How to get out of debt now- before Canada’s spending bender comes home to roost
Canadian’s increased spending habits to some are what is keeping our economy afloat in a time where oil and the loonie have been volatile at best, and is what attracts high-end retailers such as saks Fifth Avenue and Nordstrom to opening their first ever locations north of the border. As the Financial Post reports, this record setting consumer spending is unsustainable and can lead to many Canadians facing delinquency or even bankruptcy, in fact a poll done for MNP ltd. in early 2016 suggest that half of Canadians are within $200 of not being able to pay their bills and debt payments and by late 2016 we will hit our largest debt levels since 1990. TransUnion reports that we are already starting to see the affects of this disturbing trend, as auto loan delinquency rose 10% last year to be the highest they have been since coming out of the global economic crisis; TransUnion then went on to urge caution to creditors stating that if proper due diligence is not follow the sinking oil prices can bring delinquency up by 60% for all financing products.
Despite the potential for a financial headache, the Financial Post shares 5 quick tips on how to start tackling you debt and get ahead of the curve before it become too late:
1) Go to someone in the know
1.1 Seek advice from financial professionals who specialist in debt managements
2) Unify your debt
2.1 By putting your debts on as few account as possible you will remain more organized and be able to better focused on your debt at hand, ultimately allowing you to pay it off faster.
2.2 Using a home equity loan through Alpine Credits can allow you to pay off your debts and focus on one monthly payment, more than likely at a rate much more competitive than that of a standard credit card.
3) Don’t Stop Saving
3.1 A strong financial plan should include both a means of paying your debts and a diligent saving strategy.
3.2 You have put money into your home, and it is time for that to start working for you, leveraging your home equity gives you access to capital at a rate typically more competitive than a standard credit card or high interest loan. This allows you to save on interests and put money aside for retirement or a rainy day.
If you wish to read the remainder of the Financial Post’s article and tips, please click HERE, and remember that although rising debt is the trend in Canada that does not mean it has to be the future for you. If you wish to get a handle on your debts please contact us at Alpine Credits- where homeowners get approved!
Article from FinancialPost.com by Rosalind Stefanac