Debt Levels, Interest Rates Hurting Canadians
How High Debt Levels & Increasing Interest Rates Are Hurting You
Are you struggling with debt as a resident of Canada?
You’re not alone.
Numerous people are in the same boat and finding it difficult to get their finances back on track.
Experts are citing numerous reasons for this from payday loans to a surge in interest rates.
It’s leading to more Canadians than ever before to seek out professional debt support.
This does often mean speaking to a Licensed Insolvency Trustee about either a consumer proposal or even bankruptcy.
Indeed, when polled most trustees seem to agree that over the next few years there is going to be a rise in the number of Canadians seeking out debt relief options through legal pathways.
In the past, a lot of consumers were safe from debt due to low levels of interest and more access to credit channels.
Now, that’s going to change and history already shows what can happen when interest rates rise.
In a two year window after interest rates increase stats show there is always a surge in insolvency filings.
Are We Already On A Downard Slope?
Many trustees suggest that we are already at the point where interest rates are causing significant issues for residents.
Indeed, some trustees claim they have clients with bills that take up as much as 50% of their income.
Even those who own their property are struggling because they are relying more on equity in their home to cover the cost.
They are also completely overextending themselves beyond their means and borrowing a lot more through collateral.
Financial experts have warned for years about the dangers of payday loans.
However, when things get worse, individuals will often turn towards extreme measures to deal with the situation and this includes the dreaded payday loan.
These loans can seem like a life raft at first because they will typically grant anyone access to the money that they need in minutes.
But they ultimately are often the beginnings of a debt spiral.
Payday loans can come with massive interest rates that are virtually impossible to handle as well as additional fees that borrowers simply do not expect.
But they are also incredibly dangerous, similar to the real drug.
You can even borrow a lot more money.
On a single loan, a debtor might be able to borrow as much as $15,000 and immediately rack up massive levels of interest.
Get The Help You Need Today
Are you interested in starting your path to debt recovery?
If so, then we can help.
We have supported more than 100,000 Canadians through debt relief and we’re confident we can provide the answer you need too.
Get in touch today by phoning a friendly member of our team or fill in a free evaluation form on our website.