The national decline in Bankruptcy and consumer insolvencies has some people scratching their heads.
Industry professionals are wondering if alternative methods of dealing with debt have delayed the end result of insolvency? Or have Canadians just become better at dealing with their record levels of debt?
It is possible that the recent migration of debt settlement companies from the US, has temporarily reduced the levels of insolvencies. Unfortunately, historically the settlement success rate is less than 25%. Therefore, it is highly likely that those consumers choosing the debt settlement quick fix, will likely find that the suffering of their personal debt burden is not quite over.
Currently Canadians are maintaining that record debt that is reported weekly in the news. Delinquencies and insolvencies are down from 2011, which is great. The question that remains is how long can Consumer continue to sustain those payments when interest rates begin to rise.
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