The Canadian Imperial Bank of Commerce states that more than 50% of retired Canadians are in debt and have the highest bankruptcy rate in the country. Those, who are over the age of 65 face the risk to become bankrupts, however up to 59-aged seniors already begin to sound the alarm. Most of them mark that their debt level has increased over the last year while carrying credit-card debt or having the line of unpaid debt.
CIBC’s executive vice president of retail distribution and channel strategy, Christina Kramer, states that Canadian retirees can forget about their savings because they use it for monthly payments. So, plans for retirement should be cancelled.
Make More Monthly Repayments
Due to the current situation, Canadians understand that their priority for the nearest time will be not the rest in the wellness center or a planned trip, but the debt repayment. The main advice for this aim is to replace loans with high percentage with lower-rate services. Here, the help of specialist is required. To watch how much money can be monthly repaid and to try paying more is the next advice which seems to be difficult to do but many specialists claim it can definitely help. Canadian seniors should make debt repayment a priority to improve the financial position.
Good Debt Plays Its Part
Kevin McLeod, president of MoneyAdvisor.ca Financial Ltd, explains the notion of a “good debt” referring indebtedness for long term investments to good things because mortgages have low interest rates: “At these low interest rates, it might make more sense for someone to keep their money in their investment accounts instead of taking big lump sums to pay off their debt.”
Specialists’ Pieces of Advice
Christina Kramer gives the retirees pieces of advice, stating that they should try to repay more to have an opportunity to reduce debt as fast as it is possible and paying attention at monthly cash flow. Kevin McLeod, in his turn, advises to plan ahead and think not only for today, but also for future because debts for mortgages can probably appear long before retirement time.