It’s almost 2020 and debt levels are continuing to climb and so are delinquency levels. That’s according to TransUnion, Canada’s latest report… which is not unexpected. The report revealed that outstanding credit card balances have passed the $100-billion mark for the first time as Canadians continue to borrow and rack up debt amid historically-low interest rates.
When it comes down to it, consumers, when faced with economic pressure or are feeling financially distressed with credit cards, auto loans and mortgage payments, will generally miss their credit card payments first and keep up their good standing on other payments if forced to choose. The reasoning; you need a vehicle to get back and forth to work to earn a living and you always need a roof over your head and rent is not any cheaper than a mortgage (not usually nowadays, most places, anyways).
Consumers are increasingly using credit to live on and then using the equity in their home to bail out their credit debt. They either have to sell their home and downsize or they file a proposal or bankruptcy and stay in their home. The concern is that more Canadians are missing their payments and we have seen a significant increase in consumer bankruptcies and consumer proposals. Households are acutely aware of how much debt they are carrying, and have expressed time and again how stressed they are about this situation.
Do you have financial questions? Do you need to refinance your home to get out of debt? Don't do a consumer proposal.....don't go bankrupt......there are other options.
If you have any questions about refinancing, give us a call. Boss Mortgages TMC 855-755-1904