The oil and gas price wave in Alberta, preparing your finances for whatever happens

It’s been said that most people in Alberta are either working in the Oil and Gas industry or have someone close to them that does.

With oil prices plummeting to the lowest they’ve been since April 2009, many consumers are fretting over the health of the economy and job security. According to Statistic Canada, Alberta’s unemployment edged up to 4.7 per cent in December from 4.5 per cent the month previous. Shell Canada, one of Alberta’s largest oil projects, recently cut hundreds of jobs – striking fear into residents that more lay offs are to come. With this in mind, I thought you might be interested in a story looking at the impact on Albertans’ personal debt and expert tips on how to prevent consumers from falling into a financial crisis during this time.

When it comes to debt in Alberta, the province holds highest average household debt in Canada, sitting at $124,838 –nearly $50,000 more than the Canadian average. A recent BMO Report shows that despite the slump in oil and the decreasing number of jobs in the province, consumers are still spending at an unsustainable rate. Experts are warning consumers to take stock of their financial situation and prepare for the anticipated job cuts.

Average Household Debt
National ATL ON AB BC
2013 $72,045 $47,237 $76,970 $89,026 $79,089
2014 $76,140 $64,120 $67,507 $124,838 $99,834

Bruce Alger, licensed trustee with our consumer insolvency team in Alberta elaborates on his concerns, “Albertans continue to have the highest household debt in the country, and as other expenses continue to hike up such as utilities, property tax, and potentially interest rates, now is the time more than ever for consumers to have discipline and caution in term of their expenses.”

Alger offers some tips to consumers in Calgary to brace their financial situations:

Plan for the worst and start an emergency savings fund if you haven’t already – the goal is to get to several months of living costs put away in case of job loss

  • Seek out where you can easily cut down on every day costs and apply the saving against debts or your emergency fund
  • Talk with a financial expert, like a licensed trustee, who can offer free advice on how to deal with any mounting debts or debts that have the potential to become a problem.

So our question to you is, has the price of oil affected you or someone you know? Have you started to take a review of your finances and developed a plan to ride out the oil and gas wave?

If you or a family member are facing financial struggles or would like some help with managing your debt, one of our professionals is available to discuss your situation. There are many options available to help and you may not need to go bankrupt. Contact us for a confidential, no-obligation, complimentary consultation. Call us toll free from anywhere in Western Canada 310 8888. Visit us online at BC: www.GTDebt.ca or AB: www.GT.Alger.ca.



Find the fun in scrimping and saving – strategies to knock debt out

OK, with the New Year a week in, how is your resolution doing? Finances seem to be one of the items topping the list this year for Canadians. You may have holiday shopping, entertaining or travel bills that need paying. Let’s not forget those credit card balances you’ve been carrying for a while. But how do you make room in an already tight budget and figure out which debt to tackle first.

So, it’s time to look around and find creative ways to ‘scrimp’, cut back, change things up and presto: extra money to apply to that holiday (or old) debt and then eventually add to our savings.

Where to start? There are some easy, tried and true ways that when added together really can result in more money in your wallet.

How about nixing the daily coffee fix? If you buy one $4 latte each day, that coffee habit will set you back $28 a week, about $120 a month and $1,460 per year. Keep that up for five years, and you’ve slurped away $7,300, not including any money you might have earned by investing your cash instead.

Take a look at your cable TV, Internet and smart phone contracts too. Candidly telling your supplier you intend to make savings can actually result in some! Discuss the packages and contracts you have and see where you can remove TV channels that you don’t watch, eliminate phone features you don’t need . . . or perhaps where bundling services can result in overall cost savings. Perhaps you no longer need a landline. And, when your smart phone contract comes up for renewal, consider forgoing the tempting upgrade to new technology and stay off contract with a streamlined package of services at a reduced fee.

We all know that eating out can be a significant drain on finances. So too, can be daily visits to the grocery store. It’s proven that popping in for milk typically leads to the purchase of at least three other impulse items. Instead, take time on the weekend to plan a week’s worth of meals and purchase all the supplies in one shopping trip. Quadruple make and freeze favourites like Chili that can serve several meals. Utilize a crock pot slow cooker too: prepare quickly before you head out the door and return to a meal all ready to go – and a great smelling house! Of course, it always helps to use coupons if you have them (look on line and print off) and check with your preferred grocery store as to which day of the week has the most cost savings and offers.

Other small ways to cut back:

  • Cancel magazine subscriptions or agree with friends to share the cost and circulate the issues.
  • Give up expensive habits like smoking and alcohol.
  • Install a programmable thermostat that can easily cut your energy bill by 10 to 20% (check out the NEST).
  • Stretch the gaps between hair cuts or colour treatments – after all Ombre is a trend.
  • Before shopping for new clothes, clean out your closet and figure out where you can re-style and re-purpose some of what you already have. You may be able to sell some items at a consignment store or re-discover outfits that you can adapt or re-incorporate into your current favourites.
  • Don’t spend a lot of money entertaining your children. They mostly crave time with you . . . so implement fun no-cost family activities like tobogganing nearby, or movie and game nights at home where everyone unplugs from devices and spends quality time together.

The money you save may later help fund a great family vacation!

If you or a family member are facing financial struggles or would like some help with managing your debt, one of our professionals is available to discuss your situation. There are many options available to help and you may not need to go bankrupt. Contact us for a confidential, no-obligation, complimentary consultation. Call us toll free from anywhere in Western Canada 310 8888. Visit us online at www.GTDebt.ca or www.GT.Alger.ca.