Insolvency of Canadian consumers

Image result for insolvency

The Office of the Superintendent of Bankruptcy Canada released statistics regarding the insolvency of Canadians during the month of April. With problems in the oil-producing provinces, the high level of consumer debt across the country and the volatility of the real estate market, these insolvency statistics provide a picture of the financial difficulties currently facing Canadians. At this time, the national average consumer insolvency is 3.3%. While in some provinces the percentage of insolvencies remains close to the national average, there are clearly other provinces that are struggling with debt. This is how the percentage of consumer insolvencies increased or decreased in the provinces in April:

  • 0.1% increase in British Columbia
  • Increase of 32.5% in Alberta
  • Saskatchewan increase of 5%
  • 15% increase in Manitoba
  • 1.9% decrease in Ontario
  • Increase of 1.4% in Quebec
  • Increase of 2.4% in New Brunswick
  • 0.6% increase in Nova Scotia
  • Increase of 8.2% in Prince Edward Island
  • 26.2% increase in Newfoundland and Labrador

Unfortunately, only the province of Ontario has been able to reduce its insolvency percentage in the month of April. British Columbia has remained relatively stable and this percentage has increased in the rest of the country and significantly in some provinces.

What is consumer insolvency?

Let’s take a look at what consumer insolvency is. Generally, it is a term used to describe a consumer who has debts of any kind and can not afford to continue to pay. The terms bankruptcy and insolvency are not synonymous; they have different meanings but it is likely that most insolvent people will have to file at one time or another, a consumer proposal or bankruptcy. Canadians who become insolvent generally have the following types of debt:

  • Credit card debts
  • Tax debt
  • Student Loans Debts
  • Automobile financing debts

While mismanagement of funds is the main reason Canadians become insolvent, emergencies, personal problems and job loss can also cause serious financial problems, leading to insolvency.

Image result for proposal and bankruptcy

Difference between a consumer proposal and a bankruptcy

A consumer proposal and bankruptcy are legally binding measures that must be filed by an authorized insolvency officer. The bankruptcy is a little more drastic than the consumer proposal and all the financial experts, credit counselors and insolvency trustees will suggest you fill out a consumer proposal before declaring bankruptcy (unless a bankruptcy is the best solution in your case).

Amount of debt

To declare bankruptcy, you must have a debt of at least $ 1000 but there is no maximum amount. To be able to file a consumer proposal, you can not have a debt of more than $ 250,000.


If your consumer proposal is accepted by your creditors, you will not have to give up your assets, which is the biggest benefit of such a proposal. On the other hand, by declaring bankruptcy, your property will probably be seized to pay off your creditors.

The creditors

In general, anyone who needs to declare bankruptcy can do it with practically nothing. There is no guarantee that your consumer proposal will be accepted.

Credit rating

When you complete a consumer proposal, you will receive an R7 credit rating. This rating will have a negative impact on your credit score but is not the worst to receive. By declaring bankruptcy, you would receive a rating of R9.

How to avoid insolvency

Image result for solutionThere are, of course, circumstances where insolvency is not avoidable. In these cases, it is best to seek the professional help of an authorized fiduciary agent who will be able to guide you through the different options according to your situation. But for those looking to avoid insolvency or just to make sure they manage their debt levels properly, here are some tips and tricks:

  • Live according to his means. A nice car, a big house and personal belongings are nice, but at what price? If you are spending too much to maintain the lifestyle you have created or are starting to be late on your car or mortgage payments, you need to re-evaluate what your priorities are.
  • Your good intentions to save money or reduce unnecessary expenses will not be effective unless you stick to a budget. Make yourself a realistic budget and a weekly or bi weekly meeting with yourself to assess your attendance.
  • Pay off your existing debts as quickly as possible. Do you only make your minimum credit card payments? If so, start making larger payments now and as often as you can.
  • Set aside for financial emergencies. Having an emergency fund at your fingertips will save you from having to use your credit cards to cover unforeseen circumstances.
  • Go get help. If you can see for yourself that you are starting to lose control of your finances, it is always wise to seek the help of a professional, either a credit counselor or even an authorized insolvency officer. If you are currently facing debt or credit problems, Prêts Québec can help you find the help you need, regardless of the province in which you live.

