- Rising Rent Makes It Difficult To Pay Debts
- Managing Your Debt
- Adjusting to Rising Costs
- Seek Out Professional Advice
Between 2015 and 2016, housing prices increased by almost 19% in Ontario alone. The large province coupled with British Columbia are certainly leading the charge on the booming real estate market, towering over other provinces’ average housing prices by at least $100,000. At this rate, there is no wonder how Canadian consumer debt has reached over $22,000 per person.
Rising Rent Makes It Difficult To Pay Debts
One of the primary reasons people choose to rent in the first place is arguably because they cannot afford to buy a home. But if renting is also becoming unaffordable, what option do people have left? This may be the best opportunity to consult with an expert who can offer practical advice to make responsible financial decisions. Bankruptcy trustees in Ontario work with individuals on money management, reviewing your unique circumstances and offering practical debt solutions, from debt consolidation to filing a consumer proposal.
Managing Your Debt
When it comes to dealing with high costs for housing and what may seem like inevitable debt, many people have bleak visions about debt and how they can proceed, even though debt is difficult for many to avoid in the current climate. One perception by individuals with or without financial struggles is that they will always struggle until they file for bankruptcy. However, there are various debt solutions that the Ontario bankruptcy trustees at Harris & Partners Inc. can recommend. In fact, most financial specialists consider filing for bankruptcy to be a last resort.
Adjusting to Rising Costs
Adjusting your overall spending is one of the simplest methods of dealing with the rise of housing. If a lower budget seems too limiting, you may be able to lower your housing costs by consolidating your loans into one form of debt, such as a mortgage or secured line of credit with a reputable lender. This is another area where a licensed insolvency trustee can offer helpful guidance before you seek out financial institutions from whom to secure a mortgage.
You can also lower your costs by shopping around for the best interest rates. Getting pre-approved for a mortgage before purchasing can also help you to plan for housing within your means. Professionals are available to help you understand your financial portfolio better so you can search for a home within your budget.
Ideally, it is wise to move somewhere you can see yourself long-term and not just for the next year. If you are purchasing a home, obtain a home inspection before finalizing the purchase offer to avoid getting saddled with unexpected and expensive repairs when you thought you were choosing an affordable place to live.