We’re living in a debt-ridden society; caused by two factors:
- We are constantly being lured to buy the latest and greatest products on the market; and
- We don’t really understand how debt works. This includes Home Equity Lines of Credit, lines of credit and credit cards.
A recent poll from TD Canada Trust found that younger Ontarians are not very conservative with their cards by digging themselves into debt. The survey showed:
• Not paying their credit card balance in full at the end of the month (53%)
• Making only the minimum monthly payment (35%)
• Using their credit card to supplement their income (22%)
• Missing a monthly payment (17%)
• Routinely maxing out one credit card and needing another as backup (14%)
So what are Canadians spending their money on?
- Houses;
- Cars;
- Technical gadgets, i.e. iPad, cell phone, iPod;
- Vacations; and
- Education
What’s more, nearly 50% of Canadians that are in debt are trying to determine a way to pay off their debts ahead of schedule, according to a recent survey conducted by CIBC. The results show that Canadians are focused on trying to reduce their debt and that 50% of those surveyed had made a large lump sum payment in the last year to try and reduce their debt levels. The survey also indicated, however, that many Canadians are not seeking financial advice regarding the management or reduction of their debt.
Both bank surveys raise concerns about Canadian’s personal debt levels shared by debt relief professionals, the federal government and the Bank of Canada alike. All agree that Canadians may find themselves with significant debt and financial problems when interest rates eventually rise. Having enjoyed some of the lowest interest rates in history, Canadians have taken on so much debt that they now have the highest debt-to-income rates ever. When rates eventually increase, making the monthly payments on all that debt will become very difficult for many people. Many will find themselves unable to make the payments and facing some very real debt problems.
So how will Canadians resolve their debt?
There are a number of options available and not all options may be right for all. Depending on a person’s financial circumstances one option may fit better than another. Whatever debt relief path a person chooses, it should lead to freedom from debt. The best thing any person can do for themselves and their family is to get out of debt….now.
If you would like to learn about what your options are for getting out of debt with an affordable repayment plan, call OCCA Consumer Debt Relief for your complimentary financial assessment. It’s free advice that may change your life for the better. Call toll free 1-866-873-6222 or visit www.occa.ca..
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