Canada: President of Credit Counselling Society warns of debt trap

Years of low borrowing costs and healthy growth in the housing market have driven Canadians into a ‘debt trap’ according to Scott Hannah, the president of Credit Counselling Society (CCS).

Hannah says distressed homeowners are finding this burden difficult to manage as calls to CCS have increased by 5.3% in Q1 2018 alone, with a 40% increase in online chats.

Long periods of low-interest rates have encouraged borrowing and discouraged savings – a situation that may prove challenging for many Canadians as rates are predicted to continue climbing over the course of 2018.

Hannah goes further and gives the Albertan downturn as a prime example: “we know what happens… because of a lack of savings many people lost their homes”. In the event of debt issues, CCS can help consumers set up a debt management program or find a licensed insolvency trustee.

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