Higher debt levels in Sarnia, and across Canada

by Joel Sandwith on October 15, 2012

Hot on the heals of a recent Harris Decima poll which shows that it is becoming more difficult for Canadians to find money for emergencies, comes a new article in today’s Globe and Mail that consumer debt levels compared to income are higher than ever.

Working in the financial recovery industry, we tend to read a lot about household debt around our office.  Perhaps we’re a bit sensitive to debt problems, given that we see dozens of people each week who are struggling with unpaid bills, collection agency calls, and mounting interest charges.

What are the root causes of this?

I’d suggest a few things:

1) Lack of financial education – it seems that many people have just never had the opportunity to have someone show them how to manage a budget

2) Changing environment – with so many people having lost jobs over the past several years, it’s no wonder debt levels have risen

3) Society – our governments, businesses, families and friends all borrow, so why shouldn’t we?

4) Over-lending – unfortunately the banks are a bit to blame as well – the amounts of credit available to many people is simply too high – that Globe article says we are averaging debt that is 1.617 times our income – how could anyone pay that off?

The solutions are different for each individual.  If you are nearing that average, or on the wrong side of it, give us a call, toll free at 866-747-0660 or locally here in Sarnia at 519-344-1058, we’ll help go over your options, at no charge.

 

 

 

 

 

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