One of the strongest tools we have to manage our finances and consumer debt is knowledge. If your spending time learning what to do with your money, then you’re not using that time to spend money.
There are many sources of information around us that can teach us the financial wrongs and rights. Some of these sources can include news articles, blogs, seminars, or professional assistance. The information that can help us manage or finances and debt are all around us.
Current Financial Issues in the Headlines
To help you out, here are some of the main financial issues that headlines are currently talking about:
Pay day loans are one of the biggest contributors to consumer debt, and the city of Hamilton is starting to take a stand. Hamilton is making the move to restrict the number of pay day loan operators within the city. This move came after the discovery that a $300 loan can cost up to $1,600 due to fees and annualized interest rates of 546 per cent.
Fraud is another big contributor to consumer debt, in the most unfortunate sense. Recently, a couple was unable to receive a loan from their bank, so they decided to go to a private lender. After going through a process that appeared to be legitimate, the couple was approved for a $20,000 loan. Before the couple could realize that something was wrong, they lost $3,500.
Home equity lines of credit (heloc) appear to be the preferred method for Canadians to take out loans. In December, heloc balances increased 7.2 per cent, reaching a record of $230 billion. It is important to note that heloc are usually tied to prime rates. This means that they are affected by the increases to the Bank of Canada’s interest rate. Currently, the average outstanding heloc balance amongst 3 million Canadians is $70,000.
Solutions to Consumer Debt
It is important that we keep ourselves up to date with what is happening around us. Many different things influence our finances, and the more aware we are of those things, the more power we have to make a difference.
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 email@example.com 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.