You can’t judge a book by its cover, just like you cannot recognize a person deep in debt just by looking at them. Looks can be deceiving. We do not wear our financial statements for all to see as we do our possessions.
We have searched through our member database to identify the typical Canadian living deep in debt. What we found was the highest debt loads were owned by a group shared equally by men and women between the ages 45-65. All of whom were in danger of going bankrupt due to high debt loads. The typical candidate for debt help is in their 40’s and earning roughly over $60,000/year. This is the group making purchases beyond their means including homes, cars and unessential possessions. The term “keeping up with the Jones’” comes to mind when we think of the spending behaviour by this cluster of individuals.
Worse off than this group is the group slightly older, having had more time to rack up more debt. These are the 50-60 year old individuals who are winding down in employment but have not wound down on their spending habits. In fact, many of them are still supporting their children in some way and have not prepared enough for their retirement. Instead of rapidly paying down debt to relieve financial burden in preparation for retirement, they are continuing to add to their debt.
Most of this age group is still employed; however they may have a dependent living in their residence that still has a sizeable mortgage on it. What’s more is that some of them are caring for aging parents on top of their older children. They are being squeezed into a stressful financial situation. Consider their own medical expenses and other health aids needs; this group is the most susceptible to the threat of bankruptcy.
For those older than 60 years old, debt can continue to be a crushing reality. Pensioners who do not have the income they used to are still worried about making their credit card and rent or mortgage payments. Their debt –to-income ratio can grow from the national average of 165 per cent to a whopping 297 per cent. That is double the stress for a person who should be enjoying their retirement.
Many of our members who came to us to resolve their debt are on hardship which means they are on a fixed income and do not have enough income to pay their bills and rent or mortgage. They are stuck in a tight jam drowning in debt.
There are many options to resolve debt for all groups no matter how big the debt is. It is important to take steps right away to manage debt. The worst case scenario is the loss of a home and the inability to feed a family. Credit counseling and debt management is necessary to protect against such threats.
For more information about what options you have to resolve debt trouble and how to protect yourself against bankruptcy, contact OCCA Consumer Debt Relief. Speak with an expert debt counselor to see how you can fix your financial difficulties before you’re too deep in debt..
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