Economists note two major factors that are contributing to the rise in the average level of consumer debt in Canada. One, economic stagnation and decline can lead to increased consumer borrowing. Depressed wages and job scarcity mean that people must rely more on revolving lines of credit to meet their basic needs. Two, high rates of economic growth can contribute to an increase in consumer borrowing. When jobs are abundant and wages are rising, people feel more confident that they can pay off all their bills both now and in the future, and they sometimes choose to buy more on credit than they might have purchased in the past.
When it comes to Saskatchewan, economic growth is clearly contributing to the rise in the provincial average household debt level. Government officials indicate that the recent rise in consumer debt in the province is due to an economic boom in Saskatchewan. In fact, Saskatchewan now has the third-highest average consumer debt level in Canada. At approximately $29,500 at the beginning of 2013, Saskatchewan’s average is $2,000 greater than the national average.
This may not be so alarming because insolvency filings were down more than a quarter in January 2013 from January 2012 levels. Nevertheless, any rise in the province’s average level of consumer debt is cause for concern. Residents who have a high level of debt will be caught off guard and left unable to pay their debts if an emergency strikes or the economy suddenly declines.
If you have a heavy load of consumer debt and live in Saskatchewan, credit counselling may be the right solution for you. This popular debt solution has helped many people pay off their creditors.
Credit Counselling in Saskatchewan
Credit counselling operates under the assumption that the best-informed individual is able to make the best choices for long-term financial stability. That is why Saskatchewan consumer credit counselling emphasizes financial education. Counsellors teach Saskatchewan residents how to live within their means and abide by a carefully crafted budget.
When it comes to credit counselling, Saskatchewan residents do not enjoy only the benefits of financial education. Credit counsellors also negotiate with your creditors with the aim of getting them to reduce your interest rates and arrange for lower monthly payments to make paying bills a bit easier.
Which Is Better: Saskatchewan Credit Counselling or Other Debt Relief Options?
While credit counselling is often able to greatly reduce your interest costs and consolidate your payments, it is not always able to get you the best deal possible. Debt settlement, for example, sometimes achieves greater savings because it is focused exclusively on debt reduction. Thus, debt settlement may be a better choice for you if your main problem is a high level of debt and not long-term financial planning.
Find Out More
You want to make sure that you choose the right debt program to meet your needs. To learn more about debt relief programs, fill out the debt relief form, and receive information on how the various programs can benefit you.
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