At the end of 2003, Canadians held $517.7 billion in mortgages. There were 84,297 personal bankruptcies in 2003, up 52% from a decade earlier.
In December 2009, household debt in Canada reached $1.41 trillion. Spread evenly across all Canadians, each individual would hold approximately $41,740 in debt in 2009, an amount 2.5 times greater than in 1989. Total consumer credit issued by chartered banks grew from 21.1% in 1989 to 77.7% in 2009.
In Ontario alone, the Ontario Association of Credit Counselling Services reports a 60% increase in its clients since 2000 – clients whose incomes have increased by 15% on average but whose debts have soared by nearly 60%.
Some experts say a booming real estate market and interest rates at historically low levels have Canadians saving less and taking on more debt. The total debt per household is now equal to 125% of disposable income, up from 91% in 1990, an increase that has helped push insolvencies to record levels.
There is, however, a way for Ontarians to solve this crisis and get out of debt. With the help of a licensed Ontario Mortgage Broker, people in Ontario can consolidate their debt and begin saving money. A debt consolidation loan is a great idea, particularly if you have equity in your home, because it allows you to pay off multiple creditors at once, so you only have one payment to make each month instead of many payments.
An Ontario Mortgage Broker can assess if there is sufficient equity in your home to utilize a consolidation loan, and will assist you in the application process. You should consider a consolidation loan for the following reasons:
• A consolidation loan can reduce or even eliminate consumer debt
• Interest rates on a consolidation loan are usually lower than the interest rates on credit cards and lines of credit
• A consolidation loan replaces several different payments to different creditors with one monthly affordable payment to your financial institution
• Consolidation loan payments are affordable, and easy to manage and keep within your budget
It is recommended that you work with an accredited Ontario Mortgage Broker when applying for a consolidation loan to eliminate your debt. An Ontario Mortgage Broker has a solid relationship with all the banks and lenders to ensure you get the best rates and service you deserve.
For more information visit http://www.gtamortgagematters.com/