Alberta in Crisis

alberta-prairiesAlberta has been seen as an economic powerhouse for the last 20 years. However, that’s about to change as a huge oil slump is headed towards Alberta and they’re already starting to feel the effects immediately. The last time there was a slump, it was in the 1980s but in the next two years, oil prices will continue to drop and Alberta’s Finance Minister has warned that this is going to be this generation’s challenge to fix. The deficit created by this slump could easily end up at over $10 billion in the next year alone.

The banks in Alberta are also reporting that because of bad credit loans and losses, they’re going to be feeling the economic slump as well. With so many loans going unpaid, the Government in return is going into more debt and the deficit is growing rapidly. This has resulted in the loss of jobs, the loss of funds available to Alberta and has unfortunately amounted to a near economic disaster.

Job Cuts

Encana Corporation issued a statement stating that the situation was dire and that the CEO within 30 years of working at Encana Corp. has never seen trying economic times this tough. As a result of this, the Canadian power house is going to rapidly bleed jobs and in the next year, their work force will be just half of what it was in 2013. This means less money will be spent in the economy and less people will be earning a regular paycheck, which in turn results in them applying for assistance benefits.

Are there any signs of hope that this situation could turn around quickly? It doesn’t appear so, as the Saudi Arabia Petroleum Minister has made it very clear they have no intention of doing production cuts. With lines of credit not being left available, jobs being cut and the Canadian economy going into shambles, what can people do?

Debt Consolidation

A lot of Alberta consumers feel hopeless right now as to how to proceed forward. Some of them might even be considering bankruptcy. No matter how much credit card debt and bad loans you’ve taken out, bankruptcy doesn’t have to be the answer and you should always consult with a trustee or financial advisor before making the decision to file for a bankruptcy.

Payday Loans

For people who just need to get by and borrow some money, there’s the idea of payday loans as well. While lower prices could be coming soon, should Saudi Arabia change their minds, a payday loan might be what you need to get you back on your feet if you’re feeling the effect of a job loss. Regardless of your bad credit history, you might still be eligible to get some borrowed money for a short amount of time.

The Options

What options do people have if they’re terrified of the times to come because of the loss of jobs and the banks losing money on bad credit loans?

Debt Consolidation – Always consolidate what debts you have and try to get those amounts lowered for a fixed monthly price if possible. Most companies will work with you rather than trying to collect it all.
Payday Loan – Getting a payday loan is the most common answer for getting out of a tough financial jam. This is simply a loan you can get and have an agreement to pay back on the lender’s terms.

If you have a line of credit, you could also consider applying for a new line of credit or adding onto your existing credit. There are options out there, so don’t give up hope yet.