holiday debt Archives - Ira SmithTrustee & Receiver Inc.

Debt. It is easy to get into debt that is way beyond your means to repay it. And, it seems that managing it and repaying it is on everyone’s minds these days. CIBC’s yearly poll on consumer financial priorities has revealed that repayment of debts is becoming increasingly important to Canadians who are nearing retirement age; with 31% of those aged 45-54 saying repayment is their top priority. This is certainly not a surprise as a Manulife survey reports:

50% of respondents expect to be in debt when they retire.
10% planned to borrow against their current homes.
8% were looking to downsize and use money from the sale of their home as income.

“Using home equity as a “fallback plan” suggests some Canadians are struggling to balance retirement with paying down debt”, says Manulife Bank CEO Rick Lunny. “If people think they’re going to take out second mortgages and larger mortgages when they retire, that’s a pretty concerning view and evidence of no financial plan whatsoever,” Lunny said.

Many Canadians have no financial plan what-so-ever and as well are not really financially literate. However, some mortgage brokers are recognizing the importance of client education. “There is no doubt that client education should be the cornerstone of any mortgage broker’s marketing plan,” Jackson Middleton of Kilted Media wrote on MortgageBrokerNews.ca.

If you’re like many Canadians who don’t have a plan to deal with debt repayment, you need professional advice. Contact Ira Smith Trustee & Receiver Inc. before your debt load becomes critical. The earlier you begin to deal with it, the more options you’ll have. We approach every file with the attitude that financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now you can live a debt free life.

Some debts are fun when you are acquiring them, but none are fun when you set about
retiring them.

Ogden Nash

Holiday debt; every year, one of the top New Year’s resolutions is to reduce debt and 2015 is no exception. In December, Equifax Canada reported that the average Canadian household was $20,891 in debt. In spite of already carrying a dangerously high debt load, many Canadians threw caution to the wind, and without a financial plan and/or a budget, they spent way too much money to burden themselves with holiday debt.

After the spending spree was over, many Canadians made New Year’s resolutions to pay off debt in 2015. CIBC did a poll on Canadian’s financial priorities for 2015 and reported the following:

Paying off what they owe: 22%
Building savings: 12%
Paying bills or getting by: 10%
Budgeting or managing day-to-day spending: 9%

No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.

Suze Ormon

The reality is that January has now arrived and so have the credit card bills, with the holiday debt showing up for payment. You have no idea how you’re going to pay these bills but you made resolutions to pay them.

Without vision you don’t see, and without practicality the bills don’t get paid.

Paul Engle

You need more than resolutions and good intentions to pay off your holiday debt; you need professional help in the form of a trustee. Contact Ira Smith Trustee & Receiver Inc. as soon as possible. If you’re in serious debt, from holiday debt or otherwise, there are many options including credit counselling, debt consolidation, consumer proposal and bankruptcy. We approach every file with the attitude that financial problems can be solved given immediate action and the right plan for you. Debt is an enemy that can be conquered and Starting Over, Starting Now we can get you back on the path towards a debt free life.

Don’t let holiday debt ruin your 2015 so early in the New Year. Take positive action by contacting us today!