Warning! Canadians Are Stretching Themselves Too Thin!
Canadians face stretched household budgets — even insolvency — when interest rates eventually rise or if housing prices fall, the Bank of Canada said Thursday.
In short, Canadians are taking on too much household debt. Heard this before? Well according to the Bank of Canada’s latest report, the typical 31-35-year-old is now $120,000 in debt. Compare that to $75,000 in debt a decade ago. That’s a significant increase!
The average Canadian’s debt-to-income ratio now stands at a whopping 150%. We are carrying more debt now than we ever have before!
Why is this happening? There are many reasons. More and more Canadians are influenced by the temptations of retail, technological gadgets, credit card offers that include better reward programs, and home renovations to keep up with the Jones’. There are other reasons like job loss, illness, divorce, and retirement, the shock in the economy, higher costs of living, and money mismanagement.
Whatever the reason a person has debt trouble, they are not alone.
The decision to resolve your debt before it gets out of control is a very important and empowering decision. By taking control of your finances, you will tackle the stress that could be affecting other aspects in your life.
How you resolve your debt is another important decision. Many Canadians have chosen to consolidate their debts with a Home Equity Line of Credit. This may work for some people, but for others who simply cannot afford their credit payments to their unsecured debt; this is not a viable option. The problem with taking a HELOC to repay your debt is that you secure your debt to your home. So, should you lapse in any of your payments, you could put your home in jeopardy. Your home is your best investment. Never jeopardize the roof over your head.
The best option is to consult a licensed Consumer Debt Relief expert. A licensed expert, like OCCA, will assess your finances, tailoring a repayment plan to fit your needs, and ensure it is affordable for you!
Keep in mind, interests rates have nowhere to go but up. Don’t be vulnerable to adverse economy and housing market shocks. Take control of your finances and your life today.
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