Financial Crisis

In the late nineties, Barbara's husband unexpectedly suffered a fatal heart attack. Suddenly, she found herself as a widow with four young children to raise on her own - without a job or previous work experience. To describe the loss of her husband as an emotional and financial adjustment is an understatement. But with the support of others, Barbara eventually rebuilt her life and her finances one day at a time. She shared with me how she did it, and, if you ever find yourself in a similar situation, how you can too.

No one ever strives to find themselves strapped for cash, deep in debt or bankrupt, but the unfortunate truth is that it happens. People lose their jobs, become ill, injured or sadly lose a bread winner in the family.

In any of these cases, the pain caused by the event is amplified by the ongoing financial struggle. However, there are some steps you can take to prepare your finances and minimize the stress.

Inspired by an article in the Globe and Mail, here are 10 steps you can take to help get you through a personal finance meltdown:



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A record low increase in core consumer prices was the last thing economists expected to see, especially given recent advances in the Canadian economy. However, a record low increase is what we got, taking the pressure off the Bank of Canada to raise interest rates anytime soon.

Core inflation -- a measure of the cost of living -- rose only 0.9% in the 12 months ended February, the lowest reading since records began in 1984. In fact, a reading that low would usually cause the Bank of Canada to lower interest rates to stimulate the economy and price increases.

It turns out that Canada's economy is in much better shape than previously thought, causing economists to bring forward their predictions of an interest rate hike.

"The recovery in Canada is proceeding slightly faster than expected, and there is more evidence of the anticipated rebalancing of demand," Canada's central bank governor Mark Carney said in a statement Tuesday.

It's no fun to be in debt, ever. But clearly Canadians are up to their eyeballs in it, and just as indebted as our American neighbours to the south. To help readers look at their own situation and weight their options for dealing with debts they might have, WalletPop Canada has created a video series featuring Credit Canada Executive Director Laurie Campbell that will answer many of the most-asked questions regarding debt.

Watch for our Dealing with Debt series starting next week, but in the meantime, have a browse through our gallery of AOL readers' real-life debt collection experiences. Clearly some companies have invasive and sometimes underhanded methods for debt collection.

In response to the disruption of oil supply stemming from the civil unrest in Libya, Saudi Arabia has quietly increased its oil output to more than 9 million barrels per day (bpd). That's an increase of 700,000 bpd from Saudi Arabia's estimated 8.3 million bpd in January.

The price of crude oil reached almost $120 a barrel yesterday, but had dropped to $111.38 earlier today.

Real Disruption to Supply
It seems like just a few weeks ago that we were on the edge of our seats because oil was approaching $90 a barrel. Oh, that's right. It was. Last month's civil unrest in Tunisia saw oil prices rise rapidly, then fall again to slightly more comfortable levels. At that time, the Organization of Oil Exporting Countries (OPEC) said they would not change their output quotas because there was no issue with supply.

Canadian business leaders have come out in overwhelming support of the free trade negotiations with the European Union and say a deal with China would also be beneficial to Canada's economy.

More than 90 per cent of Canadian business executives believe Canada has benefited from existing free trade agreements (FTA), a survey of 200 senior executives by national business law firm Miller Thomson LLP showed. Canada has FTAs with the U.S. and Mexico (NAFTA), Panama, Jordan, Peru, Chile and Israel.

About 60 per cent of Canadian business leaders said free trade with the European Union should be a government priority and 37 per cent said the government needs to urgently examine Canada's trade relationship with China.

Everyday readers from across the country add their thoughts and opinions to new, amazing stories. Discussions are created and debates rage on in the space below posts and we, at WalletPop want to highlight the most popular stories of the week.

Celebs That Make You Spend, Spend, Spend

Advertisements are one of those pesky things that most people have learned to simply ignore. They're often generic, boring and sometimes downright condescending.

But when ads are good, they tend to be very good and the public takes note.

Canadians have begun to react to fears about record debt levels with household debt rising at its lowest rate in 15 years in November. But while growth has slowed significantly, it is yet to reverse the rising trend, meaning the record-breaking run of mounting debt continues.

The good news is that Canadians are starting to take better care of their finances. Benjamin Tal, deputy chief economist at CIBC, said household credit, once adjusted for inflation, rose by only 0.27 per cent in November. Meanwhile, data for the third quarter of last year showed that household credit rose at its slowest pace since 2001. The number of unpaid credit card bills has also stabilized at below one per cent.

Despite the improvement, Mr. Tal says there are still some concerning developments in Canada's debt situation.