Credit card debts hurting Canadians

With job losses expected to increase throughout 2009, chances are more Canadians are going to defaults on their credit cards or loans.

A study by the Vanier Institute found that average household debt in Canada surged to more than $90,000 in 2008, while the total debt to disposable income ratio climbed to 140 per cent.

Many industry insiders are noticing that certain creditors have increased interest rates for people who have missed more than two monthly payments, which is making it harder for people to pay down their debts.

If you find that you're unable to keep up with your monthly payments be sure to contact your credit card company and let them know about your situation. They should be able to come up with a compromise that is somewhere in the middle so you both benefit.

A recent poll by Manulife Canada found that 35 per cent of Canadians who responded say their top financial priority in 2009 is paying off debts and reducing their mortgages.

About 24 per cent said that consumer debts, such as credit cards, are their greatest concern.

If you're struggling financially and considering meeting with a debt consolidation organization, be sure to review the tips on Industry Canada's website to ensure that you know what to look for. For tips on how to avoid credit card debts click here.

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