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by Marc Rouleau
Transunion reported earlier this month that that 26 million Canadians have some form of debt. That’s more than 70% of the entire population (including all children who can’t even contract debt!). Transunion also estimates that bankruptcies would more than double if interest rates increased by 1% point. In other words, for many, the sky is falling although they may not know it. How does this affect you? Are you going to be ok?
I’ve often thought that Formula One drivers have the best job in the world. Getting paid to drive the most powerful machines on mind-bending circuits at break-neck speed. Winning a race must be exhilarating! But what if you’re not feeling well? What if the mechanic didn’t make the adjustments and the car runs terribly? What if another driver makes a mistake and causes you to crash? The reason it’s such a high stakes sport is because there is substantial down side if things go wrong. The F1 driver is a highly-trained professional who know how to adjust his driving to finish the race and succeed. He is also supported by a team, a full crew to help him avoid unnecessary risks.
Many people approach their finances at break-neck speed. They work hard and like to play hard. They spend as long as they have credit available and when that runs out, they apply for more credit. Those that keep up their minimum payments (mostly interest) so that their credit rating is high enough that lenders want to lend them money. Lenders want to lend to people who borrow and don’t pay their balances every month. That’s how they make money. Good for them, not for you if you are already carrying too much debt.
This is a slippery slope. Even if your income is climbing, carrying too much debt is costly and without the proper advice, often results in desperate choices and bad decisions. We understand that going out to a restaurant with friends is more fun than paying down your credit cards or outstanding income taxes. But you should know when to apply the brakes. Like the F1 driver, you have to know when to slow down to make sure you are able to handle the next curve in the road.
You should be able to recognize the warning signs. You have to make pit stops every so often so that your crew can give you information and make adjustments to get you back on track.
A Doyle Salewski Licensed Insolvency Trustee (“LIT”) is a trained professional. Our team of counselors (i.e. your “crew”) had the tools and experience to map out the options for you and help you avoid making bad decisions and taking unnecessary risks. It’s much easier to deal with excessive debt once you have a clear picture, understand what the options are and how they will affect your situation going forward.
Transunion reported that many will be in trouble but unfortunately did not report where to turn for help if you need it. Know your options. Once you realize you have excessive debt, you should consult a qualified and reputable LIT who can help you take the first steps on the road to better financial health.
If you are burdened with debt stress, asking for sound advice is a sign of strength and the smart thing to do. Asking sooner rather than later is always better. Try our debt reduction calculator and call Doyle Salewski today for your free, no obligation consultation. You’ll be glad you did.