Economists are puzzled by the increasing number of people falling behind their loan payments despite a strong economy and a robust job market. Canada’s neighbor seems to be particularly affected by this. Research has shown that more Americans are three months behind their loan payments. While Canada is not nearly in the same boat, it pays to understand why people can’t pay their bad credit loans Burlington Ontario.
Reasons People are Falling behind Loan Payments
It does seem a conundrum that auto loan delinquencies are rising even when an economy is reportedly stable. What’s more, the majority of loans were taken out by people considered to be “most creditworthy.”
One reason that analysts see as part of the problem is the non-existent wage movement. While there’s a strong labor market, most employees have not received a pay raise. The average wage of many Americans places their purchasing power level to what workers enjoyed 40 years ago. That’s saying a lot, particularly when you factor in inflation. And with child care and health care costs rising, salaries are struggling to keep up.
Young people are usually the ones that struggle the most. Student debt is also a factor, as more students and their parents are faced with millions in loans in the name of education.
Lowest Interest Rates You Can Find
You don’t have to worry about bad credit or payment struggles when you take out a loan with Canadian Equity Loans. You can borrow as much as $50,000 without worrying about rigid employment requirements or credit checks. Their low-interest rates and flexible payment options mean you can work out the best payment scheme that won’t tax your resources. Applying is easy. Just log on to their website and apply online. You can also call their toll-free number at 1-844-586-6311.
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