spending has increased; debt levels have increased, on average, 4%. However, in the more economically prosperous west, people seem to be dialing back.

    Ontario seems to be sitting somewhere in the middle. The articles notes, “Ontarians increased their obligations by more than 2.5 per cent in the second quarter compared to the same period a year ago, to $20,385.”

    Check out this infographic from Equifax which highlights the average for each province and how much that average has increased over the year.

    raw_ane_consumer-debt-levels-map-online

     

    Check out the full article here.

    For more about Canadian consumer debt levels or how to get a handle on your own debt levels, please contact DebtCare Canada today by calling 1-888-890-0888.

  • In The News: Canadian Consumer Debt

    Canadian Consumer DebtNo matter your situation, debt is likely something that you tackle on a regular basis. This may mean paying bills on time or, if the situation is a little more precarious, deciding which bills you are able to pay on time and which ones can wait. But debt, for the majority of Canadians, is a fact of life: Canadian consumer debt is often unavoidable.

    Check out this recent article from the Globe and Mail regarding the status of Canadian consumer debt levels: –       http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/canadians-taking-on-more-debt-but-delinquency-rate-drops-report-finds/article20343607/.

    According to the article, “As of the second quarter of 2014, Canadian consumers owe $1.44-trillion, up from $1.42-trillion in the first quarter and $1.35-trillion a year ago, according to credit monitoring firm Equifax Canada.” However, although Canadians are taking on more debt, they seem to be better at paying it back: “The delinquency rate, which tracks bills overdue by 90 days or more, fell by 2.8 per cent.”

    For those in the position to make regular payments, on time, debt may not produce the same stressful effects as it does for those who are not in the same position. If your household debt levels seem to be a significant cause of strain or anxiety, it might be time to start thinking about making some changes. These changes may be something as simple as working out a strict budget or something as complex as a consumer proposal. Whatever the change, reducing your financial stress can be a great way to improve your overall well-being.

    As Canadian consumer debt levels rise, so too does the need to find effective means for debt relief. If you are in the same boat as those thousands of Canadians who struggle to maintain a strong hold on their debt, call DebtCare Canada today to discuss your options: 1-888-890-0888.

  • Not So Happy Canada Day When it Comes to Canadian Consumer Debt According to Yahoo Finance

    Canadian Consumer DebtLast week we celebrated Canada Day and that means that half of 2014 is officially over. Just like New Year’s Day, this holiday often leads people to think back on the past 6 months – have you evaluated your current debt load? Well, if you haven’t, Yahoo Finance has, and has discovered just how much Canadian consumer debt is impacting the nation’s economy.

    Check out this recent release from Yahoo Finance, “Household Debt Overhang Holding Back Canada’s Economy”: https://ca.finance.yahoo.com/news/household-debt-overhang-holding-back-124451782.html. According to the article, Canada was able to overcome the recent financial crisis thanks in part to consumer spending. A hot housing market and consumer spending meant that our economy was able to rebound far quicker than the U.S., but at a substantial cost. Now, thanks to high Canadian consumer debt, individuals are spending less and paying off more, meaning that economic growth won’t reach the levels initially anticipated.

    Furthermore, “Canada’s disposable household debt-to-income ratio is at a near-record high of 164.0 percent. By contrast, U.S. households reduced their indebtedness in the wake of the crash.” Clearly there are drawbacks to having dealt with the crash in a way that meant less economic meltdown for the average Canadian.

    If you are one of the many Canadians whose spending has led to a mountain of debt that now seems unmanageable, it might be time to start thinking about some viable solutions. Don’t get stuck barely able to make ends meet because of the interest on credit cards and the looming collection action being threatened by your creditors. Get in touch with a company today to find out what options exist to help you regain control of your finances.

    For more about Canadian consumer debt and taking back control of your money please contact DebtCare Canada today by calling 1-888-890-0888.

  • Statistics Canada: Report on Current Canadian Consumer Debt Levels

    Canadian Consumer DebtStatistics Canada released its latest report on figures regarding personal wealth and debt levels recently, and the numbers are not as promising as some financial experts would like – in many cases they are actually worse. What are these numbers, and what do they tell us about Canadian consumer debt levels?

