Canadians are in need of personal debt relief. The average non-mortgage debt maintained by Canadians began reaching record levels in 2014 and has not abated. The average non-mortgage debt of personal debt unrelated to residential mortgages in Canada is about $30,000, TransUnion reports. According to TransUnion, which monitors debt trends in Canada, people began taking on larger debt loads since before the recession of 2008, and have not stopped since.
When mortgages are added to the mix, the outstanding debt load maintained by the typical Canadian consumer clicks upward rather significantly. Since the recession of 2008, incomes have not necessarily kept apace of what is necessary to address the debt load carried by a good percentage of Canadians, according to Statistics Canada.
Debt Management and the Types of Personal Debts Maintained by Canadians
Beyond home mortgages, Canadians are in debt because of automobile loans, credit cards and lines of credit. Lines of credit include those secured by a home mortgage as well as small percentage that are unsecured or secured with some other type of underlying asset.
When left to their own devices, and without some sort of professional assistance of intervention, many Canadians seem to ignore more stringent debt management of existing liabilities in favor of taking on even more debt as a means of addressing financial issues they face.
Rather than continually scrambling to make ends meet, including taking on more debt, some Canadians are electing to pursue debt consolidation as a means of debt management. Debt consolidation simply involves obtaining financing to consolidate existing financial liabilities into one loan.
There are limitations to debt consolidation. Not every type of outstanding liability is necessarily a candidate for consolidation. Nonetheless, over the long haul, even with only a partial consolidation of debt, a consumer enjoys better overall debt management and likely saves at least some money because of a more favorable interest rate on a consolidation loan.
Debt Relief Through Debt Counseling Services
Another alternative some Canadians are taking advantage of are professional debt counseling services. These organizations aid a consumer in developing more meaningful short- and long-term debt management strategies. In addition, these entities typically can facilitate a debt consolidation arrangement.
The Bankruptcy Option
Bankruptcy should be viewed by a consumer as the debt relief mechanism of last resort. There certainly are situations in which bankruptcy proves to be the only real viable alternative available to a consumer. In other words, balancing the benefits of this type of judicial intervention outweigh the negative consequences that naturally attach to a bankruptcy. Find more online information and resources at the Credit Counselling Services of Atlantic Canada, Inc. website.