Canadian households have reached a new record level of debt. This means that for every $1.00 of disposable income, Canadian households now owe $1.71 in credit market debt. Credit market debt can be considered consumer credit, lines of credit, mortgages and non-mortgage loans.
The amount that Canadian households owe in credit market debt has increased from $1.68 that was established at the beginning of 2017. This was talked about in our previous blog, “Debt Vs. Disposable Income.”
Disposable income is the amount of money available for spending after income taxes have been deducted. So how do we balance the debt-to-income ratio? Here are a few suggestions to help Canadian house holds bring down their level of debt:
How Canadian Households Lower their Debt
One area where Canadians tend to bleed money is by wasting energy. One way you can help prevent wasting energy is by avoiding the use of electrical appliances during ‘on-peak’ hours. ‘On-peak’ hours occur from both 7:00 am to 11:00 am and 5:00 pm to 7:00 pm.
Another way Canadians can prevent wasting money is by winterizing their home. By reinsulating windows and keeping windows and doors closed to a bare minimum, you can cut down on the amount of energy that is required to keep your house warm.
During the winter holidays, shopping begins to consume a large portion of a household’s income, but, it doesn’t have to. Canadians need to put more time and effort toward researching and planning out their shopping lists. With the internet at out finger tips, researching competitive pricing has never been easier.
Once the research is done to find the best prices, it’s time to create a shopping list. Shopping lists are a great tool to map out how much you plan to spend, and to keep your self from purchasing unnecessary items.
Finding the Right Solution
Lowering your level of debt can be possible if you take the necessary steps towards ‘smart-spending’. But not all of us are in a situation that allows us the take the necessary steps. Sometimes seeking help from a financial expert can be your best option.
We are Licensed Insolvency Trustees with the knowledge and experience in addressing 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.