Struggling with money? What you can do to tackle mounting debt
Canadians are struggling with debt, from credit card bills to mortgages and loans — recent studies from TransUnion Canada and Equifax have found millions of people dealing with trillions of dollars in debt. As we pass the midway point of 2024, there are things that can be done to try and manage your money.
Last month, Equifax Canada found consumer debt had risen to $2.46 trillion at the end of this year’s first quarter.
Rubina Ahmed-Haq, a personal finance expert and host of For What It’s Worth on the Corus Entertainment radio network, told Global News a good way to tackle debt is to “do the basic work.”
That can include:
“Making these real decisions that actually save you money for the meantime,” she said. “They’re going to get you through this moment in time.”
Earlier this week, TransUnion found some Canadians are changing their saving habits, with 17 per cent even putting more away for a rainy day.
Barry Choi, personal finance expert at Money We Have, told Global News that while it’s good to still be able to put money away, be careful how much if you’re still dealing with debt.
“If you’ve got credit card bills or any other kind of debt that has a high interest, you should definitely be focusing on that,” he said.
Not all Canadians can avoid missing a payment.
According to Canada’s Office of the Superintendent of Bankruptcy, the total number of consumer insolvencies — those who could not pay their debt on time — for the 12-month period ending May 31 rose by 17.9 per cent compared to a year ago.
Canadians have two options when facing insolvency:
Rob Kilner, a licensed insolvency trustee with MSI Spergel, says either is often the “last resort,” when they’ve exhausted all other options to pay off the debt, but he adds
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