Canadians Take Longer To Pay Off Debt

A new survey by the Bank of Montreal finds more Canadians are in debt, and they’re taking longer to pay it back.
Frank Fabiano is a local Trustee in Bankruptcy with Grant Thorton Limited in Dryden, and says it’s the interest that’s a big problem.
He says a lot of people come to him saying that they have a good credit score because they pay the minimum required. However, Fabiano says that usually only covers part of the interest that they’re being charged.
The survey also finds that many people are taking advantage of the all-time low interest rates, but Fabiano says people are taking on more than they can afford, and eventually those rates are going to go up.
Fabiano says one way to avoid paying high interest is to tack it on to a loan, where the bank is prepared to give you a much lower rate.
Other options include the obvious: spend less than what you’re bringing in, however that seems to be easier said than done.
Fabiano says there are credit counselors who can guide you through the process, and there’s also the last-resort option of declaring bankruptcy.