3 reasons why you should put your money to work

Image result for save money

The habit of saving is something that more and more people practice; However, having this good action for our finances is no longer enough. It is time to consider investing those savings.

The word investment can scare many people, especially because there is a total lack of knowledge and the reasons why it is NECESSARY to invest are never mentioned.

Here we bring you the 3 reasons why you should do it:

1. The withdrawal

It is no secret that public pensions are no longer what they were, every day there is less money for these and it is already an obligation for us, the workers, to locate an option to save money for retirement. There are AFORES that are very necessary and safe, but the best thing is to complement it looking for more ways to invest our money.

2. Heritage

If you already have a family or are planning to make one, you should know the importance of having a heritage. A heritage is necessary in case something unexpected happens, you have a backup, but if nothing happens, you can leave a legacy to future generations. Most people consider that having a savings account is more than enough; However, the interests that this type of instruments leave us are very few and sometimes the majority goes to collections made by banking institutions for account management and so on.

3. Inflation

It is a term that we have all heard, but that few really know. Inflation is the generalized and sustained increase in the prices of goods and services in the market. Generally this rise in prices are adjusted with wage increases; nevertheless, even so it does not reach many times. Investing is a good option for our money to work and we have to worry less about inflation.

But how do I make it to invest?

We understand that one of the reasons why people do not dare to invest is because of the complexity that investments require, besides that in many places the minimum amounts to invest are very large.

Fortunately, Doopla allows you to lend your money and generate yields far superior to those that exist elsewhere; It is also very simple and the amounts to start investing in this platform range from 500 pesos, although it is advisable to start with 10 thousand, to be able to diversify your money within this community.

What mistakes you should avoid when planning your retirement

What mistakes you should avoid when planning your retirement

What mistakes you should avoid when planning your retirement

Retirement is one of the problems that most concern the Spanish. Insecurity about how pensions will be in the future is leading to more and more people starting to plan their retirement.

But it is as important to think about this important moment as it is to do it correctly without committing a series of errors that are still very common:

Do not think that the public pension is enough to cover all your expenses

<strong>Do not think that the public pension is enough to cover all your expenses</strong>

Although the current reality is leading to many who supplement their pension with products such as a retirement plan, most still do not. The public pension may not be enough not only because it can be reduced, but mainly because we will enjoy a higher quality of life for a longer time.

Thanks to the capital or income that we can obtain with a forecast product, we can obtain that supplement that will be increasingly important and valued.

Leave the amounts that we will need and receive at random

There may be many years to retire, we will change jobs, the price varied … but even so it is important that we know, in the current circumstances, what our public pension will be. Getting it is simple thanks to the Autocalculus program of the retirement pension that we can access from the Social Security website.

This is the starting point so that compared to what we believe will be our future needs or projects, we allocate parts of our present income to complement our retirement pension.

Think about our retirement when we have a few years left

<strong>Think about our retirement when we have a few years left</strong>

Although the Spanish saying says that it is never too late if the happiness is good, the truth is that acting in this way in saving for retirement has important disadvantages.

The first is that the contributions that we must devote to obtain that income or complementary capital will be greater.

The second point in the case of products such as a retirement plan is if we exceed the 8,000 euros per year (or 30% of our income for work or professional activities), we can lose the tax benefits of the contributions.

And the third, even more important, is in the benefits that we get for these contributions. These accumulate and in turn generate other additional interests, so that saving in the long term not only allows us to do it more comfortably, contributing less and benefiting from its taxation, it also allows us to earn more.

Think of your saving for retirement as something alive

<strong>Think of your saving for retirement as something alive</strong>

Many of the changes in your life, especially the economic, influence when planning retirement. Therefore, adapt the investment to your personal circumstances and the time that remains for your retirement.

So you can, for example, change the contributions when economic circumstances force you to reduce these savings and otherwise, accelerate them if you need a capital or higher income.