Depression and Debt
Depression and debt are two words that are very synonymous with one another, there are of course different types of depression, mental health and global economic. Being in debt is depressing there is no question of that, and being in an economic depression can lead to more debt.
Currently the media is rife with speculation about the proposed tariffs on Canadian exports to the USA and visa versa. Some media reports suggest that we are heading towards a period of recession while others are saying full on depression. If either of those situations were to occur there will be a run on debt, both from the perspective of people using credit to acquire goods and services they can’t otherwise afford as well as people finding they are suddenly over their heads in debt. Some consumers have manic episodes in which they throw all caution to the wind and run credit accounts by spending more than they can afford.
Either way, sooner or later excessive values of debt must be resolved in some manner. That will either require payment in the normal course, either lump sums or regular payments, or an insolvency proceeding. But is that really good news for Licensed Insolvency Trustees? At first blush it isn’t bad, Trustees’ businesses grow, and debtors’ problems are solved. But Licensed Insolvency Trustees are people too and many of us live in the communities we service, and we prefer to see those communities prosper.
Let’s hope that we don’t find ourselves in an economic depression as a result of the so called “trade wars” with the Trump administration. Excesses of indebtedness can lead to feelings of helplessness and hopelessness don’t let debt lead to depression. If you are feeling the effects of debt in your personal life call us for a free consultation and let’s get you out of the hole and back on your feet.