Guest post by Douglas Hoyes, colleague of Rebecca Martyn, and co-founder of Hoyes, Michalos & Associates Inc.
As a frequent visitor to Windsor over the past 15 years am I always amazed at the many changes that continue to happen. I’ve watched as all of the “Big Box” stores have appeared on Walker Road by the 401; it seems that you can buy anything you want, and buy it in a big store. The massive re-development of the Ambassador Bridge, which is still in it’s initial stages, will enhance the movement of traffic to and from the United States, but will obviously cause changes in Windsor as well. And of course the upheaval in the auto industry has changed Windsor forever.
Speaking of upheaval, there is certainly a lot of uncertainty in Windsor. I spent today in our Windsor office, meeting with people who worked for the same employer for many years, only to be laid off over the last few months due to the downturn in the economy. They had good jobs, and now they are forced to survive on unemployment insurance. For three of the people I met with today they have also gone through a marriage separation. I’m not a psychologist, but I suspect that the stress of the job losses and economic uncertainty is affecting people in many ways.
The automotive uncertainty is hurting, and the various strikes by city workers and taxi drivers also seems to be contributing the the depressed mood. There is a feeling of hopelessness with many of the people I met with today. If I had to summarize the mood of many people I met with today in our Windsor bankruptcy office, that would be it: uncertainty and hopelessness. They don’t know when, or if, things will get better, and they don’t know what to do.
That feeling of hopelessness is made worse by the fact that 2008 was a record year for personal bankruptcies, and 2009 will probably set another record. According to bankruptcy statistics just released by the Office of the Superintendent of Bankruptcy, in the first quarter of 2009 personal bankruptcies in Windsor increased by 38%, and the number of consumer proposals filed increased by almost 46%. In total personal insolvencies increased by almost 40% in Windsor in the first three months of 2009.
The growth rate in personal bankruptcy is accelerating, since it was up 37% over the last twelve months.
In the twelve months ended March 31, 2009, 1,839 Windsor residents declared bankruptcy, and a further 534 people filed a consumer proposal.
Those are scary numbers, but they are just numbers. What does this mean for the people of Windsor with financial problems?
First, understand that you are not alone. In the last three months almost 700 residents of Windsor have filed bankruptcy or a consumer proposal. If you work in the automotive industry, or virtually every other industry in Windsor, business is slow, leading to cutbacks in hours and wages, and frequent layoffs. That’s not your fault.
Second, the bankruptcy numbers continue to increase, so we should all prepare for more problems over the next few months. Read my five tips to survive the recession to learn some practical steps you can take to deal with your debts.
I’m a big believer in having a “Plan B”. What would you do if you lost your job, or if your hours were reduced at work? Many people are picking up a part time job now, so that if they lose their full time job at least they will have some income. Cutting expenses is also critical. If you lower your expenses, you don’t need as much income to survive. Now may be the time to cut all non-essentials.
If you have debt, pay it off. Start by paying off your highest interest rate debts first, and use the interest savings to pay off your other debts faster.
What can you do if you already have more debt than you can handle? There are options. Credit Counselling in Windsor is an option. If you can’t afford that, a consumer proposal or a bankruptcy may be necessary to deal with your debts. There are options, but we can only create a plan for you if you give us a call in Windsor at 519-250-8060, or at 310-PLAN (no area code required), or e-mail us today to arrange for a no charge initial consultation where we will review your options for dealing with debt. The statistics prove that now is the time to take action to deal with your debts.
There is hope, so give us a call, and let’s get started.
