Lots of surveys show the results that Canadians definitely have problems with their money. The matter is that they are sure they earn not enough money to pay for the bills and other payments.
People often have bad credit histories, lots of debts and loans. These factors make life more difficult and less pleasant. One of the best ways to solve such problems temporarily is loans with no credit check Canada. But still, what are the main economic problems in Canada in 2019?
Canadians Live Beyond Their Capacity
Unfortunately, an inquiry shows that 46-48% of Canadians aren’t able to pay for their bills without any debts. They live from salary to salary. So, they are financially susceptible. The fact is that they spend all their incomes and become also indebted. It means that they live beyond their capacity.
However, questionings tell that Canadians don’t want to reduce unnecessary spending. They have mortgages and loans in addition to debts. But they don’t plan monthly finances and financial aims. The problem is in the fact they can’t spare at least 5% of their income. It’s so bad because they don’t have money for a rainy day or for a big crisis.
Loan History Problems
20% of Canadians have low credit scores – below 600 when a good one is 660-700. It’s sad to understand, but 3% of people have a too-small score – below 520. They have a higher risk than other people. However, it’s obvious, because 65% of the population look into this once a year or never at all.
An average working-age person has at least 2 credit cards and has some debts on them. It’s a serious problem for lots of Canadians to have a bad credit rating. It doesn’t allow them to have a new loan. People are often disappointed, go to pawnshops and have sometimes bigger problems.
Usage of Payday Credits
The interest of people who have loans has increased from 2009. Almost half of the interviewed Canadians borrow money for emergency situations. There are car repairs or house renovation. The other part of people uses borrowed money to pay bills like water and electricity.
Using payday loans is not a problem at all, but only if you pay it in time and doesn’t lead to another loan! 70% of Canadians try to repay using only their salary, but 7% of people take new credit to do this. There is one more category of people who use their credit cards, sell their value and borrow money from friends or family to pay off the money. Nevertheless, a great number of people don’t realize that payday credits are with so high rates of interest.
Too Large Debt on a Credit Card
It’s obvious, Canadians are inclined to accumulate undue card debt. The information on Bankruptcy Canada affirms this. According to the survey, Canadian people have $8,530 of debt on average. In addition, 14% of them have balances between $ 10,000 and $ 25,000. A lot of people choose products with high rates taking additional bonuses, rewards, and discounts. Also, many of them are in a hurry to buy something only for collecting points. So, the problems with credit cards appear in such ways.
Bad Decisions for Investments
According to some facts, Canadians use money for their investments instead of paying off debts or loans. But, lots of people can’t set the right investment aims to success. The matter is that they often have small risk tolerance. They should invest in goods as documents of deposit, savings accounts, municipal bonds and so on. Those who have bigger experience and stronger risk tolerance take benefits from the investment are such things as penny stocks, futures, and hedge funds.
Unfortunately, a number of people who have economical insolvency increase every year. This is a very sad experience. Some Canadians even don’t have money to cope with their important expenses. Problems with credits, wrong usage of money, debts have complicated their life during the last year. A lot of people are afraid of increasing living costs or other payments because they just can’t pay for them.