Canadians were already facing a dire personal debt situation before the COVID-19 pandemic shook up our daily lives. While the savings rates for Canadians have broadly improved during the pandemic, debt is still a major concern.
This has been compounded by mass job losses, especially in the service sector.
In a recent survey from the MNP Consumer Debt Index, 30% of Canadians said that they were already insolvent. This means that nearly a third of respondents had no money left at the end of the month to cover their bill payments. The survey found that the average Canadian is left with $625 after making their monthly payments – down 15% from December 2020.
Worse, the federal government aims to reduce CRB payments in the months ahead. This will see the weekly payout drop from $500 to $300. That amount could spark further financial misery for hundreds of thousands of Canadians.
Climbing your way out of debt is a painful process. Canadians looking to claw their way out of a tough predicament should consider this . . .
Explore a debt consolidation loan
If you have mounting debt, especially from multiple sources, it may be time to consider a debt consolidation loan. This can allow you to pool your debts into one loan, ideally at a lower interest rate. A debt consolidation loan can also be much easier to manage for those who are battling bill after bill every month.
