Debt. It is easy to get into debt that is way beyond your means to repay it. And, it seems that managing it and repaying it is on everyone’s minds these days. CIBC’s yearly poll on consumer financial priorities has revealed that repayment of debts is becoming increasingly important to Canadians who are nearing retirement age; with 31% of those aged 45-54 saying repayment is their top priority. This is certainly not a surprise as a Manulife survey reports:
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- 50% of respondents expect to be in debt when they retire.
- 10% planned to borrow against their current homes.
- 8% were looking to downsize and use money from the sale of their home as income.
“Using home equity as a “fallback plan” suggests some Canadians are struggling to balance retirement with paying down debt”, says Manulife Bank CEO Rick Lunny. “If people think they’re going to take out second mortgages and larger mortgages when they retire, that’s a pretty concerning view and evidence of no financial plan whatsoever,” Lunny said.
Many Canadians have no financial plan what-so-ever and as well are not really financially literate. However, some mortgage brokers are recognizing the importance of client education. “There is no doubt that client education should be the cornerstone of any mortgage broker’s marketing plan,” Jackson Middleton of Kilted Media wrote on MortgageBrokerNews.ca.
If you’re like many Canadians who don’t have a plan to deal with debt repayment, you need professional advice. Contact Ira Smith Trustee & Receiver Inc. before your debt load becomes critical. The earlier you begin to deal with it, the more options you’ll have. We approach every file with the attitude that financial problems can be solved given immediate action and the right plan. Starting Over, Starting Now you can live a debt free life.
