Debt is Mounting and Canadians are Worried

Good Morning!

A new survey, out yesterday, has revealed that at no point in this pandemic have Canadians been as concerned about their finances as they are right now. 

How are you feeling?  I hear it from you guys everyday and now The MNP Consumer Debt Index, released yesterday has confirmed what we all have seen coming for months – Canadians Are Worried! 

“Almost one year into the coronavirus crisis, the financial confidence of Canadians has reached a low point.  The virus has understandably created significantly more financial anxiety for those directly impacted by job loss, declining wages and business closures. The Index shows that financial pressure is mounting for a large proportion of the country,” Grant Bazian, president MNP

Here are some of the more striking numbers:

43% say they are not confident they can cover their living expenses for the next year without going further into debt.  42% are concerned about their current level of debt and 45% regret the amount of debt they have taken on.

And perhaps most worrying, 61% thought that with interest rates low, now is a good time to buy things that they otherwise could not afford.

“Those who are already cash-strapped, saddled with debt, and struggling to navigate, risk being lulled into a debt trap.  The results can be disastrous when individuals in financial trouble try to cope by taking on additional debt.  It’s like trying to fill one hole by digging another.” Caryl Newbery-Mitchell, insolvency trustee MNP.

Almost half (47%) said they were afraid that if interest rates go up they could land in financial trouble. About a quarter said their debt was keeping them awake at night.

Many of you know my story.  For about 5 years, before I moved to Ottawa and started working with Freedom 55, I struggled with debt, at one point even having to work with an insolvency trustee to get back on track.  I know firsthand how easy it is to get locked into a cycle of borrowing just to stay afloat. 

When I started working with clients, I made it my mission to help people understand how debt could hinder their chances at Financial Freedom.  Over the years I have fine tuned my approach and developed an effective program that helps people Eliminate Debt, Build Wealth and Leave a Legacy.  People who work with me now tend to pay off all of their debts (including mortgages) about 8 years sooner, retire 4 times wealthier and pay significantly less tax along the way. 

I know many of you have already taken steps with me to be in a position to weather this storm and for that I am proud of you.  But if you haven’t, and you count yourself among the nearly half of Canadians who are worried about paying their debts long after the coronavirus has past, I have redeveloped my debt management program to help you reorganize your finances and stay on track.  Reach out to me anytime for a no judgement, no obligation, and no bull assessment of your current situation and recommendations for getting back on track the right way, (without additional debt).


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