credit counselling Archives - Page 9 of 9 - Ira SmithTrustee & Receiver Inc.

“Divorce is the one human tragedy that reduces everything to cash”. – Rita Mae Brown

The terms “silver separation” and grey divorce” sound very benign, but their financial ramifications have spelled disaster for many boomer retirees. Instead of travelling the world or spending carefree days on the golf course, many retired baby boomers may now be saddled with a mountain of debt and are trying to figure out how to pay their bills because of grey divorce in Canada.

A study done in 2012 by Bowling Green State University in Ohio revealed that the divorce rate among people who are retired or near retirement had more than doubled in the United States in just 20 years. According to Statistics Canada, divorces among couples 65 years of age and older are becoming more and more common and that the average age at which Canadians divorce has been rising steadily for a number of years. And, this trend is expected to continue. Susan Eng of the national seniors’ advocacy group CARP said that in recent years her office has been seeing an increase in calls from divorcees who are unsure of how they were going to make ends meet now that they were alone.

Although women seem to be the hardest hit, men are not immune. The nest egg that you have accumulated for retirement now has to be divided and you may also be supporting minor children and helping to support adult children and/or ageing and ailing parents. The financial challenges of your new reality may have created more debt that you can handle.

Grey divorce in Canada summary

Debt is a four-letter word but it can be managed with professional help. If you are experiencing serious debt problems because of grey divorce in Canada, or for any other reason, contact Ira Smith Trustee & Receiver. Credit Counselling, Debt Consolidation, and Consumer Proposals are all options that we can explore and then we will come up with a plan that will work best for you. Although life can be difficult after a grey divorce you can start over and live a debt-free life Starting Over, Starting Now.

Are you living in a financial dangers zone? Many Canadians have been managing to stay afloat but Bank of Canada officials and federal government ministers have been warning about the financial dangers of accumulating too much debt. With interest rates so low many Canadians have been over borrowing; but what are you going to do once the interest rates go up?

Canadians have serious debt problems:

Statistics Canada reports that families now owe about $1.65 for every dollar of after-tax income
TransUnion reports that the average Canadian’s consumer debt load hit $27,485 at the end of 2012, a 6% increase over the previous year’s level and the first time the figure has been above $27,000

Consumer debt in Canada has reached an all time high. Are you too far in debt? Are you in a financial dangers zone? The Office of Consumer Affairs (OCA) has listed 8 warning signs that tell you when you are too far in debt, in a financial dangers zone and need to make changes in order to avoid bankruptcy:

Frequently pay bills after their due date
Regularly bounce cheques
Use an advance from one credit card to pay the minimum amount on another card
Receive calls from a collection agency
Regularly ask friends or family members for loans
Have your utilities cut off (telephone, hydro, water)
Have cut back on regular budget expenses such as clothing and recreation, or necessities such as food
Are considering taking a second job in order to help pay your bills

If you are living in a financial dangers zone, now is the time to take action. Contact Ira Smith Trustee & Receiver Inc. We can help you with your debt problems before they reach the critical level. Bankruptcy is not the only option to a financial crisis. There are bankruptcy alternatives which include credit counselling, debt consolidation and consumer proposals. Starting Over, Starting Now you can have debt relief.