No Big Hike In Debt Counselling Says Expert

Monday, January 05, 2009 09:35 AM

Prince George, B.C.- While there has been no increase in the number of people seeking debt counselling, AAA Credit Counselling’s David Lowe says he is seeing a different type of client. According to Lowe, when one income of a two income home is lost, the family seems to find ways to cut the cloth. Such is not the case when both incomes disappear.

Speaking on the Meisner program this morning on CFIS FM at 93.1, Lowe says the financial crunch hasn’t produced more clients just a difference in clients “I have counselled several people from Mackenzie, and did a special seminar there. While most people are managing the changes in income, dropping to an EI level isn’t going to maintain their home.”

Lowe says one of the problems is that people are not trained about how to borrow money “What happens is people borrow from Peter to pay Paul, using a credit card to pay other bills and you can’t do that, and even a credit counsellor has trouble helping a person out of that.”

With all the job losses in the forestry sector, why no big jump in clients? Lowe says he suspects that in some cases, where two people may have lost their jobs, they may have gone straight to bankruptcy. He says the real disappointment is that while local bankers are able to work out packages that can keep people in their homes, the head office isn’t always willing to accept those deals “I guess the thinking is what’s good for Toronto is good for Mackenzie, so the package was rejected and the couple are out of their house.”

The most difficult time for people says Lowe, is right before or right after Christmas, especially for single moms “They want to make Christmas special and often the father doesn’t contribute, so that’s really hard.”

He says it’s important to remember most people have debt, that you aren’t alone. Personal debt in Canada is at an all time high says Lowe even though personal incomes are also higher than they have been in the past.

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Posted on Monday, January 05, 2009 09:35 AM in News by 250 News

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Comments

Posted by: Bridge on January 5 2009 10:17 AM

More consumers likely to seek help in 2009: debt counsellor.

Thats the head line for a story on the CBC this morning. Where do all these experts come from that show up here in PG.

Cheers

Posted by: rayban68 on January 5 2009 4:39 PM

Dunno about the ones on CBC, but David Lowe comes from PG...

Posted by: Chester on January 5 2009 6:28 PM

How many people choose bankruptsy instead of trying to dig themselves out of the mess they find themselves in with the help of a Credit Counsellor?

How many banks want to help you when you are finding yourself with a reduced income or too much debt to service? Not many. They have no problem helping you get deep in debt though. Billions for the bankers, debts for the people.

Posted by: MrPG on January 5 2009 7:12 PM

Most of the time, people get into debt because of poor decision making. That's their own fault, not the lender's.

Posted by: Chester on January 5 2009 9:09 PM

Really? So you decide to buy a house. You go to your favourite bank and ask how much you qualify for? Just because the bank says you qualify for $300,000 doesn't mean you can afford it. My point was that you shouldn't be asking the bank for financial advice. The advice you receive may be contrary to two profit centers. Yours or theirs. I don't hear many of their customers anouncing their quarterly profits in the millions.

Most people get into debt because they don't know any better. They look at their neighbors and expect that if their neighbor has one, so should they. And I want it now! No payments until Dec. 20009. No downpayment, free set up and delivery, no GST, Buy One get One free, 0% interest and finally, no credit, no problem. You wonder why people get in over their heads in debt? Because they can. Nobody says no anymore.