If you’re looking to break free of personal debt once and for all, we can help. We provide debt and bankruptcy solutions that are life-changing and permanent, so you can erase debt from your life.
Debt can be overwhelming. For that reason, our Licensed Insolvency Trustees are always here for you. let’s discuss the options available to you. Your debt-free future starts now.
According to a recent Ipsos survey conducted on behalf of MNP LTD., the majority of Canadians feel they can cover next year’s living expenses without incurring more, despite concern about mounting consumer debt in Canada. In the survey, 56% said they won’t need to take on more debt next year for basic household costs, while the rest anticipate that some increase in personal debt will be unavoidable. The survey found that confidence is lacking when it comes to the prospect of coping with unexpected expenses. Only a minority are confident that they wouldn’t incur more debt if faced with a change in their relationship status like a divorce (33%), unexpected auto repairs or purchase (32%), having to take three months off work due to illness (30%), a job loss or wage decrease (2%), a death in the family (26%), or paying for someone’s education (25%).
The results point to a lack of emergency savings among Canadians. This is a real risk because many people who overextend themselves to the point of financial crisis do so as a result of unexpected life events, not just by day-to-day overspending. I always recommend having between three to six months of expenses saved up. The survey also found that three in ten Canadians are concerned that they or someone in their household could lose their job. With so many families already in the red, unexpected life events like a job loss can throw household finances into a tailspin. These types of unexpected expenses are often a catalyst for bankruptcy. Just one emergency can drain a family's bank account, making it impossible to cover current debts and pay basic living expenses. As debts continue to go unpaid, many can end up on the brink of filing for bankruptcy or a consumer proposal.
We shouldn’t be thinking of an emergency savings plan as a ‘nice to have’. Unanticipated home and car repairs, time off work due to layoffs or family emergencies – these are all life experiences that happen to virtually everyone at some point. So a rainy day fund is really a necessity.
Despite Canadians’ apprehension about 'rainy-day' scenarios, most are broadly optimistic about how their debts have evolved over time and the future direction they’re likely to take. Three in ten Canadians (32%) think their debt situation has gotten better rather than worse compared to five years ago, while about half say it’s about the same. Moreover, nearly half (48%) expect their debt situation to be improved five years from now. When it comes to their retirement years, half (51%) agree they’re confident that they will be debt-free.
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*310-DEBT doesn’t operate in MB, NW ON and QC.
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