Jan. 23, 2019

Holiday Spending Debt

January and February have typically always been months in which people struggle the most to make ends meet.  This is no doubt in response to the bills that start flowing in after the holiday spending season.  With rates rising, markets wavering and home values adjusting, we expect people will face new challenges in trying to balance their finances.  In fact, the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) expects 2019 to see more Canadians using debt restructuring programs.

Employee financial wellness a key to a healthy organization

Many organizations are now making the connection between financial, mental and physical wellness leading to healthy and productive employees.  What if your workers are amongst the 9% of Canadians having reported that they make only the minimum required payment on their credit cards every month (TransUnion survey, 2018)?

$4,200 Average credit cart debt
18% Average interest rate
16 Years To pay off the debt if only minimum payments were made
$4,198 Paid in interest alone

A recent survey conducted by the Financial Consumer Agency of Canada stated that out of the 3 in 10 Canadians with Home Equity Line of Credit (HELOC):

 

27%

Reported paying interest
only most of the time

 

22%

Of people used them
for consolidating debts

 

16%

Said they used HELOCs
to repay other debts

The Bank of Canada has said they will continue to raise interest rates.  
This will squeeze the budgets of more people making it even harder for them to make ends meet.

You can help

What can you do to help?  Click below to view an online tool we’ve created to help you, help your employees get and stay out of debt.  Feel free to email this through your internal address book, post it on your intranet, or use it however else you communicate within your organization.  All completely free of charge, courtesy of Acquaint Financial.  Money Made Simple. 

The Ultimate Guide to Debt Reduction: https://www.mywealthcare.ca/blog/debt

Money Made Simple

Acquaint Financial has been providing financial education and literacy programs to employees across Canada for nearly two decades.  Our goal is to make money simple to understand for your employees so they’re empowered to make informed financial decisions.

If you have any questions, comments or need additional assistance, please feel free to contact Asaf Shad at ashad@AcquaintFinancial.com