Credit card debt turns into a never ending treadmill for many in Canada, and this piece at Citynews.ca summarises the scale of the issue well. Some who have the home equity, turn the debt into a mortgage, although, while that reduces the payments, that simply converts the debt into a 25 year loan.
The article speaks about the opportunity to bring the debt down with a little discipline. Helping out in this area is a key focus for CommunityLend.
CityNews: Debt A Reality For Many Baby Boomers
About a quarter of Canadians carry $10,000 to $40,000 in credit card debt, and personal bankruptcies have increased 24 per cent in one year.
3 responses so far ↓
Sofia Kim // June 6, 2008 at 3:54 pm
Credit card debt is on its all time high with today’s economy. Hopefully people can obtain the help they need to get out of debt. Thanks for the article!
Colin // June 6, 2008 at 4:01 pm
Thanks for the comment Sofia … I note you are affiliated with a company in the consolidation business.
Alan // June 6, 2008 at 7:35 pm
These, alas, are not necessarily the best peer-2-peer clients for CommunityLend lenders. These are folks who have cornered themselves into a high interest rate debt position through lack of personal finance management. What is to say that they will be more disciplined in paying back loans to CL lenders… (Not that we have the ability to lend yet).
Credit cards are wonderful ONLY if:
-it is a no fee card
-and you pay it off completely every month when the bill comes in
Which means that you never charge what you can’t pay.
(Note: if it is a fee card that coverers car rental insurance and you rent a car for more than a few days a year, then that is well worth the fee. Just read the fine print first).