According to a recent survey conducted by Harris/Decima, almost half of Canadians who have credit card debt, say they always or often carry an outstanding balance.
The survey also revealed that 1 in 4 say it will take more than a year to pay off their outstanding balance, and 1 in 20 confirm they will never be able to fully pay off the debt.
There are a number of options for managing debt, and many have considered cutting expenses or increase their income. Cutting expenses and revising existing budgets to make room for increased payments toward debt is a great way to get out of debt.
The survey went on to show that only 10% of Canadians with a credit card balance or line of credit have considered talking to a credit counselor and 4% have thought of a debt settlement.
With debt repayment on the tops of most Canadian’s minds in 2013, we should see a shift in debt-to-income ratio in months to come. A recent CIBC poll found that Canadians’ main financial priority in 2013 is paying down debt. The poll found that more of us are focused on paying down outstanding debts rather than on retirement planning or saving.
If you are considering seeking professional help in repaying your credit card debt, there are non-profit and for-profit companies available to Canadians that offer such assistance. Both kinds of companies charge a fee for debt negotiation.
(see more on how non-profit credit counseling differs from for-profit debt relief)
Recently the Liberal government proposed changing the regulations in the for-profit debt settlement industry. Over the last few years there have been a number of companies advertising unrealistic messages, such as operating as a government debt relief program or guaranteeing consumers a savings of 70% off their debt owed. Some debt settlement companies have taken consumer’s money and dumped it into an account to accumulate, while the consumers’ creditors are left in the dark about the debt owed to them. Too many complaints have been reported to the Ministry of Consumer Services to not take action against these kinds of debt settlement companies.
If the government’s proposed changes are legislated, it will limit how for-profit debt settlement companies operate as well as the fees they can charge consumers for debt negotiation. This is good news for consumers and we at OCCA Consumer Debt Relief applaud the government for finally cracking down them. We are not a debt settlement firm as we do not ask consumers to pool their money into an account to build over time for debt repayment. We start negotiating with creditors immediately and continue until a repayment plan that works for our members is agreed on by the creditors. We’ve been doing this successfully for over a decade and will continue to do so for many years to come.
If you have unsecured debt from credit cards or lines of credit and you find you cannot manage them anymore, you owe it to yourself and your family to pull up your socks and do something about it. As a consumer, you have the right to choose their own method of debt counsel whether it be spending less, increasing your income or seeking professional help. Each option has some work required of you so be prepared. Getting out of debt takes time and effort, but if done right, will change your life.
For more information about credit card debt or any kind of unsecured debt, call OCCA Consumer Debt Relief at 1-855-873-6222. Or visit us online at www.occa.ca and speak to us through our online LIVE CHAT. We’re here to help, and we’ll be here for years to come..
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