Has inflation increased your debt?
Inflation is now forcing some Canadians to find different ways to afford day-to-day expenses.
The amount of credit card debt among Canadians has tripled in the last two years - per Stats Canada.
Economists say lower-income Canadians are turning to credit cards with high-interest rates to pay for the necessities and now, those people need help.
Joel Grisé is a Licensed Insolvency Trustee at Fontaine and Associates in North Bay.
He told CTV News the need for his services is skyrocketing.
“The phone stopped ringing in March of 2020 and didn’t pick up until, I’m going to say January that’s just come by,” Grisé said.
“Right now I’m having a hard time keeping up with phone calls.”
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
For those who have experienced credit card debt know it is a stressful situation – but experts say it also comes with many lessons.
“We regretted it because we were in debt there for a while after racking up our credit cards,” a Sault native told CTV News.
“We went over to Credit Counseling and we used their services and paid off our debt.”
Another Sault resident said it didn’t him long to find himself “in the hole.”
“I got my first credit card, eligible up to 2,500. I maxed that out in probably three months.”
The 23-year-old is in the process of paying off that debt and said he has received some good advice since then.
“They told me whatever you spend on your credit card to just immediately pay it back with your cash or your debit,” he said.
Grisé said with the right habit changes and a plan from someone like himself, some can eliminate their debt in as little as nine months.
Though swiping or tapping a credit card may be easiest when shopping, he said it is not how financial experts recommend you do it.
“They can do more harm than good,” Grisé said.
“And if you want a little bit of education, if you use credit or debit, you’re going to spend 13 per cent more than if you use cash.”
Debt experts said that while everyone’s financial situation varies – if a person owes more than $5,000 or has been trying unsuccessfully to get out of debt for more than two years they may want to seek help and talk to an expert.
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.