Over the course of the pandemic, many people lost their jobs and had to rely on unemployment benefits as a sole income, making it even more difficult to manage debt.

The enduring financial impacts of COVID-19 coupled with the pressures of rising interest rates and a higher cost of living are weighing down Canadians’ confidence in their personal finances, according to the latest MNP Consumer Debt Index which is conducted quarterly by Ipsos on behalf of MNP Limited.

The debt-to-income ratio is a common headline story; for a long time, it has been reported that the number is very high and ever increasing. So what is this ratio, why is it rising, and most importantly, what does it mean for you personally?

While we’d never pretend to have solutions to all the problems that make Blue Monday depressing, there are steps you can take to reduce the financial stress that comes with this time of year.

Collection agencies use many tactics to enforce repayment of debt. The most common methods are phone calls and letters. However, depending on the amount owed, the situation can quickly escalate to threats of legal action — which, in turn, can result in wage garnishment and even asset repossession.

Household debt is a major challenge in Canada. The average Canadian currently owes more than $20,000 in non-mortgage debt — and a total of about $1.70 for ever one dollar they earn.