    By the end of the second quarter of 2013, Canadian mortgage debt had reached $1.1 trillion – but this number is not included in consumer debt – or rather, debts such as credit cards or personal loans. In contrast, consumer debt reached a high of $500 billion.

    A key measure of consumer debt is the debt-to-income ratio for each household. This means the amount of household debt compared against disposable income. As StatsCan reported, the second quarter of 2013 hit a record high of 163.4% – that is up from 162.1% for the first quarter of last year, and is a reversal of the trend that saw the ratio decline in the previous 2 quarters.

    So what do these numbers actually mean? Well, according to financial experts, this is a good indication that Canadian households are still spending, on credit, but at a slower rate, which is a good thing. That being said, the key factor here is that the spending continues, meaning Canadian consumer debt levels continue to grow.

    Also, while some experts say that this debt is not unmanageable, a recent Royal Bank survey conducted by Ipsos Reid found that consumer debt is still keeping many Canadians on edge – 38% polled stated they were anxious about their current debt load. If you find yourself in this category you are clearly not alone. And although experts seem to think that Canadians are going to continue to curb their spending, this may not be as feasible for all as they would perhaps like.

    So, how do you measure up and what are your options? Are your debt levels on par with the average Canadian, or are you a bit more on the ‘stressed’ side. If your debt is keeping you up at night it might be time to think about a different solution. And again, you are not alone here either. The same RBC poll found that many Canadians are going a bit farther than just making a budget or using different tactics to decrease debt, stating debt consolidation has become a big favourite for many looking to reduce their overall debt load and save on interest.

    Want some help coming up with a solution – DebtCare can discuss the many options regarding Canadian consumer debt and how to eliminate yours. Call us today at 1 (888) 890-0888 or visit us online at www.debtcare.ca

  • Canadian Consumer Debt – How Do You Measure Up?

    Check out this great infographic from Royal Bank regarding consumer debt in Canada. Where do you stand?

    Jan 14 - Consumer Debt Infographic

     

     

     

     

     

     

     

     

     

  • The Globe and Mail Reports on Canadian Consumer Debt

    Canadian Consumer DebtThe Globe and Mail recently reported on the status of Canadian consumer debt levels, stating that Canadian household debt continues to grow. With that said, individuals seem to be obtaining less credit and the Bank of Canada reports being less concerned about this debt than in years past.

    However, a report from Statistics Canada calculated the average household debt at $164.97 for every $100 of disposable income, slightly higher than the analysis from 3 months previous. And just because the head bank doesn’t seem too concerned, it does not mean that Canadian consumer debt levels are not at a record high – they are.

    It has become quite common over the past several years to hear these reports about Canadian consumer debt levels no matter where you go. If you are not in debt often these updates seem irrelevant and are easily pushed aside. However, if you are in debt these updates can often leave you stressed about your own financial situation.

    If you find yourself getting shaky or stressed out with each report like this one, it might be time to recognize that you need some help with reducing your debt. Instead of trying to ignore the signs that your debt is becoming unmanageable or hoping that if ignored the problem might go away (it won’t), why not consider working with a professional to get rid of your debt.

    How can a professional debt consultant help? After an initial consultation which will involve assessing your debt, your re-payment behaviours, and your monthly income, a debt consultant will be able to discuss with you the various options which exist to help you get out of debt. They can also help you to establish a budget that is realistic while at the same time focusing heavily on repaying the money that you owe to your creditors.

    Some options which may exist include debt consolidation, consumer proposal or making settlements with your creditors. All three of these solutions come with their own benefits and it pays to consult with a professional to best determine which option is the right one for you. Some might even offer the ability to settle what you owe with creditors at a much lower amount – saving you money.

    If you find yourself constantly trying to avoid the reports on rising Canadian consumer debt levels, change your perspective and start looking at it as a motivator to get your own debt under control.

    For more information about how you can reduce your debt, please contact the professionals at DebtCare Canada by calling 1-800-890-0888, or visit us online at www.debtcare.ca.