Economic boom times are over: Finance Minister

by Joel Sandwith on October 5, 2010

Most of what you will see on this blog will pertain directly to personal money management, for example topics such as ‘how does filing a consumer proposal help me?’, and so on.  I think it’s important to keep an eye on the bigger picture as well – we’ve all seen over the past couple of years how the economy as a whole can affect an individual person.

An article in the Star caught my eye today, in which Jim Flaherty, the Federal Minister of Finance, is quoted discussing the economic future of Canada.  In the article, he says that while he is encouraged by the ‘significant growth’ of our trading partners China and India, he suggests that Canadians recognize that “this is not a time of booming economic growth”.

It’s fair to say that most of us have noticed this.  Many jobs have been lost, entire plants such as UBE Automotive have closed down.   So, what does this mean for all of us?  It means we may have to take a hard look at our own personal financial situation and determine if we are doing what we can to protect ourselves.

If you are debt free right now, congratulations – having no debt can make economic downturns much easier to manage, or possibly avoid altogether.  If you are dealing with debt, what are you doing to manage it?  Are you making more than your minimum payments?  Do you have a plan to be debt free that actually makes sense?

Aside from a mortgage (and to some extent student loans), you should be able to pay off all of your debts in under five years.    If it’s going to take more than five years to pay off debts, you simply have too much debt.  The danger becomes that you will never pay the debt off and will continue to cost yourself money every month in interest charges.  Think about this:  at an average of 19% interest, a credit card with a balance of $10,000 will cost you $1,900 in interest each year!

You might be in this cycle right now, but there are ways out of it.  The first step might be to try an online calculator.  This tool can help you determine which options might help you the most.  If one of them is a consumer proposal, or perhaps a personal bankruptcy, please give us a call, toll free at 310-PLAN (7526) – no area code required, or locally in Sarnia at 519-344-1058.  We’d be happy to meet with you, at no charge, to discuss your options in more detail.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Leave a Comment

Previous post:

Next post: