Canadians were already facing dire personal debt situations before the COVID-19 pandemic disrupted our daily lives. Although the savings rates of Canadians improved significantly during the pandemic, debt remains a major concern.
This situation has been exacerbated by massive job losses, especially in the service sector.
In a recent MNP Consumer Debt Index poll, 30% of Canadians said they were already insolvent. This means that almost a third of respondents ran out of money at the end of the month to cover their bill payments. The poll found that the average Canadian is left with $ 625 after making their monthly payments, down 15% from December 2020.
Worse yet, the federal government is aiming to reduce CRB payments in the coming months. This will see the weekly payment drop from $ 500 to $ 300. This amount could worsen the financial misery of hundreds of thousands of Canadians.
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Getting out of debt is a painful process. Canadians looking to get out of a difficult situation should take this into account. . .
Discover a debt consolidation loan
If you have growing debt, especially from multiple sources, it might be time to consider a debt consolidation loan. This can allow you to consolidate your debts into one loan, ideally at a lower interest rate. A debt consolidation loan can also be a lot easier to manage for those who are struggling bill after bill every month.
