Welcome to 2017! Now that the festive season is over, life is getting back to normal. The hustle and bustle of work, school and children’s sports activities have been back to the calendar. Everybody is busy. However, not everybody is happy. That is because the daily post office delivery your emails comprise those hot Christmas and Happy New Year’s fantasies. Rather, many households are getting nothing but bills, invoices, and bills. While this happens, it indicates that your debt is accumulating and worse, your debt is out of control.
It’s been reported that home debt in Canada has increased a lot over the previous ten years that every person has been holding over $41,740 of debt. While mortgages have been included in this figure, the majority of the increase of debt will be the direct outcome of unsecured consumer credit, in other words, credit cards and personal lines of credit.
Brian Denysuik, president and CEO of CreditAid, a top credit counselling vancouver business, says people now hold an average of five to 10 different credit cards. And for a household of 2 adults, the amount of charge cards will often double as every partner/spouse, of course, has their very own credit card. Not just that, parents are often funding a cellphone in addition to sponsoring a minumum of one credit card for their teens. University and college students, on the other hand, can quickly become burdened with student loans, car loans and credit cards.
I can only imagine the stress faced by a person who’s feeling overwhelmed by debt. The banks are getting to be worried. What happens when interest rates increase and people start defaulting on loans? What about those that are so much in debt which they’re borrowing from Peter to pay Paul? How do one reverse this circumstance?
As an individual is completely in control of the career, every individual is responsible for handling their own finances. However, as Denysuik indicates this duty is really part of the problem since in his opinion, most people do not understand how to control their finances. They do not have financial literacy since they’ve never been educated. In his opinion, people now do not appear to budget and do not plan. Rather, television viewing has educated individuals that we are living in an artificial world of immediate gratification in which people invest on what they need as opposed to what they require.