As 2019 begins, several events that have a major impact on the world’s economy are in motion. These events affect the world’s economy, they affect Canada’s economy, and they affect your personal finances. In fact, the personal finances for a few Canadians have already been affected.
Canada’s Economy & Financial State
According to Statistics Canada, the debt service ratio has risen to 14.51, the highest it has been since 2008. The debt service ratio is used to measure an individuals ability to pay back a debt. The ratio is found with dividing operating income by the debt amount. Therefore, if the ratio is high, the debt will be more difficult to back.
In addition, the Office of the Superintendent of Bankruptcies stated that consumer proposals have increased 9.2 percent compared to 2017. A consumer proposal is a formal agreement established under the protection of bankruptcy law in Canada. The proposal establishes the settlement of a debt under terms that are different from what was previously agreed upon.
Global Economic Contributors
Which events are the potential cause to the financial difficulties that Canadians are now facing?
First, Britain’s exit from the European Union and the potential impact the exit will have on global economy is still unknown. Second, the outcome for the trade war taking place between the United States and China is unforeseen. Both of these countries are considered to be two of Canada’s largest trading partners. Both the exit, and the trade war will cause a shift in the world’s economy that will potentially affect Canada.
Third, there has been a recent drop in the price for Canadian crude oil. Canada is known as the fourth largest exporter of crude oil in the world. Fourth, the United States still imposes tariffs on Canadian steel and aluminum. And last, there is still uncertainty with Canada’s “final” position in the North American Free Trade Agreement.
Creating Financial Stability
With accounted for, now is the time to start organizing your finances. Organizing your finances can bring financial stability, helping you prepare for any global economic event. Let us help you.
We are Licensed Insolvency Trustees with the knowledge and experience to address any of the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.
If you need help, contact us by emailing firstname.lastname@example.org or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.
Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.