Rising household debt leading to spike in insolvency filings, bankruptcies in Alberta The tough times in Alberta aren’t coming to an end any time soon, as companies continue to downsize, leaving many residents in the financial lurch.Statistics released Wednesday show there has been a 28.3 per cent increase in insolvency filings from July 2014, the number of bankruptcies rose 19.3 per cent and offers to creditors to settle debts soared 36.1 per cent.Credit counsellor Nadia Graham says this is the busiest she’s ever been in her 33 year career in the financial services industry.She says the big difference between downturns in the 1980s and the 2000s compared to now is that people are carrying much more debt.“They’re getting in trouble faster,” she said. “There’s also a lot more people acting as contractors or who are self-employed and they don’t have the same kind of safety nets people who are employees of a company have.”The fallout has been multi-layered.“Not only layoffs in oil and gas, but it ripples out to the economy as a whole,” she said. “Hotel employees aren’t getting the meeting rooms booked and the catering jobs and the furniture salespeople aren’t getting their commission.”She adds Albertans’ investments are hurting as well because the stock market is down, along with the Canadian dollar.Graham explains in many ways credit has become too easy to acquire, pointing out when she used to work for banks the question was always, “Can this person afford another credit card? Can this client afford another line of credit?”, and they would often tell clients when they were getting in over their heads.She says now the focus is on sales, and banks feel the responsibility is on the client to manage their own financial affairs. by Jonathan Muma Posted Oct 1, 2015 7:53 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email SANJA GJENERO/FREEIMAGES.COM

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