In the News: Canadian Economy Headed for Trouble – What Can the Average Family Do?
We’ve been hearing murmurings for months now about the state of Canada’s economy – according to economists, we are headed for trouble, and that could mean heaps of financial trouble for the average Canadian household – particularly those struggling with debt.
According to a recent CBC News article, “Canada’s Economy ‘Dead in the Water,’ Headed Toward Recession,” those murmurings are actually more than just murmurings: http://www.cbc.ca/news/canada/manitoba/canada-s-economy-dead-in-the-water-headed-toward-recession-1.3099645.
Is Canada headed for a recession? The article states: “Recessions are defined as two consecutive quarters of negative growth. Recently, we learned from Statistics Canada that Canada’s economy shrank between January and March, the biggest decline in GDP since 2009, and the first contraction in the last four years. In fact, the economy contracted in all three months.” So, in a word, yes. It looks as though Canada’s financial future is a bit murky to say the least.
This prospect is a result of a number of factors: private sector investment has declined dramatically as a result of the oil crisis. Consumers are also cutting their spending dramatically (lowest level since 2009) and governments are decreasing spending as well. The Bank of Canada has dropped interest rates twice this year so far, and this is bound to make an impact too, although for better or for worse has yet to be determined.
So what can the average family do to combat this challenge? If a recession is in fact in Canada’s future, the best thing to do right now is get finances in order, pay off debts, deal with bad debts, and start saving if possible.
For many Canadians, this may seem easier said than done – after all, the average Canadian household is sitting at just under $100,000 in debt, according to another recent CBC Newsarticle. However, taking a few simple, yet significant steps, can help you reduce your overall debt, deal with collection action, and help you better manage financially.
Want to know more about how to get your finances back on track before a recession hits? DebtCare Canada can help. Call us today at 1-888-890-0888.