MORE THAN FINANCIAL HEALTH AT RISK FOR CANADIANS WHO BATTLE RECORD INFLATION, INTEREST RATES AND OVERUSE OF CREDIT

Rising debt and confusion about the impact of inflation and interest rates on their finances can lead to difficulties in other aspects of Canadians’ lives, including their general well-being and their relationships

TORONTO, September 15, 2022 /CNW/ – As Canadians continue to feel the financial blow of another interest rate hike by the Bank of Canada last week, many are relying on their credit cards to supplement their monthly living expenses. Statistics Canada the Canadians said they must now $1.82 for every dollar of disposable income, just short of a record $1.85. That, combined with Canadians struggling to decipher what all of this means for their finances, while continuing to be forced to spend too much on credit due to the high cost of living, could lead to more than just a crisis. financial. It could also put their mental and physical well-being at risk and cost them their relationships with loved ones, according to Farber Debt Solutions.

“A lack of financial literacy leaves many Canadians confused about how rising inflation and interest rates will affect them personally and lead to large amounts of debt and poor financial decisions. We know that many Canadians were living in a false reality of debt during the pandemic due to pandemic relief. , lower interest rates and payment deferrals that got them through. As we begin to return to pre-pandemic life, these same Canadians are now faced with their true reality of debt and likely more debt than before, as well as confusion about how they got here and how to get out of it,” said Shane Pennell, president and CEO of Farber Debt Solutions.

Recent news about federal government initiatives to help Canadians struggling with higher inflation may not be enough to help them avoid a financial crisis, Pennell warns. To help even more Canadians struggling with debt from coast to coast, Farber Debt Solutions has opened four new offices in Charlottetown (PEI), Moncton (NB), Saint Jean (NB), and St. John’s (NL).

Pennell adds that this vicious cycle of debt is not necessarily the fault of the debtor. This is mainly due to a lack of financial understanding and the fact that most Canadians would not be able to pay their monthly bills without credit. It is estimated that Canadians are currently shelling out an additional sum $300 – $400 a month from a year ago due to rising interest rates, higher mortgage payments and soaring grocery and energy bills.

As financial aid from the pandemic has come to a halt, the number of insolvencies has increased this year, as reported by the Office of the Superintendent of Bankruptcy of Canada (OSB). In July 2022 There was a 19.1% increase in insolvency filings compared to the previous year, and this number should continue to increase in the fall/winter.

As insolvencies increase and more Canadians face a potential financial crisis, their stress levels also increase, which ultimately affects their well-being and relationships. According psychologytoday.comone of the top five reasons couples divorce in Canada it is money matters and their different views and management.

As a first step to taking control of debt and moving towards a healthier financial future, Pennell recommends getting a financial health check as soon as possible. The main questions that Canadians struggling financially should ask themselves are:

• Do you spend more than you earn each month?
• Are you still using a pre-pandemic monthly family budget?
• Does your current credit card statement tell you that it will take more than 25 years to pay off your current credit card balance when you make monthly payments?
• Are you getting harassing calls from a collection agency?
• Have you used up all your savings just to meet the bills and you have no reserve fund in case of an emergency?
• You do not sleep at night and your debt occupies your thoughts day and night?

If you answered “yes” to at least three of these questions, it’s time to get help with your finances, take back control of your life, and stop being overwhelmed by debt. A financial expert also helps to better understand personal finances and the impact of inflation and higher interest rates on each household.

“Just as you would visit your doctor every year for a physical exam to maintain and protect your physical health, why wouldn’t you do the same for your financial health? Don’t go it alone. Get help from a financial expert who will help you aspire to a healthier financial future and a happier home. is possible,” added Pennell.

Farber Debt Solutions offers Canadians free financial consultations to assess their current debt situation and discuss available options to get back on track financially and get more restful nights. Its Licensed Insolvency Trustees, the only government-regulated debt professionals in Canada, will consider all possible debt solutions, including a consumer proposal versus bankruptcy which is an offer to pay creditors a percentage of what they is due without interest. This allows you to regain control of your debt, has less impact on credit scores in the future and, over time, allows you to rebuild your finances.

About Farber Debt Solutions

For over 40 years, Farber Debt Solutions, a team of dedicated Licensed Insolvency Trustees (LITs), has partnered with over 100,000 individuals and businesses in Canada to resolve their debt problems. As a trusted financial partner, they understand the toll debt can have on Canadians, both financially and mentally. Through their extensive financial expertise and long-term education and counseling services, they enable Canadians to take control of their debt, regain their confidence and take charge of their financial future. Farber Debt Solutions has over 95 offices across Canada including four new offices in Charlottetown (PEI), Moncton (NB), Saint Jean (NB) and St. John’s (NL). www.afarber.com

SOURCE Farber Debt Solutions

For further information: or to request an interview with Mr. Pennell, please contact: Margaret W. Batuszkin, MWB Consulting | Communications, 905.409.7792, [email protected]; Katherine Dimopoulos, Farber Debt Solutions, Director, Brand Marketing and Communications, 416.496.3076, [email protected]