Based on the statistics from an insolvency firm in Ontario, the average amount Canadians file for insolvency with in Kitchener, Waterloo and Wellington County is $48,437. This is 8 per cent lower than the national average of $52,634. In Guelph, the average amount that residents file for insolvency is approximately $55,259. This is 5 per cent higher then the national average.
Approximately 1,214 individuals in Kitchener, Waterloo and Wellington County filed for insolvency during 2016. This is a large number when looking at the perspective of being in debt.
There are many expenses in our daily lives that contribute to the accumulation of debt. Some of the biggest expenses can include credit card debt, lines of credit, increasing interest rates, mortgages, and student loans.
Credit Card Debt
We had talked about credit card debt in our previous blog, ‘Canadians and Credit Card Debt.’ In this blog we discuss how Canadians do not understand the importance of making payments larger than the minimum amount.
$5,000 of debt on a credit card with a minimum payment of 4 to 15 per cent, could take over 11 years to pay off. In addition, by only making the minimum payments, you also pay off $4,000 in interest.
Lines of Credit & Interest Rates
Lines of credit are a popular method to pay off already incurred debt. The only problem with lines of credit, is that they are subjected to the increasing interest rates.
In September, The Bank of Canada raised its interest rate by 0.25 percentage points to 1 per cent. Now, it is rumored that the potential for another 0.25 per cent increase could occur at the beginning of 2018.
The average tuition for university students in Ontario for 2017-2018 is approximately $6,540 per year. This amount excludes the cost for room in board, text books, travel expenses, and class room supplies. Therefore, sending you child away to school, is one of the largest expenses a family can incur.
File For Insolvency
If you are in debt and subjected to one of the above situations, you should start looking for a solution. A financial expert can only improve your situation and help file for insolvency.
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.