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A Bankrupt Canada
By admin | August 12, 2009
The Office of the Superintendent of Bankruptcy Canada has just reported that "the number of Canadians who filed for bankruptcy in June rose 54.3 per cent from a year earlier (Globe and Mail)." Canadians are declaring bankruptcy at an alarming rate.
Economists blame the recent surge in bankruptcy on the present state of the economy, though the Bank of Canada has recently stated that the recession has come to an end - a statement that leaves a lot of consumers with a rather sour taste in their mouths.
The truth of the matter is that though the recession may be over number-wise, there is no true end to the recession in sight - at least not if you are an average Canadian consumer. As it stands, Canadian businesses are not in the same bankruptcy boat that consumers are.
In fact, "…bankruptcies among businesses … rose just 10.8 per cent in the month (Globe and Mail)." Have businesses found a way to avoid the inevitable losses that go along with a global recession? Not necessarily. The truth behind the matter may not lie with consumers or businesses at all. Instead, one might want to look towards lenders for a clue as to how businesses are surviving, but consumers are not.
While traditional lenders are still approving business applications, consumer applications are consistently receiving the red stamp of denial. Why? Businesses don’t pose as much of a threat to lenders as consumers do. It’s all based upon very simple mathematics, but the problem with mathematics is that numbers don’t always leave room for reasoning.
Sure, it’s important to keep businesses afloat, but it’s also important to make sure that consumers don’t declare bankruptcy like it’s going out of style. Unfortunately, many consumers simply don’t have a choice. After being turned down from bank after bank, potential borrowers seek the only way out: bankruptcy.
Or is bankruptcy the only way out? Aside from banks and traditional lenders, there are other lenders willing to provide consumers with some of the funds that they need. Private lenders often offer car title loans that can benefit all kinds of consumers.
These loans are granted to consumers based upon the valuation of an owned automobile. People that own their own cars, trucks, or SUVs, can easily apply for a car title loan. These loans are simple, they are fast and even those with bad credit are eligible.
Canadians may be turning to bankruptcy simply due to the fact that traditional lenders keep turning down those in need. However, bankruptcy isn’t a necessary step if private lenders are sought in place of traditional lenders.
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