This time last year, the average Canadian owed approximately $1.65 for ever dollar of disposable income. This was discussed in our previous blog, ‘Should I Claim Bankruptcy’.
That number jumped to $1.66 at the beginning of the year, and has now increased to $1.68 for every dollar of disposable income.
One explanation for the increase is that household income rose by 1.2 per cent while household credit market debt grew by 1.9 per cent. In addition, you can also look at the implementation of the new mortgage rules and recent increases to interest rates.
With $1.68 owed, even if Canadians use their disposable income to pay off their debt, they would still owe more.
3 Ways to Help Pay Off debt
One way to save money would be to purchase a cheaper model phone instead of going with the newest and advanced in technology. It is now known that the difference in cell phones from one model to the next is very small.
Avoid expensive bank fees. Some ATM’s will charge you approximately $3 in withdrawal fees. Keep in mind, that is on top of the fee that your bank has charged you for making a withdrawal from another financial institution’s ATM.
With the new OSAP program, around 210,000 students will receive free tuition. That is approximately one-third of all college and university students in Ontario. From the beginning of August, families with a household income of less than $50,000 are now eligible to have their average tuition covered for post-secondary education.
We are here to Help
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.