FAQ About Bankruptcy, Debt, and Credit
In this section we will guide you through some of the biggest questions.
1. When Should I Pay off My Debts?
The Bank of Canada recently dropped its prime lending rate from one per cent—where it has been since 2010—to .50. Gas prices, too, are at a record low. But instead of springing into a spending spree, now might be the best time ever to explore clearing up personal debt.
Debt can be all-consuming, impacting every corner of one’s life. The strain does not just stress the bank account, it impacts interpersonal relationships, how you interact with your children, and it can even impact interpersonal-office relationships. Insomnia is a common side effect which invites a host of negative health issues. For some, insurmountable debt can result in an incredible downward spiral.
“There is a way out,” said an Estate Manager with Abakhan & Associates Inc. Trustee In Bankruptcy. “In fact, there are several. Most people know about the two extremes, which are to pay it all in full for the duration of your life, or to do nothing.”
Others may have heard about the dreaded B-word, and there is a lot of misinformation out there on bankruptcy.
“The worst thing you can do is to cash in your RRSPs without proper advice,” warns the company.
Debt is nothing new to most Canadians. The third quarter of 2014 saw a record high for Canadian debt loads. According to Statistics Canada, “household credit market debt to disposable income increased to 163.7% in the third quarter from 163.1% in the second quarter.” In other words, for every dollar earned, Canadians owe almost $1.64.
The recent drop in gas, along with the drop in interest rates makes this a great time for people to begin addressing their own personal debt.
“When people know their options,” said Abakhan “they can move from fear to action. Money problems are infinitely solvable, and it begins with knowing the facts.”
Being overwhelmed by debt, is among the highest stressful periods of your life. If you have no idea what to do then please contact us. We can talk to you and walk you though it. There is no fee for your first meeting.
Here's how to contact us:
- Email us: For quick confidential answers or to set up a free consultation with a Bankruptcy Trustee
- Call us: 250-857-6050