Average debt held by an individual in Canada (excluding mortgages) is $20,759 according to the Bank of Canada. A more recent statistic found this amount steadily jumped and grew by 64% (to $60,100)!
Do you know what this spells for a Canadian household? Financial trouble and delinquency! Yet it seems we are least concerned when it comes to debt repayment, which is the exact opposite of what EmpireOne wants from its clients!
Concerns Expressed Over the Debt Average Canadians Are Taking On With Unnecessary Credit Expenditure
If not careful, the Bank of Canada as well as several credit counselling agencies warn individuals of falling in financial trouble when mortgage rates eventually rise. One key trend found in average debt related with individual’s use of their credit card is a very short space between financial crises and debt.
What does this mean? Often it takes only a few extra expenses to tip the balance; which is why you must develop a sure-fire strategy to counter over-spending of credit. This doesn’t answer the question of how much debt is too much.
The Simplest Way to See If You Have Too Much Debt
Bad news: there isn’t any way of telling whether you have too much debt other than comparing average debt with your monthly income. Additionally, there’s a chance that you do have high debt if you wonder about the subject.
Do you pay off more than half of your income in debt repayments? If yes, then water has reached above the bridge; meaning you will have to do something about this issue.
There are a number of signs that can warn individuals, such as:
- Frequently pay bills after their due date
- Receive calls from collection agencies
- Take out advance from one credit card to pay the minimum amount on another
- Have your utilities cut on a near-monthly basis (water, telephone)
- Major slash-backs on basic and regular expenses
- Taking another job to help pay bills
Is Declaring Bankruptcy The Answer?
There certainly are many benefits of claiming bankruptcy. The advantages are:
- No more legal action (against you)
- Creditors will stop their harassment
- Interest payments will be frozen
- Your wages will no longer be garnished
- Some assets will be protected even after declaring bankruptcy
Several options are available to help reduce debt according to your personal situation. Choose the best one after carefully evaluating each one. Thinking of declaring bankruptcy? Get help with EmpireOne today.