Credit-Card Debt Counselling Strategies: Epiphanies on the Plastic

Credit cards have long been touted as one of the hallmarks of consumer spending in a so-called “cashless society.” That emphasis on paying for goods with a simple swipe of a piece of plastic, however, may seem convenient any way you see it. Perhaps it is, until you see your monthly statement. At this point, efforts to settle arrears cannot be emphasised enough.

Roma Luciw’s report for The Globe and Mail dated March 3, 2015 revealed that consumers in Canada are now saddled with more debts, with the recent oil shock compounding the problem even further. When the debts from your cards are steadily reducing your financial options, it’s time to undergo debt counselling sessions with the help of professionals such as 4Pillars consultant Blair Greenwood.

Making Sense

If you thought that bad debts are pulling you down, you’re not alone. Citing data from consumer reporting company Equifax, Luciw said the debt towards the end of 2014 was tagged at $1.529 trillion, a 7.7% climb from the $1.1-trillion debt recorded a year before. The average debt per capita also rose 7.7% to $20,967, but this doesn’t account for mortgages; debt-to-income ratios also reached a new high at 163.3%.

The spending even got worse in the first quarter of 2015, with debit/debt processor Moneris noting heavy consumer spending. Here’s some food for that thought: a 10.9% increase in spending at fast-food restaurants, 7.8% more bar transactions and even 9.3% more sales at women’s shoes stores.

Solutions

The above adds urgency to seeking debt counselling through Victoria, B.C. professionals like Blair Greenwood. One option to settle accounts will be to file a consumer proposal – an attempt to consolidate all your debts into one account you will gradually pay off. It’s important that a trustee will be appointed to oversee everything, including acting as a mediator between you and the creditors, who will be ordered not to contact you as you make the payments.

Think about it: the creditors will not be chasing you to make your payment. Your consumer proposal and the assigned overseer, however, will make sure the payments are on time.

It’s never too late to fully close the file on your ledger’s red-flagged items. You will need expert help to pay off all your creditors and to move on firmly. Make the call with your financial settlement agent now.

Sources:

Canadians take on even more debt, says new report calling for vigilance, The Globe and Mail, 3 Mar 2015

Here’s how Canadians are adjusting to the oil shock: spending more, Global News, 28 April 2015

Canadian consumer debt hits $1.53 trillion: Equifax, Global News