Canadian Consumer Debt Reaches the Highest Levels of All Time

TransUnion, one of the 3 major credit bureaus released the most recent statistics regarding the rising debts of Canadian consumers. This credit bureau releases a quarterly analysis that contains data about the credit trends in this country.

Based on the report, we see a $192 rise in the second quarter of 2012 on the average consumer debt as it reaches $26,221. This figure is exclusive of mortgage debts. It had been a continuous climb for the past 5 years. As alarming as that may seem, the credit bureau is not really as alarmed as they should be because of another trend.

Despite the increase in the amount of debt per consumer, there is a decline in the percentage of delinquency levels. From 0.32% in Q1, it is now 0.29% in Q2 of 2012. This means that consumers are displaying a respectable ability to cope and keep up with their debts.

This statistic is consistent in major provinces in Canada. Only Saskatchewan proved to differ but only slightly.

Thomas Higgins, the analytics and decision services VP of TransUnion believe that this development is due to the low interest rates that the market is currently enjoying. However, he did note that any sudden change in the economy that results in a rise in unemployment may increase the delinquency statistic too.

It seems that while the economy can help consumers in addressing their debt problems, it can be very unstable. Because of this, every debtor and Canadian consumer must take action themselves to ensure that their debts stay within their control.

While continually paying for the minimum of credit bills may help, it is not enough to free consumers from debt. At least if you want to minimize interest rates and shorten your payment terms, you need to find an alternate route towards financial freedom.

If you want to take action against your debts, you need to learn about the many debt relief programs that can help you conquer your debts the legal way. Instead of opting for bankruptcy, there are alternative debt relief programs that you can enroll into. Below is a brief explanation of each.

Debt Consolidation. This debt relief involves getting a big loan to cover all the smaller loans. You get to concentrate on one payment and focus all your extra resources here. It usually comes with a low interest rate but you have to put up collateral to help secure this new loan.

Consumer Proposal. This option is similar to bankruptcy wherein you have to prove that you are insolvent and unable to pay for your debts. You need to enlist the help of a licensed Trustee who will negotiate with creditors on your behalf to reduce your outstanding balances.

Credit Counseling. This involves getting adequate education about financial management. A professional counselor will help you understand your current debt scenario to find a way how you can pay them off with your limited cash flow. The downside to this is it will not really reduce your debts.

Debt Settlement. If you want to reduce your balance significantly without having to file for bankruptcy or undergo legal proceedings, this is the best option for you. It is best to work with a professional debt relief company to help you.

Maple Leaf Debt Helpers is a debt relief company for Canadian consumers seeking assistance for their mounting debts. Give us a call at 877-710-3328 for fastest response.

877-710-DEBT