There is no surprise that a majority of Canadians are victims to consumer debt. With a higher cost of living, fewer full-time jobs, and low interest rates, getting into debt is easier then ever.
So, what can be done to protect yourself from consumer debt? The best way to approach this issue is by becoming financially literate.
Understanding Consumer Debt
In trying to assess financial literacy, a survey was conducted by the Organisation for Economic Co-operation and Development (OECD). The survey consisted of 51,650 adults aged 18 to 79 from 30 countries.
According to the results only 58% of the participants were able to calculate simple interest. 60% of the participants acknowledged to having a budget, while only 50% admitted to having long-term financial goals.
An interesting result the survey showed was that approximately 30% of the participants admitted that their incomes barely covered their living expenses, and 20% found it necessary to borrow money to make ends meet.
What Protection is Available?
If you can relate to one of the survey participant groups mentioned above, then its time you get some help. One of the first steps towards the path of financial recovery is understanding that you need assistance.
Not everyone can be a Bay street financial guru. Some people are just not good with money. This is alright, that is why society provides us with financial help. One way that society helps us is through the Consumer Protection Act.
The Consumer Protection Act offers protection by enforcing a “cool-off period” when a specific type contract is signed. The types of contracts include:
- A product or service offered by a door-to-door sales person
- A gym or fitness club membership contract (also called a direct agreement)
- Buying a newly developed condo or purchasing a time share
- Taking out a payday loan
These are all goods or services that we put our finances towards. At the same time, these goods and services that have contributed to personal consumer debt. In the following weeks, we will go in depth to cover exactly how you are protected financially.
We are Licensed Insolvency Trustees that have extensive experience in addressing financial issues and challenges such as those noted above as well as all the questions you may have, including managing credit.
Feel free to email us at firstname.lastname@example.org, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no-obligation consultation with one of our debt solutions’ experts.
Make an appointment today, and we will provide some solutions specifically tailored to your situation. We look forward to assisting.