Not out of the Recession Just Yet -- New Statistics Indicate Rise in Consumer Bankruptcies Due to Massive Job Losses

Share Article

In the face of massive job cuts and rising bankruptcy rates Consolidated Credit offers Canadians advice about how to face this reality and avoid financial crisis.

A sharp jump in consumer bankruptcies in June is the result of massive job cuts, according to the Bank of Montreal's senior economist, Sal Guatieri.

The office of the superintendent of Bankruptcy Canada reports that consumer bankruptcies rose 54.3 per cent in June 2009 over the previous year. Business bankruptcies also rose 10.8 per cent to 515. Companies and business owners are still feeling the affects of lower sales, which leads to job losses. Job losses topped 45,000 in July and Canadians are feeling the crunch of an 8.6 per cent all time unemployment rate.

Struggling to find a way out of this recession, Canadians are also finding themselves stressed. "Canadians are feeling stressed but they shouldn't wait for a personal crisis before they act. Taking proactive steps and being prepared will help not only financially, but prepare them emotionally as well," states Jeff Schwartz, Executive Director of Consolidated Credit Counseling Services of Canada Inc.

Financial stress can negatively impact ones health and ability to perform their job. Work is a source of income, and when Canadians are financially stressed, they run the risk of decreased ability to perform their job, loss of wages, demotions as well as risking their health. Being aware and prepared to deal with the recession will enable Canadians to overcome financial crisis.

To help get through this rough patch, Consolidated Credit offers Canadians advice on how to be prepared and deal with the recession:

  •     Budget - make sure to update your budget, to match your income and expenses
  •     Assess you current situation - it is important to know and be aware of your current financial situation
  •     Change what you can - taking small steps, making cut-backs or trying new alternatives to regular routine
  •     Seek assistance - HR departments and Employee Assistance Providers are great sources for help. Financial counsellors, or credit counsellors can offer great tips and advice
  •     Exercise - a great way to alleviate pressure and stress. This is a healthy way to deal with stress
  •     Picking up rewarding hobbies - A great way to replace bad habits with positive ones
  •     Talking about it - with a family member, trusted friend, or medical professional

"We want Canadians to know that they are not alone and that we are here to help them through these stressful times", says Schwartz

Consolidated Credit Counseling Services of Canada Inc.'s mission is to help people end financial crisis and solve money problems through debt management, financial education and professional counseling. For more information and resources on budgeting your personal finances, visit http://www.consolidatedcredit.ca

For interviews with Jeffrey Schwartz or inquiries about Consolidated Credit Counseling Services of Canada please contact Galit Osadtsuk, Director of Community and Public Relations at 1-800-656-4120 ext. 1014.

###

Share article on social media or email:

View article via:

Pdf Print