Tuesday, 21 January 2020

Debt Hopelessness and The Impending Insolvency Crisis

I read an article yesterday that said that half of Canadians are unsure if they can cover expenses without going deeper into debt. 

Here is a quote from the article: 

“The latest MNP Consumer Debt Index published Monday shows 50 per cent of respondents said they're within $200 of not being able to cover their monthly bills, and nearly an equal proportion of participants in the survey (49 per cent) said they aren't confident in their ability to cover expenses without going deeper into debt.”

The article itself can be found here (at time this blog entry was posted).

50% of Canadians face insolvency amid 'debt hopelessness': Survey

People keep saying that if you are in debt you got yourself there and so it is your fault. That said, so why should anyone or any level of government help you out.

What nobody talks about is the fact that it is expected and a “norm” of employment that nobody (except the rare few) gets a cost of living increase. 

We all know that the cost of living is steadily outstripping the raise in our wages. That gap keeps widening until people just can’t make ends meet anymore.

There are thousands of Canadians in the same boat (over half of the country). As the article said half of the country is $200.00 away from not covering expenses.

We are in a Debt Crisis, meaning that the average Canadian is mired in debt and have been so for so long that many feel hopeless that they will ever get out from under it.

The point of this blog entry is this: what happens if most, if not all, of those Canadians on the edge of not being able to meet their financial obligations finally do go bankrupt?

What if, since so many are in the same boat, a massive chunk, say, a quarter to half of the population goes into bankruptcy at the same time.

That would be an Insolvency Crisis, a crisis that could not be solved by outlawing or stringently regulating personal bankruptcies.

This would impact the financial sector like nothing else and might also trigger a housing crisis as well, as so much of that debt is tied up in mortgages.

I truly feel for the people who feel hopeless when it comes to their debt, for I was there and I truly understand how it feels. 

On a personal level, you can find a way to downgrade your lifestyle (significantly) to upgrade your cash flow. 

If you master your cash flow, you can tackle your debt, but it is not a quick or easy fix, it takes time and effort. Contact me, I can give you advice and a few tools to help.

As far as governments and politicians are concerned, I strongly urge you to deal with this Impending Insolvency Crisis before it actually arises.

(No, don’t bail out the banks, help out the people instead.)

As always: Keep your head up, your attitude positive and keep moving forward!

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