All the experts say “the recession is over”, someone should inform the people I see every day in my Mississauga and Brampton offices.
The recession hit Peel region particularly hard, it’s a manufacturing center and a lot of companies just did not weather the storm and failed. This put a lot of people out of work, a lot of people are still out of work and the jobs they used to do just don’t exist any more.
At this point, many of those people who were collecting EI benefits are now seeing those benefits come to an end. The problem is, employment has not resumed. Particularly hard hit were older workers, people who have invested 10, 15, 20 + years in a company only too see it all swept away in the recession.
Some of these workers with years of experience on the job are finding it very dificult to get back into the job market at the income they had before, I’ve seen 40-60% wage reductions for people who were able to find work.
Periods of unemployment and subsequent wage reductions are a significant contributor to debt problems. A lot of people have tried to supplement their income by using credit to make up the shortfall. This can work for short term wage interruptions, but when we are stretching this out over a year or more huge debt can result. Oftentimes even with a return to employment the accumulated debt is greater than can be managed on the new reduced income.
In circumstances such as this, there are remedies available to get things back under control, bankruptcy, though the right solution for some people, for others a consumer proposal is the right way to recover from the “post recession hang-over”
Before anyone should consider taking control of their debt problems they have to ensure that the issues that created the debt are resolved. A balanced budget is the first requirement of a successful recovery. If you have enough money coming in to look after the household expenses, but not enough to take care of accumulated debt borrowing more money is not the solution. You owe it to yourself to find out about all your options. We can help you identify all the possible solutions to your debt problems.
Call us today at 310-PLAN and let’s get started.
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