Whenever the economy feels unsettled — and that’s certainly happening all over the world — thoughts turn to curbing debt. Most people are interested in finding the right techniques to make that debt shrink in the best and most efficient way.
As you know from running your own business, letting consumers know what they can do to keep debt manageable helps not only them but you as well. And, the best type of financial advice is practical, actionable and relevant. That said, we looked at some recent news in Canada, as reported by the CBC and Global News Canada websites, to find insight related to the current climate and how to reduce debt.
The scope of debt in Canada today
First, let’s talk about the financial toll that Canadians have been weathering these past few years. CPA Canada recently talked to 2,000 residents to see how they are handling debt.
About 60% of Canadians younger than age 65 told the surveyors that they won’t be able to pay off all debts before they reach that age. Also, more than half the Canadians surveyed have yet to pay back borrowed money within the past two years.
There’s also a lack of savings that controls debt perception. About 50% of those surveyed said they aren’t able to come up with $2,500 if needed to cover an emergency.
Advice consumers can use
Global News’ expert advice reinforces those stats a bit but also goes into some other methods to consider to shrink debt — or to not get in over your head in the first place. Among the methods they suggest include:
Start a real budget: Seems simple enough, but going through the whole process of budgeting your funds every month can give you a great look at expenses and what priorities to keep top of mind to efficiently clear debts.
Start saving more: Even if it’s a small amount every month, start putting something away to cover emergencies at the very least.
Consider retirement plans even if you’re younger: If you don’t want to worry about this later, start the savings for your future now. This is especially true for what’s called the “sandwich generation,” parents who have young children but also parents over the retirement age.
Don’t get isolated: Resources are available to help you better control debt. For instance, don’t overlook online debt counselors and even software to get a better handle on spending and obligations.
How we can help
Working with any kind of customer requires a human touch, but it can also be boosted by technology that can provide options. At ARO, we’ve made it our goal to bring empathy to the collections process while still helping businesses reach their fullest potential. Find out more about what we have to offer businesses on our website.
