August 30, 2011 15:44 ET

BDO-What's Your Debt Load?

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2011) - Do you have bad financial habits? Do you rely on a line of credit or bank loans because the interest rate is lower than your credit card?

A recent Globe and Mail article indicated the current debt load Canadians are carrying is just over $25K. The article also suggests that Canadians have increased their debt loads by $1000 or 4.5% over the last year, but the average level of credit card debt went unchanged over the same time period.

This may indicate that Canadians are increasing their level of debt, but not necessarily carrying this debt on their credit cards. Instead, Canadians may be taking advantage of low interest rates on bank loans and lines of credit.

If you are carrying a substantial debt load on a line of credit or loan with fluctuating interest rates, the possibility of a change to the current Bank of Canada 1% interest rate means your debt load may become unmanageable. For example, an interest rate increase from 5% to 8% for a 60 month term could mean the total cost of borrowing would jump from $3504.79 to $5739.20.** Fortunately, proper debt management can help reduce the debt load taxing your financial health.

Get more clarity with debt help

If you are wondering how an interest rate increase might affect your debt load, you should seek debt help. Not only will you get a complete picture of how much debt load you are carrying, you will be able to fully understand how interest rates impact your debt load. If you are just making ends meet and are carrying a significant debt load, with debt help you can learn about debt management options that will:

  • Consolidate debt
  • Allow manageable monthly payments
  • Stop interest charges
  • Avoid financial ruin

Reduce debt with debt management

So if the thought of your debt load combined with the probable increase in interest rates has you in a panic, sit down with a financial advisor and lock in a rate so you'll always know your payment for the repayment term. Decreasing your debt load takes some effort but in the long run, it can improve your credit profile and reduce the cost of borrowing. You can find more tips and ideas on paying off your debt load faster with this 5 step plan. Following these tips can give you ideas on managing credit and help prevent you from feeling overwhelmed with your debt load. The best advice, however, is advice from a qualified financial advisor. Talk to a financial advisor today to discuss your options to eliminate your debt.

Debt Help from BDO equals peace of mind

BDO offers a full range of debt management services that is, not only credit counselling and debt management planning, but also consumer proposal and bankruptcy options. As one of Canada' largest debt help providers, BDO has been helping Canadians reduce their debt load and get back on the road to financial stability for over 50 years. With 95 offices across the country and a network of 250 dedicated financial advisory professionals to serve you, BDO is proud to be the leading debt management firm in Canada and the fifth largest accountancy firm in the world.

Find a BDO location near you today!

British Columbia / Alberta / Saskatchewan / Manitoba / Ontario / Quebec / Nova Scotia / Northwest Territories

**For illustrative purposes only. Based on a $25,600 debt load

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