According to an article in the Globe and Mail from this time last year, more Canadians had been making their bill payments through the first quarter of 2013. Statistics released by Equifax showed that the percentage of people who were behind three or more monthly payments with their creditors fell by 13.4% during the first three months of 2013 to record low levels. However, the article went on to say that the total amount of consumer debt grew by approximately 4% over the same period.
This article begs the question:
Are these stats a sign of an improving Canadian economy or is this simply a case of borrowing from Peter to pay Paul?
I believe that the increase in total debt is a far more important and alarming statistic, and more indicative of the state of the Canadian economy than people’s payment history. Credit rating and payment history are poor indicators of financial health because it’s possible to maintain regular monthly payments by borrowing money and going further into debt. Debt issues are rarely solved with more debt.
If the amount of debt is more than you feel you can handle on your own, then I would recommend contacting our office to review your situation with one of our licensed trustees in bankruptcy.
We’re here to help you get a fresh financial start!
