Recent studies on the level of consumer bankruptcies in Canada have underscored the importance of good savings habits, avoiding unnecessary debt and overall sound money management.
Data released earlier this year by Equifax Canada revealed that Canadians across the country are filing for bankruptcy in increasing numbers. The study found that consumer bankruptcies in November 2008 increased nine per cent over the same period a year earlier. Meanwhile, a subsequent report released by BMO Capital Markets said that consumer bankruptcies in May 2009 were 33.3 per cent higher than a year earlier. The BMO report noted that consumer bankruptcies have been increasing since the end of 2005.
Bankruptcy is something no one wants to face. It carries with it a significant financial cost and also puts undue strain on relationships and families. Unfortunately, with a weakened economy and high personal debt levels, many Canadians find themselves in exactly that situation.
The key to avoiding bankruptcy is a proper understanding of what you’re getting into before signing on for more debt, as well as establishing consistent, reliable savings habits.
If you’re concerned about the level or type of debt you’ve assumed, or if you need advice on products that might make saving easier, stop by or call the credit union and speak to a member service representative. We have many products and services that may be quite useful to you, and we’d be happy to help.