Monday, 16 November 2020

Bankruptcies Set to Skyrocket

So, with all of those nice programs of government cash and mandated debt deferrals ending, all of those people who were on the edge of bankruptcies before, and those pushed there during COVID-19, are now about to go over the edge of bankruptcy.

This problem was forecasted six months ago and yet nothing was done, other than sit back and watch this slow motion train wreck happen.

There is an article on CBC News that I am referencing, that I highly recommend people take a look at. 

You can find the article here: As COVID-19 relief programs wind down, bankruptcies are starting to spike again.

If anyone needed any further prodding to take a hard look at their finances or debt ratios, this should be that wakeup call.

To further prod, here is where we stand when it comes to household debt ratios.

This is a problem for all of us, not just those going over or about to go over the cliff of bankruptcy or insolvency.

The economy and the economic recovery will falter and fail if a good chunk of our population goes bust.

That will translate into a chill over the whole of the economy in the form of consumer fear, not consumer confidence, and nobody will spend on anything they don’t have to.

I am using this as yet another way to prod people to do what they have to eliminate debt, don’t just pay it down, pay it off. 

It’s your paycheque, keep as much of it as you can!

Build savings, not debt!

Prepare for your future with your own cash! 

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

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