Toronto, Canada, October 11, 2015 – Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on a recent study showing that a quarter of Canadians live paycheque to paycheque and that the majority have less than $10,000 in emergency funds. On the back of this news, the company advises why now is the perfect time to consider refinancing or consolidating debt.
According to a recent survey, 24% of Canadians say they have hardly anything set aside for an emergency fund. On top of that, more than half (56%) say they have less than $10,000 in emergency funds. The ideal emergency savings fund will replace three to six months of income.(Source: The Globe and Mail , “More than half of Canadians have less than $10,000 set aside for emergencies: BMO,” September 1, 2015; http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/more-than-half-of-canadians-have-less-than-10000-set-aside-for-emergencies-bmo/article26172527/.)
“This data isn’t all that surprising when you consider nearly half of all Canadian credit card holders carry some form of credit card debt. And that one in three do not pay off their credit card bill monthly,” says Bob Aggarwal, president of Canadalend.com. “In addition to not having enough money set aside for an emergency, the average debt balance for a Canadian consumer, which excludes mortgages, is $21,028. That’s a slight increase over the $20,880 debt balance in 2014.” (Source: cbc.ca, “Consumer Debt Rising,” August 26, 2015; http://www.cbc.ca/news/business/consumer-debt-rising-but-canadians-have-a-better-handle-on-it-1.3204568.)
Aggarwal explains that Canadians can accumulate debt and/or be prevented from building up an emergency fund for any number of reasons, including a lost job, unexpected expenses, and even overspending. “A good way for homeowners to get a handle on out-of-control expenses is through refinancing or debt consolidation,” says Aggarwal.
Debt consolidation is about taking out an equity home mortgage loan. This allows homeowners to consolidate their debts into one manageable payment. Homeowners can also take advantage of the low interest rate environment and refinance a first or second home mortgage into a single monthly payment.
“In spite of the country’s weak economic performance, more and more Canadian households are falling further into debt. By consolidating debt, Canadian homeowners can refinance at a lower rate and unlock equity that can be used as a cushion for unexpected emergencies,” Aggarwal concludes. “The independent, licensed agents at Canadalend.com can help property owners find a debt consolidation plan best suited to fit their lifestyle and long-term financial needs.”
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada , with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about Canadalend.com, visit the web site atwww.Canadalend.com .