Debt Free®

The Debt Solutions People®

Causes of Bankruptcy in Edmonton

Call Us Today

Professionals Offer Advice

Sometimes knowing the causes of indebtedness can help you avoid insolvency and bankruptcy. Other times, insolvency occurs suddenly, due to circumstances beyond your control, like the sudden death of the major household income earner, natural disasters for which you are uninsured or underinsured (such as flooding), or your employer’s business collapses and your employment has ceased or has been interrupted.

What if you lose your job and can’t find another? After a layoff or termination, it doesn’t take very long to churn your way through considerable savings, even if you received a severance package. What about divorce? Not only must you cover the seemingly endless legal fees, but you also have to worry about dividing property, paying child support or alimony, and still maintain living expenses.

Edmonton Licensed Insolvency Trustees

Having been Edmonton-based Licensed Insolvency Trustees and credit counselling professionals for many years, we at A.C. Waring & Associates Inc. have witnessed many such situations—so many, in fact, that we can list several predictors of bankruptcy. Here are just some common ways people get into financial trouble:

Overspending

Do you spend more than you make? Do you know how to create and stick to a budget?

Inflation can throw a wrench in your financial planning if you’re not careful. Poor budgeting habits and a lack of financial self-control often lead to insolvency.

Across Canada, consumers are being lured into long-term auto loans to keep monthly payments low. It sounds like a bargain until you realize that you will be paying for this vehicle long past the point when you will have traded it in for a newer car—and the remains of your former debt roll into your new loan (negative equity).

This situation creates a treadmill of debt that prevents you from ever catching up. For example, the average car loan 7 years ago spanned less than 5.5 years—now, the average is up to 6 years.

The average university graduate now owes more than $26,000 upon leaving the vaulted halls of learning, and that’s not counting the extended college careers of lawyers, doctors, and other professionals or the private or provincial loans students may accumulate during post-secondary schooling.

Before taking on advanced education, students and their supporters, like parents, must plan for ways to save money, earn extra money, and apply for scholarships to devote to an education fund. Without a rigorous action plan, the student may start adult life owing thousands of dollars.

Do you feel like you’ll never be able to pay off your credit card debt? According to the Financial Post, credit card interest rates have skyrocketed. While most bank card interest rates total about 20% annually, some store cards can charge up to 30% interest! It’s no wonder that when you make the minimum monthly payments, charges can quickly raise the debt load.

Credit cards can be a good financial planning tool, but unless you pay off each monthly debt in full, they can wreak havoc on your finances. So, pay off all monthly debts in full and live within your means.

Talk to Us About Your Financial & Bankruptcy Concerns

The Edmonton-based Licensed Insolvency Trustees at A.C. Waring & Associates are here to advise you on the solution to your insolvency issues. 

Call us for an appointment or walk into our office to talk to one of our professionals. Your first consultation with us is always free. 

You can also call us at 780-424-9944 or toll-free at 1-800-423-3328. We can help you.

Where To Find Us

Find us in the First Edmonton Place building on the corner of Jasper Avenue and 107th Street, behind the Corona LRT Station. Street meter parking is available along Jasper Avenue as well as 106th and 107th Streets, and paid surface parking is off of 106th Street, and underground parking for First Edmonton Place is off of 107th Street.

A.C. Waring &
Associates Inc.

  • First Edmonton Place
    410-10655 Jasper Ave NW
  • Edmonton, AB T5J 3S9

Contact
Information

Our Testimonials

Blog

How To Deal With Overwhelming Credit Card Debt

Credit and DebtDebtDebt Management

Credit cards help cover costs in advance—they do not provide free money. They are a loan that requires repayment within the credit agency timelines, which many people can struggle with.   If you are struggling to pull yourself out of credit card debt, there are strategies you can use to take control of your situation, including […]

Read More…

January 10, 2024
Arthur Waring

What Your Credit Score Actually Means

Credit and Debt

Your credit score can be a significant factor when you are seeking a loan, mortgage, or even rental accommodation. Your credit score is essentially a rating of your creditworthiness. It is important to know how different types of debt can impact your credit score so you can responsibly manage it. A credit score is not […]

Read More…

January 10, 2024
Arthur Waring

What Happens if You Pay Your Mortgage Late?

Mortgages

So, you are set to start searching for a home but feel overwhelmed with all the nitty-gritty details that come with it? You have to understand mortgages, amortization periods, and fees before you even get your hands on the keys. We get it. It can be a lot to take in. While there are many […]

Read More…

December 14, 2023
Arthur Waring

Credit cards help cover costs in advance—they do not provide free money. They are a loan that requires repayment within the credit agency timelines, which many people can struggle with.   If you are struggling to pull yourself out of credit card debt, there are strategies you can use to take control of your situation, including […]

Read More…

Your credit score can be a significant factor when you are seeking a loan, mortgage, or even rental accommodation. Your credit score is essentially a rating of your creditworthiness. It is important to know how different types of debt can impact your credit score so you can responsibly manage it. A credit score is not […]

Read More…

So, you are set to start searching for a home but feel overwhelmed with all the nitty-gritty details that come with it? You have to understand mortgages, amortization periods, and fees before you even get your hands on the keys. We get it. It can be a lot to take in. While there are many […]

Read More…

Professional Affiliations

instagram facebook facebook2 pinterest twitter google-plus google linkedin2 yelp youtube phone location calendar share2 link star-full star star-half chevron-right chevron-left chevron-down chevron-up envelope fax