. Let’s take a look at some of the economic trends that are likely to have an effect on your finances in 2020:Rising unemployment destroys financial stability, especially in households with a lot of debt. Fortunately, we have an unemployment rate that is low by historical standards at 5.9 per cent. Unfortunately, the surprise loss of 71,000 jobs in November boosted the jobless rate to that level from 5.5 per cent in October.
Then came a sharp uptick in the number of insolvencies, in which people either declare bankruptcy or make a consumer proposal to repay some of their debts over time. Insolvencies were at a low level before, so the increase may not be as alarming as it seems at first glance. But there are other signs of debt fatigue.
If you’re late on payments, intervention now can help you avoid insolvency later on. See a financial planner or a non-profit debt counselling service to find out about budgeting and debt consolidation loans.There is no upward pressure on interest rates, which is comforting because the last round of rate increases has been linked to the uptick in insolvencies in 2019. Economists have speculated about the potential for a rate cut, but we’ll only see lower rates if concern about a recession builds.