Moffat honoured PAGE A3
Wednesday, April 29, 2015
Olympians fundraising PAGE A8
VOL. 101 NO. 68
Cariboo residents seeing rising debt AUTUMN MACDONALD Observer Reporter An increase in purchasing items on credit, combined with lower mortgage rates are contributing to rising debt among Cariboo residents. Local personal bankruptcy trustee, Dean Prentice, said he has observed an increase in the number of bankruptcy filings in the Cariboo region over the last year. “The downturn in the energy sector and low interest rates have kept B.C. debt levels at an alltime high and, as a result, many in the area are now struggling to meet their debt repayment obligations,” he said. Prentice said most struggling with mounting debt is due to consumer credit (not mortgages or vehicle loans) both for homeowners and non-homeowners. “People who purchased vehicles and other higher value items (boats, recreational vehicles) have been able to lower their debt level by having the asset seized by the creditor,” he said. “This action hurts a person’s credit rating, but it also frees up a lot of cash per month to pay down other consumer debt such as credit cards and lines of credit.” Prentice also pointed to people who purchased homes with higher interest lenders, who felt they could refinance their home after renewal and were unable to, thus making their monthly minimum payments unsustainable. “In the Cariboo, many people were waiting for a turnaround in the economy that would allow them to earn more money to pay down debt; or use the increased equity in their home from higher home prices to pay down debt;
or to improve their business income which would allow them to lower their interest costs and increase their profits,” Prentice said. “When the turnaround didn’t happen as quickly as people expected and certainly not to the extent people expected, then people started using other resources to maintain their living costs. Other resources included selling assets, withdrawing investments and even using more credit in a revolving circle.” Prentice offers the following advice for anyone struggling with their personal finances: • Create a forced saving plan The theory behind these automatic savings is this: you won’t miss what you won’t see. And your savings will build up despite your best efforts to spend. • Save for emergencies With many B.C. families already in the red, an unexpected emergency can throw household finances into a tailspin. Emergency savings, or a rainy day fund, can help families prepare for layoffs, medical bills, or other kinds of emergencies. • Pay off the principal There may not be a push to pay off debts when interest rates are low, but with the threat of higher interest rates to come, it’s a good time to start chipping away at the principal. By paying a lump sum on the principal now, the interest payments in the future will be much lower, even if rates do rise. • Seek help Experts in debt management, trustees provide debt relief services such as consumer proposals, credit counseling as well as bankruptcy. Trustees are the only debt professionals that can offer a full range of debt relief and guarantee protection from creditors.
Quesnel
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Bannock for Big Brothers Big Sisters Brenda Gardiner and her Bowl for Kids Sake team members were out in force in Quesnel’s Spirit Square on Friday baking and selling traditional bannock to raise money for their team effort in Sunday’s Bowl for Kids Sake fundraiser for Big Brothers Big Sisters of Quesnel.
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