Welcome 2024, So long 2023 debt 

_{By Bromwich+Smith Staff | 800 words | Reading Time: 4 minutes | Date: 2024/01/04}

Like many Canadians, you probably noticed a difference in your disposable income in 2023. With interest rates spiking and the cost of living growing the  impact was hard to miss.  For so many of us,  our paycheques stayed the same, while our bills continuously increased.  

Mortgage Debt 

If you renewed your mortgage in 2023, you likely experienced additional stress over the increased rates. Many homeowners who previously had mortgages under 2% saw new offers well over 5%. Depending on the size of your mortgage, this could have been a tremendous impact on your monthly payments. We heard stories of payments increasing by over $1000 a month, and for some homeowners the additional expense was just not feasible. Many Canadians found themselves listing their large homes and trying to downsize, which added additional strain on the market supply of condos and smaller family homes, causing these prices to increase even more. 

Landlords’ Market 

For Canadian renters, 2023 was also difficult year. Many landlords found themselves with increased mortgages and opted to sell their rental properties, in some cases leaving tenants to look for new accommodations. Purchasers intending to continue renting faced bidding wars and unpredictable prices, driving rents to unaffordable levels for their tenants. Many who were forced to look for a new rental home struggled to save for a security deposit, and many others found difficulty finding anywhere at all. Some previously affordable rents increased by as much as 50%, which meant taking a less desirable living situation just to secure a roof over your head. Increased rents also meant tightening up in other areas, like groceries.   

Grocery Pricing 

We cannot recap 2023 prices without taking a stroll down the grocery store aisles. In addition to generally high inflation, strikes in several factories led to shortages of specific products, and an increase in prices for those items still on the shelves. While grocery inflation is expected to slow to between 2.5% and 4.5% in 2024, prices will not go back down. Using We continue to hear stories about food insecurity across Canada and the increased need for food banks. If you find yourself struggling, please reach out to your local food bank and other valuable resources. coupons and grocery store apps became popular in 2023 to help Canadians save during their weekly shops. Consider shopping at stores that offer price matching, and check online flyers so that you can review prices and make your grocery list before heading out. Consider online shopping as the prices tend to be comparable to in store, and you can avoid impulse purchases. Take advantage of customer appreciation days, and shop for what you need when you need it. We continue to hear stories about food insecurity across Canada and the increased need for food banks. If you find yourself struggling, please reach out to your local food bank and other valuable resources. 

Credit Card Debt 

If you carried any credit card debt in 2023, you likely noticed an increase to your minimum payments, thanks to the continued growth in interest rates. For those unable to pay off their full balance each month, this can be a huge stressor, as the interest and fees accumulate making it difficult to manage minimum payments. We understand that it may not be possible to pay off your card in full every month, so its important to look into ways to reduce your debt and test out what works best for you. Some like to repay the lowest balance first, and once paid off take the money that would have gone towards that first debt and add it to the payment made to the next debt. Some plan to tackle the highest interest debt first. There is no wrong method, as long as you are working at repaying your debt, and trying to find what works best for you.  

If you’ve tried to pay off your debt and are still struggling, there is help. You could look for a Debt Management Plan, or you could speak with a Licensed Insolvency Trustee (LIT). An LIT like Bromwich+Smith will provide a free, no obligation consultation to finally resolve your debt. 

We understand that 2023 was difficult for many Canadians, and we are here to help. By looking at debt relief options today, you are setting your 2024 up to be the year of financial independence. Let’s explore your options and take back your future, together.  

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Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at   1-855-884-9243, Live Chat  or you can request a call back at contact us page. We want to see you flourish!