The trustees at Spergel have been providing debt solutions to thousands of individuals in Canada for the past 30 years, and regularly share our wealth of experience.
Spergel trustee Gillian Goldblatt was quoted in an article in The Globe and Mail this week offering her perspective on Canadians’ anxiety over increasing interest rates. The article is called “Already pinched, many Canadians anxious about higher rates” and was released on October 23.
The Bank of Canada has increased interest rates twice since July 2017, taking rates from 0.5% to 1%. More rate announcements are expected before the end of the year.
Goldblatt, a licensed insolvency trustee with msi Spergel inc. in Toronto, was quoted about how rate increases affect her clients who are looking for debt solutions.
“You can live in a bubble for a while until some event snaps you out of it,” Goldblatt told The Globe on Monday. “That’s when we have people come to see us.”
Nearly half of Canadians are worried about repaying their debts, The Globe reports, while four in 10 Canadians fear further interest rate increases will leave them in financial trouble. In September, Canadian household’s credit-market-debt-to-disposable-income ratio hit a new record of 167.8%.
Goldblatt told The Globe she’s seen an influx of millennials approach her firm, Spergel.
Thanks to the interest rate increases, millennials are realizing their spending habits don’t align with financial sacrifices needed to start families and break into the housing market, Goldblatt said. Easy credit and tap-and-go technology make spending too easy and leads to living beyond one’s means.
According to the article, “Among the various structural struggles faced by millennials, ‘a lot of it comes down to a lack of education,’ she [Goldblatt] said, suggesting that public schools hardly include enough material on financial literacy in curriculums. The effects of that, she continued, are now revealing themselves in reality.”
The Globe reports 40% of millennials say they already feel the effects of increasing interest rates. More than half say they’re worried about being able to repay their debts and 38% say rising rates could send them towards bankruptcy.
“The bankruptcy figure for millennials is 10 percentage points more than the average of all age cohorts,” The Globe writes.
Studies across Canada are reporting the same figures — Canadians are worried about their debt levels. Breaking into the housing market could be harder than ever before and Canadians aren’t certain they’ll be able to cover living and family expenses without taking on more debt.
To read The Globe and Mail full article, visit https://beta.theglobeandmail.com/globe-investor/personal-finance/household-finances/already-pinched-many-canadians-anxious-about-higher-rates-survey/article36687521/.
If you’re finding yourself in a precarious debt position, or want to make sure you’re set up for success, Spergel can help. Licensed Insolvency Trustees like Goldblatt can find you the debt solutions you need.