Rising insolvency: Budgeting is more important than ever during the holiday season

Montreal, November 26, 2020 – Raymond Chabot, a subsidiary of Raymond Chabot Grant Thornton specializing in insolvency and financial recovery, is urging consumers to protect their financial wellbeing by preparing a personal budget and sticking to it. This comes as more and more Quebecers are experiencing financial hardship and we head into the holiday season, starting with tomorrow’s Black Friday sales.

Make financial health a priority

Protecting physical health is naturally everyone’s top priority, but maintaining good financial health is a close second. According to the most recent data, Quebec insolvency claims were up in September 2020. The situation is concerning and expected to get worse over the next few months, despite the various government assistance programs still available. A total of 2,148 bankruptcy and consumer proposals were filed in September, marking a 25% increase over August 2020 and a 57% increase over May 2020, when claims hit their lowest level since the year began.

“In order to curb the trend over the next several months, we’re urging Quebecers to take stock of their financial situation and prepare a budget. For many people, uncertainty generates stress which in turn prevents them from realistically assessing how much they can afford to spend,” said Éric Lebel, partner and licenced insolvency trustee at Raymond Chabot.

Prepare a budget to help you stay on track

To help Quebecers prepare a budget and stick to it, Raymond Chabot has optimized his budget calculator on its website to include the spouse’s income and expenses. In addition to creating a budget that is more representative of the family situation, our free tool can be combined with our financial checkup tool.

Reduce your financial stress for the holidays

After planning their budget, consumers need to prepare to make it work. The holiday season typically generates financial stress and this year’s economic situation has put added pressure on a lot of households. Raymond Chabot offers four tips for keeping on top of your finances over the next few weeks (read this article for more advice):

1. Take stock of your financial situation.
2. Set aside some time to plan celebrations that fit your budget.
3. Choose less expensive gifts. After all, it’s the thought that counts!
4. Remind yourself of what really matters.

“It’s to every Quebecer’s advantage to take a disciplined approach to personal finance. Preparing a budget and reviewing your finances are effective strategies for achieving and maintaining financial wellbeing,” added Mr. Lebel. “And if you ever find that bills are piling up and you can’t stick to your budget, contact an insolvency trustee right away. It’s important to get help before things spiral out of control. While prevention is the best medicine, insolvency trustees are there to care for your personal finances and find the best solutions to address your problems.”

À propos de Raymond Chabot

Raymond Chabot, filiale de Raymond Chabot Grant Thornton, se spécialise depuis plus de 40 ans dans les domaines de l’insolvabilité et du redressement financier auprès des particuliers et des entreprises. Avec une équipe de 274 professionnels répartis dans 109 bureaux, dont un au Nouveau-Brunswick, quatre en Ontario et 104 au Québec, il s’agit du plus important réseau québécois de conseillers en redressement financier et syndics autorisés en insolvabilité. Raymond Chabot se distingue par son expertise ainsi que par son approche humaine et empathique.

About Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is a professional services firm that has been dedicated to the success of organizations and their leaders since 1948. The firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals help accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,800 professionals, including approximately 200 partners, working in over 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.

Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton global organization, our global footprint spans across more than 140 countries with over 56,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.

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