Toronto Credit Counseling: Introduction
It appears that a high percentage of families in the GTA are in need of Toronto credit counseling. This week’s blog highlights why people are now carrying debt into retirement. By having this information, we hope that you will be able to easily prepare your own comprehensive guide to going into retirement debt free.
Toronto Credit Counseling: Household debt at an all-time high
With household debt at an all-time high and continuing to break records, it’s hard to find families not dealing with debt. But, have you considered how your debt load may impact your children’s futures? As parents I’m sure you want to give your children every advantage in life. This includes a college or university education.
Unfortunately it’s impossible to give your kids a post secondary education if you have a debt load to contend with. The reality is that student debt is directly tied to parents dealing with debt. So, ultimately your children may pay the price for your debt load. Believe it or not, they may even have debt carry into retirement.
Toronto Credit Counseling: Carrying debt into retirement
New research from Strategic Insights brought this very important issue to light:
- Total student debt rose 6.2% annually over the past 10 years to $42.9-billion
- this compares with an average inflation rate over the same period of 1.6%
- Average debt for a graduating student as of July, 2015 was $26,819
- Students graduating with significant debt could buy houses and start families later in life
- Add on as many as 35 years to pay off mortgages, lines of credit and other borrowings
- This stretches debt into retirement
- Student debt has soared despite a substantial increase in the amount of money parents are contributing to RESPs
Toronto Credit Counseling: Going into retirement with debt
It’s hard to imagine that student debt can still haunt retirees, but it’s happening. And more and more students are graduating with heavy debt loads. Statistics Canada reports that 50% of students graduating with a BA relied on debts to pay for their education which in turn may well affect the future debt load of retirees. Parents, you may not realize it but your children may pay the price for your debt load.
Toronto Credit Counseling: Going into retirement debt free?
If you’re struggling with debt, now is the time to deal with it, before it becomes a multi generational issue. Perhaps all you need is credit counseling to get you pointed in the right direction to become debt free.
Contact the Ira Smith Team. We can help you put debt behind you Starting Over, Starting Now. End the cycle of debt, avoid bankruptcy and help your children have a bright future, free of student debt.